AZ Tech Roundtable 2.0

AZ Tech Council on 2024 Innovation & Governors Celebration w/ Steve Zylstra

- AZ TRT S05 EP42 (258) 11-10-2024

What We Learned This Week

• Arizona Technology Council, in partnership with the Arizona Commerce Authority, honors technology leaders and innovators from across the state with the Governor's Celebration of Innovation Awards.
• AZ Tech advocates for the entire tech industry
• New committee on Space, Satellites & Rockets for launches
• Major Investment$ in AZ for Semiconductor & Battery factories

Guest: Steve Zylstra, President / CEO AZ Tech Council

https://www.aztechcouncil.org/

Steve Zylstra of AZ Tech Council joins BRT to talk all things technology in the Valley. The Arizona Technology Council is one of the largest technology-driven trade associations in North America, with over 850 members and growing, the only organization specifically serving technology companies statewide. They protect innovators and truly believe that technology moves all of us forward; and are dedicated to the future of Arizona.

Steve Zylstra advocates for AZ tech, as well as his recurring writing about the industry. Steve, and the Council are a major source for updates on technology, business growth, and what legislation is being drafted.

The Arizona Technology Council, in partnership with the Arizona Commerce Authority, has announced the winners of the 2022 Governor's Celebration of Innovation awards. Winners of this prestigious annual award program represent the best of the best in Arizona's technology, science and education ecosystem. This year's recipients were recognized tonight in a ceremony at the Phoenix Convention Center.

"The Governor's Celebration of Innovation award winners represent the pinnacle of innovation and cutting-edge problem solving throughout the state," said Steven G. Zylstra, president and CEO of the Council and its foundation, SciTech Institute. "It was a pleasure to celebrate our winners, as well as the many outstanding finalists, at tonight's awards show. Each year we are so proud to see how far Arizona has come as a leader in technology, science and STEM education."

"Each year, the Governor's Celebration of Innovation awards showcase Arizona's vibrant technology community," said Sandra Watson, president and CEO of the Arizona Commerce Authority. "This year's winners and finalists certainly carry on that tradition. We are proud to partner with the Council to highlight the entrepreneurs and local leaders making Arizona a magnet for innovative technologies."

Notes:

Steve Zylstra of the AZ Tech Council joins the show to preview the upcoming Governor's Celebration of Innovation

Seg 1

AZ Tech Council operates statewide with offices in Phoenix in Tucson. They do public policy advocacy for the technology industry in Arizona. Host events 3x a week, have a newsletter, and numerous programs members.

Council has 14 committees, with the prominent one being public policy.

Link: https://www.aztechcouncil.org/committees/

Tech Impact Report: https://aztc.eimpactv3.com/dashboards/6/techimpact/aztc

Tech industry is booming in Phoenix and Arizona with over $102 billion invested in the semiconductor industry alone. There are four Giga battery factories being built in Arizona.

Company looks selfish if they advocate to politicians in the state direct. Arizona Tech Council acts as a go-between to advocate for the whole technology industry. They also help with legislation through legislative reps. They've gotten priorities past like tech credits R&D invest plans and also lower corporate taxes. They review candidates to see who votes and how the candidates info align with technology goals.

Tech Council committees include AI with 95 companies involved. One of the biggest industries in technology and also Arizona is Optics and Photonics. This deals in light, lasers, lenses or managing light through devices like a telescope to a microscope. University of Arizona and Tucson is the No. 1 school for optics.

Some companies involved are Synapse Labs and Mercurio.

Consultants help companies to transform business on how to use AI. Can either use AI current tools like ChatGPT, or create your own large language model. AI can improve all aspects of a business, really upgrade efficiency.

The AZ Tech Council has added an AI bot called Ada named after Ada Lovelace (early computers) to their website. Over time, AI learns and grows. The company that helped the council with the AI bot is called Skilly.AI.

Seg 2

Clean Energy is a big topic and technology in Arizona. With the passing of the inflation reduction act during Covid, $12 billion has been invested in Arizona, which created 18,000 jobs.

Four Giga factories being built by companies like Kore Power, LG, and American Battery Factory. Deals in Transportation and energy storage for batteries.

You also got major EV car makers in Arizona ike Llucid and Nicola. Estimated over the next 7 years Arizona will have 40% more power needs. Arizona also number one and number two in data centers and growth.

Data Centers use lots of power and cost a lot. You also have a life science industry with organizations like AZ Bio. This is one of the fastest growing sectors. Another one is semiconductors.

Early discussion about mini or modular nuclear facilities for data centers. This could produce renewable power on site. This is long-term planning and might be 10 years away. An example of something being worked on as a nuclear plant loaded on a semi truck.

Governor Celebration of Innovation is a joint awards event between AZ Tech Council and AZ Commerce Authority. Celebrating startups, and small and large companies. Awards to stem students and teacher of the year.

Lifetime achievement award for execs in Boeing, and Phantom Launch (in Tucson) rocket company.

Link to Event: https://www.aztechcouncil.org/event/2024-governors-celebration-of-innovation-awards/

CEO Jim Cantrell of Phantom Launch (formally of SpaceX). rocket expert building a launch system for micro satellites or small satellites. He's competing with SpaceX, his former boss, Elon Musk, and their Falcon satellite.

Satellite and rocket launch technology is a fast growing industry and technology. Future goals to see man return and colonize the moon, as well as mine meteors for resources.

AZ Companies involved in the space industry are Honeywell, Northrup, Grumman, Raytheon, Paragon Space, Viasat, Blue Origin, and Virgin, all operating in Arizona

Steve's son works for Space Force, and also Steve worked in the Aerospace industry prior to the tech council. Arizona Tech Council 2024 is forming a committee on the space industry the end of 2024.

Biotech Shows: https://brt-show.libsyn.com/category/Biotech-Life+Sciences-Science

AZ Tech Council Shows:

https://brt-show.libsyn.com/size/5/?search=az+tech+council

*Includes Best of AZ Tech Council show from 2/12/2023

Tech Topic:

https://brt-show.libsyn.com/category/Tech-Startup-VC-Cybersecurity-Energy-Science

Best of Tech: https://brt-show.libsyn.com/size/5/?search=best+of+tech

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Best of Tech Investing - Venture Capital & Angel Investing

AZ TRT S05 EP41 (257) 11-3-2024

What We Learned This Week:

• ATI - Arizona-based investors committed to supporting capital needs of early stage high growth technology driven companies within Arizona
• Applicants for Funding need to Answer many Q's
• What Problem does your Product Solve? Who is your Competition? How Big is the Market?
• Startup Founders need to research VCs
• Startup Founders need to learn how to Tell Their Story, then work on the Pitch Deck

Seg 1

Clips from: How do Startup Founders Raise Venture Capital? w/ Chris Smurthwaite of VC Insider

- AZ TRT S04 EP05 (167) 1-29-2023

What We Learned This Week

• EX VC or 'Recovering' VC who now works with Startup Founders to help them raise $ money & build their business.

• Startup Founders need to research VCs to understand what type of fund they have, do some research on the fund, industry & and who they work with

• What VCs do not appreciate - How to Contact a VC, do not spam, make the email personalized, this is a commitment, build a relationship
• Startup Founders need to learn how to Tell Their Story, then work on the Pitch Deck with Problem / Solution Model
• What is the Exit Strategy? Exit by Acquisition, or by IPO (go public)

Guest: Chris Smurthwaite of VC Insider

https://www.linkedin.com/in/csmurthwaite/

https://vcinsider.net/

Chris Smurthwaite is an ex-venture capitalist. He consults with & advises Startups on navigating the complex world of Venture Capital. He spent the last decade in corporate strategy, business development and growth operations on both the investor and innovator sides of the table.

At age 30, was hired to run a corporate venture capital fund for a $1.4 billion company.

Among other accomplishments, the fund made:

• A Seed level investment in a health tech company in 2018 which sold for $425M in 2021
• An early stage investment in a company that was acquired for $106M — 7x valuation gain over initial investment.

Since 2013, I have:

• Advised ambitious Founders whose companies are valued from $500K to $250M
• Established multi-million dollar business development partnerships with emerging companies
• Made early stage, on-and-off balance sheet investments

FULL Show: HERE

Seg 2

Clips From:

Arizona Tech Investors w/ Bob DeLean

AZ TRT S04 EP46 (209) 11-19-2023

What We Learned This Week

• ATI - Arizona-based investors committed to supporting capital needs of early stage high growth technology driven companies within Arizona
• Applicants for Funding need to Answer many Q's
• What Problem does your Product Solve? Who is your Competition? How Big is the Market? Who are Your Advisors? What is the Business Plan? Sales Plan?
• Building a Company takes longer than you think, & costs more $ than you expect

Guest: Bob DeLean, Executive Director of Arizona Tech Investors

LKIN: HERE

https://arizonatechinvestors.com/about-us/leadership/

Bob DeLean has been an investor with ATI for more than 11 years and currently serves as the organization's Chairman. He spent eight years as a Senior Equity Analyst with Morgan Keegan & Co., Inc., a wealth management and capital market firm. It's now part of Raymond James Financial Inc. Since moving back to Arizona in 2004, Bob has made 28 angel investments in early-stage and startup companies, the majority being based in Arizona. Bob is an outdoors enthusiast who enjoys road trips and spending time in nature.

In the summer of 2022, he and his life-partner Maria took a five-week driving trip through various National Parks, including Arches, Grand Tetons, Yellowstone, and Glacier National Park. They love wildlife and were fortunate enough to see a handful of black bears during the trip. Locally, Bob enjoys hiking through the Phoenix Mountain Preserve and seeing the occasional rogue coyote. He is also an avid mountain biker, but it never feels like he gets out enough. Bob loves to read (although the nightstand book pile is always growing), and is an expert coin collector.

Full Show: HERE

Best of Biotech from AZ Bio & Life Sciences to Jellatech: HERE

Biotech Shows: HERE

AZ Tech Council Shows:

https://brt-show.libsyn.com/size/5/?search=az+tech+council

*Includes Best of AZ Tech Council show from 2/12/2023

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Ford Power Promise for EV Cars w/ Becca Anderson

AZ TRT - S05 EP40 (256) 10-13-2024

What We Learned This Week:

• Ford - Classic Car Company with 100 Years + History
• EV Car adoption is a growing trend
• Battery Charging at Home + on the Road
• Software & Service is part of the Ford Promise on new EVs
• F150 & Mustang Models are available as EVs

Guest: Becca Anderson

Senior Director Ford e Customer Experience

LKIN: https://www.linkedin.com/in/becca-anderson-cxdirector/

https://www.ford.com/electric/

In the early days of the personal auto, Americans wanted and needed the convenience, peace of mind and expert service of full-service filling stations. After taking two long all-electric road trips – one through the Western U.S. and the other across Europe – I'm convinced that the new generation of electric vehicle owners and would-be owners are also looking for convenience, peace of mind and expert service.

While we've been focused on making public charging easier – including giving Ford owners access to Tesla's Superchargers with an adapter as part of BlueOval Charge Network – we have learned just how important home charging is to overall electric vehicle adoption in the U.S. Nearly 90% of shoppers say they would be more likely to buy an electric vehicle if they knew they could charge at home1. Filling up at home with electricity can be a significant cost save for many owners compared to filling up with gas. Problem is nearly half of them don't know how home charging works1. Where do you buy the charger? Who installs it? What does it cost?

At the same time, we know many electric vehicle customers want 24/7 support from a real person with expertise if they are going to try new technology. Others want assurance on battery life. Yet our industry seems to want to answer these questions in a time-honored way – cash on the hood. Cheap lease deals on electric vehicles are popping up everywhere. Ford believes it will take more than jumbo rebates to truly break through with the estimated 19 million people in the U.S. interested in electric vehicles. It will take – you guessed it – convenience, peace of mind, and expert service. It will take a modern-day version of the friendly filling station, only this time you "fill 'er up" at home.

That's the idea behind the Ford Power Promise that we are announcing today. Here are the details:

Home is Where the Charge is: It's simple. Buy or lease a retail Ford Mustang Mach-E, F-150 Lightning or E-Transit and take a complimentary home charger with you or have it delivered, and when you're ready, an expert comes out to install it at no charge for a standard install. This takes the guesswork out of installation, including costs, to help you save time and money by filling up at home. Less stress, more convenience. If you're a Ford Pro fleet customer, we have you covered with a commercial charging cash incentive.

On-the-Road Charging: Road trips don't happen every day, but when you are on the road, you need to know where to fill up. Our BlueOval Charge Network automatically searches for chargers across various networks, including Electrify America and Tesla Superchargers and adds charging stops to your route via the Connected Navigation in the vehicle. With Plug and Charge, you plug in when you get there, and the payment is automatically made via your FordPass account. It's that easy.

Battery Confidence: We're confident in the quality of our batteries, and we want you to be confident, too. That's why we provide an eight-year/100,000-mile high-voltage battery warranty for every Ford electric vehicle. Ford has your battery covered.

Ongoing Support and Guidance: We're dedicated to providing you with the support you need whenever you need it, including complimentary roadside assistance if your vehicle's range runs too low. We're also expanding our 24/7 Ford advisor for electric vehicle support, so you'll be talking or texting with real people. We are here when you need us.

Electric vehicles are an excellent choice for many people. They are fun to drive, quiet and smooth on the road. They can help save you time and money on gas. And for the first time in a long time, filling up just got easier. Now, if I can just get one of my kids to squeegee my windshield.

Notes:

Ford Power Promise for EVs with 24/7 support and a Battery warranty of 8 years / 100K miles

Customers exploring EV car purchase ask about charging, time to charge, battery life, service Qs, and convenience

Home Installation of charging station thru Ford Dealer

Long range trips are trips of 150+ miles

Range can depend on trips, and weather, Ford can give estimates

Ford Evs have extended range batteries

Tesla Adaptor for charging Ford Evs, can use Tesla charging stations

Charging flap for plugin similar to traditional gas valve

Ford Dealers train and help customers on using EVs + educational content on Ford University

Ford Dealers can service all types of vehicles, including EVs

Ford promoting the EV Lifestyle + service for the car and software support with auto updates

Customers interest in EVs is growing and new buyers are getting used to the vehicle

Range Qs for EVs are being answered with more public charging in major cities and nationwide

EVs have a range meter with gives the data for charge status and miles left

0% Charge – Ford has 24/7 roadside support in worst case scenarios

If you enjoyed this show, you may like:

BRT Marketing: HERE

BRT Business: HERE

Investing Topic:

https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Deep Value Investing Using The Acquirer's Multiple Revisited w/ Tobias Carlisle

AZ TRT S05 EP 39 (255) 10-6-2024

What We Learned This Week

• Acquirers Multiple – Enterprise value of the business, mindset of buying the entire business

• Deep Value Investing – good companies at wonderful prices, looking for companies that are beat down, but not going out of business, will rebound, mean reversion
• Activist Investors – like Carl Icahn, act as catalyst to push mgmt to unlock value – stock buybacks, spin offs, etc.
• Value Trap – buy a cheap company (stock) that just keeps going down, but still looks cheap

Guest: Tobias Carlisle – Founder of Acquirers Fund and author of Acquirers Multiple book & blog

Website: https://acquirersmultiple.com/ / https://acquirersfunds.com/

LinkedIn: https://www.linkedin.com/in/tobycarlisle

Twitter: https://twitter.com/acquirersx

Investing is broken down with Toby's philosophy on 'Deep Value', the Acquirers Multiple (purchasing the whole company), and value investing from Graham to Buffett.

Tobias Carlisle is the founder of The Acquirer's Multiple®. He is also the founder of Acquirers Funds®. He is best known as the author of the #1 new release in Amazon's Business and Finance The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market, the Amazon best-sellers Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014), and other books. He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law.

He runs the Acquirers Fund, a Long / Short Fund (ticker symbol – ZIG). Prior to founding the forerunner to Acquirers Funds in 2010, Tobias was an analyst at an activist hedge fund, general counsel of a company listed on the Australian Stock Exchange, and a corporate advisory lawyer. As a lawyer specializing in mergers and acquisitions he has advised on transactions across a variety of industries in the United States, the United Kingdom, China, Australia, Singapore, Bermuda, Papua New Guinea, New Zealand, and Guam. He is a graduate of the University of Queensland in Australia with degrees in Law (2001) and Business (Management) (1999).

Notes:

Deep Value – what drives returns in investing, picking stocks is half the battle

Concentrated Investing – interviews with fund managers

Acquirers Multiple – summary of previous books, giving the best lessons

Built Models to back test investing styles and value investing techniques

Warren Buffet is looking for Wonderful Companies at Fair Prices vs a Good Company at a Wonderful price (Deep Value)

Not a great business, but still a good business, that is being priced like it is going out of business. The market will realize this later, as it rebounds and grows slowly over time.

Contrarian's contrarian like Carl Icahn

Value Trap – buy a cheap company (stock) that just keeps going down, but still looks cheap

Corporate Raider or LBO (Leverage Buyout)

Activist Investor or Shareholder Activism – forces management to make changes and unlock that value

Solutions - Buy back stock, sell assets, spin off a division

Value Investor has to be patient, can take years for the market is too realize the value

Lots of cash $ on the balance sheet, low debt, and business is generating free cash flow

Cash Flow is the life blood of a business, without it the business runs out of options

Buffet was a Liquidator in his early days, buy the company and liquidate the assets to make a profit, but decided to change his strategy because of pushback from company employees

Acquirers Multiple: think like an Acquirer (like Private Equity), buying the whole business or the Enterprise Value - what is the equity value of the business, how much debt, how much cash – forensic analysis of the balance sheet, and determine all assets and all liabilities

Enterprise Value = market cap plus debt plus preferred stock plus minority interest minus cash.

Enterprise Value compared to the operating income

EBITDA – operating income / cash flow of the business

Magic Formula - Joel Greenblatt investing has 2 formulas to calculate:

Return on invested capital (ROIC) = EBIT / (net working capital + net fixed assets)

Earnings yield = EBIT / Enterprise value.

Average Small Business gets valuation that is 1 – 2x cash flow multiple, because it is owner centric

Big Business gets better Valuation (could be 6 – 12x cash flow) because it is robust and not dependent on 1 or few people

Tech Company with great secular growth, and a Moat could have a multiple of 20x free cash flow

Ie - Google, Microsoft, Apple, Amazon, Facebook, Visa , Mastercard

Mean Reversion – companies or stocks go down over time, because completion comes after the main players in a an industry and chip away

13F – follow 13 F of Super Investors for stock ideas, Toby does not use this method, even though he pays attention. Toby likes: Carl Ichan (Catalyst), Warren Buffet, David Einhorn, Dan Loeb (Third Point), Seth Klarman

Baupost Group – Seth Klarman is a deep value investor, buying into distressed companies

I Press – David Einhorn of Greenlight Capital made an activist push at Apple in 2013 to unlock value by creating share levels

Buffet's buy of Apple stock in 2016, put in $36 Billion

Buy the stock cheap, even when the value is going down to cash in on the opportunity, when the stock is rising again, it's too late

Howard Marks – no bad stocks, just bad prices, it's all about what price you pay

Acquires Multiple Checklist –

• strength to survive short term problems
• market size of mid cap or bigger ($2 bill +)
• plenty of cash on balance sheet & cash flow
• some acknowledgement of undervalue - paying down debt buying back stock, offloading asset, or sell business
• companies that buy back stock ROI do well, if issuing more shares = bad, look at share base compensation of managers
• Big Shareholder is engaged and pushing mgmt

Investing Topic:

https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Taxes Are Going Up - How to Grow Your Wealth using the Right Tax Buckets

- AZ TRT S05 EP38 (254) 9-29-2024

What We Learned This Week:

• Tax Buckets, broken into 3 categories of Taxed (income), Tax deferred (401K), Tax Free (Roth)
• Taxes are going up – How to Move more $ into a Tax Free Position
• Advisors should ask Clients – Do you want to pay Taxes now when you know the rate, or Pay Taxes Later at Unknown Rate? You are always partners with the Gov't / IRS
• Arbitrage is Powerful in Finance – borrow cheap $ at 3%, then earn 6% controlling more Capital
• Wealthy like Bezos or Musk use Tax Free Loans to get Money on appreciating stock assets

Guest: Denver Nowicz, President - Wealth For Lifehttp://wealthforlife.net/

Denver Nowicz is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not 'All or Nothing'.

Defense – Why defense is so important, and how Insurance strategies can help. 3 to 1 Matching – one of Denver's favorite strategies thru insurance, more for upper level earners who have a long term horizon

Tax Protection – Tax Buckets, broken into 3 categories of taxed (income), tax deferred (401K), tax free (Roth), understanding the differences, and where your funds are currently, and options thru insurance products to move more $ to a tax free position.

We also talk about Executives, and what strategies can they use to handle taxes, investments, & retirement. The standard retirement plans (IRA, Roth IRA, 401K), what is a 401K, and the deferred tax setup in the plan (and recs take company match on 401K). We shift to why business owners have more options and benefits and what are they (Acquire assets, stocks, real estate, invest in business).

The 3 Tax Buckets – income, tax deferred, tax free, and understanding the 3, and tax protection – move more $ to the tax free position. When you have Assets – rental real estate, cash flowing business, IUL, you can use them for tax benefits. Create your own Exit Strategy as if you sold the biz you worked for, and get the benefits of 3 to 1 Linder Match. What is the strategy of Elon Musk or Jeff Bezos with Tax Free Loans?

More Info on WFL and Tax Free Matching: HERE

Previous BRT Shows w/ Denver Nowicz:

Link to Taxes Show on 10/31/2021 w/ Denver: Here

Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here

Link to Shows, Denver was a Guest: Here

BRT S02 EP23 (70) 6-6-2021 – Why You Need Both Offense and Defense in Your Financial Strategy

https://brt-show.libsyn.com/brt-s02-ep22-70-6-6-2021-why-you-need-both-offense-and-defense-in-your-financial-strategy

Investing Topic:

https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Rockin' the Kremlin - Russian Music Industry w/ David Junk

- AZ TRT S05 EP37 (253) 9-22-2024

Things We Learned This Week

• Roger Waters performed The Wall – Live in Berlin after the Fall
• David Junk went to the concert, & was inspired and moved to Russia, got into Diamond business, then Music Industry with Universal Music
• David had to establish a legal record market, and had to fight corruption with the Local Mob
• Record Companies and Artists wanted to grow their fan-base in both Eastern Europe & Russia post the Fall of the Soviet Union
• Western Music had a huge impact on Russian music, culturally & maturing the industry, which created local Rock Bands & Rap Artists

Guest: David Junk

Music Business in Russia

https://www.linkedin.com/in/david-junk

About

David Junk is a seasoned music industry veteran with a career spanning thirty years. After the fall of the Soviet Union, David Junk embarked on an extraordinary adventure by becoming one of the first American record executives to work in the Ukrainian music industry. Early Days and Introduction to Ukraine: In 1999 as a record executive for Universal Music, the world's largest record company, David started an initiative to open the first branch of Universal in Ukraine. At the time, no other Western record label had ventured into Ukraine, allowing Russia to control the Ukrainian music market. David played a pivotal role in the early development of the Ukrainian music industry. This opened the door for more Western labels to engage in business in Ukraine. Championing the Ukrainian Music Industry: As Vice President of Universal Music, David had a significant responsibility in overseeing Eastern Europe, with a specific focus on Ukraine. He was instrumental in defending the rights of Ukrainian songwriters and combating music piracy controlled by criminal groups. Under his leadership, Universal Music soared to become Ukraine's most successful international label. This achievement was largely attributed to the Ukrainian youth's love for Hip Hop and rap music from Universal's premier labels, Interscope and Def Jam Records. The world-renowned Black Eyed Peas and rapper 50 Cent graced the Ukrainian music scene, thanks to David's efforts. In 2005, Universal Music extended its support to the Ukrainian Eurovision entry, Green Jolly, when Kyiv hosted the televised event for the very first time. Contributions to the Reggaeton Genre: In 2006, David took on the role of General Manager at Universal's Machete Records in Los Angeles, where he played a crucial part in transforming it into the #1 Reggaeton label in America. His work involved collaborating with renowned artists such as Don Omar and Wisin Y Yandel, further expanding his experiences in the music industry. Gibson Guitars: In 2013, David began a new career chapter, joining Nashville-based Gibson Guitars and managing a guitar showroom from the iconic Hit Factory recording studios in New York City. In this role, David presented honorary guitars to music legends Tom Petty, Elvis Costello, Nile Rodgers, Steve Miller, and the band Cheap Trick for their inductions into the Songwriters Hall of Fame and the Rock and Roll Hall of Fame. He also provided guitar support for Blondie, Rush, The Roots, and Andrew Lloyd Webber's "School of Rock" Broadway Cast in the Macy's Thanksgiving Day Parade.

Seg 1

David Junk bio, fell into the music business by accident. Most people get into the music business through connections or ex musicians. David worked for universal music, and got into the music business when he was already working in Russia. He was living and working in Moscow and hired by universal music, then called PolyGram for a finance position for the record company.

Record label was big, carried the catalogs of Bob Marley deaf jam artist Bon Jovi and was the first musical label in Russia. David went on to become the first CEO of universal music in Russia.

David is from Ohio, and grew up during the Cold War with fear of Russia. His influenced by Roger Waters of Pink Floyd and his claim that he would not perform the album the wall unless the actual Berlin wall in Germany came down. In 1989 The Berlin wall did come down. Waters staged a concert performing the wall with celebrity ax joining in, called the Potsdam concert.

David went to Europe and attended that concert. He was influenced by the moment and returned to America to study business and the Russian language. He got an NBA in California.

In 1993 he got a job in Moscow working for a diamond mining company, mining raw diamonds. Russia has large supply of diamonds and Siberia. Unfortunately, the company David was working for turned out to be a huge scam with the Russian bosses stealing $200 million and diamonds. David was arrested and thrown in a Russian jail.

Thankfully, the actual criminals were caught and David was let go. The next job we got in Russia was for the music industry.

Seg 2

How the music business and record labels work. Record labels make money by marketing. Their big artist as well as music writes with song catalogues. Company David worked for carried many of the big rap artists like Jay Z and Eminem, as well as big bands, like U2 and the cranberries and also catalogs of Johnny Cash.

Labels are located in both the US and other countries. I band releases a new album and the record label locate in each country would promote and sell. Record labels want to sign artist to promote internationally to make more sales and exposure to the music.

The 1990s both Russia and Eastern Europe were considered one zone and many businesses were trying to expand.throughout. David visited many countries in Eastern Europe as well as former Russian Republic, like Ukraine.

At the time there was no infrastructure to sell records. There were no legal record stores and the Russian mafia controlled 90% of the music industry. There was mass piracy with music and CD. David's job working for universal music was to create a legal music industry.

Three step process to get the mafia out of the business

1. Legislation - using the Russian Dumba work to create legislation to generate tax revenue off record sales. Country like Sweden was a model with massive revenue from the band ABBA. This failed and corruption issues continued.
2. Police Action - Moscow police raids of piracy locations and confiscate CDs of universal music and other record labels. This partially worked, had some corruption issues. But ultimately it failed to as the pirate factories just moved from the city to military bases. Now they are under protection of the Russian military.
3. U.S. Ambassador - went to the Bush administration to try to block Russia from the WTO world, trade organization. Russia wanted to expand its economy, enjoying the WTO. They leveraged this to push for legal action on music and other industries in Russia. Force the Russian government to protect artist and lessen the corruption.

Seg 3

In the late 1980s and 1990s artist were eager to get their music distributed in Russia. They obviously wanted to work with a record company. Do it legal have promotion that was supportive and understanding of their rights. They also understood that the royalties would be less.

There was big business though in touring. David's bosses in both Angeles and London cannot understand how powerful mafia was and how deep the corruption was.

When bands were touring in Russia mafia would interfere by selling false concert tickets. At the time in the late 1980s and early early 1990s lots of bands were touring in both Russia and Eastern Europe.

There were issues. An example of this was David Copperfield Magician tour. At one point, he did not pay the bribes and could not get his equipment out of Russia. He had to actually cancel parts of his European tour.

Band sell more records by touring in Russia. 1990s peace festival or Bon Jovi Metallica AC/DC all tour in Russia. Mariah Carey also toured in Russia. Kiss refused in the mid 1990s to Eastern Europe because of the war Yugoslavia.

MTV opened in Russia 1999 and this continue to expand music exposure of the west in Russia. Red Hot chili pop performed in the red square.

Western music had a huge cultural impact in Russia. David and universal signed the Russian band tattoo. This became the biggest selling Russian band in history.

Improved in Russia now that they've been introduced to competition from the west. Better music, better, music, videos, and better songwriting. Music is always had a connection to freedom with artist having the freedom of expression.

Hip-hop and rap was introduced to Russia and wound up becoming the most popular music in Russia today. Very much an anti-authority and freedom type music. Russia, creative popular hip-hop band called del. Many acts like Eminem, Snoop Dogg, 2Pac, 50 Cent, Jay Z, Dr. Dre, anime all became big hits in Russia.

David left Russia in 2005 and moved on to work for Gibson guitars which ultimately led to his return in 2013. Often on he lived and worked in Russia for 15 years.

If you enjoyed this show, you may like:

BRT Marketing: HERE

BRT Business: HERE

Investing Topic:

https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

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AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

AZ Bio Week & Life Sciences Innovation w/ Joan Koerber-Walker

- AZ TRT S05 EP36 (252) 9-16-2024

Things We Learned This Week

• AZ Bio mission to improve life and bioscience, & make AZ a Top Ten Bioscience state
• AZ Bio Week 2023 is Sep. 16, 5 Days Talks, Events & Awards
• 3 Ds - Discovery, Development, & Delivery - takes years, and $ billions to bring new drugs to market
• Their company members deal with diseases, medical devices & cancer research to cure it
• Combo of Gov't & Private Funding, University research & private company work

Guest: Joan Koerber-Walker President and CEO, AZBio - Arizona Bioindustry Association, Inc.

Chairman, Opportunity Through Entrepreneurship Foundation

LKIN: https://www.linkedin.com/in/joankoerberwalker

www.azbio.org

Bio:

As President and CEO of AZBio, Joan Koerber-Walker works on behalf of the Arizona Bioscience and Medical Technology Industry to support the growth of the industry, its members and our community on the local and national level. Ms. Koerber-Walker is also a life science investor and has served on the boards of numerous for-profit and non-profit organizations.

In the life science industry, Ms. Koerber-Walker serves as as Arizona's representative to the State Medical Technology Alliance (SMTA), a consortium of state and regional trade associations representing their local medical technology companies which she chaired in 2015 and represents Arizona as a member of the Council of State Bioscience Associations (CSBA) and the Coalition of State Bioscience Institutes (CSBI).

Active in the entrepreneurial and investment communities, she also serves as Chairman of the Board of the Opportunity Through Entrepreneurship Foundation which provides entrepreneurial education, mentoring and support to at-risk members of the community, on the Board of Advisors to CellTrust, Inc. which provides secure communication technology to the healthcare industry, and as Chairman of CorePurpose, Inc. which she founded in 2002.

Ms. Koerber-Walker has been recognized as Executive of the Year by the Arizona Society of Association Executives, as a "Most Admired Leader" by the Phoenix Business Journal (2015), in the pages of AZ Business Leaders (2013 thru 2020), Most Influential Women in Arizona Business (2014) and is a 2 time National Finalist for the Stevie Award which recognizes the work of women in business.

Her past experience includes two years as the CEO of ASBA (the Arizona Small Business Association), service as a member of the Board of Trustees of the National Small Business Association in Washington D.C., President of the National Speakers Association/Arizona, Chair of the Board of Advisors to Parenting Arizona, the state's largest child abuse prevention organization, & much more.

AZBio: Supporting Arizona's Life Science Industry for 19 Years (2003 – 2022)

Learn more about Arizona's bioindustry: www.azbio.org

| Facebook: AZBIO |Twitter: @AZBio @AZBioCEO

We're part of a movement to create sustainable funding for life science innovation in Arizona.

Learn more at www.AZAdvances.org

MOVING LIFE SCIENCE INNOVATIONS ALONG THE PATH FROM DISCOVERY TO DEVELOPMENT TO DELIVERY OUR VISION OF THE FUTURE: Arizona is a top-ten life science state. OUR MISSION: AZBio supports the needs of Arizona's growing life science ecosystem.

The Arizona Bioindustry Association (AZBio) is a not-for-profit, 501(c)6 trade association supporting the growth of Arizona's life science sector.

AZBio Member Organizations in the fields of business, research and education, health care delivery, economic development, government, and other professions involved in the biosciences are the key drivers of the growth of Arizona's life science sector. As the unified voice of our industry in Arizona, AZBio strives to make Arizona a place where bioscience organizations can grow and succeed.

AZBio works nationally and globally with the Advanced Medical Technology Association (AdvaMed), the Biotechnology Innovation Organization (BIO), the Medical Device Manufacturers Association (MDMA), the Pharmaceutical Research and Manufacturers of America (PhRMA), and leading patient advocacy organizations.

Through these relationships, AZBio has access to information, contacts, resources, cost saving programs, and the global bioscience and medtech community.

Arizona's bioscience industry is growing rapidly and reached nearly 30,000 jobs spanning 2,160 business establishments in 2018. Industry employment has grown by 15 percent since 2016—twice the growth rate of the nation—with each of the five major subsectors adding jobs during the period. Arizona's universities conducted nearly $580 million in R&D activities in bioscience-related fields in 2018, fueled in part by steadily increasing NIH awards to Arizona institutions since 2016. Venture capital investments in Arizona bioscience companies increased in 2019, and during the 2016-19 period totaled $349 million. Arizona inventors have been awarded 2,178 bioscience-related patents since 2016, among the second quintile of states in patent activity.

Notes:

Seg 1

Biotech and life sciences industry in Arizona, has 3000 businesses and 36,000 employees. The economic impact in 2021 was $38.5 billion. AZ Bio would like to double, so by 2033, the impact would be $78 billion.

Examples of biotech companies in Arizona are Medtronic that makes medical devices, WL Gore, material sciences. Other companies in diagnostics, there are Sonoran Quest which does testing. This also Castle Bio Sciences, deals in cancer treatment. Some medicine companies are Bristol, Myers, and Calvari who deals in cancer drugs. Calvari is the bio science company of the year in 2024.

AZ Bio Science Week started in 2017. AZ Bio week starts September 16 and has events daily from Monday to Friday.

Seg 2

Neo clinical stage company dealing in heart health with aortic artery for the abdomen.

Another new company is prim dealing in MCT deficiency, compound growth and they are in clinical and testing stages.

Drugs get tested through computer models, and then on animals. Always have to worry about safety and ethics. FDA has very strict rules. You do not put people at risk, after monitor, during test and post monitoring. There's high-level quality control.

https://www.azbio.org/azbw2024

Events Summary:

Monday - Women in Biotech

Leading Women: Biotech & Beyond

Join us for an evening of conversation and connections with our community's leading women as we kick off Arizona Bioscience Week in style!

Tuesday - Fundraising

Fundraising Strategies for Life Science Startups

A compelling narrative is crucial when you are fundraising and communicating with life science investors.

This Life Science Nation (LSN) Global Fundraising Bootcamp covers topics related to executing a successful fundraise for your startup.

Wednesday – AZ Bio awards, philanthropy, entertainment, and AZ Advances

The 20th Annual AZBio Awards & AZAdvances After Party

Celebrate with the Educators, Researchers, and Organizations that are making life better for people in Arizona and around the world.

Join us at the Phoenix Convention Center as we honor the 2024 AZBio Award Winners.

Hundreds of health innovators and business leaders will be celebrating at the 20th Annual AZBio Awards.

Thursday- White Hat Investor

White Hat Life Science Investor Conference

White Hat Investors 2024 showcases exciting biotech and medtech companies from across the Rocky Mountain & Southwest Region.

Friday - Voice of the Patient, Bridge Cures Event

Voice of the Patient

Patients are the reason we do what we do.

Join the conversation on life science innovation from the patient perspective.

Ponte Cura: The Bridge to Cures

Ponte Cura is a special donor appreciation event for the people and organizations supporting the Opportunity Through Entrepreneurship Foundation AZAdvances Initiative

AZ Advances:

Arizonans are advancing life changing and life saving innovations along the path from discovery to development to delivery.

AZAdvances is developing the funding that will help advance health innovations in Arizona today and for generations to come.

Charitable donations to the AZAdvances fund at the Opportunity Through Entrepreneurship Foundation, an Arizona based 501c3 public charity, are a way to support the creation of tomorrow's medical innovations.

Seg. 3

Replay Clips from:

Preventing Cancer with a Vaccine w/ Stephen Johnston of Calviri

- AZ TRT S04 EP17 (179) 4-23-2023

Things We Learned This Week

• Calviri is working on a Vaccine to PREVENT Cancer, currently largest animal clinical trial
• Inflammation - starting points of bad cells
• Cancer - bad cells replicate
• Could Prevent other diseases & extend longevity of people's lives - ex.- help w/ dementia
• Tumors make bad proteins
• Calviri vaccine works on RNA (proteins) kills tumor, & arms immune system

Full Show: HERE

Best of Biotech from AZ Bio & Life Sciences to Jellatech: HERE

Biotech Shows: HERE

AZ Tech Council Shows:

https://brt-show.libsyn.com/size/5/?search=az+tech+council

*Includes Best of AZ Tech Council show from 2/12/2023

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

THE PRICE: What It Takes to Win in

College Football's Era of Chaos w/ Sports Writer John Talty

AZ TRT - S05 EP35 (251) 9-8-2024

What We Learned This Week

• NCAA fought lawsuits for years to avoid paying the players, had chance to solve the issue
• Sonny Vacarro (Nike fame) convinced Ed O'Bannon of UCLA to sue, led to NIL
• NCAA cannot enforce rules on NIL, free for all
• Transfer Portal happens 2x / year, can change teams 2x in the same year!
• Nick Saban quit at Alabama because of the chaos
• Likely resolution is a Salary Cap in College Football

Guest: John Talty, CBS Sports College Football Writer

College Football Segment with John Talty on What It Takes to Win in This Era of Chaos in College Football and Their New Book THE PRICE

"THE PRICE: What It Takes to Win in College Football's Era of Chaos" (Harper, August 27, 2024) by six-time New York Times best-selling author Armen Keteyian and award-winning national college football reporter John Talty, is an in-depth and revealing investigation into the tumultuous state of college football—and the financial, physical, emotional, and psychological toll taken on everyone involved. Keteyian and Talty pull from over 200 interviews to exposes everything from the fall of the Pac-12 to the exploitation of underprivileged young athletes.

Their research culminates into a meticulously constructed portrait of the NCAA's crumbling foundations and new inside information on college football's biggest names—Nick Saban, Jim Harbaugh, Kirby Smart, Jimbo Fisher, and Lane Kiffin.

Two of the nation's most respected sports journalists team up for a vital, hard-hitting investigation into the tumultuous state of big-time college football.

We are living in the Wild West of college sports. Name, Image and Likeness endorsements, the transfer portal, collectives, conference realignment, the powerful influence of media companies have all rendered the notion of amateur athletics a quaint relic of the past, replaced by a Brave New World where money and self-interest rule.

About the Authors

Armen Keteyian is an eleven-time Emmy Award-winning journalist and the author or coauthor of six New York Times bestsellers, including The System and Tiger Woods. He lives in Connecticut.

John Talty is the national college football writer for CBS Sports and 247Sports and the author of the Wall Street Journal bestseller The Leadership Secrets of Nick Saban. He lives in Alabama.

https://www.cbssports.com/writers/john-talty/

Here are some of the reveals in THE PRICE:

• Exclusive behind-the-scenes reporting on the bitter legal battle between University of Michigan head football coach Jim Harbaugh and the NCAA, and his chilly relationship with athletic director Warde Manuel

• An inside look at Nick Saban's final year in college football and what ultimately drove him away from the sport

• New detailed, behind-the-scenes reporting surrounding the shocking demise of the Pac-12

• Inside the feud between Nick Saban and Jimbo Fisher

• The bombshell details behind a top college quarterback demanding tens of thousands of dollars from his head coach in order for him to play in an important game

• Exclusive reporting on the rise of Arizona football under head coach Jedd Fisch

• The behind-the-scenes story of Julian Sayin, a top-rated quarterback in the Class of 2024 and his decision to play for Nick Saban and the University of Alabama – a decision gone wrong when Saban suddenly retired

• A major profile on quite possibly the sport's biggest power broker: The uber successful yet mysterious agent Jimmy Sexton

• A rare interview with controversial Auburn University trustee and mega-booster Jimmy Rane, the only billionaire in the state of Alabama

• Behind-the-scenes reporting on the rise and fall of Jimbo Fisher in College Station

• Unique access to and interviews with high-ranking members of the NCAA Enforcement staff, including Vice President Jon Duncan

• The inside story on Jaden Rashada and his college-aged agent who sent the sport into a tizzy when his $13.8 million deal to Florida blew up spectacularly

• Exclusive interviews with former NCAA president Mark Emmert who describes a broken system, assesses the mistakes he made during twelve-plus years guiding the organization, and his surprising predictions on where it's all headed.

Notes:

Seg 1

The book is a deep dive into college football, the NIL and paying players.

John got into sports at age 14 writing for scouts.com. He has been in the business 20 years already, and covering college football for the last 15 years.

NCAA had their chance to change the system about playing paying players, but fought it for years. NCAA had beat prior lawsuits for years, where they would either win or pay very small amounts.

Sonny Vaccaro of Nike shoe fame had a moral reckoning. In the early 2000s he convinced UCLA basketball player Ed O'Bannon to sue.

Ultimately this partially led to the NIL - multiple lawsuits, and eventually California overturned the rule that the players need to be paid. Ed O'Bannon was the face of the lawsuit.

NCAA does not make money off football. They do make $ billions off of basketball and other sports.

A school might make $200 million in a year. Problem with the NIL - now that you have to pay players, lesser or non-revenue producing sports could be canceled. Example: women's sports like softball or volleyball.

NCAA cannot enforce rules on NIL, it's a total free-for-all, wild west with kids switching schools for paychecks.

Seg 2

The transfer portal is two times a year. A player can literally change schools every year, and even two times in the same year. Currently colleges are pushing for a salary cap, and this could be the likely solution.

Coach Nick, Sabin of Alabama quit after the 2023 season because of the chaos. Saban is someone who is all about control and likes to have his day planned to the minute.

Part of the reason he quit was because of the breakdown structure and players jumping ship. Saban worked on agreements, no promises, the players he recruited must work hard. Money portion blows out that plan.Game is changing rapidly and he decided to get out before it got bad. He did not want to leave Alabama Football in a bad position.

Jim Harbaugh of Michigan was busted on NCAA rules during 2019 in Covid. He received a multi-year penalty because they felt he was lying and denied the cover-up.

Similar situation for Bruce Pearl of Tennessee, basketball coach busted for lying about a barbecue with athletes.

Boosters spend $ millions currently on college programs. Unsure to see the future of where boosters will be in the new NIL or salary cap system. Salary Cap system may be coming in the next one or two years, 2025 or 2026 and a revenue sharing plan also.

Currently there is a potential settlement in legal action dealing with the whole issue as well as Title IV.

Related Article –

How Sonny Vaccaro accidentally created the Ed O'Bannon case

Jon Solomon explores the genesis of the Ed O'Bannon trial

https://www.cbssports.com/college-basketball/news/how-sonny-vaccaro-accidentally-created-the-ed-obannon-case/

Football Done Right, History of the NFL with Ex GM Mike Lombardi + Rick Horrow on Stadiums

- AZ TRT S04 EP38 (201) 9-24-2023

What We Learned This Week

· You don't work in the NFL. You live in the NFL. – Al Davis, Raiders Owner

• White Oaks of Football – 5 Coaches who revolutionized how the game is played
• Paul Brown's Operating System – responsible for so many of the ways football teams are run, from headsets, to play calling & playbooks, to scouting systems
• West Coast Bill Walsh – created an offensive philosophy by passing early to get the lead, and running late to keep the lead
• Pete Rozelle (former NFL Commissioner) propelled football into the #1 sport thru Television, starting with Monday Night Football in 1970
• Scouting for players is about elimination, never about finding. Need a Profile to know what you are looking for.

Full Show: HERE

Sports Themed Show: HERE

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional

Intelligent Investor, Market Cycles, Supply & Demand - Best of Host Matt on Investing & Economics

AZ TRT - S05 EP34 (250) 9-1-2024

What We Learned This Week:

• The Intelligent Investor Ben Graham's teaching, and seminal investing book - Ch. 8 on Mr. Market, & Ch. 20 on Margin of Safety
• Market Cycles – importance of identifying them, to know where you are at when investing to avoid Bubbles and Mania
• Supply & Demand - Economics Simplified
• Capital Allocation - What is the Opportunity of your Business Investment?
• Gamblers Fallacy - What is the Probability of the Next Die Roll?
• Game Theory - Dr. Nash's Plan to Pickup Women

Notes:

Seg 1.

MB on Ben Graham's teaching and seminal investing book, The Intelligent Investor (c 1949), & review of the 2 main chapters - Ch. 8 on Mr. Market, and Ch. 20 on Margin of Safety

Ben Graham was an economist, professor, and investor. He is also known as the Father of Value Investing, and the author of Security Analysis, and The Intelligent Investor. He stressed fundamental analysis of securities (stocks), investor mindset, focused investing, and 'buy and hold'. He was Warren Buffet's professor, one time boss, friend and mentor. More: Here

Buffet – Rule #1 Never Lose Money, Rule #2 Remember Rule #1

Ch. 8 - The Investor and Market Fluctuations / aka – Mr. Market Parable

Ch. 20 - Margin of Safety as the Central Concept of Investment

Stocks are a piece of ownership of a company, not just some piece of paper. You have to be able to value the company to determine if the market is selling you the stock at a discount, or if it is over-valued. A good investment is based on the price you pay for it. A good stock can be over-priced, and a bad stock can be a good buy if the price is depressed enough. You make money when you buy (what you pay).

Mr. Market is very emotional, and changes his mind daily. Sometimes he makes you an offer on a stock that is silly, and other times he offers a stock at a deep value, at a low price. This is when you should buy. It is all about psychology, discipline and patience.

Margin of Safety is the idea to buy stocks with a defensive mindset. Buy it cheaper than the value, so if your valuation was off, you give yourself room for error. You have to do detailed fundamental analysis to determine if a stock is over or under valued. Then you hold until the stock, ride out the fluctuations until it rises to its true value.

Full Show: HERE

Seg. 2

MB on legendary investor, Howard Marks of Oaktree and his Memos, in particular, Market Cycles. The importance of understanding Cycles, and how to identify them in investing. A look at market history, and investor psychology all connected to Market Cycles.

Per Investopedia – Market Cycle

The four stages of a market cycle include the accumulation, uptrend or markup, distribution, and downtrend or markdown phases.

1. Accumulation Phase: Accumulation occurs after the market has bottomed and the innovators and early adopters begin to buy, figuring the worst is over.
2. Markup Phase: This occurs when the market has been stable for a while and moves higher in price.
3. Distribution Phase: Sellers begin to dominate as the stock reaches its peak.
4. Downtrend: Downtrend occurs when the stock price is tumbling down.

Examples – Tech Stock Bubble of 2000, Financial Crisis of 2008 (Housing Bubble), Pandemic of March 2020, Railroad Speculation mid-1800s, Great Depression 1929

Howard Marks quotes overheard in a Bubble: 'This time it is different.' 'The market can't fail.'

The market does not always go up, there is Regression to the Mean – prices will eventually go down and even out. Be leery when there is euphoria in the market (be fearful), and maybe sell. Then buy after, post crash at depressed pricing levels. Buy Low, Sell High. Even a depressed asset can be attractive at the right (low) price.

Michael Lewis book – Big Short on the Financial Crisis of 2008

Howard Marks Memos: https://www.oaktreecapital.com/insights

Books: Here (The Most Important Thing, Mastering the Market Cycle)

Bio (c/o Wikipedia) - https://en.wikipedia.org/wiki/Howard_Marks_(investor)

Howard Stanley Marks (born April 23, 1946) is an American investor and writer. He is the co-founder and co-chairman of Oaktree Capital Management, the largest investor in distressed securities worldwide. In 2020, with a net worth of $2.1 billion, Marks was ranked No. 391 on the Forbes 400 rankings of the wealthiest Americans.[2] Marks is admired in the investment community for his "memos", which detail his investment strategies and insight into the economy and are posted publicly on the Oaktree website.

He has also published 3 books on investing.[3][4] According to Warren Buffett, "When I see memos from Howard Marks in my mail, they're the first thing I open and read. I always learn something, and that goes double for his book."[5] Funds led by Marks have produced long term returns net of fees of 19% per year. Investors are primarily pension funds and sovereign wealth funds.

Seg. 3 & 4

Economics 101 for Real World Business

Full Show: HERE

Supply & Demand

Supply is the amount of a specific good or service that's available in the market. Demand is the amount of the good or service that customers want to buy. Supply and demand are both influenced by the price of goods and services.

If there was only one pizza restaurant in a town and then a new pizza place opened, the demand for pizza from the first restaurant would drop. The price of gasoline often changes with the demand throughout the year. As people drive more in the summer, gasoline prices tend to rise.

In professional football, owners sell entertainment (supply) and spectators buy the opportunity to view or display the game (demand). Meanwhile, owners also buy the services of athletes who wish to play (demand) and trained athletes make themselves available for a price (supply).

Marginal Utility

What Is Marginal Utility? Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good or service. The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.

Sports David Beckham signed $250 mil contract in 2007 w LA Galaxy

Galaxy willing to overpay to get the attention, ticket and merchandize sales

What we will pay at the margin?

There is only 1 Beckham, rare commodity, like a diamond – subjective on the value

What is the value of a bottle of water in the desert?

If only 1, then pay a lot, if there are 50 available, then pay less

Capital Allocation –

Capital Allocation is the process of distributing financial resources to different areas of a business to increase efficiency and maximize profits.

A Sunk Cost refers to money that has already been spent and which cannot be recovered. In business, the axiom that one has to "spend money to make money" is reflected in the phenomenon of the sunk cost. A sunk cost differs from future (or regular) costs that a business may face, such as decisions about inventory purchase costs or product pricing.

Sunk Costs also mean that the Money $ used on a bad investment is lost. Don't try to 'chase it' to somehow recover and get even. Instead, just write it off, and move on. It is better to use the New Money $ on better investments. Where to Invest your money $ is pivital to Capital Allocation. Simply put, learn to Control Your Capital and decide wisely what Opportunity (Cost) it should go to be as efficient as possible. This is the intersection of scarcity and choice.

Opportunity Cost is the loss or gain of making a decision, the forgone benefit that would have been derived by an option not chosen. To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others. Famous Phrase – "idle cash balances represent an opportunity cost in terms of lost interest"

Whether your time or money can be better spent on something else

Should you mow your own lawn, or hire someone and concentrate on your job to make more $

Division of Labor

We do not cut our own hair, or drill our own teeth – we go to a dental specialist, saves time & $ over long term

Concentrate on your specialties

Pencil example – one co make wood, one makes eraser, one mines the graphite, and one co assemblies – we all benefit as it would be harder and cost more if same company did it all, suppliers w/ specialty help keep costs down

In Stock Investing – Beware the Zombie Co.s in the S&P Index.

These are companies that are not profitable, or growing (may even need a Bailout). They are just treading water, and paying their interest on debt, but not their principal. In the current S&P index, it is estimated that about 20% of companies are Zombie Co's whose main investment comes from people buying the whole Index.

Unfortunately another 30% of the Index are bad companies that are either are stagnant, or on their way to Zombie status. Maybe 10 – 15% of the Companies (Stocks) in the Index (50 – 75 Co's) are really good to exceptional and should get your Capital.

Do you want to own the best house on the block? Or all of them?

Gamblers Fallacy each roll of the die is separate from the last, no effect

The gambler's fallacy, also known as the Monte Carlo fallacy, occurs when an individual erroneously believes that a certain random event is less likely or more likely to happen based on the outcome of a previous event or series of events.

For example, the gambler's fallacy might cause someone to believe that if a coin just landed on heads twice in a row, then it's "due" to land on tails on the next toss.

Monte Carlo Simulation – use for modeling scenarios

One simple example of a Monte Carlo Simulation is to consider calculating the probability of rolling two standard dice. There are 36 combinations of dice rolls. Based on this, you can manually compute the probability of a particular outcome.

Monte Carlo Simulation is a mathematical method for calculating the odds of multiple possible outcomes occurring in an uncertain process through repeated random sampling. This computational algorithm makes assessing risks associated with a particular process convenient, thereby enabling better decision-making.

Probabilities

Probability is simply how likely something is to happen. Whenever we're unsure about the outcome of an event, we can talk about the probabilities of certain outcomes—how likely they are. The analysis of events governed by probability is called statistics.

Sports analytics is a more recent field that uses data to measure areas like athletic performance and business health to optimize the processes and success of a sports organization as a whole. On-field data metrics help teams decide how to improve in-game strategies, nutrition plans and other methods for raising their athletes' level of performance. Off the field, organizations can leverage data to monitor ticket sales, craft marketing campaigns and reduce operational costs.

Data lets teams and organizations track performance, make predictions and make smarter decisions on the field. Want to figure out what play is best to run on fourth down in a football game? Check the analytics. Wondering whether or not your pitcher should throw another inning? Check the analytics. Players still win games, but data allows coaches to put them in the best position to succeed.

Game Theory – science of human strategy, people behave differently in games

Dr. Nash – A Beautiful Mind

If they all go for the same girl in the bar, competition and no one gets her, but if they work together and pair off with the group of girls, they all may win

As Nash explains it, if all the men approach the blonde first, none of the men will pair off: The blonde will reject them all as a crowd, and her brunette friends will reject them all individually because none of the women will accept being second choice to her friend.

While used in several disciplines, game theory is most notably used as a tool within the study of business and economics. The "games" may involve how two competitor firms will react to price cuts by the other, whether a firm should acquire another, or how traders in a stock market may react to price changes.

Prisoners Dilemma

The prisoner's dilemma presents a situation where two parties, separated and unable to communicate, must each choose between cooperating with the other or not. The highest reward for each party occurs when both parties choose to co-operate.

Keep your mouth shut and tell the cops nothing, both walk

Cold War Example

If both combatants do nothing, everyone lives, or mutual destruction with nuclear war

War Games movie – no winner in hundreds of simulated games

Related Show:

Market Cycles, Risk, & Ben Graham's Intelligent Investor

- Finance Lessons from BRT

BRT S04 EP29 (192) 7-23-2023

What We Learned This Week:

 Mean Reversion & Market Cycles – Asset prices do not go up forever, but rather fluctuate

• Assets – Valuations have gone down, forces Investors to evaluate the worth of an Asset, Risk / Reward analysis, no more 'free' money
• Interest Rates – Don't Fight The Fed, raising rates to lower value of assets
• Market Risk – can get Treasury Bills at 4 – 5%, risk-free, need good ROI to invest in stocks with 10 – 20% downside risk
• Wealthy own Assets, Business, Real Estate, Stocks are the best and most popular
• The Intelligent Investor Ben Graham's teaching, and seminal investing book - Ch. 8 on Mr. Market, & Ch. 20 on Margin of Safety

Full Show: HERE

Business Topic: HERE

Investing Topic: https://brt-show.libsyn.com/category/investing

More - BRT Best of: https://brt-show.libsyn.com/category/Best+Of

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Built to Fail: The Inside Story of Blockbuster's Inevitable Bust w/ Alan Payne

AZ TRT Flashback - S05 EP33 (249) 8-28-2024

What We Learned This Week:

· Blockbuster started in 1985, and scaled quickly after Wayne Huizenga purchased it in 1987, 10,000 stores at its height, dominant video rental co.

· Alan Payne instituted the Video Rental model of HEB to the Blockbuster franchises he ran – segmented movies to rent new ones for more

· Wayne Huizenga was a stellar Founder who built 3 fortune 500 companies – Waste Mgmt, Blockbuster, and Auto Nation

· Viacom purchased Blockbuster in 1994 for $8.4 billion, and went on to lose 75% of the value over the next decade +

· Competition was fierce from Hollywood Video, Redbox and then in 1997 by a new DVD rental by mail company called Netflix

· Netflix scaled into the internet company it always wanted to be with streaming in 2009

Guest: Alan Payne

Alan Payne spent thirty-one years in the movie rental business, the last twenty-five of those as a Blockbuster retail franchisee. He took over a small group of Blockbuster stores in 1993 and grew it into one of the largest and most successful chains in the company. He finally closed his last store in 2018, more than eight years after Blockbuster filed for bankruptcy.

Book: Built to Fail: The Inside Story of Blockbuster's Inevitable Bust

From the Back Cover

Blockbuster was phenomenally successful in its early years and made thousands rich beyond their wildest dreams. But it was consistently outsmarted and outmanaged by smaller companies. And the challenges began earlier than you think--long before Netflix was even an idea in the minds of founders Reed Hastings and Marc Randolph. Blockbuster became one of the most iconic brands in the history of American business, but it cracked at the first sign of a challenge. From its founding, Blockbuster was a company built to fail.

Link: HERE

Alan Payne Bio:

Border Entertainment, LLC - 2000 to 2018 Founded a $34.2M franchise group with 41 independently owned Blockbuster stores.

President & Chief Executive Officer Held complete P&L responsibility while managing executive team (CFO, VP of Product Management, VP and GM Alaska Division, VP and GM El Paso Division, VP and GM South Texas Division) with 750 employees.

· Grew revenue to $34.2M with 41 stores located in Texas and Alaska.

· Capitalized business with $14M debt and $3M in private equity investment. Investors received over 35% internal rate of return. Fully retired debt in 2012.

· Grew sales 140% and profitability 190% during industry decline from 2000 to 2007. Expanded through same store sales increases, new store openings, relocations, and acquisitions.

· Created proprietary management systems by gathering and analyzing data around financial and inventory performance.

· Developed and implemented an aggressive real estate strategy, identifying heavily trafficked, high-volume locations.

· Cultivated culture of loyalty, retaining employees during wind down.

Alan Full Bio: HERE

Blockbuster Video[5] was an American video rental store chain. It was founded by David Cook in 1985 as a stand-alone mom-and-pop home video rental shop, but later grew into a national store chain featuring video game rentals, DVD-by-mail, streaming, video on demand, and cinema theater.[6] The company expanded internationally throughout the 1990s. At its peak in 2004, Blockbuster consisted of 9,094 stores and employed approximately 84,300 people: 58,500 in the United States and 25,800 in other countries.

Blockbuster – c/o Wikipedia: HERE

Harry Wayne Huizenga Sr.[1] (/haɪˈzɛŋɡə/; December 29, 1937 – March 22, 2018) was an American businessman. He founded AutoNation and Waste Management Inc., and was the owner or co-owner of Blockbuster Video, the Miami Dolphins of the National Football League (NFL), the Florida Panthers of the National Hockey League (NHL), and the Florida Marlins (now Miami Marlins) of Major League Baseball (MLB).

Wayne Huizenga – c/o Wikipedia: HERE

Notes:

Seg 1

Blockbuster was the premier video rental company in the 1990s. To put it in perspective how big they were, they brought in more revenue than theater ticket sales.

To add to that, if a movie bombed in the theater, it could be saved by video rental. Also with the introduction of DVDs in the late 1990s, movie studios started doing direct to video movies that would be released in rental stores like Blockbuster.

Pre-Internet was a different era for retail sales. In the 1990s you had huge retail companies like Blockbuster for rental movies, Tower records for CDs and music, and Borders for books. In the 2000s with the rise of the Internet, these businesses were all under attack. Netflix was growing with streaming, iTunes add streaming music, and Amazon was out selling borders with book sales.

In the mid-1990s Blockbuster at its height was the dominant video rental store with 40% market share. Hollywood Video is their main competitor with 20% market share.

Per Alan, half the weekly rental business was done on Friday and Saturday night from 7 to 10 PM. Blockbuster on weekends was the place to be, where the community was literally gathering for family night in movie rentals. There were new releases that came out every week and this section of the store was usually the most popular.

With the introduction of the VCR circa 1985 the video rental business took off. There were tons of small mom and pop video rental stores. The business didn't really have to be run that well as the industry was exploding.

Prior to this it was very difficult to see old movies. You had to have seen them in the past in the theater or wait for Network TV to air them. There was no control and very limited choices.

With the onset of Blockbuster in 1985, the video industry became more organized and professional. Blockbuster also had 6000 movie titles to rent, and scaled fast, opening stores by the dozen+.

Cost for Blockbuster to buy a movie was $70 per movie. They needed to rent the movie 20 times just to break even.

Blockbuster stores count were 5500 stores in the US, 1000 were franchisees and then corporate owned 4500. Corporate stores were typically in the larger markets, while the franchises were in the mid and smaller markets.

Seg 2

Alan bio, in the 1980s straight out of school he went to work for HEB grocery, the second largest grocery company in Texas and privately held. It was a $25 billion company run by CEO Charles Burt

In 1986, with the rise of Blockbuster started with just 30 to 40 stores. In 1987 HEB grocery started in the video business using Blockbuster as a model. They would own single location stores that were about 5 to 7000 ft.² in size.

H-E-B eventually opened 35 stores and was beating Blockbuster in sales had to head in the markets in Texas like San Antonio for example. A few years later HEB sold out to Hollywood Video and Hollywood Video went public.

In 1993 Alan got into franchises of Blockbuster working with Prime Cable. The business was struggling as Prime was not a retail company. They had 8 stores in Alaska and 10 stores in El Paso, Texas. Alan instituted the H-E-B model and was able to turn the stores around.

Blockbuster Business Model -

Blockbuster legitimized the video business, and made it more professional than the original mom and pop stores that were not run well. Wayne Huizenga had bought Blockbuster early on when it just had 20 stores and he grew it fast.

The formula was simple - all movies regardless of whether they were new or old or rented for three day at $3. The demand for new movies was huge. Blockbuster could've charged more renting new movies.

Alan used the H-E-B grocery video model that was developed. Rent movies by the day and charge more for new releases. Older movie you could charge a $1 a day and people could keep the movie for 3 to 5 days.

There was actually a lot of demand for older movies, and they were 15,000 movie titles of older movies in demand.

Seg 3

Wayne Huizenga is a great CEO and businessman. He was the only man to build three fortune 500 companies, Waste Management, Blockbuster, and Auto Nation. Auto Nation was run by CEO Mark Jackson, and is the premier car dealership.

Wayne admitted he was more interested in building the thing, not running things. He also went on to buy the Miami Dolphins in football in the 1990s, and start the Florida Marlins baseball franchise.

Blockbuster stores were well run, attractive, and demand was high. Their franchise colors of blue black background and yellow Blockbuster writing on the sign were easily visible. They also picked very good real estate locations for their stores.

In 1994, Wayne sold Blockbuster to Viacom for $8.4 billion. In just seven years, built valuation from 1987 to 1994 when built up the business for a return of hundreds of percent. He paid $15 million, and sold it for $8.4 billion.

Viacom rolled the business into its total corporate structure and six years later they spun it off at a $1.5 billion valuation in six years, they lost 75% of the value of the business, it was poorly run.

Viacom was a TV company with major networks like Nickelodeon run by Sumner Redstone. He wanted to get involved in the movie business and use the Blockbuster purchase eventually to get Paramont studios.

Blockbuster when purchased was cash flowing $1 billion a year, it was making lots of money.

Steve Berrard was named the CEO of Blockbuster after the Viacom purchase, and only lasted one year. Then Bill Fields was brought in as the second Viacom CEO of Blockbuster.

Fields had a Walmart background, so he was hired for his experience in retail. He had no clue though how to run the video business. He also lasted less than one year, and the cash flow was starting to go negative.

Seg 4

1997 the DVD was introduced and this would change the movie and rental business. DVDs were created to be sold direct to consumer. 1997 is also the year that Netflix started with their DVD rental business through the mail. In 1999, the video rental business peaked at $10 billion a year in revenues. Post 1999 thru 2006 sales were flat to small growth.

1997 Blockbuster got their 3rd CEO, John Antioco, who served as Blockbuster CEO from 1997 through 2007. He also had a retail background and marketing. He had been at Taco Bell briefly, and prior to that he spent 20 years at 7-Eleven.

7-Eleven is a huge retail store that's really about location and real estate. They sell gas soda beer and cigarettes. They are not known for being great in retail. One thing John did as the new blockbuster CEO which was good, he started to engage with the franchisees.

In the late 1990s you were starting to see technology in the Internet slowly affect new businesses. When Netflix was created they always intended to be an Internet company, it just took them 10 years to get where they wanted to be.

John running Blockbuster that stable to slow growth. He doubled top line revenue and doubled the amount of stores blockbuster had but the profit margins went down. Had its height in the early 2000s blockbuster at 5500 US stores and 3 to 4000 stores outside the US.

Blockbuster at the typical business fix cost of rent labor and taxes, which were slowly increasing year after year. Gross margin is just the rental revenue minus the cost of the product.

The cost of the DVD product have been cut in half by the early 2000s. DVDs were made cheaper as the movie business was trying to sell direct to consumer, and kill the rental business if possible.

The rental business revenues started flattening out post 2005. Sell through business for DVDs from movie studios was increasing every year, and had tripled in just a few years in sales.

In theory, Blockbusters gross margin should've gone up but instead was declining. They had the Proto typical business math problem of high costs and not enough sales.

The Great Recession of 2008 was really the beginning of the end for Blockbuster. By 2010 blockbuster and filed bankruptcy. It was the end of an era of a very strong stable business at one point for video sales rental.

Seg 5 – Bonus

Netflix started in 1997, with a business model of DVD rental via the mail. Even though Netflix only had a small portion of market share, by 2004 blockbuster felt compelled to compete with Netflix on the video rental via sales but failed.

Netflix originally did not have their subscription model. That model was added a few years in, circa 2007. In 2010, Netflix started adjusting their business model and experimenting heavily with streaming. The streaming business model for Netflix really didn't take off until post 2010.

Netflix created their AI recommendation model. This taught their subscriber base how to enjoy titles. Netflix overall model was customer centric. If a customer liked comedy Netflix could recommend 10 more comedies to them.

Another thing the customers loved was Netflix would release the full season of the TV series at one time. This created the streaming binge watch phenomenon. By contrast Blockbuster had tons of customer data but never did anything with that data. In theory Blockbuster could've been Netflix, and at one point almost bought Netflix.

Netflix original niche was renting older movies with the recommendation model. Netflix also created the queue system. Netflix sent titles in a customer's queue of 20 movies and would control what movies the customer would get sent in the mail.

In 1998, Blockbuster had to start a revenue sharing of profits with movie studios and this really hurt gross margin in the video rental business. Unit volume sales were not stable as time went on. Overall top line volume sounds was inconsistent.

Blockbuster at one point tried the subscription model, but physically in stores. It failed for it did not work in an actual brick and mortar retail store. Blockbuster in the mid-2000s used gimmick solutions which never really addressed the fundamental problems that were happening.

Reed Hastings of Netflix offered to sell the company to Blockbuster in 2000 for $50 million. Netflix wanted to join forces. Reed Hastings goal from day one, was to be an Internet company. Blockbuster was not able to work out the deal, so it never materialized.

Reed Hastings of Netflix was a true founder and original. He had vision. Founders may not be the best operators all the time, but they must have vision. There are some founders though who not only have vision, but also can be an operator. Examples are Reed Hastings of Netflix, Steve Jobs of Apple, Mark Zuckerberg with Facebook.

Wayne Huizenga was a founder, but not an operator. You go from the founder mentality to the operator mentality, but this never materialized in the history of Blockbuster.

Overall, Blockbuster management never really understood the business they were in. They were in the customer business, but never really focused on the customer. This is how over the long term they were beat out by companies like Netflix, and even Amazon.

Peter Drucker (famous business consultant) would ask the important question: 'What business are you in?' – to understand who your customers are, what they need, and how to market and sell to your customer

Postscript:

Alan Payne closed his last blockbuster store in 2018, and then wrote the Built to Fail Blockbuster book. He does not know what his next endeavor is….

If you enjoyed this show, you may like:

BRT Marketing: HERE

BRT Business: HERE

Investing Topic:

https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business.

AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving.

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more…

AZ TRT Podcast Home Page: http://aztrtshow.com/

'Best Of' AZ TRT Podcast: Click Here

Podcast on Google: Click Here

Podcast on Spotify: Click Here

More Info: https://www.economicknight.com/azpodcast/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.