Podcast Summary: The Herd with Colin Cowherd
Episode: Hour 2 - Incentives, Fumbles, Gritos
Release Date: May 6, 2025
Host/Authors: Covino, Rich, and Danny G
Platforms: iHeartPodcasts and The Volume

Introduction

In this engaging episode of The Herd with Colin Cowherd, hosts Covino, Rich, and Danny G delve into the concept of "fumbles" both in the business world and the realm of sports. Drawing parallels between missed opportunities in corporate strategies and critical mistakes in athletic decisions, the trio offers insightful commentary on what leads to these pivotal missteps. Additionally, the hosts interact with callers, enriching the discussion with diverse perspectives and real-life examples.

Main Discussion: Incentives and Fumbles in Business and Sports

Lack of Incentives: The Pizza Delivery Analogy ([02:35])

Covino opens the discussion by highlighting the importance of incentives using a relatable analogy from everyday life—the pizza delivery experience. He critiques the shift to third-party delivery services where tipping occurs beforehand, diminishing the delivery driver's motivation to provide excellent service. Covino states:

"Businesses need to know, and it's more of a life problem. It's a fight problem and a life problem. I'll explain. I think the reason that the fight stinks so hard is that they have no incentive to fight. They're getting paid so much money. What are they fighting for? They're just dancing around. They're already paid."
— Covino [02:35]

Business Fumbles: Skype, Blockbuster, MySpace, and More

The hosts transition to discussing major business fumbles, beginning with Skype's recent shutdown after 22 years. They ponder why Skype failed to capitalize on its robust infrastructure during the COVID-19 pandemic, allowing Zoom to dominate the video conferencing space. Covino remarks:

"When you think of Skype, because Skype should have been and could have been that brand, we all went to and said, Zoom took over out of nowhere. What were other ones that totally blew the opportunity."
— Covino [06:31]

Blockbuster: The conversation shifts to Blockbuster's notorious decision to reject Netflix's acquisition offer in the early 2000s. Despite early insights into digital streaming, Blockbuster clung to its physical rental model, leading to its downfall. Rich emphasizes:

"Blockbuster could have absorbed Netflix for $50 million. And Blockbuster was so cocky and said, nah, we're good."
— Rich [11:25]

MySpace: Another significant misstep discussed is MySpace's refusal to acquire Facebook for $75 million, a decision that led to its eventual obsolescence as Facebook emerged as the leading social media platform. Covino notes:

"MySpace could have acquired Facebook for $75 million. Another misstep for $75 million. That's another fumble."
— Covino [14:23]

Toys R Us and Kodak: The hosts also highlight Toys R Us's failure to embrace e-commerce and Kodak's inability to adapt to digital photography as prime examples of companies that missed critical opportunities due to resistance to change. Danny G adds:

"Toys R Us didn't innovate, so they died. They did not capitalize on the online retail boom."
— Danny G [16:22]

Sports Fumbles: Buffalo Bills and NBA Draft Mistakes

Shifting to sports, the hosts discuss notorious fumbles like the Buffalo Bills' narrow Super Bowl losses and the NBA's infamous draft choices, such as the Portland Trail Blazers selecting Sam Bowie over Michael Jordan. Covino reflects:

"The Yankees sold for $10 million and are now worth possibly up to $10 billion. That's one of the most storied, expensive franchises."
— Covino [17:02]

Caller Contributions: Additional Examples and Insights

Throughout the episode, callers contribute additional examples of fumbles in both business and sports, enriching the discussion:

• Mike from Virginia ([19:34]): Highlights the Buffalo Bills' Super Bowl losses and compares them to contemporaneous teams like the Dallas Cowboys.

• Caleb from Boise ([21:17]): Discusses the Portland Trail Blazers' draft choices, specifically selecting Greg Oden over Kevin Durant.

• Marley from Rochester ([21:51]): Brings up Kodak's failure to adapt to the digital era and the missed opportunity for partnership with tech giants like Apple.

• Eric from Virginia ([23:35]): Mentions Yahoo's missed opportunity to acquire Google, underscoring the long-term financial implications.

• John from Colorado ([32:31]): Reminisces about Excite.com declining to purchase Google for $700,000, a decision that now seems monumental.

These interactions underscore the recurring theme: the critical importance of recognizing and seizing opportunities to avoid becoming obsolete.

Cinco de Mayo Gritos Contest

In celebration of Cinco de Mayo, the hosts introduce an interactive "gritos" (celebratory shouts) contest, encouraging listeners to participate for a chance to win prizes. Covino explains the rules:

"All you have to do is do your best grito. That's it. Now what's a greto? It's a celebration cry of sorts."
— Covino [41:06]

Participants are invited to showcase their best gritos, with multiple winners set to receive rewards such as Swiggy gift cards. This segment adds a festive and engaging element to the episode, fostering listener interaction and community spirit.

Conclusion

The episode culminates with a powerful message about the necessity of innovation and adaptability. Covino succinctly sums up:

"The moral of everything we're getting at right now. It's when opportunity knocks, you have to be ready to answer."
— Covino [25:47]

Rich adds a final thought on the significance of seizing moments:

"It's a matter of opportunity and really seizing that moment."
— Rich [26:02]

As the episode wraps up, listeners are reminded to embrace change and remain vigilant in recognizing opportunities to prevent their own "fumbles" in both personal and professional spheres.

Notable Quotes:

• Covino [02:35]: "Businesses need to know, and it's more of a life problem. It's a fight problem and a life problem. I'll explain. I think the reason that the fight stinks so hard is that they have no incentive to fight. They're getting paid so much money. What are they fighting for? They're just dancing around. They're already paid."

• Rich [11:25]: "Blockbuster could have absorbed Netflix for $50 million. And Blockbuster was so cocky and said, nah, we're good."

• Covino [14:23]: "MySpace could have acquired Facebook for $75 million. Another misstep for $75 million. That's another fumble."

• Danny G [16:22]: "Toys R Us didn't innovate, so they died. They did not capitalize on the online retail boom."

• Covino [25:47]: "The moral of everything we're getting at right now. It's when opportunity knocks, you have to be ready to answer."

Key Takeaways:

• Incentives Matter: Without proper incentives, whether in business or sports, motivation and performance can decline significantly.

• Adapt or Perish: Companies and organizations that fail to adapt to changing environments and technologies risk obsolescence.

• Seize Opportunities: Recognizing and acting upon opportunities promptly is crucial to sustained success and growth.

For those who missed this episode, be sure to listen to The Herd with Colin Cowherd on iHeartPodcasts or The Volume to stay informed on the top sports stories and insightful discussions.