The Best One Yet - 💰 “Elon’s electoral victory” — Tesla gives Elon $49B. New Era’s ‘47 cap-quisition. Great Wolf Lodge’s Disney dupe.

Episode Date: June 14, 2024

Tesla shareholders just voted yes to give Elon the biggest bonus in history… Elon’s getting $49B.Great Wolf Lodge is the fastest-growing theme park in America… because of Disney Dupes.And New Era and ‘47 are merging into the world’s biggest dad hat company… perfect timing for Father’s Day.Plus, there’s a major chess showdown this weekend… and it’s Google vs Goldman.$TSLA $BX $GS $GOOGSubscribe to our Saturday Newsletter: tboypod.com/newsletter  Watch us on YouTubeGet the Saturday Newsletter: tboypod.com/newsletter  Submit Facts & Shoutouts Socials: Instagram, TikTok, LinkedIn (Nick) & LinkedIn (Jack)About Us: From the creators of Robinhood Snacks Daily, The Best One Yet (TBOY) is the daily pop-biz news show making today’s top stories your business. 20 minutes on the 3 business, economics, and finance stories you need, with fresh takes you can pretend you came up with — Pairs perfectly with your morning oatmeal ritual. Hosted by Jack Crivici-Kramer & Nick Martell. Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Friday the real Friday, June 14th. And today's pot, today's pot. This is the best one yet. It's a T-boy. Nick and I are whipping up the top three pop business news stories you need to know today. Jack, I gotta say, I've said this before, but I've never meant it as much as today. You look fantastic over there, man. Yeties, you might be wondering why Nick and I are wearing the same gorgeous sweaters right now. Well, last week in Los Angeles, Jack and I walked into a women's story. that we thought was really beautiful. We loved all the outfits there. No, you thought it was...

You said we should walk in there. But then we said, all right, we can't wear any of these dresses. So do you have a men's shop we can go to? And they did right next door. And that's where Nick and I found a hue of blue that's somewhere between baby blue and lavender. It's just magic.

You're putting out great vibes in that lavender sweater, man. Yeah, it is, if you want to get jealous about our crew neck sweatshirts, check us out on YouTube right now. Jack and I had a little fashion afternoon like Julia Roberts and Pretty Woman. The best part? We expensed them. Jack, it's a write-off. Three stories for today's show.

What have we got, man? For our first story, Tesla shareholders just voted to give Elon Musk the biggest bonus in business history. Elon is getting $49 billion, and Jack and I will tell you why. For our second story, the fastest growing theme park in America is Great Wolf Lodge. Because the new trend in travel is the Disney Duke. The Disney Duke. And our third and final story.

New Era Hats and 47 Hats just merged. to become the world's biggest baseball cap company. $2 billion for a dad hat? Oh, you know what we're thinking, don't you, Jack? Perfect time for Father's Day weekend. Perfectly timed acquisition. But, Yeties, before we hit that wonderful mix of stories. What a mix of stories to go into a weekend with?

Love this mix. This weekend, we have the biggest sports battle of the year. But besties, this is not about the most athletic. It's a battle about the most smartest. You mean the smartest? Exactly, that's what I said, Jack. Because yet is this weekend is the World Corporate Chess Championship in New York City. The world's top corporations select the best chess player on the org chart to compete in this tournament.

Hundreds of players at the beginning, but we're down to the final 12 who compete this weekend in New York City in chess. And here's the wildest part. It isn't just the big banks competing in this chess tournament, is it, Jack? It's big tech chess players and big bank chess players. Chessing it off. Boom, we got Google versus Goldman. We got Microsoft versus Morgan Stanley. We got Black Rock versus a whole bunch of software engineers from the middle of somewhere. Twelve players from 12 different corporations battle it out on the black and white chess playing field.

And this ain't no amateur chess players, by the way. These are pros, literally. Because it turns out Goldman Sachs actually has an official corporate chess team at the office. Sales and trade in kings and queens. And Google has a chess club. with 2,500 employees participating. Google, it's the Bobby Fisher, a big tech, Jack. So this corporate chess tournament, it's like your company's softball team, right?

Except like half the players have PhDs. That's the difference. Now, of course, we're rooting for the corporate chess underdog of this tournament. Oh, and who's the underdog this year, Jack? Susquehanna Trading Company. Susquehanna, the financial firm that came out of nowhere, baby. You could barely see him down at the toes of J.P. Morgan Chase. Yeah, the smallest financial firm in the bracket, but they've got the biggest bishops in the bracket.

So this weekend, it's your move, David Solomon. This weekend, it is checkmate, Satchanadella. Night to E4, queen to G5. Artificial intelligence, it can't rook that bishop. That is some hardcore pawn. Yes, it is, Jack. Let's hit our three stories. Fifteen years before this song, two boys from the northeast met in the dorm.

They had an idea to cause a cultural storm. It's the best one yet, but the best is an norm. You need to practice. 50% that's a fat tip. Tea boy city on your at list. If you know, you know because we're ready to go. We can't wait no more, so just start the show. First, a quick word from our sponsor.

For our first story, Tesla shareholders just voted yes to give Elon Musk the biggest bonus in corporate history. $49 billion with a B. The biggest bonus since money. Because giving a CEO stock options make them become your blood brother. Jack, technically it is an election year, but we just had the biggest election of the year. Yesterday was Tesla's annual shareholder meeting. The day that the whole family gets together to make big decisions. And funny thing, by family, Jack means every single person who owns a share of Tesla.

That's who we're talking about. And the big family decision this year was whether to give Dad a bonus. A big bonus. Elon Musk's record pay package. That was the big boat in the biggest election so far of 2024. Should we give Elon Musk $49 billion as a reward for steering the company to success? Elon Musk has 10x the value of Tesla stock in the last five years from $50 billion to $500 billion. So again, the shareholders had this in front of them.

Should we give Elon the biggest CEO bonus in corporate history as a thank you for that stock price appreciation? And now you know that Jack and I, we don't. drop dramatic music on this podcast. Dun, done, done. We deal with our voices, but we should point out the stakes were huge. Because the consequences of this vote went way beyond the $49 billion price tag. Because if Elon Musk had lost this vote, it might have been the start of a divorce. Elon has been dropping hints for weeks and months that if you don't pay me a bonus,

Tesla shareholders, then I'm going to turn my attention elsewhere. Elon's been threatening to mentally check out from Tesla and focus on X and XAI and SpaceX and Neurlink and a whole bunch of other things that are not Tesla. Now, Elon might have been bluffing about his no bonus, no Elon threat. But yesterday, as Jack and I were recording this podcast, we got the final official word. Elon won. The shareholders decided to reward him. So he started dancing like a child on stage and said, I love you guys. And the reason he was dancing like a child was because Elon is getting the biggest bonus since Julius Caesar. $49 billion. Yeah.

To sprinkle on a little more context, we've never heard of a $1 billion bonus, Jack. And Elon's getting a $49 billion bonus. Jack and I should point out that a Delaware judge still has to approve this, but it seems like Elon is going to get paid. I need to sprinkle on a little more context, though, can't it? Sprinkle away, Jack. Elon had no money right now and his entire. entire wealth was just this one bonus he's about to get, then he'd be the number 27 richest person on earth.

We repeat, this single bonus check is the 27th most expensive thing in the world. But actually, Elon isn't getting a $49 billion check. He's getting 304 million stock options. We'll explain in the takeaway. And we'll explain in our takeaway because this bonus is worth seven lifts. So, Jack, what's the takeaway for our buddies over at Tesla? The stock option turns the CEO into blood brothers with the company. Yet he's Elon doesn't get paid a salary and Elon doesn't get paid a cash bonus.

His entire compensation at Tesla since 2018 is made up of stock options. 304 million stock options. And we know what you're thinking, so we'll explain it. Here is how those stock options work. Each option lets Elon Musk buy stock in Tesla for a low price, just $23 per share. And why is that low price of that stock option so valuable, Jim? Because Tesla stock isn't priced at $23. Tesla stock is way more expensive than that.

It's $184 a share. It's like the shareholders are giving him a buy low on something that he could already sell high. So each option is worth the difference, which is $164 per share. And Elon has $304 million of those options, which is $49 billion in value. And now, after this massive brand of stock options, Elon is going to own 20% of $20,000, all of Tesla's shares. So, Bessies, the reason stock options are so popular, it's because they tie the destinies of the CEO to the company. The wealth that Elon just earned is only as good as Tesla's health as a company. And that is key, because that will motivate Elon, theoretically, to make Tesla

an even better and more profitable company. It aligns the financial interests of the CEO with the company. So, add it all up, and shareholders just invested $49 billion worth of stock options into Elon Musk. In doing so, they turned Elon into their blood brother. Our second story, the fastest growing theme park in America is Great Wolf Lodge. Because the hottest trend in travel is the Disney World Dup. It's the Disney World Dup. But Jack, what happens to be our favorite opening line to a Wall Street Journal article we've ever read in our lives? It's nice, but not too nice. Nice, but not too nice. And what is that exactly, Jack?

That's how the Wall Street Journal describes Great Wolf Lodge, which is the biggest water park chain in the country. Great Wolf Lodge, they got 22 locations across America from Seattle to South Florida and everything in between. The latest one was just built in Naples, Florida. It cost $250 million to build. And get this, there's 380,000 gallons of water in that water park. 380,000s a gallon. It is legally a lake. This water park is a lake. It's literally a lake. Yeah. Great Wolf Lodge. It looks like if six flags was raised by Aquaman, but it's entirely indoors. It's like if bass pro shops and Universal Studios had a baby theme park, Jack. It's like a swimming pool got attacked by Lincoln Logs, Nick. Yeah, it really is.

It's I guess SeaWorld, but instead of fish, it's humans in the water, right, Jack? You know what I'm getting out here? Sure, you see what we're saying. All right, enough description. Yet is you see what we're saying. Basically, it's a theme park with indoor water activity, zip lines, mirror, mazes, and an entire bowling alley. Plus a build a bear workshop, because why not?

And Jack, what's the secret statistic that nobody knows about Great Wolf Lodge? Every Great Wolf Lodge is kept at the same exact temperature all day year round. Every single Great Wolf Lodge is 84 degrees Fahrenheit, 24 7 across the United States. 84. It's the sweet spot for a family just looking to have a good time. But yet is you want some more impressive financial numbers? In the last five years, Great Wolf Lodge has doubled the number. number of locations. And despite doubling the number of locations, each one is fuller than before. Occupancy is up 25% in the past five years. So Great Wolf Lodge has turned from a lodge into a chain,

and what really kicked that off, Jack? When private equity firm Blackstone bought a majority stake of Great Wolf Lodge in 2019. Yet is here's what Jack and I find fascinating about this story. When Blackstone Private Equity took over Great Wolf Lodge, they had one simple, specific goal. They wanted this vacation destination to be within a four-hour drive of all Americans. Besties, they are 90% of the way there. Like, there is a Great Wolf Lodge within a four-hour drive of 90% of Americans. Yep, there's one that's a three-hour drive for me. Yeah, there is.

And there's one that's a one-hour drive from Nick. Are you kidding? I didn't even realize that, dude. Oh, and Rachel, our creative director, she's from the Heartland, the mecca of Great Wolf Lodge. The first one was in Wisconsin. And yet he's, why are they so obsessed with having one? of these within a four-hour drive of every American. Because we're experiencing a generational shift in family travel. Yeties, Nick and I are the children of boomers, which means we grew up with the

Big Trip Boomer vacation. Ah, the Big Trip Boomer every year. Our parents would plan a trek to Disney World one week, spring break. We're all going. It was on the calendar, 12 months ahead. We went all out. We stayed right up in that Disney Castle. Yes, we did. Four days of the Magic Kingdom, three at Epcot, two at MGM. Bring the Fannie Pack. We are not. not taking a break for seven straight days, Jack. Jimmy, you will enjoy Splash Mountain. But the children, those boomers, are doing something different. We've become multi-trip millennials.

Nick and I represent a generation that takes more frequent vacations, but smaller vacations. We're multi-trip millennials. We'll go to Great Wolf Lodge for a weekend, then do a couple summer trips to six flags, and maybe one or two days at Dollywood in December. And it doesn't break the bank, because Great Wolf Lodge is half the price of Disney World, and it doesn't require a flight for the whole family to get there. Jack, are you thinking what I'm thinking on this one? Yeah.

Great Wolf Lodge? It's a Disney World Dup. And multi-trip millennial parents are loving every minute of it. So, Jack, what's the takeaway for our buddies over at Great Wolf Lodge? Margin is like a magnet. It attracts the competition. Yeties, Disney's most profitable product isn't their movies, their streaming, or their fluffy, cute little toys? It's actually Disney's parks.

70% of Disney's corporate profits comes from the theme park division. Disney World is what drives Disney's profit margin. All of that profit margin is an opportunity for the competition to offer a similar product for a lower price and to still profit. And that has led to Disney doops. They are popping up all across the U.S. Similar but lower price theme parks. There's a couple of new Lego lands in the United States.

Peppa Pig has a theme park. So does Barbie, so does Hot Wheels. And Great Wolf Lodge is adding another, two parks this year so that no one has to fly to get to any of them. Yeties, we're talking about a broader trend of Disney World dupes across America and Great Wolf Lodge is leading the pack. Because a big profit margin is a magnet for competition. Now a quick word from our sponsor. For our third and final story, in the biggest hat news since the brim, a new era hats

is acquiring 47 hats. On this Father's Day, we're jumping into two family-owned baseball cap dynasties. The two biggest dad hats. Well, to make my dad proud, how about we start off this story about talking baseball. Yeah, Jack, Yankees versus Red Sox. Dodgers versus Giants. Derek Jeter versus Arod, the biggest battles in all of baseball history. But those aren't the biggest. You know Derek Trader and Arod were teammates, right? I do. But the biggest rivalry in all baseball actually is with the two baseball hat companies. The U.S. baseball cap industry is dominated by two rival family-owned stories. It's funny because it's actually a New York versus Boston business rivalry, isn't it, Jack? New Era hats versus 47 hats. All right, Jack, let's talk about

New Era first. Where did the New Era hats come from? A German immigrant named Cook established the New Era family-run company in Buffalo, New York, in 1920. Yeah, back in 1920, it was a new era for these New Americans and their heads. They founded the New Era Baseball Hat company, which is the same hat that the major league baseball players were. All right, that's new era hats. But Jack, what about the founding story of 47 hats? 47 hats was founded by two twin brothers, Italian immigrants, Henry and Arthur DeAngelo, who arrived in Boston in the year 1914.

And those two brothers started selling hats and souvenirs just outside Fenway Park, and they named their brand 47 after the year they came to a madica. They don't have the official baseball hat anymore, but they have the official hat for fans, pretty much. Odds are your dad has a flatbrim Cincinnati Reds 47 hats somewhere in his closet. But here's the news. New Era is acquiring 47 hats in the biggest news for the hat industry since the snapback. And America's two big hat businesses will happily remain family run. The New Era family is just going to be on top. Hats off to him, Jack. Hats off to him. Now, yeties, the interesting thing about the baseball hat industry has to do with media, actually.

Yeah, because the media landscape is splinting. Every one of us is consuming different types of media all the time except for one type of content. Pro Sports. Yeah, pro sports has been resilient. The pro sports brands have thrived and these two hat companies are selling pro sports hats. That's why New Era and 47 sell a combined $2 billion a year, just in hats with baseball logos on them. And here's the fascinating thing. Both of those hat companies are pegged in sports, but they've evolved into fashion. Yeah, Jay-Z, he made the Yankee hat more famous than a Yankee game. And both brands continue to push the boundaries of sales beyond just sports fans. For now, these two companies will remain family run by the new era cook family

up in Buffalo, New York. But there's a reason why Jack said for now. So Jack, what's the takeaway for all our buddies who are every father wearing a baseball hat? Why do family run businesses end? Liquidity. Yeah, it is, both the Cook and D'Angelo families are proud of their 100-year family hat heritage. But they're also frustrated that their wealth on paper isn't wealth in cash. It isn't liquid. Liquidity. It's the ability to quickly convert assets into cash. And if you own a private company, you are not liquid because it is really hard to turn a whole company into cash. It's really hard to sell a private company. It could take years, so you're illiquid. And that is why the DeAngelo family is selling their 47 hat brand to transform their wealth from a

company into cash in their bank account. But guess what? The Cook family wants liquidity too. So their next move after this deal is probably to go public with an IPO. Sources say that an IPO of this combined company will come once this deal closes. The banks say that a combined hatopoly would do best in an IPO. We're talking a $2 billion dollar dad hat stock. A pure play dad hat stock. Ticker symbol cap. So why do family run businesses typically end up ending, Jack. It's when liquidity beats out lineage. Your sister loves you, but

she prefers liquidity. Jack, can you whip up the takeaways for us for the real Friday? Tesla shareholders just voted to give Elon Musk the biggest CEO bonus ever, by far. It's Genghis Khan money, Eddies, because giving Elon

$49 billion a Tesla stock makes him their blood brother. For our second story, since getting taken over by P.E., Great Wolf Lodge has doubled to 22 locations in the past five years. Great Wolf Lodge, it is a Disney dupe because a big profit margin is like a magnet for competition. And our third and final story. New Era Hats is acquiring 47 Hats, merging the two big sports hats companies.

Perfect timing for Father's Day. It is a dad hat deal, isn't it, Jack? Because family lineage eventually gets beat out by liquidity. Your sister loves you, but she prefers liquidity. She prefers that cash in her bank's down. She does, she does. She would like it. Katie, yeah, she would like liquidity.

But yet is, this pod's not over yet. Here's what else you need to know today. First, Sony Pictures just acquired an entire movie theater chain. Not too shabby Sony. Sony Pictures over in Japan is buying the Alamo Draft House, a chain of 35 movie theaters. They're based in Austin. Alamo, it's the theater where you can sit down and eat a full three-course meal

with a whole bunch of silverware napkins and clinkety clank sounds in the middle of a movie. It's a fancy movie theater. And Sony is now the first Hollywood studio to own a theater in 75 years. Second, Kim Kardashian's Skims is getting physical. Skims is opening their first five physical stores. Kim Kardashian's apparel brand is opening up permanent stores in Houston, Austin, Atlanta, Miami, and Washington, D.C. Skims is now valued at $4 billion and is hoping to IPO soon as the biggest thong. Monopoly in America.

And finally, yesterday, we told you about the biggest hot dog drama in the history of the Frankfurter. Nathan's hot dog brand split up with Joey Chestnut, the 16-time hot dog eating champion. But here's an update. It's not just because Joey partnered with plant-based hot dog company Impossible Foods. No, it's not. It's also because Joey partnered up with Netflix. Get this.

This Labor Day, Joey Chestnut is going to battle his hot dog eating rival, Kobayashi, in a Netflix hot dog eating contest. Sorry, Nathan's. There's another hot dog eating competition in town. Now, time for the best fact yet. And this one is actually a correction sent in by Yeti's Saif and Peter. Yesterday, we said that Nathan's hot dogs were pork hot dogs. Yeah, we said they were pork hot dogs.

We said those hot dogs that came from a picky. Now, they are meat hot dogs, for sure. They're not plant-based. But they're actually beef, not pork. Yeah. Nathan's hot dogs, that is a kosher hot dog. In fact, Nathan's famous hot dogs were founded by a Polish immigrant named Nathan Handworker back in 1916. And this Nathan started a hot dog stand on Coney Island with a $300 loan and his wife's secret Frank footer spice recipe.

He sold those initial hot dogs, which were all beef, for a nickel per dog. And Jack, what is Nathan's worth today? He turned that $300 loan he got into a $300 million publicly traded company that it is today. Yetis, you look fantastic today. If you haven't yet, subscribe right now for our newsletter so you get it tomorrow morning in your inbox. Oh, it's the best newsletter yet. And you can subscribe by clicking the link in the episode description. And if you've got a win to celebrate this weekend, go to a store with your friend by matching sweatshirts like Jack and I just did.

And expensive. Then pretend you're Julie Roberts from Pretty Woman. You made a huge mistake. Huge mistake. It's a write-off. Jack and I will see you Monday. Oh, and by the way, The link to the shirt Nick and I are wearing, we put that in the newsletter, too.

You're welcome. No promo code necessary. And before we go, a congratulations to Yeti's Jade and Patrick Masters and Madison, Wisconsin, who are getting hitched with a circus-themed dance wedding trapeze situation. The bridesmaids are going to be on snow. No, they're not. Oh, yes, they are. Wow, those bridesmaids are really loyal. And a happy birthday to Jesse Carrasco and Dana Point, California surfs up.

Enjoy the surf. And a happy birthday to Jack and Laurel Frecko turning 10 and 8 years old. These brothers and sisters are crushing it in Washington, D.C. And Tina Norona in Austin, Texas has got a birthday celebrating all the way down the barbecue lane. And a huge happy birthday to Anthony Tici in Atlanta, Georgia. And Aidan Odette in Cherry Hill, New Jersey, has got his last day, a third grade, and a big summer a swim camp. Adon, it's going to be a great summer. And Chris Morgantown.

West Virginia has got his first anesthesiology res- Residency is what Nick's saying there, yeah. And congratulations to Chris and Kelly in Largo, Florida, who are celebrating 10 years together in Port Canaveral. And to all the podcast Padres out there, the fathers across the Yeti universe, a happy dad had Father's Day to you. Whether you're a podfather, a Padre, or none of the above,

we wish you a happy Father's Day. Celebrate the paternal wins. This is Jack. I own stock of both Netflix and Disney. One sec, Jack. Yeah, grab my board shorts. There's one hour away. It's right here.