McLean Says Pro Athletes Helping Support Staff

to it. Joe McClean is here with this managing partner for Intersect Capital Joinius on the phone from San Ramon, California. I'm sure he he uh, he really likes my bather's reference. I'm guessing Joe. Really nice to have you with us. Uh, Sports, we're missing it. Are we going to get some sports back? Soon? Please tell me? Use? Well, can I just tell you that I certainly want to back more than you I have. I have never never in my career had every single

client that we worked with sitting at home. Yeah uh with and they've all been good savers. You know that our role of thumb is minimum six out of all net dollars that come in, they must put away for retirement. So they're flushed with cash, with a bunch of time on their hands, and really bored and ready to spend money. So I see that you're gonna be talking about private jet afterwards that they're not always my best friends want to get back to work. Are you telling your clients like, no,

you don't need the private jet? Well, they're they're they're pushing really hard because they say, actually, it is the need right now because I don't want to be out in the in the public. And you know, the NBA, they're trying to finish the season. Baseball is trying to start the season. Um, you know the NFL players they haven't even had a chance to take their physicals. So you have the NFL Draft, you have the free agents all trying to move around, and until they take their physicals,

those contracts aren't valid. And so there's a lot of uncertainty up in the air right now. And so as you look across especially the pro sports. Just sticking with that for a second, and Joe, what are you the most optimistic about, you know, talking to your contacts and league, talking to your clients, just talking to the folks that that you talked to. What's a likely scenario for pro sports.

In your estimation, I think you're going to see golf first. Um. You already saw it last weekend with the four the players playing with with no fans and no caddies. I thought that was hilarious, with Dustin Johnson hitting a shot and just walking away and forgetting that he actually has to carry a bag. You'll see that in June at some point. Um, basketball is I'm not as optimistic, although if you talk to the players that they're very optimistic.

They have the best relationship with their commissioner, Frankly UM and the and the commissioner has been very candid, UM, but I know he's also been very cautious. You know, we have some players that are still sitting Americans that are sitting in China waiting for that league to start. And they've been there now for months. They've quarantined for two weeks, They've now been there for over two months, every players in one city, and they're still not ready

to go. So I'm not saying China is a leading indicator of what the NBA can do in the States, but there's still no movement there and it's tough to say that they'll be moving in the States until I see some positive momentum there. What about other sports? All right, so we talked about golf, you think first you're not

as optimistic about basketball. What else? So baseball, you know, they're they're installed with with the conversations they're trying to have, you know, it's they've already come out obviously there's going to be a reduced schedule, UM, which means reduced salaries. UM. There's still also fighting for some of the details like, um, you know, in baseball, you really want to get your service time under your belt each year, and if they don't play a certain amount of games, they may not

qualified for that. So the players want to make sure that all their rights are protected. Um. Not just not just that it's safe to play, but that's also they're not giving in on anything they wouldn't give in a regular season. So I think baseball has has a good opportunity to come back, but it's not surely nothing in the summer, and football, I think it's the same. You know, they until each state starts opening up and giving um, you know, the players the opportunity to even train, let

alone play. UM, I still don't see any in the summer there they they're they've already been told they can't take physicals until mid mid June, late June. So, um, it's gonna be a long way, a long long way for all of us. Well, Joe, let's talk about baseball if we can for a second, because the economics there, I think are really interesting and this really plays, I think into a lot of what you talk about with

with your clients. Um. And you know, I had a chance to catch up earlier in the week with Rachel Luba, who is the agent to Trevor Bauer, as you know, and you know, one of the things she said was that they are so far apart in in part because there's it feels like a fundamental disagreement on the economics and sort of who should kind of bear the burden of this. And I do wonder for someone who is advising baseball players and others about their their wealth, what

you make of this argument between the owners and the players. Well, in my estimation, baseball has their players Association has always had one of the strongest, strongest teams in place for the players, um, and and that has led to some incredible economics on behalf of the players. However, you know, the problem now is there's some some athletes making million dollars a year and they're already seeing a ten million

dollar pay cut. Nobody's feeling sorry for them. But um, there's gonna be a point where they've got to make some compromises where in the past they haven't. Um. And then every once in a while the owners want to take out, you know, for a spin, the whole idea of of salary caps um, which obviously in baseball don't exist, they do exist in and other sports. Um, that the

players have always fought against. So there's going to be a compromise, I think because they know how important it is to get the game out because in fairness, the television has been strong. Yeah, but but the popularity hasn't been there. So you don't want to go away for entire season, um, I don't think, because you'll lose a lot of momentum. Yeah. Now, I think that's exactly right.

And I think it's also you know, worth remembering. Uh, And you pointed to this with the economics that you know, the baseball or baseball and Major League Baseball and the owners and the players, and certainly the owners rely a lot on the gate. Uh, you know, for a big chunk of that revenue, and so they are going to uh, they're certainly at a at a moment the owners are where they could lose a lot of money if there aren't fans in those stands. Joe McClean, stick with us.

We're going to continue this conversation. As you can tell, we're pretty into it. Um. We want to talk with you about some of the advice you're giving these guys as they're probably bugging the heck out of you, or you're trying to keep them in line, as you say, during this time where they're getting a little bit restless. We're talking with Joe mclin he is managing partner Interset

Capital join us on the phone from California. It's got to be like making sure they don't get into trouble, right, Seriously, a lot of downtime at this point. Our guest at this hour, Joe McClain, he's mamagining partnered Intersect Capital Capital. Uh, and he joins us on the phone from California. So I am curious, what are the conversations you're having, Joe, with some of your athletes who probably have a lot of extra time on their hands right now, so it's

we've taken advantage of it. It's been the first couple of I would say January February. We've created these finance one on one teams because I've got to keep their mind active because as I mentioned, they've got a bunch of cash and they want to be purchasers of consumers. And so we've been having conversations around both being a consumer and an investor um. And so you know, as an example, we we we had dialogue a couple of years ago with would you rather buy Nike for ninety

four dollars? What would you go rather go buy a pair of Jordan's for two dollars? Uh? And so don't just be a consumer, will being an investor? And so we're going through a lot of those exercises. Um. They all now know what it costs to be them, because that was a big question, you know, do you do you know what it cost to be you? Uh? And then the second question was how do we make it

cost less to be you? And so if I can keep keep going with a lot of dialogue and education, that keeps them active because time and money are are not always in your favor. Especially at moments where you

have nowhere else to go. Yeah, for sure. I mean and and do you sense a I mean this gets back to a little bit of what we were talking about with with baseball, in part because one of the arguments that you know, you're hearing sort of in the twitter twitter sphere and the talk radio sphere is like they need to understand that this is good for America. And I'm not saying I am saying that. I'm just saying that, you know, that's one of the arguments here.

And I do wonder, you know, as we think about sports in culture and athletes in culture, how much you are talking with them about And I know you were primarily talking about their finances and their their financial health, but but I do wonder, since I know you think about sort of the whole person, what those conversations are like right now, because we're all being a little bit

more self reflective, or I think trying to be at least. Yeah, I think we're all getting wakeup calls in some form um and and the big big buzzword has been you know, are you gonna pivot or reset into a positive direction? But you know what, I think it's it's been fascinating with the players is one of the first things that they noticed was the cause and effect that they have

on everything else around them. As an example, you know, when they run into a play in a game, they see all the vendors, all the people that are in the arena. Typically you're so wired into play you don't

see anything else around you. Well, now a lot of them are understanding that there these people's paychecks were tied to them playing, and the last couple of months, the majority of them are all helping to reports, literally making sure they have food, making sure they have income, taking a portion of their income and giving it to them.

I think that this has been the it's hard to say it's been the coolest part, but it's been really interesting because now everyone understands how important each other are around them, and and so they do want to get back because they also realize, yes, it's great to watch the game and give somebody, you know, as everyone was watching the last dance, but it also gives people jobs, um and and optimism to get back out there, and so they want to play, but they also want to

play so that other people that they support UM can get back out there. It's been cool. I think it's gonna be a big celebration when they get back. Yeah. Now, it's a really interesting and important point, I think, and I think we've all thought about that in a number of industries and sports is it is a phenomenal example

of that. You know, these ecosystems that build up you know, down to that the not down to but including you know, the parking attendants and you know the folks who who owned the restaurants, you know, right there by Yankee Stadium and every other stadium and arena around the world. It's a really important point, and I think you're right. It takes something like this um for us to to really realize that. Yeah, and I hope we don't forget it.

And even me personally, I through my small town and I don't always understand how that how important that we are supporting them. So I'm going to definitely support the local business owners more more so, and I think the athletes would think it the same. You know, we have a question that we have been asking you know, leaders like yourself, and that is, you know, how you think the coronavirus pandemic is going to change the world. You know,

when we get out of this crisis. What's the most important and in your view, underappreciated way that the world in the world that you know will be, you know, radically different, And what do you think it will be too? Well, it's it's a it's a tough question to answer, but I think just for being understanding and essentially in our space where we work with people that are that youth and almost have to believe that they're invincible, that nobody is.

And and as much as you can plan for uncertainty, um. Now you value the importance of doing planning for the unexpected. UM. But I think we will learn over time that there are some things that we can control, um, that we and there's things that we can't, but we need to do about our job at the things that we can control. Right, That's what a lot of the wake up calls we're all getting has been, you know, whether it's our family,

whether it's our finances. Just having a true plan in place and make it intentional, um, And I think we'll be prepared for for anything going forward. And know that you know, no one person could do it on their own. It it does take you know, a team of people, UM. And I think it's important to keep supporting those people. So, um, it's fascinating. But I think this is gonna be a great, great opportunity coming out of this because we're all going to learn from it and we're going to teach the

next generation how to overcome it. And I think that's awesome. Yeah, No, I think that's right. And it's a really nice optimistic note to end on Joe McClain, managing partner for Intersech Capital, joining us on the phone, and you know, just to

give him some credit. I mean, he's got more than a billion and a half dollars in future contract money coming in for clients, and that includes one of the Splash Brothers, Clay Thompson, Dexter Feller in the Major League Baseball, in the Major League Baseball, in Major League Baseball, Sergio Garcia, a lot of folks you've heard of he's working with.

Really nice conversation. I love what he said about the conversations that he's having with you know, his clients about you know, what it costs to be them right and how you can impact that. I think that kind of applies to the world. Like you think about that. You know, we've done that certainly in our house. It's like, Okay, what does it cost to be our family? And and what can you change to maybe be better? And where were you spending money that you're not spending money before.

You know, when you think about your commute, when you think about all these different things, you know, it's a it's a radically different world in the short term, and the question is how different is gonna be on the other side. I really like Joe's answer to that question. That was a good one. That's fun of the invincibility. We take it for granted,