The Best One Yet - 🏀 “Bank of Shaq” — JPM’s Council of Athletes. Swarmer’s 500% Drone IPO. Banksy’s secret art biz. +Disney’s craziest ideas

Starting point is 00:00:00 This is Nick. This is Jack. It's Thursday the new Friday, March 19th. And today's pod is the best one yet. This is a T-Boy. The top three pop business news stories you need to know today. I'll say it's not a T-Boy. Stocks dropped yesterday because of the Fed.

Starting point is 00:00:16 More specifically, it's what the Fed said. America's Central Bank cut interest rates last year more than once, but they said yesterday to expect zero cuts this year. See, the Fed's worried about inflation again, including a report yesterday, shown February prices. They're up three years. And that report didn't even include the war on Iran, which has driven up oil prices since. Oh, oil seeps into everything. But Jack and I got three fantastic, uninflated stories for you. Jack,

Starting point is 00:00:42 what have we got on today's T-boy? For our first story, Tom Brady just got a new job at J.P. Morgan? Congrats! Recruiting 18-year-old. So why are Tom Brady and Dwayne Wade joining J.P. Morgan's Council of Athletes? Jack and I will explain. For our second story, one drone company I peoed on Tuesday, and the stock is already up 1,000. thousand percent. Swarmer, they're selling military drones, but they remind us of The Bachelor. And our third and final story is Banksy. Banksy. Is he the most mysterious artist of all time, Nick? He's got to be, Jack. Well, he's been unmasked. We now know his real name. So we're focusing on the business of Banksy, which made $250 million anonymously.

Starting point is 00:01:22 But Yeties, before we hit that wonderful mix of stories. What a mix. Love the mix. Perfect mix, Jack. Nick, do you remember your first day of school? I mean, like it was 28 years ago, Jack, new classroom, new backpack. Are they going to like my haircut? Are they going to like my outfit? Mom, stop taking pictures of me! Well, Yeties, for one brave youngster today, it's like the first day of school.

Starting point is 00:01:44 Because it's their first day as CEO of Disney. Josh Tomorrow, the theme park guy, is taking over the big job from Bob Iger today. So Disney, folks, if you see Josh in the cafeteria today, please remember to sit and be nice to him when you sit with them at the lunch table. But since I'm a Disney shareholder, Nick, and since you cried twice during Toy Story, it was actually three times, but, and oh, because Disney stock is also down 50% in the last five years. Ouch, we got some ideas for the new CEO, Josh, Josh, a villain theme park. It'd be a profit puppy, rides for Jafar, Ursula, Scar, that funny biker guy from Luca. Or what about Jack? For one day, just do opposite day at Disney.

Starting point is 00:02:26 Yeah, the fast-pass buyers wait for rides. Everyone else skips the line. Okay, and this one's a little more for the adults, but what about if you launch DeMorrow's Amorrow? Disney's first liquor, named after the CEO. Okay, okay, so Disney, those are the fun ideas we got, but Jack and I also got some strategic business ideas for you. For one full year, don't do sequels.

Starting point is 00:02:45 Just original movies, see how it goes. Or what about our idea from last year? Buy Spirit Airlines. Make the Disney vacation start at Terminal B. Finally, an idea from our buddy Rich Greenfield, acquire Roblox. Yes. Turn the virtual world

Starting point is 00:02:58 into Disney World. Because that's where the kids are spending all their time these days anyway. Own it. Bob Iger bought Pixar the first year he became CEO you should acquire Roblox.

Starting point is 00:03:08 So Josh, good luck on your first day of CEO's school. We are so proud of you. You're gonna do great. We know you're listening. Jack, let's get our three stores. 15 years before this song,

Starting point is 00:03:20 two boys from the Northeast met in the dawn that had an idea to cause a cultural storm. It's the best one yet, but the best is an norm. Jack Nick, that's it. I don't even think they need to practice. 50%, that's a fat tip. Tea Boy City on your at list.

Starting point is 00:03:36 If you know, you know, because we're ready to go. We can't wait no more, so just start the show. Start the show. First, a quick word from our sponsor. For our first story, J.P. Morgan just formed a council of retired athletes to recruit young athletes to get to the bank. It's profits disguised as philanthropy. you don't acquire customers, you tempt them. Oh, college athletics. What do we say, Jack?

Starting point is 00:04:12 Basically pro athletics these days, right? The freshman on Kentucky has a brand deal with KFC. Not too shabby, which means thousands, 18 to 22-year-olds are already coming into some money early on, and they don't know what to do with it other than spend it on the Sig Sig-Sigat party. Which leads to the news. J.P. Morgan wants a piece of that collegiate NIL money, so they just hired a bunch of superstar athletes to what we're calling Team Jamie? Team Jamie, America's Biggest Bank introduced the Athlete Council yesterday.

Starting point is 00:04:40 Dwayne Way, Tom Brady, Sue Bird, Megan Rapino, and a couple other retired All-Star studs. The only one's missing were the Toon stars from Looney Tunes. Here's what the Athlete Council is going to do. They're going to meet with a bunch of JP Morgan executives to help the bank craft services, especially tailored to athletes. You know, I said Looney Tunes, I meant Space Jam. Sorry about that, Jackson. From college athletes to pro athletes to their retirement.

Starting point is 00:05:02 Honestly, the only thing missing from the press release with Jamie Diamond, wearing shoulder pads under a Zena suit. Now, J.P. Morgan is framing this as something noble. They're trying to save athletes from going broke. But J.B. Morgan also hopes that the athletes get rich and that rich people notice the athletes getting rich. More on that on the takeaway. But yet he's sports in America is the biggest rags to riches industry there is.

Starting point is 00:05:23 Absolutely, Jack. A 22-year-old can get crazy rich, crazy quick, going from like poverty to pro-big, money, money, money. Okay, but what Jack and I find fascinating is that America's sports are also a rags to riches back to rags industry, and the data is compelling. Get this. One out of six pro athletes in America end up declaring bankruptcy within 12 years of their retirement. And why is that, Jack? They all point to the same thing. Sixty-five percent of athletes and surveys say that they never had a financial education in school. So they get all this money and they don't know what to do with it. Yeah, Mike Tyson made $400 million, yet he still went bankrupt and not because he ate someone's ear.

Starting point is 00:06:00 So J.P. Morgan is launching an athlete center of excellence and hiring a bunch of ex-athletes to staff. This is going to be the only bank going to campuses, scouting events, combines offering up free financial education after someone does the 40-yard dash. Plus, they're going to have a dedicated educational content section of their website with a checklist the athletes should look at before they sign any NIL deal. So let's say, I don't know, you're a deal on lacrosse face off guy, Jack. What kind of thing are you going to see these days if you go online? Okay, the checklist, I just scanned the QR code and open up the checklist.

Starting point is 00:06:32 It includes, you should probably think about opening up five different types of financial accounts, all of which J.P. Morgan offers. Yeah, because you also happen to be considering a Taco Bell deal at this time. And the checklist finishes with a proposal that you chat with a J.P. Morgan financial advisor. Because you're going to need a Sapphire card for that Notre Dame meal plan. So, Jack, what's the takeaway for our buddies over at J.P. Morgan? The customer lifetime value of a pro athlete, it is Hall of Fame worthy. All right, Eddie's, you got to think about the numbers here for a second.

Starting point is 00:07:05 Because J.P. Morgan spent a whole bunch of money getting these athletes to agree to that huge press release with a bunch of stars. Tom Brady's agent doesn't let Tom Brady do anything for free. Tom Brady charges Mother Earth money for him to breathe. But we simulated the returns on one successful athletic wealth management client for J.P. Morgan. It's bigger than you'd expect. You're going to give this a standing ovation. What do we got on the whiteboard? Jack. A solid NFL starter might earn $50 million over the course of their career. And if

Starting point is 00:07:31 JP Morgan wealth management manages just half of that wealth, Nick, and we're talking one percent fee on 25 mil, that's 250,000 bucks a year. And if that wealth grows in the stock market, JP Morgan remains the wealth manager for a few decades, JPM could make five to 10 million dollars in fees on that one pro athlete alone. Now that's big, but here's what's even bigger that no one's thinking about. The halo effect. Totally. Because you now associate J.P. Morgan

Starting point is 00:08:00 as the bank of face-off guy. Yeah, one big reason why Goldman hired Justin Tuck of the New York Giants and Morgan Stanley hired Wayne Krabet of the New York Jets isn't just because they're smart dudes. Why is it, Jack? It's to leverage their start-up to close deals. Yeah, these guys attract fans who would rather give money to Goldman, you know, if your favorite football player also happens to work there.

Starting point is 00:08:21 Or also happens to have a bank account there. So Bessie's, J.P. Morgan isn't really just marketing to athletes here. They're also marketing to the fans, too. And if this works, the returns will be Hall of Fameworthy. For our second story, the NASDAQ's newest stock is called Swarmer, a drone brand up 1,100% in two days since its IPO. Because Swarmer is the sole bachelor on an island of hungry bachelorets. That's right. We connect the drones with reality TV, and we'll get there in a moment. But in the Meantime Yetis, people like to say that a viral stock is going to the moon. Well, this one, it's going to Mars. Because an IPO happened this week from the company Swarmer. They price their stock at $5 per share, but it closed day one at $31 per share. Impressive. It closed day two at $55 per share.

Starting point is 00:09:15 Sit down, stand up and buzz again. What's going on, Jack? It's up over 1,100% in two days. It's on pace for the best rookie year for a stock. since each year. Wow. Good baseball knowledge there, Nick. I do what I can't do. No, we've covered hundreds of IPOs on this podcast, maybe thousands. But Swarmer's IPL is the most unusual one for several different reasons. That's right. We jumped to T-Boy style to the IPO paperwork and notice they mentioned the word Ukraine 52 times. Because the company is only 33 months old. That's it. It was founded for the war in Ukraine. Yeah, and interestingly, Ukraine is their one and only proof of concept for the business. The website's testimonial.

Starting point is 00:09:55 is from Ukraine's Minister of Defense because they use their software. You know, Anthropic has reservations about fully autonomous drones used in warfare. Well, Swarmer, they don't. Swarmer says that one pilot can control dozens or hundreds of drones to attack the enemy using their drone software. They swarm sounds brutal. Well, their chairman happens to be the founder of Blackwater, the for-profit private military force you may remember from the Iraq War.

Starting point is 00:10:22 And his software will help the military swarm the enemy. with an overwhelming force of drones that cannot be shot down. Now, Swarmer mentions they're an Austin-based company, but we should point out, 44 of their 49 full-time employees are fighting the war right now over in Kiev for independent Ukraine. Yeah, Swarmer's helping the good guys, and I really hope it stays that way. But Jack, let's sprinkle on a little bit more context here, if you please. In recent years, we've seen wars in Ukraine, Gaza, Iran, and more. There's a huge market for military drones that has emerged.

Starting point is 00:10:52 We've covered tank stocks, fighter jet stocks, the military, industry is having its best year since Alexander the Great Invaded Egypt. But the price that this stock is trading at is absolutely insane. I mean, the math ain't math and the numbers are like noodle in us here. What are we seeing, man? Swarmer claims that they have $30 million of revenue in the pipeline, but their actual sales were just $300,000 last year. Okay, Swarmer's profit, negative $5 million.

Starting point is 00:11:19 How is that possible exactly, Jack? That means that they spent $16 last year for each $1,000, they made of sales. And yet, this company, based on its $55 stock price, is now worth $700 million. That's a big difference. Nick, this podcast makes more revenue than Swarmer does. Yeah. But this podcast is worth $700 million. Yet, besties, this company, it is so unprofitable that they're required by law to say this in the IPO paperwork, also something you don't usually see. They're required to say that they might go bankrupt before the year ends. And this is what we find fascinating. Despite all of that,

Starting point is 00:11:53 None of it is stopping retail investors from pouring Moolah into Swarmer's drone stock. So, Jack, what's the takeaway for this curious case of a 1,000% up stock known as Swarmer? If you're the lone bachelor, you're the most popular guy in town. Oh, we told you we'd bring it back yet. You see, there are very few stock market opportunities to invest in drone companies, very few. China's DJI owns 70% of the world's drone market, but DJI is blacklisted in the U.S. And the big military defense companies, yeah, they make drones, but drones are just a tiny part of their business. Only Swarmer and a couple other small companies have publicly traded stocks focused 100% on drones.

Starting point is 00:12:35 So here's what happened. When Swarmer IPOed this week, the stock market group chats and the subreddits blew up in interest. And it appears Swarmer rushed to IPO based on their financials to tap into the huge retail investor demand for drone stocks. Basically, Swarmer's valuation is less about the business. It's more about the limited number of drone. stocks on the market. But when drone competition eventually arrives on the stock market, there's a good chance swarmer stock falls. Because besties, the bachelor looks less hot once the other bachelors arrive on the island. Now a quick word from our sponsor. For our third and final story, it's Banksy. The mysterious street artist has been unmasked. We now know Banksie's real name. So let's reflect on Banksy's quarter billion dollar business.

Starting point is 00:13:27 But besties, let's start by sprinkling on some context. The inventor of the Bitcoin. The two daft punk-helmeted DJ dudes. Batman, Superman, Spider-Man, all the man. All secret identities. And so was Banksy. Yes, the world's most famous anonymous artist. Banksy once posed as a street vendor in Central Park selling $60 scribbles.

Starting point is 00:13:48 True story. That were actually worth $6 million. now. Banksie walks into a city without warning and graffees a random brick on a wall at night, and then that wall is worth a million bucks the next day. Banksy once gave Sotheby's, the fanciest art auction house of all, a painting of a girl with a red balloon to sell for $25 million. But he'd built a shredding machine into the frame of that painting, so after the auction closed and they sold it, the painting self-destructed. He shredded the $25 million artwork he sold. I don't think he got paid.

Starting point is 00:14:21 for it, right? We're not making this up. Everything we just said is true. Who builds a shredding machine into a frame? Banksi does. But breaking news, Yeti's Reuters claims they have proof of Banksi's true identity and his real name, spoiler, not Banksy. According to Reuters, Banksy was arrested while spray painting public assets in New York City in the year 2000. And Reuters got a copy of his signature on that court paper. And Jack, what exactly does it say where he signed? Robin Gunningham, A British man now in his 50s. That's right, Banksy. He's really Robin Gunningham. Or actually, he was only temporarily Robin Gunningham.

Starting point is 00:14:58 Yeah, he changed his name to the most common British name there is, David Jones, to help protect his identity. So that's why what was most fascinating to Jack and I is the business of Banksy. Because Banksy has sold $250 million worth of art while remaining anonymous. And here was the secret to those sales. Despite his anonymity, Banksy operated a legitimate business. as he called it the pest control office LLC. Well, during the pandemic, pest control office LLC made bank.

Starting point is 00:15:28 Americans were splurgeon on stocks, bored apes, and any kind of art. So Banksy sold 171 million bucks in one single year. His company has sold 9,000 pieces altogether, which includes prints. And the company's job is to verify that it was Banksy who made this art, but do so without revealing Banksy's true identity. Exactly. The LLC keeps Banksy arms. length from the gallery system to maintain his secrecy. So pest control office LLC is basically a private market regulator. That's right. Their value is in controlling the quantity and the

Starting point is 00:16:00 veracity of Banksy's art, basically like the SEC of Banksy. But here's the wild plot twist. According to the Wall Street Journal, his real identity being revealed will not hurt the value of his art. In fact, it will help the value of this art. Yes, we know we told you that where there's mystery, there's margin. And secrecy is what made Banksie go viral in the first place for a over a decade. But if you're going to spend $25 million on a Banksy piece of graffiti, you want confidence to know he's a real person. Yeah, you want a hundred percent confidence you knowing it's one person, that he's still alive and that he's actually doing this. And that he's not like an awful person who's been canceled for some horrible thing he did. And soon someone

Starting point is 00:16:40 will have the chance to buy the first Banksy post-unmasking, which we bet will sell at a record price. There's a whole new collection of scarcity you can sell now that he's post-unmasking. I think he's going to get a Twitter account? I mean, Robin Gungingham is definitely available, Jack. So, Jack, what's the takeaway for our buddy? Banksy. At work, you can build your own mythology, too? Yeah, that's right.

Starting point is 00:17:03 Jack and I see a career angle here, because there's a range of practical career advice from this maverick mystery artist who was unknown for so long. Lesson number one, it wasn't his skill. It was all about the surprise location that his art was revealed in. Lesson number two, it wasn't what he drew,

Starting point is 00:17:18 but it's the conversations that what he drew started, like that painting that's self-destructed live at the fancy auction. And number three, is that not saying anything can be louder than any words you could say. Basties, those counterintuitive moves built Banksy's personal brand beyond any other modern artist. So think about where your work is going to appear and what conversation it could start. And how sometimes saying less lets others talk about you more. It's not just mystery, it's mythology.

Starting point is 00:17:44 And Banksy built a quarter billion dollar business on it. Jack, can you whip up the takeaways for us for us for the new, Friday. J.P. Morgan Chase hired a council of athletes to spearhead their effort to get varsity clients. Because the ROI of having a pro athlete as a client also includes the fans. For our second story, Swarmer had the best two-day IPO pop we've ever seen. And we think it's because they're the only drone stock on the market. See, when other bachelors arrive on shore, this bachel is going to look a lot less hot. And our third and final story is Banksy. His identity has been revealed. He's David Jones born Robin Gunningham. And his 250, mills.

Starting point is 00:18:21 A million dollar art business holds lessons on how to build mythology, even at work. But besties, this pod's not over yet. Here's what else you need to know today. First, one of the most downloaded apps in America right now is a TSA app. That's right. The TSA app for airports. Oh, and the app, it's not fully working. For 32 days, there's been a partial government shutdown focused on the Department of Homeland Security. TSA workers are unfortunately the biggest victim of this. Over four weeks, they had been working without pay. Many of them are. calling in sick to drive for Uber right now. So if you're at an airport, those guys aren't getting paid. And the TSA app shows where the longest lines are, because lines are really long. But the app

Starting point is 00:19:00 doesn't work because of the shutdown. It's a vicious cycle. And second, Amazon's got big delivery news, one hour shipping and no more USPS, man. New York, L.A. and San Francisco already had one hour shipping priced at $10 per order for prime members. But now Des Moines and Nashville and many other smaller cities are getting one-hour delivery too. Okay, but the bigger surprise, it's Amazon versus the post office showdown of the century. Amazon is reportedly in heated negotiations with the USPS on how much to pay to get their packages delivered, and they're planning to reduce their postal service contract by two-thirds by this fall. Newman! And finally, the WNBA signed a collective bargaining agreement last night after a month in negotiations, huge step for the league. For the first time,

Starting point is 00:19:45 WNBA players will get a revenue share, which means upside. first, there's going to be the first million dollar WNBA players this season. The average salary will be $600,000, with the minimum salary of $300,000, which is five times more than just last year. Now time for the best fact yet. This one sent in by Yetty, Susanna Owen from lovely Asheville, North Carolina. And get this, Jack, Susanna, started listening to us when she was in sixth grade. She's now in college. That is incredible. Thank you, Susanna. Now she's a nutrition major, and she has another fun fact, a follow-up from our David Barr story. Yeah, here it is. Yetis, you see, in addition to the different ways of measuring calories in food, our bodies

Starting point is 00:20:23 actually don't extract the exact same amount of energy from what each of us eat. For example, two people could eat the same meal, but differences in digestion, gut bacteria, and food prep mean one person might absorb slightly more calories or less than the other person. So, even though calorie labels look super official and precise, the energy we actually get is more individualized. Yiddies, you're looking fantastic for the new Friday. If you have Haven't yet tell a buddy, H-Y-H-T-V-O-I. That's how we grow the show. Have you had the best one yet?

Starting point is 00:20:55 And if you'll be in New York on April 8th, snag some tickets to T-Boy Live right now. And hey, Disney, if you don't launch DeMorrow's Demarra? Oh, Tomorrow's Amaro. It tastes fantastic. Trust us. They should launch Demaros Amaro tomorrow. It's a drink I want to borrow, Jack.

Starting point is 00:21:10 If you got more ideas for Disney's first CEO day, drop them in the comments. Jack and I, we'll see you a man. And before we go, a happy birthday to Yeti Zadon Thomas, in Frisco, Texas, also starred in its part-time NBA over at SMU. And happy birthday to Giselle Hernandez, turning 26 in Salt Lake City with a serving of some dirty soda.

Starting point is 00:21:33 And Ali Harrington, enjoy that birthday down in Smirma, Georgia. Happy birthday to Caroline Carrado in Houston, Texas. And Lizzie Spence, the fondue crew is celebrating a big birthday down in Philadelphia. Happy birthday to Christina Smilowski, who's getting a massage for that birthday over in Denver. And Jesse T. we see your birthday over in New York City. And happy birthday to Debbie Shia Donnie. seven-year Yetty, whose belated birthday is happening right now in Cambridge, Massachusetts. And Millie Dregers from Sparta, Tennessee, had a tonsillectomy.

Starting point is 00:22:03 This Yet, this Yety, you're on the way to recovery, and you're feeling and looking fantastic. Millie, send us a picture of that big old bowl of ice cream you had. And a shout out to Jen Milliori, who says that Dick's sporting goods house at cleats opened as she was listening to our story about Dick's sports opening stores. When does that happen? I mean, oh, my God. I mean, I know our phones are listening to us, but wow.

Starting point is 00:22:27 Yeah, not a conspiracy. And finally, to the Yeti L. Bosch on Spotify, who used our planuary suggestion so happy that it saved you a bunch of money on the vacations this year. And to anyone else celebrating something today, make it a tee boy. Celebrate the wins. This is Jack. I own stock of Amazon and Disney, and Nick and I both own some Bitcoin.

The Best One Yet - 🏀 “Bank of Shaq” — JPM’s Council of Athletes. Swarmer’s 500% Drone IPO. Banksy’s secret art biz. +Disney’s craziest ideas

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