The stalking horse narratives of new(ish) zero commission trading models include schticky Mission Statements like: This is the 'better' version of the ugly carpets and flashing lights of the Vegas strip. Developers hire psychologist consultants to maximize 'engagement' and more effectively hijack neurotransmitter pathways. Smart devices have become Dopamine Delivery Devices (DDDs). Rogan gets this. The PGA is perfectly aware that golf is a declining sport in a post peak Tiger era. The content has to match the demo to effectively monetize. The Tour is trying to monetize the same demographic that it has repelled through bland product and a Minitrue approach to corralling talented commentators. Penn Gaming shares have added well over $1B in market cap after paying $163mm for 36% of Barstool Sports in January. And hey, there are lots of short term indications it works. Sports gambling is a hot space right now, and when GAAC is your Mission Statement (though it’s Mission Impossible) of course you're going to chase it hard. But what does that mean for the actual product? It sounds fun I guess, I know I’d try it. Open on your streaming device, and a pop-up prompts you to bet if whether or not Rory hits the fairway.
Kostis claims that the vision of the Tour is to turn broadcasts into a cross between video poker and daily fantasy sports. On the other, they are chasing growthy business models to engage new revenue streams that are rich in 'young audience' demographics. On one hand the bosses want sterilized C-suite dictated content. Meanwhile the kid just won a two year job, an invitation to Augusta, and a fat wad that will at least allow him to fly coach to tournaments. Kostis was chastised by his bosses for not asking a rookie tournament winner if he was happy about winning 500 FedEX Cup points. The Tour requires the networks to act as Sheriffs to police anything that could deviate from the Tour's misguided concept of Brand. This is Jerry Maguire's Mission Statement or Voldemort's Curse of the Taboo. Platforms like NLU have skewered the networks and the Tour for the way this badly impacted the product. Kostis talks about the fact that CBS cut down on camera crews and technology to stay in the black. Meanwhile, technology advances in broadcasting (shot trackers, drones, ultra high speed cameras, 4K) are also being pushed on the networks by leagues. In the case of Viacom owned CBS, the bean counters at HQ still need CBS Sports to generate profits and capture market share. After all, you can’t have a down mark on franchise value. And like the mob's rackets, the price of admission (broadcast deals) inflates at insane rates. To do otherwise would incense the Krafts and the Joneses. Networks are forced to play by league rules to maintain the 'privilege' of broadcasting events. The NFL is more concerned about how its image reflects on revenue potential more than the actual well being of players' brains, player's families (looking at you Ray Rice, AP and Tyreek) or common sense.
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This is happening in nearly all major pro sports leagues. Kostis' scathing criticisms can be boiled down to one over-arching goal: In many ways, the criticisms that Kostis levied at the PGA Tour and network affiliates regarding the strategic direction of televised golf can be applied to almost everything happening right now in finance, media and business. Which is a common thread for many successful, disruptive media models. This has gotten them into minor trouble in the past. These guys have built a huge platform (200k Twitter followers, hundreds of podcasts), and pull no punches. NLU is the Joe Rogan Experience of the bland and starchy golf media world.
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Beginning with some hardcore golf nuts recording in their basement during their free time, later quitting their day jobs, and now touring the world while interviewing the likes of Rory McIlroy, Tiger Woods and recently Peter Kostis. NLU is probably the most successful independently run golf podcasts around. He was recently canned by CBS (contract not extended) along with McCord in what was a five minute telephone conversation from his CBS overlord.
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He also teaches and had a cool cameo in the legendary movie Tin Cup. For those unfamiliar, Peter had worked at CBS since 1992, working as a key booth commentator with Gary McCord for many of those years. It's excellent for a lot of reasons that are much bigger than golf. The other day I listened to the No Laying Up (NLU) podcast's interview with long time (and now former) CBS golf commentator Peter Kostis.
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