The Best One Yet - 🤑 “The Biggest Sports Bet in History” — Caesars’ $75M wager. Airbnb’s cleaning fee. Air Force One’s $2B plane.

Episode Date: November 8, 2022

The biggest winning bet in sports bet history? $75M on the Houston Astros… And it’s messing with Caesars' Casino stock. Airbnb is finally fixing up its Cleaning Fee Fiasco, because Happiness = Reality - Expectations. And Air Force One isn’t just the President’s Plane, it’s Boeing’s $2B Loss Llama.$CZR $PENN $ABNB $BAFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeWant a Shoutout on the pod? Fill out this formGot the Best Fact Yet? We got a form for that tooLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Tuesday. T-Boy Tuesday, November 8th. And today's pod is the best one yet. It's a T-Boy, Nick. It's a T-Boy Nick. But yet he's quick daily Elon Musk tweet update for you.

Remember yesterday? We told you that Elon fired over 3,000 people at Twitter in his first week on the job. Well, today he realized he needs those people. So he asked for some of them to come back. Edit button? Yeah, kind of awkward. Today's pod, though? Today's pod's the best one, yeah.

It's a team. T-B-O-Y, Jack, what's our first story for the pie? We just saw the biggest winning bet in possibly the history of sports. How much was it? $75 million winning payout. The Astros won and Caesar's Casino lost. For our second story, Airbnb is finally fixing the worst of the fees, the cleaning fee. $400 to rent a room, $400 to clean that room?

I have to clean it and I have to pay to clean it. Actually, you got to take out the trash jack, and if you can make us a cake, that'd be fantastic. Our third and final story. Can we talk about the economics of the presidential plane? Please, Jack. Air Force One. It is a $3 billion lost llama for Boeing. But Yeties, before we hit that wonderful mix of stories. Honestly, we woke up, we did not expect to be doing that mix. I love this mix. Campaigns, they've been texting you, emailing you, putting flyers in your doorknop. It is a lot. They're trying to get as many people to vote as possible today, so they just texted you again.

But the biggest place to look for voter turnout? Yes, Jack. It's actually the weather channel. The weather channel. Because Mother Nature is the mother of all election variables. Weather you vote could depend on the weather. Apparently like the weather gods, yeah, they get a vote too. Dartmouth College just did a study that looked at the impact of weather on voter turnout in America.

Get this it is. For every one inch of rainfall above the normal rainfall for that day? Yeah, there's a drop off in voter turnout by 1%. For every one inch of snowfall. on election day. There's a drop-off in turnout by half a percent. Ipso facto, more sun, more voting fun. More rain, like more of a pain. So if you're going to stand in a line today to place your bow, if you're going to be waiting in line with no idea what is happening above your head.

We hope it's without weather. The biggest solution to voter turnout? What is a jack? It's the umbrella. And maybe the parka. Raincoats, more votes. Let's in our three stories. had an idea that cost a culture 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. For our first story, this one's wild.

The Houston Astros won the World Series, but Jack, who lost the World Series? Caesar's Entertainment lost in six games. Sorry, Philadelphia, it wasn't you. This is the story of Mattress Mac and the biggest winning bet in the history of sports betting. We were about to kick off a West. Anderson film, Jack. I love it. Okay, Yetis. Cesar's Entertainment, a $10 billion

public casino stock. It's worth two lifts. Cesar's is the self-proclaimed empire of gaming. Based in lovely Reno Nevada, the only company that gives you a free drink as long as you keep driving their revenues. But in the latest earnings, the CEO mentioned a very unusual risk we've never heard of. Jack, and I noticed, it wasn't a macro risk, it wasn't a recession risk, it wasn't even like a competitor risk. The CEO said, we've got a fairly high, profile liability out there with the Astros. Excuse me back up there, Jack.

As in the Houston Astros, that's who they're talking about? Yeah, the Astros baseball team is a big liability for Caesar's entertainment. The CEO of a publicly traded company just said in the next quarter's earnings depends on the outcome of the World Series. Here's why, because of a 71-year-old mattress salesman in Texas known as Mattress Mac. Jimmy Mickingvale, aka Mattress Mac, step on down. He scared Caesar's could. casino and that scared Caesar stock.

If you were sleeping on this mattress and I ain't Matcha's Mac. What do I got to do to get you a six inches of material? Basically, Mattress Mac did something that scared Caesar's casino and that scared Caesar's casino stock. Back in May, Mattress Mac bet $3 million that the Astros would win the World Series. Now, Caesar's entertainment is in the business of sports betting. So what did they do, Jack? So it accepted Mattress Mac's bet, but only at 10.

to one odds. Seizers is like, all right, here's the deal, Mac. If the Astros win the World Series, Mattress Mac, we're going to pay you $30 million. But if any of the other 29 teams win, and this was five months ago, Yetty's. Before the playoffs. Then Mattress Mac loses his entire $3 million wager. Well, what happened this past weekend? Dusty Baker and the Astros beat the Phillies on Saturday. So Caesers owes Mattress Mac 30 million dollars. And Mattress Mac knows how to play a hand, because he did the same bet with five other gaming companies. Mattress Mac was all in like a California King Mattress. Add it all up, Mattress Mac just got paid $75 million for that one bet five months ago. That is the biggest winning bet in legal sports game-ulling history. That's not even the best part. Mattress Mac decided he's

going to share the winnings with Mattress Megan, Mattress Mike, and Mattress Mick too. $75 million win, it turned into a promo. It turned to to a marketing opportunity for Mattress Mac. Mattress Mac recently started selling mattresses and said, hey, if you spend $3,000 on a mattress and the Astros win the World Series, I'll send you back your money. So a bunch of mattress customers are getting $3,000 checks for mattress Mac. So, Jack, what's the takeaway for our buddies over in the casino industry?

The house always wins even when they lose. Yeties, gambling companies, they aren't really gambling companies. They're calculating risk. They're setting odds. That's what they do. Just like insurance companies, if gambling companies set the numbers right, then they win in the long run, always. And here's how the casino business model really works. Betters are going to lose money and the casino is going to make money in the long run.

That's just the real. And that is how Caesar's entertainment enjoyed record profits and 50% profit margins just last quarter. And that's why investors didn't even drop the stock of Cesar's yesterday, even though it was the first day of trading after the Astros won. So the way we see it, that World Series loss for Caesars, it was like a hurricane hit to an insurance firm. It was a short-term loss. But with casinos and insurance, long-term, the house always wins. The house always wins. For our second story, Airbnb just announced it's fixing its biggest complaint of all. The cleaning fee.

The cleaning fee. Because there is one simple equation that solves customer happiness. Okay, first of all, Jack, last week, Airbnb, just had its most profitable quarter ever. Yeah, they did. But the CEO keeps on hearing this one nagging issue, this one persistent problem. It's the cleaning fee.

We have an epidemic of cleaning fees going out of control. It's the number one complaint of Airbnb customers. Not the fee fee fee in this feeocracy. It's the cleaning fee. The arbitrary, often huge fee, that's also a reminder that you make a mess. Yeah. Oh, a Yeties.

By the way, do you feel like you're paying more for Airbnb cleaning fees lately? That's because you are. Cleaning fees on average are up 48% in the past three years, according to data from AirDNA. All right, Jack, let's sprinkle on a little context here. How much is the average cleaning fee? It's $114 for a booking in a city. All right, let's whip out the whiteboard here, do some calculations. At $20 an hour, which is like not an unreasonable rate for a cleaner, that's five or six hours of cleaning.

It doesn't take five or six hours to clean that place. No, it does not. And guess what? if you happen to book a beach stay, you pay a premium because of the sand. Nick, my family vacation on block on. Look, it was a huge house. The cleaning fee was $1,000. I mean, it was a week and it was a huge house, but that's a lot of sand.

This is a bachelorette party. You're putting it on Tammy's tab, but that was no bachelorette party, Jack. Are they using organic lemon pledge? I think they're using liquid death for all their cleaning purposes. But yeties, that's not all because it's not just the cleaning fee that's bothering Airbnb customers. Airbnb customers are getting double-dipped. Yes, they are. Because they're receiving a list of cleaning chores they must complete before they leave. Jack, have you seen the list of Airbnb checkout instructions lately? Like I said, it's an epidemic. It's like you're working for the host. It make you feel like you're

Oliver Twist. Please, sir, can I have some more? Okay, strict checkout at 11 o'clock. Please turn off the light, lock the door, and take out the trash. No problem. Sure, that sounds fair. Please make the bed, wash the dishes and replace all the toilet paper with a new roll. That seems like a little less fair. Please bake the cake, fix the garage door that has that issue, and plant a patch of azaleas before you check out. Are you kidding? I got a flight in two hours.

What's going on over here? You're paying $200 bucks in cleaning fees and you have to dry clean the host mattress, Pat. Is this a vacation or is it an unpaid internship? It's an epidemic. But yet he's Airbnb cannot dictate the cleaning fees or tell hosts what to do with their checkout instructions. It's a host house.

It's technically their rules. Which leads to the solution that Airbnb announced yesterday. It's called Total Priced Display. Basically, Airbnb is allowing you to browse with all the fees included. So there's no like surprise final fee at the end. And it can't tell host what to do, but it's nudging them to stop telling their guests to like rip off all the sheets and do all the laundry. So Jack, what's the takeaway for our buddies over at Airbnb? Happiness is reality minus expectations.

Happiness is reality minus expectations. Reality minus expectations equals happiness. Yeties, that's the simple equation for customer happiness. In fact, honestly, it's the simple equation for life happiness. And by that crucial equation, Airbnb's pricing was a formula for disappointment. Yeah, because Yeties, you're browsing spots in Airbnb. You see your dream spot and you want to book it. It's $400 a night.

But first, you have to get your partner sign off. When you finally do, you go to book it. You got the credit card ready. And bam! It's actually 600 bucks a night when you include the fees. Jack, now you got to go back to your partner. You got to confirm that higher price. And guess what?

That's too expensive. And now you're getting a fight about it. Suddenly, you're sleeping on the couch. She brings up some issue that came up last Thanksgiving. And boom. And this is all a problem because hiding fees until the end raises expectations and then hammers you with reality. And potentially a breakup with your partner.

So Airbnb is finally putting the fees up front to manage those expectations. first. Because happiness equals reality minus expectations. Life is reality minus expectations. Now a word about our sponsor, Robin Hood. You can do just about anything from your phone, but some industries, they've just been slow to move. The finance industry was slow to move from phone to computer and then from computer to app. Robin Hood wasn't. It's the Silicon Valley-based brokerage that's been updating app since it was born in 2015. Using the Robin Hood app for your stocks and crypto is almost as easy as downloading it. So you can invest to your pace on your terms by downloading the Robin Hood app. If you're not investing on Robin Hood yet, to get started, go to robinhood.com

slash T-Boy and choose your free stock. That's Robinhood.com slash T-B-O-Y limitation supply. Stocks are offered by Robin Hood Financial LLC, member SIPC. Crypto offered through Robin Hood All investments involve risk. By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of Robin Hood. For our third and final story, Eric, Air Force won. It is America's trophy plane, but it's three years late and it's three billion dollars over budget. But Boeing's going to do it. They got to do it because this is their lost llama. Honestly, Jack, Boeing stock has been like stuck at the gate, hasn't left the airport in years. Yeah, it still hasn't recovered from those tragic 737 max crashes back in 2018 and 2019.

But the CEO of Boeing, the big, huge industrial airplane and manufacturing. company this week is focused on their trophy plane. The Air Force One, the presidential airplane. It's been made by Boeing in America since JFK in 1962. Now, there's actually two Air Force. There are. They're identical planes. One is a backup just in case. Oh, an Air Force One, by the way, it can fly forever. That's right. It has unlimited range because it can get refueled mid-flight, as we all saw in that Harrison Ford movie. Yeah, because Harrison Ford is still piloting Air Force One. Harrison Ford still our only president who can pilot a 747, Jack. The only thing that forces Air Force One to land is if they run out of spin drift on board.

But Yetis, here's the problem with Air Force One. The plane that carries the president is a whopping 32 years old. These were built in 1990. Yeah. So back in 2018, then President Trump ordered two new Air Force Ones for $3.9 billion. Now, here's the bad news about the new Air Force Ones. Boeing just announced another. another delay on those two airplanes and $766 million in more extra costs.

But Jack, what's the good news about the new Air Force ones? It's not going to cost us a thing. Taxpayers are off the hook because Boeing signed a fixed-priced contract. Although I guess that is bad news for the Boeing shareholders, Jack. Yes, it is. But Boeing is three years late, $3 billion over budget at this point. It begs the question that fascinated Jack and me, why is this one plane so much more expensive? Now, part of the issue is they're adding some presidential Primo perks to the 747.

Yeah. Get this, Yeties. They're adding a gym to kitchens and making it able to resist a nuclear attack. They're also upgrading it for the presidential lifestyle. We're picturing a fire pit. They're going to make like the middle seat in aisle 6, a peloton? Is that true? That's not true.

But Yeties don't. Those aren't the real problems. No, they are. According to the Wall Street Journal, the real problems causing these delays and price overruns is Bones' unique supply chain. Yeah, Yeties. It's not that. this thing has a stunning chassis. It's because Boeing has the most dispersed spread out,

arguably inefficient supply chain that we've ever seen. And they have that inefficient supply chain on purpose. Yeah. So Jack, what's the takeaway for our buddies over at Boeing? Air Force One is the perfect example of the Lost Lama. Vesties, Boeing relies on good government relations, honestly, like more than any other company. Boeing cares so much about their relations with DC politicians. they literally decided to move the headquarters to Washington, D.C. Because Boeing has a big military division, which obviously depends on government orders, government business. So to make sure that all 100 senators continue supporting Boeing,

they have suppliers for their aircrafts spread across all 50 United States. Sit down, stand up, sit back down again. That means Boeing purposely chose a more complex supply chain to ensure more congressional support. Boeing has a supplier in Vermont. in Idaho, in North Dakota, in Hawaii. Boeing purposely set up its business to be slower and costlier to make one client happy. And Air Force One is the ultimate example of that strategy. Yeah. This trophy plane is not a profit puppy for Boeing. Boeing happily waste money on an inefficient

supply chain and a trophy jet in order to protect that government relationship. Air Force One is the ultimate example of a lost llama. Jack, can you whip up the takeaways for us for us for T-Boy Tuesday. Caesar's Entertainment lost $30 million on the Astros winning the World Series. Mattress Mac won this time, but with casinos, the house always wins. For our second story, Airbnb is setting expectations by showing you the fees up front, not way at the end. Because here's the equation you got to know.

Happiness equals reality minus expectations. Our third and final story is Boeing. It's having more supply chain issues with the new Air Force ones. Air Force One, it's not a profit puppy. It's a loss llama. Now time for the best fact yet, this voicemail sent in by Al Rubio in lovely San Antonio, Texas. Push and black. Here we go. The sun is not the largest star in our galaxy, the Milky Way.

In fact, it doesn't even make the top 10. That honor belongs to a star called U.I. Scuddy, and it is 1,700 times the size of the sun. The sun is, however, the largest and only star in our solar system. So celebrate the winds. I think what Al is saying is that the sun is almost as large as that cleaning fee you paid on Airbnb the other day. Was he got a thousand dollars a dish? Oh, man. I don't know.

I didn't complain. We did mess that house out pretty bad. It does sound like you did complain on this podcast earlier. Yeties, you look fantastic. And if you vote today, remember to send us the pics of your cute sticker. Tag us on Instagram and we'll tag you right back. Celebrate the wins. Jack and I.

We'll see you tomorrow. And before we go, happy birthday to Yeti, Dennis Lascoe, turning 50 in Parma, Ohio. And happy 16th birthday to Rachel Sanchez Cardona in Revere, Mass. Just outside Boston. And Karen Ariola is celebrating that birthday up in Napa, not too shabby. And happy birthday to Nick Kaye over in Grand Rapids, Michigan. And Brandon Brock is working on his birthday, but he's enjoying that birthday down in Arkansas. And big happy birthday to Grace Gomb, a big Yeti in San Francisco.

Francisco. And Martel Zahalba win, happy birthday in Renton, Washington. And happy birthday to Renee Who, in Erie, Colorado. And Jada White just got promoted at Black Rock in New York City. Dinner is on Jada, Jack. Cleaning fees on Jada. And to anyone else, celebrate something today, make it a T-Barr. Celebrate the win. This is Jack. Nick and I both own stock of Airbnb, Peloton, and Robin Hood. Now a word about our sponsor, Robin Hood. Rule number one about a kitchen renovation. Tell your friends about your kitchen renovation. We know the cabinets are expensive. Well, in the pandemic, a lot of companies renovated their

businesses focusing on apps and digital. Robin Hood didn't have to. It was built digital from the start. Robin Hood's mobile first and intuitive design makes investing a little easier for every stage of your investing journey. Whether you want to trade options, ETFs, or stocks through Robin Hood Financial, or buy some Bitcoin on Robin Hood Crypto, you can do all that right on the Robin Hood app. If you're not investing on Robin Hood yet, to get started, go to Robinhood.com slash T-Boy and choose your free stock. That's Robinhood.com slash T-B-O-I. Limitations apply.

Robin Hood Financial LLC, member S-I-P-C, all investments involve risk. By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of Robin Hood.