NCAA Pay for Play Debate Rages on Past Final Four

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April 7 (Bloomberg) –- IMG College and U.S. Business Development SVP Andrew Judelson discusses paying athletes in college sports. He speaks with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Tech companies are ratcheting up the competition for content.


Plans to create the kind of original content and expects from netflix.

It is close to ordering for separate half-hour series that would each have 10 episodes and cost at least $700,000 to produce each.

Joining me now with more is our senior west coast correspondent jon erlichman, and armenia requirement -- our media reporter alec sherman.

It seems like everyone is getting into this business.

We hear another company every other week.

Amazon announcing their set-top box to go along with their streaming program, microsoft xbox, and now yahoo!

Trying to get into the content business.

It is not an easy one to get into because there's so much competition out there.

But yahoos trying to come up with an identity here, a company that has not had growth for the few years, and this will be a reason for customers to come visit the site.

They are ordering new companies, or at least looking at new half-hour comdedies.

It is something that she has been toying around with.

They want to get people to the site, they want people to stay.

If you have content people want to see, you can sell advertising against the video, and that is what they're looking at.

$700,000, but that in perspective for me.

Is that a lot or a, -- for a comedy?

That is a fair amount.

That is white is getting a lot of attention.

I think this is more about advertising.

We are at the point of the year were media companies and tech companies get in front of advertisers.

New friends, which the technology companies do, they want to give the advertisers a reason to be excited.

The reality is that yahoo!

Has been trying originals for a long time.

They have done a lot of comedies already, and the concern has been that these shows, where they live, how they are viewed, all of that has been -- it has been that 10 minute genre.

This is the first time therefore rated to 30 minute program.

This would be longer programming for sure, but i think we're out of time.

It is a very blurred line in terms of what the best thing you should be doing.

His 10 minutes better than 30 minutes?

I think everyone is linked to explore everything.

At a high price as well.

As long as you can get people excited about things.

How the online companies and media companies want to get advertisers excited right now.

We're still in an environment where online is not commanding anything close to what you can get on actual television.

How one when does that change?

Is this something that might influence that change?

And will come along with technological convergence.

We have already started to see the idea of throwing the online programming up on television.

You can do it in sort of way is that we will see as arcane 10 years ago as grown cats where you're literally throwing a picture onto your tv.

We're seeing more more more of these amazon set-top boxes, and soon all of your cable content will be ip-based.

It that is when we will really start to see this mix of online content which we see as separate today from cable television content and tv content.

This could be deemed a success, melissa myers going to need a hit.

You want something to talk about.

The idea here is that she would have something to talk about when they get in front of advertisers, said he would want people to be talking about this.

The way you measure a hit is not necessarily in terms of the overall numbers.

The house of cards inapplicable we do not know how many people watched, but there is not was around it that you can just say, you know what, and of people viewed this.

Something to stay in the dialogue longer than a couple of weeks.

One of the most interesting things as the more committees they get into this video business, what we may end up seeing, the big picture here, that dish and directv may be more tempted to merge together because the video world is expanding a ban the more competitors like him into this the larger argument could be made is that the traditional players have murdered managers and 12 years ago it would've been seen as a nonstarter.

The more you can say the competition is out there, so we should be allowed to consolidate -- what does that do to the pricing overall?

If you have one more player in the space combat it seems like every week we are announcing another player, something trying to acquired the next breaking bad or another hit show, what does that do to the production side of things.

And thinking can help.

At the aegon definitely help.

One of the frustration some people in hollywood have had with the platform like yahoo!

In the past is you do a show, and then shows you the homepage page, and you're frustrated not being able to get the views that you thought you would get even if you're getting paid well.

People still care about you talking about their stuff.

If you get paid, that is great, but they still want to be the buzz show, and it is not about the money that goes with that.

So many players can play the cool card, and netflix has been able to do it.

What has netflix doesn't? -- done?

When they're going to separate the dvd business from the streaming business, at that point analysts were looking at the company and saying that all the relationships that they have with current content providers stars, disney, etc.

Have the potential to go where will they reopen pay a lot more money.

By going into original content, the flex controls the rights and the amount of money they're going to spend, they're not held hostage by these behemoth traditional content companies out there.

That distinguishes between what netflix and yahoo!


The idea here would be used art with licensing it, and then you moved to owning it.

They would be following the path of many other companies have done the same thing.

Thank you.

Beyond that, i just want to remind you that you can now watch bloomberg on amazon fire tv.

Breaking news out of the federal reserve, they're giving thanks an additional two years to reach compliance with rule standards.

I want to get right to peter cook who has more details on this development.

This is a modest victory for big banks on wall street.

Federal regulators pacifico the federal reserve announcing this afternoon that they will give those big banks two more years to conform to a controversial component within the road.

The holding is the controversial, this is one section that required banks to get out of the collateralized loan obligation business.

They had to comply with that, the original target was 20 14th of and it was pushed to 2015, and now banks are being opportunity to get two more years to comply with this.

Why would they have settled this, they would have been worried that they would have take losses.

They complained about it, small banks committed about it, and they basically got exempted on ceos and won't get into the weeds here, big banks are getting two more years.

They're not getting the ultimate the three there were hoping for year, and that was to be exempt it all together.

This fight will continue, but the federal regulators deciding for this moment to give eggs and little more time to deal with this issue, and for the moment to review -- to avoid some fire sales.

Uconn will be battling kopecky on the hard word for the national championships.

-- kentucky on the hardwood for the national championships.

We will have details after the break.

? tonight the kentucky wildcats will battle the yukon huskies for the 2014 national championship.

The action is just as fierce between student athletes.

The nlrb awarded scholarship players the right to unionize.

Yesterday the ncaa president described the decision as in a grossly inappropriate solution to the problems facing the ncaa.

It is college division that handles marketing for this years passed ball tournament including all four final four teams.

Stating that accepting the scholarships, they know what they're signing up for.

No one is being taken advantage of, everyone benefits.

Here for more on this issue, student lost athletes are in major industry.

You're making muttering off of this, everyone but the kids are making money off of this.

Why do you think this is?

Thank you for having me, and i enjoy that you're wearing kentucky blue tonight.

The national championship tonight at 9:00 p.m. i think it is a slippery slope.

I think the debate on this topic is always healthy, i think reforms need to occur.

How is it a slippery slope?

I think there's a gross underbelly of the education these student athletes are getting.

If you go to northwestern you are taking -- paying 60 thousand dollars a year after taxes, and only a percentage of them are on the pro field.

Drexel university says of their sports management school that they found on average that if you're playing division i basketball, the lowest you would be making is roughly $700,000. if you were one of the top layers from louisville you would be making as much as $1.6 million.

This is per year.

We as a kid is getting a $60,000 year scholarship abide by the way they be not a northwestern, but at some of these schools the value of the education and certainly debatable, why should they take that?

When they can make somewhat warned me market -- so much more the free market?

And we're undervaluing the lifetime education that they are receiving.

When you go from a student athlete relationship to an employer relationship -- but they are already working for them.

Everybody is making money but those kids.

There are a number of students that would never get the up-to-date he to precipitate in athletics.

What would happen with all of the title ix reforms that we did not allow this to continue on?

We have a great lesson the number of athletic endeavors.

So they should be giving out charity, their time, their talent, to help every other sports department in the school?

It is an open and fair debate.

There are reforms going into place that are not currently applicable but i think it is a very slippery slope it where all the sudden going to unionize college athletics.

I think these players are getting pretty used, and they're just try to stick together to stand up to grace it is interesting because the man who won the national champs event uconn three years ago could've come out in the draft last year but he saw the value in his education, and he is going to compete for the championship.

What happens if he gets injured?

So much for that career beyond college.

And in many cases so much for college.

Cracks every athlete has the chance, if they do not want to play at that level, they can go division iii.

Maybe they should go to the pro leauges.

It is monday, so my producers are going to try to stop me with tonight's mystery guest.

My mystery guest was to help bring back the power of breakfast.

Join me at 5:00 p.m. eastern for all of the rest of the clues.

More "street smart" next.

? it is uconn versus kentucky four the national title.

It is not just about players and coaches, we stopped by the real stars, the ones that really count -- the mascots.

? if you want more, you can go to

That will do it for "street smart." we will see you tomorrow.

? is 56 past the hour which means that bloomberg television is on the markets.

I am olivia sterns, let's show you were markets ended up the session.

All of the benchmark indexes ending in the red.

The s&p 500 had now erased its games since the start of the year, and is slightly lower than the nasdaq.

All of this comes as the selloff is starting friday, and carried on with consumer discretionary big shed as well as biotech and technology stocks.

In today's inside in action, we take a closer look at this xl off.

How the mighty are falling, and you do not want to buy them, not yet.

Time for a little insight and action.

Just over the past month, netflix, twitter, facebook, tesla, and wyndham resorts all have terrible returns.

What we saw last week about what we're going to see more of.

Once anywhere while the trading action on a single day is of above average importance.

Write it wasn't today, containing seeds of future developments.

Without getting too into it it is what he calls a key reversal.

It is a breakdown of momentum, you're seeing more selling on more volume.

That is the problem.

The thing is, selling does not last forever.

We went back and look to the s&p 500 over the past couple of years.

We noticed that there were 10 separate selloffs over the past 10 years, each lasting from a couple of days to a couple of weeks.

The average fullback was 4.3%. the highest selloff was about nine percent, the smallest of selloff was about 1.8%. right now we are about 1.7%. we're almost at the smallest of these selloffs, so we should let it get going, it is not a disaster we have seen this before.

We just have to recognize where we are.

By the week of a few do not want to be in and just want to go to cash and take some money and put it into some of the , look at where people are playing defense.

Over the past several months they have been making money, utilities up nine percent.

Gold up eight percent, even the 10 year with all that talk about taper, up 1.9% versus the s&p down 1.5%. we're selling off, we will likely see more selling off, and here are some of the places where you can hide.

At a mentioned gold as one of the winners, and it is true, it is up since january 1. but it is falling today, seeing some concerns that the fed will stay the course on the tapering and continue to cut its stimulus program after five you stab report -- after friday's jobs report.

While they were pulling money out of old they were buying government debt.

Treasuries rallied for a second day in a row, strengthening and sending yields a little but lower.

Treating just above 2.7%. that doesn't for on the markets, i am olivia sterns.

Pimm fox is up next.


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