Bloomberg Business of Sports

Episode: MLB's Growing Wealth Gap; Bloomberg's Brackets for a Cause Winners
Host(s): Michael Barr, Damian Sassower, Vanessa Perdomo
Air Date: April 11, 2025

Episode Overview

This episode explores the financial dynamics and growing inequity in Major League Baseball (MLB), as well as the outcomes and charitable impact of Bloomberg’s Brackets for a Cause NCAA tournament competition. The hosts are joined by Bloomberg News' Ira Budway, who delves into the escalating wealth gap in MLB, and by Jennifer Brisman, CEO of VAO, an event management platform aiming to enhance sports fan experiences. The episode also touches on NIL (name, image, likeness) policy changes in college sports and the implications for athletes and institutions.

Key Discussion Points & Insights

1. Brackets for a Cause: Charity, Competition, and Trends in NCAA Basketball

Segment: 03:06 – 13:48

Highlights:

• Bloomberg’s Brackets for a Cause celebrated its 10th anniversary, raising over $6M for charity, with participants including major CEOs, hedge fund managers, and VCs. The buy-in is $20,000 per participant.
• Whitney Wolfe Herd (Bumble founder) made history as the first ever back-to-back winner of the men's bracket, playing for Baby to Baby charity.
• Notable tie in the women’s bracket: Jeffrey Talpins (playing for American Prairie) and George Walker (for MSK Cancer Center) both scored 211 points.
• This year marked the rare occurrence (first since 2008) where all men’s Final Four slots were filled by number one seeds. Discussions highlighted the influence of NIL rules and the transfer portal in consolidating talent on top teams.
• Personal picks and bracket strategies were shared, offering insights and lighthearted banter about popular choices—and inevitable failures.

Notable Quotes:

• “[Whitney Wolfe Herd] can’t give away her secrets, doesn’t like to give away her secrets on filling out her bracket.” – Vanessa Perdomo [03:37]
• “I like to fill it out in reverse… who I think is going to win, and then I went in reverse the other way. I had Auburn going all the way, which… well, we know how that came out.” – Michael Barr [06:09]

Charitable Impact:

• “Because this has been going on for 10 years, over $6 million has been raised by Brackets for a Cause.” – Vanessa Perdomo [07:37]
• Discussion about the importance of “having skin in the game for someone else” and the appeal of donating through spirited competition.

2. NIL Policy and College Athlete Compensation

Segment: 08:26 – 13:48

Key Insights:

• The hosts break down recent developments in NIL and looming settlements involving revenue sharing for college athletes.
• While not finalized, federal courts are likely to approve a model allowing schools to share $20.5M annually with student athletes, marking a seismic shift in athlete compensation.
• Concerns arise over Title IX compliance and sustainability, as smaller schools may struggle to fund equivalent scholarships across sports.
• Vanessa shares personal anecdotes as a former college soccer player, reflecting on how NIL would have changed her and her peers’ experience.

Notable Quotes:

• “Schools will be able to opt in... [and] share about $20.5 million with their student athletes in revenue sharing models that they’ve never been able to do before.” – Vanessa Perdomo [09:04]
• “If it was a possibility, I would have made that hustle… it all depends on the market you’re in.” – Vanessa Perdomo [11:11]
• “It’s about name, image and likeness. But don’t quit. Because you got to build the name first to make name, image and likeness.” – Michael Barr [12:53]

3. MLB’s Wealth Gap: Structure, Outcomes, and Future Battles

Segment: 15:23 – 27:39

The Landscape

• MLB salaries and spending disparities are at an all-time high. Market behemoths like the Yankees, Dodgers, and Mets invest heavily, while teams like the Pittsburgh Pirates and Milwaukee Brewers struggle to keep pace.
• MLB’s revenue dependence on local markets (ticket sales, regional TV deals) entrenches inequality between teams.

Notable Quotes:

• “It’s like somebody went and bought a Volkswagen and is trying to race the people who bought a Ferrari.” – Ira Budway [16:51]

The Luxury Tax, Salary Cap, and Internal Strife

• The luxury tax ("Cohen tax") aims to regulate excess spending, but high-revenue teams are undeterred and continue to pay the tax.
• Owners of small-market teams whose revenues are limited face increasing pressures; some are taking on debt just to keep teams afloat.
• Players’ union remains staunchly opposed to a salary cap, but owners may push for it in upcoming negotiations—potentially resulting in a lockout.

Notable Quotes:

• “Steve Cohen, I’m not sure, is balancing the books right now in the Mets.” – Ira Budway [18:25]
• “If Hal Steinbrenner wants to lose more money, then he could... [but] what is reasonable to expect of owners?” – Ira Budway [18:25]
• “We’re headed for a lockout at the end of next year, because I think they’re going to try to get a salary cap in baseball and that’s going to be a real fight.” – Ira Budway [20:15]
• “The amount of money of revenue going to players in total is less in baseball than it is in the NFL, in the NBA, where they have salary caps… In major league baseball, it’s 46% and it’s going down.” – Ira Budway [21:49]

Possible Compromises and Small-Market Survival

• Exploring hypothetical “blueprints” for small-market team success: smart management (Moneyball), development, and luck can yield occasional runs, but structural disadvantages remain.
• Recognizing rare exceptions (e.g., Royals, Rays), but sustained competitiveness is elusive for most low-revenue franchises.
• Thought experiment on supplementing low salaries with endorsement deals, though league rules don’t currently allow this.

Notable Quotes:

• “Even being smarter—it can get you... The Rays are proof that you can do it on a consistent basis. But even they haven’t won the World Series.” – Ira Budway [24:48]
• “The Dodgers basically have the most money and have smart management... If you’re playing Moneyball with a huge bag of money, then you’re gonna be really, really good.” – Ira Budway [26:13]

4. Tech & Fan Experience: Spotlight on VAO's Event Platform

Segment: 28:37 – 40:38

Guest: Jennifer Brisman, Founder & CEO, VAO

Product Overview:

• VAO delivers an all-in-one, B2B2VIP event management solution specializing in sports, entertainment, and corporate gatherings.
• Platform unifies event logistics and people (guest/fan) management, providing attendees with an interactive app that acts as a “personal assistant”—moving beyond emails and generic ticketing.
• Proprietary seating/ticketing software supports up to 10,000 guests and enables up to 400 team members to work live within the system.
• Data usage focuses on improving personal experiences, not reselling user data, setting VAO apart from legacy event and ticketing providers.

Notable Quotes:

• “I built a B2B to VIP product to manage premium and premier experiences across sports entertainment, the business of sports, corporate philanthropy and more.” – Jennifer Brisman [29:11]
• “Val really takes what in my opinion is a really 1990s experience… and blazes it into the future.” – Jennifer Brisman [30:43]
• “The data belongs to the brand, to the organizer, but you as a guest, you are a single profile no matter where you go… [it] is used to make your experience better for that particular event.” – Jennifer Brisman [35:41]

Business Model:

• Traditional SaaS: brands pay an annual subscription fee for access. Platform is premium-priced and tailored for large-scale, VIP, and premium event organizers.

Women’s Sports & Future Vision:

• Special attention to how the platform appeals to women's sports and the unique transactional and experiential preferences of female fans and organizers.
• Vision for an all-encompassing guest experience that factors in hospitality, logistics, networking, and personalization.

Memorable Moments:

• Lighthearted acknowledgment that women “plan everything”—underscoring the importance of user-centric design for female fan engagement. [40:19]
• “You are gold. Your eyeballs, your attention and yes, your data. But instead of selling that data, we use it to make you a better experience.” – Jennifer Brisman [38:47]

Timestamps for Important Segments

| Topic | Segment Start | |---------------------------------------------------|---------------| | Brackets for a Cause & March Madness Overview | 03:06 | | NIL/College Athlete Compensation Discussion | 08:26 | | MLB Wealth Gap: Big Market vs. Small Market | 15:23 | | Luxury Tax, Salary Cap, MLB Labor Politics | 20:15 | | Small-Market Success, Moneyball, and Realities | 24:04 | | Paul Skeens Discussion/Endorsement Hypotheticals | 26:47 | | Jennifer Brisman & VAO – Event Tech in Sports | 28:37 | | VAO Platform Details, Data Use, Women’s Sports | 35:02 |

Episode Tone and Memorable Moments

The episode blends insight, expertise, and light humor, especially in bracket banter and discussions of fan experience frustrations. There are moments of earnestness—in conversations about college athlete compensation, the sustainability of Title IX, and the competitive dreams of small-market MLB franchises.

Memorable Quote:

• “For us, this is a really important value prop. We believe that’s where the industries are moving… It doesn’t matter if you are on sports, corporate, premier league, rising league, emerging leagues, women’s sports.” – Jennifer Brisman [38:47]

Conclusion

This episode of Bloomberg Business of Sports is a comprehensive tour through the economics of modern sports, from NCAA bracket-driven philanthropy and college athlete NIL reform, to the structural inequities of MLB and the future of fan engagement technology. It’s an essential listen for anyone curious about the intersection of competition, business innovation, and the evolving sports landscape.