Freakonomics Radio - 506. What Is Sportswashing (and Does It Work)?
Episode Date: June 9, 2022In ancient Rome, it was bread and circuses. Today, it’s a World Cup, an Olympics, and a new Saudi-backed golf league that’s challenging the P.G.A. Tour. Can a sporting event really repair a countr...y’s reputation — or will it trigger the dreaded Streisand Effect?
Transcript
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Hi, this is Victor Matheson.
I'm a professor of economics at the College of the Holy Cross.
When I say the word sports washing, you say what?
So that's a pretty new term.
Basically, it means using some sort of sporting event to try to cover over any problems a
country has had in the past.
And how is that different from any sort of reputation laundering? Let's say I'm Andrew
Carnegie, and I know a lot of people think I've been a brutal capitalist. So I decide to open
libraries in many, many, many places around the country. Or Leland Stanford, the robber baron,
decide to open what would become one of the most esteemed universities in the world.
Is this any different?
Really, it's not much different.
The idea of using politics to curry favor is centuries old.
I actually think all the way back to ancient Rome,
and I think to this famous poet, Juvenal,
and he coins the term bread and circuses.
And the term bread and circuses refers to this. If a government can at least provide enough food to make their citizens survive, that's the bread part, and enough
circuses, things like gladiatorial contests and chariot racing, if they can provide those,
they can distract the populace from any other failings of the government.
Okay. Getting back to today, what are some good, pure examples of sports washing?
We've had countries like Russia, very active in mega events like the World Cup and the Olympics.
Same thing with China hosting now two Olympics in the last couple of decades,
or the Middle East getting into big sporting events recently.
Now, Victor, you're listing of the nations that have engaged in what we're calling sports washing,
Russia, China, the Gulf states. There's an assumption in labeling this as sports washing
that these countries are bad countries and that they are dirty and have a reputation to wash.
But they probably think the same thing about us. So how is that fair?
Mind you, I'm coming from an American standpoint.
But the fact that these are countries without functioning democracies, where you have no
freedom of the press or at least limited freedom of the press by any sort of democracy or openness
index, all of these countries rank very, very low to the bottom.
And so they're trying to rehabilitate some sort of worldwide image.
Just because Putin is going to be president for life,
we're not so bad. Look how much fun you had during the Winter Olympics in Sochi.
Now, if I think about sports washing, it falls into the category of what I think a lot of
political scientists call soft power, right? You're not rolling tanks up to someone's border,
you're sending sprinters or pole vaulters or football players. Why does sport have so much impact?
So this is an unanswered question. And one of the things that sports economists just
find so fascinating is how interested people are in sports, despite the fact that it's actually
not a very big business. All of spectator sports globally, all put together, is roughly the same
size as Johnson & Johnson Corporation. The biggest sports league in the world, the NFL, has annual
revenues less than Sherwin-Williams paint stores. But there's not an entire section of the newspaper
dedicated to paint stores or pharmaceutical products. My personal favorite example of soft power is actually Thailand. Thailand, by some
measures of U.S. opinion, is the third most favorably looked on country in all of Asia,
behind Japan and South Korea, which of course are these big, longstanding democracies. Thailand's
none of that. They are a fairly oppressive society.
They do not have any sort of free and fair elections. They have military coups on a regular
basis. So why in the world is this country so popular in the United States? I don't know. Do
they have a really good soccer team or pop stars or movies or something? No, they have an extremely
successful soft power
run by the government of putting Thai restaurants
on every corner of every city in the country.
No, you're kidding me.
I am not making that up.
This is an actual national goal
to send out Thai cooks all over the globe
and to take over the United States
from a place where 30 years ago there
were almost no Thai restaurants to this point. We have 5,000 Thai restaurants. And why do we
love Thailand? It's not because of their somewhat oppressive government. It's because of Pad Thai.
This Thai initiative that Victor Matheson is telling us about falls under what's been called
gastro diplomacy. That may be an effective type of soft power,
but let's be honest,
it's hard to compete with the thrill of sport.
Lucky to get a free hitter!
And Russia scored the only goal of the World Cup.
And a better start the host nation couldn't have wished for.
And this time around, it's Max Verstappen that wins out. He takes victory in the Saudi
Arabian Grand Prix.
Berlin's great day dawns with the arrival of the Olympic flame. Flag-draped cheering
streets greet Chancellor Hitler on his way to perform the opening ceremony.
Today on Freakonomics Radio, why are sports so useful in trying to burnish a reputation?
They need to believe that sports are pure meritocracy because honestly,
they don't believe there's a meritocracy anywhere else. We focus on the latest case of sports washing in the usually boring precinct
of professional golf. Even though they're in the middle of a desert and there's almost no golf
courses in the country, they want to get into the business of professional golf. Although it does go
beyond golf. Do we need to hold our politicians as accountable? Do our politicians have blood on
their hands? And we try to figure out if sports washing actually works.
All that, coming up right after this.
This is Freakonomics Radio, the podcast that explores the hidden side of everything, with your host, Stephen Dubner. of the new Yale book of quotations. The term whitewashing, a deliberate attempt to cover up some dark matter,
this dates back to at least 1703.
Greenwashing, that's when you try to appear
more environmentally friendly than you are,
this goes back to at least 1989.
And Shapiro says the first use of sports washing
was likely in 2015.
It described Azerbaijan's hosting of the European
Games despite a troublesome human rights record. Sports and politics are in a relationship. They're
having an affair, so to speak, and their illegitimate child is sports washing. That's
Brandel Shambly, an analyst for Golf Channel and NBC. Before that, Shambly was a professional golfer.
Look, I was by no means a superstar. I wouldn't even say I was a star on the PGA Tour.
He did earn more than $4 million over a 15-year career.
I won one time on the PGA Tour. I lost a few playoffs, but I loved every minute of it.
And how's your game these days? It's not bad. I mean, I'm pretty good for a commentator.
Let's get to the topic that we really want to get to here, which is a brand new golf tour
called Live Golf. Why don't you just take it from the beginning?
They market themselves as a rival tour to the PGA Tour. And they are trying to recruit, with massive sums of money,
superstar players to compete with the PGA Tour.
For people who don't know or care about golf, describe the PGA Tour.
It is not a league like the NFL with teams and owners.
It's essentially a series of tournaments held in a different place every week.
So who is the PGA Tour exactly? And what's the relationship of the average golfer with the
tour? Well, to state the obvious, it's the major professional golf men's tour. It's a member-driven
philanthropic nonprofit organization. The money that is brought into the PGA Tour goes to three different places.
It goes to the players through purses and pension funds. It goes to charities, and it goes to run
the future tournaments through administrative costs. The PGA Tour offers no salaries and no
guaranteed payouts, but if you play well, you can make a lot of money.
The top three career earners in PGA Tour history
are Tiger Woods with $121 million,
Phil Mickelson with $95 million,
and Dustin Johnson with $74 million.
For every dollar earned on the course,
a top golfer might earn two, three,
even 10 times that amount in corporate
sponsorships. So the best golfers from around the world flock to the U.S.-based PGA Tour to partake
in its riches. It operates pretty much as a monopoly, and there have been attempts over
the years to break this monopoly. The most recent one comes from an outfit called LIV or Live Golf, LIV being the
Roman numerals for 54, which is the score a golfer would shoot if he or she birdied every hole.
This has never happened in the history of competitive golf, so the name is plainly
aspirational. But that's not why Brandel Chambly and many others in the golf world hate the Live
Golf Tour. They hate Live Golf because of who's bankrolling it. Live Golf is a Saudi-backed
attempt to get the world to not pay attention to their atrocious record on human rights.
The CEO of this new league is Greg Norman, the Hall of Fame Australian golfer.
But the money comes from the sovereign wealth fund of oil-rich Saudi Arabia.
It is, at least in my view, an attempt to manipulate the market with an economy of corruption
where they pay lavish sums of money to get the world to look at what they're doing as reform, all the while
Saudi Arabia is experiencing the worst period of repression in modern history.
Saudi Arabia is an authoritarian regime where women are treated as second-class citizens and
dissidents are harshly punished. Crown Prince Mohammed bin Salman, or MBS, has made noises about reforming.
He says he wants to make Saudi Arabia, quote, a country of moderate Islam that is open to all
religions and to the world. But he has been linked to a long string of abuses, most prominently
the 2018 assassination of Jamal Khashoggi, a U.S.-based Saudi journalist who had been critical of MBS.
The fact is, the reform that he's promising is just a facade.
So how are you supposed to put a positive spin on that?
The Saudis have been engaged in sports washing for a very long time.
And that is Alan Shipnuck, a longtime golf journalist.
Formula One, snooker tournaments, pretty much any sport they can get their hands on.
And what's particularly attractive about golf is they don't have to woo an entire league.
It's just one player at a time. The Saudi golf initiative has been going on for some time.
Saudi Arabia has decided that even though they're in the middle of
a desert and there's almost no golf courses in the country and a tiny, tiny percentage of the
population has ever touched a golf club, they want to get into the business of professional golf.
So as part of dipping its toe into the water's professional golf, the Saudi Golf Federation
joined forces with the European PGA Tour and created this new event called the Saudi Golf Federation joined forces with the European PGA Tour and created this new event
called the Saudi International four years ago. The American PGA Tour does not allow tournaments
to pay appearance fees to golfers. Because then it would create this arms race where half the
tournaments couldn't compete. So golfers on the PGA Tour can only earn tournament money by playing
well, not by appearance fees.
But on the European Tour, they're allowed.
So Phil Mickelson, Dustin Johnson, Bryson DeChambeau, a lot of top stars have been getting paid seven-figure appearance fees to go over and play in this new tournament in Saudi Arabia.
DJ does it again. Dustin Johnson has won his second Saudi international. He is king of the course.
There's been an outcry about it because we all know about the Saudi atrocities and the assassination of Jamal Khashoggi.
And they supplied 15 of the 19 9-11 hijackers.
And when the players go over there, there's a very standard script they stick to, which says, I'm not a politician, I'm just a golfer,
or I'm just here to try and grow the game. But that was just one tournament per year in Saudi
Arabia. Live Golf, in its first season, has eight tournaments scheduled, with the promise of more
each year. The first event this year will be played near London, the next four in the U.S.,
right under the nose of the PGA Tour, and then one in Thailand,
one in Saudi Arabia, and the finale at Trump National Doral, Miami. That is one of two Trump
courses that Live Golf will visit this season. I mean, Trump is not unlike the Saudis. He's
trying to buy his way into the golf world. He's always been an outcast. The reason he's built all
of these private clubs is that he couldn't get into any of the great East Coast citadels. He couldn't get
into Pine Valley or Augusta. This new Saudi tour promises to, quote, supercharge the game of golf.
And the money's much bigger because, let's face it, nobody can compete with Saudi money.
Their first event in London, that person, $20 million.
And the PGA Tour event that's happening at the same time is $7 million.
It's also a much smaller field, right?
How many players will be playing in a Saudi event?
48.
Versus like 144, right?
Exactly.
And there's no cut.
So when you get on the plane, you know, you're going to least, say, $250,000 just for showing up.
From the perspective of a professional golfer,
these are some huge differences between the Saudi tour and the PGA tour.
Professional golf is the ultimate meritocracy. There are no guaranteed contracts. The players are independent contractors. They pick their schedule and they have to pay their own way. They're a private jet and or Southwest airlines, your hotel, all of it. And
tournaments are four rounds. You play the first two and they make a cut for basically the low
70 scores. If you miss the cut, you get $0 and 0 cents and you're losing a lot of money that week.
How much you're paid is strictly a reflection of where you finished on the leaderboard.
You can play your way into job security,
but for those on the margins, it's extremely stressful.
And there are a lot more players on the margins,
or if you want a better visual,
on the bottom of the pyramid than there are near the top.
There's about 200 players who have some playing status
on the PGA Tour.
That's the big leagues.
Of those 200 players, maybe 30 to 50 of them have some job security,
and the other 150 are just trying to hang on.
And that's not counting the thousands of professional golfers outside the top 200
trying to work their way up.
Those golfers would, of course, find the guaranteed Saudi money very attractive.
But would the Saudis find them attractive?
Not likely.
They want big names, and they have pitched all the big names with one simple, compelling
argument against the PGA Tour.
Too much money is getting siphoned off that should be going to the players.
That's a constant critique from the players about the tour. What share of revenues
from the PGA Tour are going to the players? And how does that compare to, let's say,
the NBA or the NFL? That's one of Phil Mickelson's arguments that he's been making for a very long
time. The players have always felt like they needed a higher percentage. In the NFL or any
of those leagues, all you have to do is look at the collective bargaining agreement. You can see this share of overall dollars will be spent on player
salaries. In the NFL, I think it's around 48%. Do you have any sense of what that percent would be
for the PGA Tour revenues? I do not, and I'm not sure anybody does. The Tour, they don't like to
open their books. That's another longtime complaint amongst the players is a lack of transparency. The PGA Tour is theoretically run by the players. They have an advisory council. They have a board of directors. But there is a commissioner who is the ultimate shot caller. So it sounds like what the best professional golfers in the world need is some rival to
come along and offer better terms to the players that would either exert some leverage on the
PGA Tour or could take over as the dominant tour in a way that would benefit the players
more.
Wouldn't it be wonderful, theoretically, if some rival league that was based perhaps
on the other side of the globe could do something like that?
Yes, indeed. And this is an old idea because in the 1990s, Greg Norman tried to form a world tour
that would be a rival to the PGA Tour.
So, Alan, we are speaking right now in May, but by the time this piece airs,
we'll be approaching the first Live Golf tournament in June near London.
How successful would you say they've been in persuading some of the world's best
players to join them? So far, the LIV Tour has not had the success they hoped as far as attracting
big names. And is that Alan Shipnuck's fault, essentially?
I may have played a role, yes.
We'll get to Shipnuck's role soon enough.
But first, there are a couple things to understand here.
Even though the PGA Tour is not a league like the NFL,
and even though the golfers are independent contractors,
this does not mean the PGA Tour will give its golfers their blessing
to go play in the new Saudi league. In fact, they've made clear they won't give their blessing
and they may fine or suspend, even ban golfers who participate. Is that legal considering the
golfers are independent contractors and not employees? That is hard to say, and we shouldn't be surprised if this question
ends up getting settled in court. The level of tension and enmity is quite high at the moment.
As evidence, we couldn't get anyone from either the PGA Tour or Live Golf to go on the record
with us. It also looks like none of the PGA Tour's major U.S. media partners like NBC or CBS
or the Golf Channel will risk their relationship by broadcasting the live tournaments. Still,
those tournaments are about to happen. The first one, as we said, near London.
Here's Brandel Chambly again. Well, it seems like Lee Westwood's going to be there. Sergio Garcia, Martin Keimer, Ian Poulter. Pretty sure Phil Mickelson will be there.
Other than Mickelson, the golfers Chamblee named are older European players, great golfers, major championship winners, but also well on the downside of their earnings arc. But that's about it. Tiger Woods has said no.
Rory McIlroy has said no.
John Rahm has said no.
Scotty Scheffler, Jordan Spieth, Justin Thomas,
Andrew Shoffley, Colin Morikawa,
they have all said no.
But since we spoke with Shambly,
one very prominent U.S. golfer did say yes,
Dustin Johnson.
Remember him?
Dustin Johnson has Remember him?
Dustin Johnson has won his second Saudi international.
Dustin Johnson was until recently the number one ranked golfer in the world. He won the Masters in 2020, the U.S. Open in 2016, and he has many more wins on the PGA Tour. So he is not remotely a has-been. And yet, he just resigned from the PGA Tour
and joined the Saudi League. He also lost at least one of his corporate sponsors, RBC,
the Royal Bank of Canada, which happens to be the title sponsor of the PGA Tournament
that Johnson is skipping in order to play the first Live Golf event.
Why is it worth Johnson's while to surrender all that?
Well, it has been reported that Dustin Johnson will receive $150 million for headlining the
Live Golf series.
That's double his career earnings to date.
Phil Mickelson, meanwhile, the second most famous golfer in the world after Tiger
Woods, he has reportedly signed a contract with Live Golf for $200 million. Mickelson, by the way,
is the reason this whole story turned from a golf world controversy into a global referendum
on sports washing. He was quite candid about his feelings towards the Saudis. He called
them scary motherf***ers. Coming up after the break, Phil Mickelson, Alan Shipnuck, and the
interview that went around the world. Also, the super slippery slope of moral outrage and whether
sportswashing can trigger the Streisand effect. So I feel a little weird as the economist talking about Barbara Streisand.
I'm Stephen Dubner.
This is Freakonomics Radio.
We'll be right back.
Just over a year ago, Phil Mickelson set a golfing record that may never be broken.
At 50, he became the oldest golfer to ever win one of the four major championships,
in this case, the PGA Championship.
It was his sixth major victory in a long and phenomenally successful career.
Mickelson has always been incredibly popular with golf fans, most of them at least,
but this victory was something special.
Here it is. Biggest moment of them at least. But this victory was something special.
Here it is.
Biggest moment of a legendary career.
Phil defeats Father Time.
At this year's PGA Championship,
Mikkelsen was expected to defend his title and continue to bask in the glory.
But he didn't even show up. Why not? Had the PGA Tour banned or suspended him?
Not clear. He wasn't injured. He didn't have an urgent family matter. He had issued a statement
a couple months earlier saying he needed some time away to work on being
the man I want to be. What he really needed, apparently, was a break from public scrutiny.
Pretty much the entire golfing world had turned against him because of something he had said in
an interview with Alan Shipnuck. I started working on this biography almost two years ago now.
The biography Shipnuck was writing has just been published. It's called
Phil, the rip-roaring and unauthorized biography of golf's most colorful superstar.
I approached Phil face-to-face three times, asked him to sit for interviews,
and he ultimately said no, which is his prerogative. I didn't really need him.
Shipnuck had been covering Mickelson closely for a couple decades.
I thought it would benefit him to tell his side of every story and it would have been fun, but
that wasn't his decision and that was fine. So I just kept working on the book.
All this Saudi stuff was churning in the background.
This Saudi stuff, meaning the rival golf league, now called Live Golf,
which is backed by Saudi Arabia's massive public investment fund.
Everyone knew Phil was involved.
Not sure exactly the level.
No one knew what his ultimate goals were,
but he was clearly a player in all of this.
Mickelson being a player in a rival league didn't surprise anyone.
Even though he'd earned $95 million on the PGA Tour
and much more in endorsements,
he had openly criticized the tour as greedy in how it
distributes funds. Plus, Mickelson had turned 50 years old, well past the earning prime of any
athlete, even a golfer. But also, he loves to gamble and is apparently not as good at that
as he is at golf. In his Mickelson biography, Alan Shipnuck writes about a forensic accounting
of Mickelson's finances that was related to an insider trading case.
In the four years that was scrutinized, 2010 to 14, Phil claimed $40 million in gambling losses.
When you add all this up, you can see why Phil Mickelson might have been interested
in a startup golf tour funded by an uber-wealthy PetroState. So now out of the blue, Phil texts me and asks if we can
speak. And of course, I'm thrilled because I'm putting the finishing touches on my book. I've
been trying to get this guy for a year. He calls me up and he just opens a vein about his grievances
with the PGA Tour, all the battles he's fighting, trying to win concessions
for himself and the other players. We segue into the Saudis. And this is where it got interesting
because he was incredibly blunt. He basically said, I'm not even sure I want this league to
succeed, but it's a once in a lifetime opportunity to reshape the business of professional golf,
and I have to take it.
And he was quite candid about his feelings towards the Saudis. He called them scary motherfuckers.
And he admitted that it's just sports washing and that we know they killed Jamal Khashoggi,
and we know they execute people for being gay over there. But nevertheless,
it's just too good an opportunity to pass up.
And was it on tape?
Our conversation? No, I was just taking notes on my computer as we spoke.
What were you feeling as he's talking?
On one hand, I was deeply impressed by his candor.
And it was so refreshing because he was straying from the script about we're going over there to grow the game, which we all know is total BS.
Again, athletes have been in bed with the Saudis for a long time.
That wasn't news.
But there was a couple of things I think that made this so explosive.
One was how callous Phil was in just disregarding the Saudi atrocities.
There was also the sneakiness.
He was actually helping this rival league get started in a way that could harm his home circuit and all the players who rely on that. When you say sneakiness, I just want to clarify, did he and other golfers that he enlisted
actually hire the lawyers to write up the documents that became the league charter?
Yeah, that's what Phil told me.
So there was that.
And really, he said the quiet parts out loud.
That's what was so stunning, because as discussed, there's certain code words
that these players use when they go over to Saudi Arabia, but no one actually just tells it like it
is. You might think Phil Mickelson would have gotten a little bit of credit for being so candid
for saying the quiet parts out loud, as Shipnuck puts it, But he didn't. The moment Shipnuck published these comments,
Mickelson was vilified by most of the golf world. That includes golf channel analyst
Randall Shambly. He spoke with seeming amusement about the atrocities and acted as if he was only
interested in the atrocities to the extent that they provided him with leverage so that he could
get everything he needed with the PGA Tour. When you take all that in in its totality,
it was reprehensible. The way Chamblee sees it, no amount of money can paper over the decision
that Mickelson, Dustin Johnson, and the other golfers are making. The minute they take that money from Live Golf,
they are now dependent upon and subservient to MBS and his thugs.
They lose their image, their legacy,
because their talents and fame are now being exploited by a government seeking to hide their atrocities. and to whatever extent this country, Saudi Arabia,
can hide and euphemize its atrocities, you are in some way ensuring that those atrocities will
continue its blood money all the way. When golfers say that this is not political, they couldn't be
more wrong. So you're saying Phil Mickelson, Greg Norman, Lee Westwood, whoever plays in these events, they're on the wrong side of history.
They're on the wrong side of history. The money's coming from the wrong place.
Are they on the wrong side of history? Is it truly blood money?
Before you give an answer, here's something to consider. The Saudi Investment
Fund backing this new golf tour is the very same fund that invested billions of dollars in Uber
before it went public. It's the same fund that has since bought huge batches of stock in Boeing,
Facebook, Disney, Starbucks, and more. Do you and I have blood on our hands when we take an Uber or buy a coffee?
It's worth a really deep conversation, but people aren't trying to find the nuances.
That is Karen Krause, who covered golf for years at the New York Times.
I'm not condoning the Saudi regime.
There's no defending it. But any rogue
tour poses an existential threat to the PGA Tour, which has basically a monopoly. The cynic in me
thinks that the PGA Tour is making a big deal about where this money is coming from to deflect
attention from the fact that this is a really
interesting idea that if it was being funded in any other way, people would be quite excited.
It's smaller fields, no cut, so you can go to a tournament and don't have to worry about your
favorite player not being around on the final day. This kind of creativity poses an existential threat
to this very staid tour, which still debates uncolored polo shirts as being sort of renegade.
Were you surprised at how thoroughly Mickelson was vilified? Yes. And the fact that none of us have an understanding of why
Phil has not played since those comments were made public. The fact that we don't know,
was he suspended by the PGA Tour? Is this his decision? Tells you everything you need to know about how the PGA Tour operates. It is notoriously private.
It's a not-for-profit organization where the CEO makes more than $4 million a year.
It really hangs its hat on its charity. But people in the world of charity say the percentage of money that the PGA Tour directly gives to charity is low, 16%, where I think 65% is the benchmark.
But what's making people speak out in this case is the source of the money for this rival league, the Saudi Public Investment Fund, even though that fund is invested in a lot of
American assets. So why do you think this is the case that's caught fire?
Because it poses a threat to the status quo. The PGA Tour is the gold standard. I might also add
the Ladies European Tour has five Saudi-sponsored events.
It's a struggling tour.
The PGA Tour is not struggling.
So is that our moral calculus? If you're a sports league but you're struggling, it's okay to take the money.
Again, it's a complicated issue.
Does that mean we can't fly a Boeing airplane or get an Uber car at the airport?
Or do we need to hold our politicians as accountable?
Do our politicians have blood on their hands?
Kraus's point is well taken. The U.S. government has a long and complicated relationship with Saudi Arabia,
built primarily around our reliance on their oil. When Joe Biden was running for president in 2020,
he promised to make Saudi Arabia a pariah for its assassination of Jamal Khashoggi.
But now Biden has announced he will be visiting Saudi Arabia to rebuild relations.
What this really means is he will likely ask Saudi Arabia to export more oil in order to
lower gas prices in the U.S. and to further isolate Russia.
To Karen Krause, the Saudi Gulf League is, by comparison, a very minor matter. It's interesting that we are dissecting this
in a way that we don't dissect matters far more important
like what is happening in Yemen right now.
So can we please give the same oxygen
that we're giving this topic to some other areas
in which there is Saudi money floating around. It's so easy to make this a
black and white issue as people have. The crown prince and the Saudis are bad. Golf is good.
But the world is so much more complicated than that. Newcastle United, a Premier League team, 80% of it is controlled by the exact same group that is
behind this new league. Newcastle is far from the only prominent soccer club to have politically
complicated ownership. The big ones that have been of interest here recently, of course, is Chelsea.
That, again, is the sports economist Victor Matheson. Chelsea is owned by Roman
Abramovich, or at least was until just the last few months. A prominent Russian oligarch,
close ties to Putin. Abramovich was forced to divest the Chelsea football club in the wake
of Russia's invasion of Ukraine. We also have Man City that's owned by one of the Emirates. Man City as in Manchester
City, like Chelsea, another very successful team in England's Premier League. And Paris Saint-Germain,
the biggest team in France, owned by Qatar, their big sovereign wealth fund.
Qatar is also the host of soccer's upcoming World Cup. Ever wonder how that happened?
So there's a million reasons. And of course,
the million reasons are the millions of dollars of bribe money that ended up in the FIFA pockets.
FIFA being the perennially corrupt ruling body of international soccer.
We know that there was bribery involved because many of the people involved with the bribery
ended up indicted and in jail. Let's say that there are some legitimate state building reasons for a place like Qatar to hold an event like the World Cup.
Let's just assume that there's no sports washing at all going on.
How do we feel about the World Cup being held in Qatar with the underlying fact that the event was actually obtained through corruption.
Qatar is a country that is the size of Connecticut, but with about a tenth the amount of
infrastructure. And yet you're going to, I mean, think how crazy that would be. It's like, oh,
yeah, we're going to host the World Cup in the United States, but it's going to all be in
Connecticut. When the United States hosted games back in 1994, they were spread out from LA
over to New York, down to Orlando, so all over the country. But there's really no place to spread out
games in Qatar. So the World Cup is always played in the summer. In Qatar, the summer is too hot
to play outdoor football or soccer, and therefore the Qatar World Cup had to be moved to December,
correct? Right. Let me also point out that the reason that they have the World Cup had to be moved to December, correct?
Right.
Let me also point out that the reason that they have the World Cup in the summer is not the nice weather.
It's not because people want to travel.
It's because all of these players have real jobs during the rest of the year playing for
their clubs.
The English Premier League, the Bundesliga in Germany, all the top players are playing
for these leagues,
and they're actually playing games during November, December.
So all these leagues have now been asked, or I guess required really, to adjust their schedules
to accommodate a winter World Cup in Qatar. Is that the case?
That's exactly right. It'd be like having a World Cup of American football that's going to be held
in Paraguay and telling the NFL, oh, cancel all of your games in December and November so that we can have this event down there.
So if I'm on the FIFA selection committee and I'm listening to Victor Matheson, I'm saying, OK, Cutter is not the best candidate, plainly.
It's not that Cutter's not the best candidate.
Cutter's not even a practical candidate
in any way. I mean, Cutter's not even the 420th best candidate out there. So the message I'm
hearing from you is that sports washing may not necessarily be very effective, sometimes a little
bit, sometimes not. But bribery is fantastic. That's my takeaway.
Again, I've been telling you that sports washing has been going on for centuries.
Guess what? Bribery has as well.
But here's the thing about sports. It's supposed to be fun. It's entertainment.
This produces a strange pattern. When there is a World Cup or an Olympics held in a place like Russia or China,
most of the U.S. media coverage ahead of the event is somber with a lot of hand-wringing.
The Olympic Winter Games are being held again in an authoritarian state,
raising questions for human rights groups. But once the games begin... Nice slow rotation. Give it to him.
Sue Yiming, 17 years old, representing China.
And he is your Olympic gold medalist out here today.
Once they start going, television executives made the conclusion
that the audience doesn't want to hear about that other stuff.
That is Bomani Jones, a sports writer and host of the TV show Game Theory with
Bomani Jones. It's real easy for them to forget about any of the larger stuff because now they
have games to talk about. So what do you say to the sports fan who's like, you know, I just want
to watch the game. I don't want to make sports political. It's like sports is the one place I
have that's not political. Well, I mean, for one, that fan is usually a white male,
because sports can be apolitical to you as a member of the majority group. We start with that
part. The issue for me is there are all these other hours of the day when that game isn't on,
and those people still don't want to talk about the stuff that matters. And sports gives the
impression that it is always on the right side of the moral imperative.
And so it allows viewers also to ascribe their perceived goodness of sports onto themselves.
And then when you say that the sports themselves are a little bit rotten,
I think it can get to people's self-concept and then they don't really want to get to it.
They need to believe that all these things in sports are pure meritocracy because honestly,
they don't believe there's a meritocracy
that exists anywhere else.
The LA Times recently published an op-ed
saying that this might be the year
that sports washing backfires.
The idea is that between the World Cup in Qatar
and the recent Olympics in Beijing,
that the downside just becomes too obvious
to too many people.
Do you think that's actually
going to be the case? No, because especially with those major events, there's so much corruption
in getting those events in the first place. Who's going to be the people most likely to
engage in that level of corruption? The answer is people with stuff to cover up.
Now, will it be effective? I don't know, but a lot of people are still going to get paid off
of building those stadiums that'll never get used. So the incentive is still going to be there
for them to do it. But again, I don't know who's looking at China any differently now than they did
six months ago, and there's been an Olympics in between. I don't think there's a single person
in the United States who, between the 2008 Olympics and the 2022 Olympics, has changed
their opinion of China based on what they've seen on television.
As we've been talking about sports washing today, we have focused on how outsiders look at the
place that's holding the sporting events. We are assuming that the main goal is external propaganda,
but let's not forget the bread and circus's goal as well, making your own citizenry happy and proud.
Victor Matheson again. It's just like advertising, right? You can target different groups. And in
the case of Rome, the emperors there were trying to target their own citizens so that their citizens
don't rise up against them. I think that's actually a little bit more what's happening in
Russia than trying to influence the rest of the world. I think with the Middle East, though, they're definitely trying to tell the world,
hey, we're open for business and we're not such a bad place.
Remember how much fun we had at the World Cup?
Here's a piece that recently appeared in the Wall Street Journal, quote,
when the invasion of Ukraine began, the era of Russian sports washing abruptly ended,
at least for the foreseeable future.
Do you agree with that?
I quite honestly don't believe that
because I think it ended a month after
they hosted the Winter Olympics in Sochi.
This was an extremely expensive event that they put on,
$51 billion, the most expensive Olympics ever done.
And rather than basking in the glow of soft power,
of showing, hey, what a great place Russia is,
after the closing ceremonies, they invaded Ukraine for the first time. I think sports washing at best works
at the margins. It's not going to erase tanks rolling across the border. Talk to me for a
moment about the 1936 Olympics, which Hitler meant to be a showcase for Aryan dominance and for his ideology. So what happened there?
It's not that Germany was trying to say, hey, this Nazism, it's not that bad.
What they're trying to do there is they're saying the new German way is most powerful,
and we're going to project power to the rest of the world through this great event.
So how much did Jesse Owens ruin Hitler's Olympic party?
Certainly some. If this is a big show of Aryan dominance, it didn't go so well when the great
Jesse Owens, the African-American track star, wins four gold medals, putting a bit of a nail
into that coffin. But do you think that throwing that kind of party in Berlin in 1936 did anything to allow Hitler
to continue to strengthen what would turn out to be this Europe-wide and then global
aggression?
Do you think it did anything to build the movement that turned into the war?
I think it certainly sent the message that Germany was a force to be reckoned with.
And to the extent that a big spectacle was popular
among his own people, it gives him some ability to solidify his standing with his own people.
Because if you're going to engage in a half-decade-long world war, you at least have
to have your own people behind you, which of course he did for a while there.
Are you familiar with an idea known as the Streisand effect?
Yes. So I feel a little weird as a economist talking about Barber with an idea known as the Streisand effect? Yes. So I feel a
little weird as a economist talking about Barbara Streisand, but the Streisand effect basically
comes from the idea that if you advertise things, people actually come and say, oh,
we're going to look more deeply into this. So if you have things to hide, maybe you don't want to
draw attention to yourself. Yeah, I think what happened is that a photograph of her house on the cliffs above the beach in Malibu was made public, and she felt her privacy
was invaded. And she sued, which ended up calling even more attention to the situation. And now
everybody knew where Barbra Streisand's house was. Along those lines, do you think that when a country like Russia or China or Saudi Arabia
or Qatar engages in what we consider sports washing, do you think it backfires that they're
pulling a strice hand and focusing attention where they'd rather it not go?
I think we can look at two potential things where this is the case.
If we go back to the Winter Olympics in Sochi, a huge amount of attention
was placed upon the fact that this was by far the most expensive games that have ever taken place,
which got a lot of people thinking, well, why in the world would someone spend $51 billion
putting on this event? And how in the world can this event be $51 billion? Is this just all corruption? And what do the people
think about their money in a moderately poor place like Russia being spent on a three-week party?
I think even more so when we're looking at the World Cup that's going to come up here in Qatar.
This is a place where I think 95% of Americans couldn't have identified Qatar on a map a decade ago.
A lot more of them probably can now.
But it also means that we're learning a lot about Qatar.
And what have we been learning?
Well, some things are good, right?
Al Jazeera, as much as it sounds scary and foreign to Americans, it's actually a pretty
good news organization.
And that's in Doha in the
capital of Qatar. But we also know that they've imported a huge number of foreign workers and
placed these workers under terrible, terrible working conditions, confiscated their passports,
not allowed them to leave. By some estimates, I've seen that thousands of guest workers have died
while they have been in Qatar, and also treatment of their own citizens.
Qatar is a very conservative country. The ability of women to have full participation in
the workforce and in society, that's not to say anything about people like LGBTQ community.
And even beyond sports, if you're a pop singer, Victor, and I want to hire you to come perform
at my daughter's 13th birthday, and I happen to be an Emirati prince, and I want to hire you to come perform at my daughter's 13th birthday. And I
happen to be an Emirati prince and I'd offer you $2 million. I don't hear people getting too
distressed about that. We're doing it. So you'd certainly do see some people turn that money down.
But again, $2 million to play a birthday party. It doesn't matter if you're Britney Spears or not,
that's still $2 million. And that's hard to turn down. You're saying if someone asked you to come sing, you'd do it for $2 million?
Yes, I certainly would. And I'll send you my standard contract after we get off this call.
Can I hear the demo tape first, though?
Absolutely.
Does that mean you actually do sing?
Yes. Yes, I was a singer in college at a fairly good choir. I did not know
that. So what should we do? You never close your eyes anymore when I kiss your lips. I think that's
what we'll end with. I think that's what we'll end with, too. Thanks to Victor Matheson, not just for his vocal audition, but for speaking with us about sportswashing.
Thanks also to Brandel Chambly, Alan Shipnuck, Karen Krause, and Bomani Jones.
What do you think about sportswashing?
Let us know.
We are at radio at Freakonomics.com.
You can also leave comments at Freakonomics.com, where we also publish show notes and transcripts.
Coming up next time on the show, we sit down with one of our favorite people.
I am the most optimistic person in the world.
Kevin Kelly, one of the founders of Wired Magazine, is a technology curator, chronicler, and appreciator.
Why is he so optimistic?
We kind of have a moral duty to do so
because anything good these days is going to be complicated.
Kelly just turned 70, and he has published a list
called 103 Bits of Wisdom I Wish I Had Known.
We'll talk about the need for self-awareness.
I think we're pretty opaque to ourselves.
And we probe the future.
So let me just verify.
Do I know that I'm going to live to a thousand?
That's next time on Freakonomics Radio.
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