The Philip DeFranco Show - PDS 9.10 Rich Youtubers Grabbed Millions in COVID-19 $$$, Jeffree Star, Mr Beast, FAZE Clan, & More

Starting point is 00:00:00 It's Thursday, my name's Philip DeFranco, I'm tired and don't feel like trying as hard in part because the news cycle has finally pummeled me into emotional submission, and do facts even matter anymore because are facts facts if they don't already further cement something that I already agree with, which is also a scary thing to say because almost 100% of people believe that, not realizing that I'm commenting on them. Yeah, hit that like button, otherwise I will slap your mother, but not in the way that she likes. And hey, let's just jump into it. First up today, let's talk about kneeling news, a story that I selected almost solely because I like the alliteration. According to a recent poll, over six in 10 American adults say professional athletes

Starting point is 00:00:36 should use their platform to express their views. With 62% sharing this view, going from highest to lowest, you have Democrat, Independent, Republican. And then by age group, you have under 50 years old, 50 to 64, and then 65 plus. Then getting more specific, the polling showed that 56% of Americans

Starting point is 00:00:50 support kneeling during the national anthem to protest racial inequality, with 42% believing that it was not appropriate. But to stand out here with that percentage, the thing that really stood out, it wasn't split among age groups, it wasn't split among political beliefs, it was the change over time.

Starting point is 00:01:04 Right back in August of 2018, only 43% supported that. Then you jumped to July, 2020, 52%, and now September, 56%, which is obviously the highest. Which I will say, I think all of that is interesting, especially as we tonight start football season, because it does appear that public sentiment is in a far different place. Even if you're talking about just the changing of over 10%,

Starting point is 00:01:24 that's a ton of people. And yeah, for me, it's just anytime a person and their opinion changes, I always find it fascinating. Actually, to tag a question onto this story, has your opinion changed over the past several years? And if you are someone that did not initially find it appropriate, but now you do, what changed? More information, different points of view,

Starting point is 00:01:40 did you just change as an individual? I'd love to know. And then let's talk about this news out of Missouri, which is just side note, not to gush or pander, easily one of the eight best states in the United States that starts with the letter M. What we're talking about in Missouri is what is happening at the University of Missouri.

Starting point is 00:01:54 If you're not aware, there's been a ton of criticism about how this school has handled reopening during the pandemic. And also, just so we're clear, it's not because they didn't invite the Nelk boys to help spread COVID. Reportedly, the school does not need that help because there are 635 active reported cases.

Starting point is 00:02:07 Which also means that since August 19th, there have been over 1,000 coronavirus cases at the university. And also here, I should say at least, because access to testing on the campus has reportedly been very difficult. With one student tweeting, Mizzou is hiding COVID cases.

Starting point is 00:02:19 You need a referral in order to test, making tests inaccessible. During my appointment, they said I have it, but wouldn't order me to be tested unless my work required it. They didn't want to report my case. Also, there's reportedly been issues with food, and not only because you have students tweeting out photos

Starting point is 00:02:32 like this of their quarantine meals. You see two pieces of ravioli, there's some broccoli, but apparently that person was lucky because you have other students straight out claiming that sometimes the school just forgets to feed them. Others also saying that the aggressive contact tracing the school has been boasting about online is actually close to non-existent.

Starting point is 00:02:48 And so with all of these alleged issues and more, what do the students do? Well, of course they speak up and they do that in part by tweeting. And more specifically, tweeting their concerns to the school as well as the university's assistant president and MU chancellor, Moon Choi. So in response to some of these vocal students,

Starting point is 00:03:01 what we saw Chancellor Choi, ooh, I like the alliteration. We ended up seeing Chancellor Choi do is say, "'I hear you, your concerns are valid, we are working.'" I'm kidding. He reportedly ended up blocking a number of these students. For example, there was a student who shared a video of sinks at the school not working, making it impossible for the student to wash their hands.

Starting point is 00:03:17 You know, something that is integral to being able to safely reopen. That person ended up being blocked with him sharing a screenshot saying, "'Definitely a professional approach "'to addressing COVID concerns. "'Real class act.'" Right, and with this, we also saw a student Twitter account

Starting point is 00:03:29 by the name of University of Misery posting about all the awful responses. Right, and in general, this move of blocking was not met well. We saw responses like, "'My job as a reporter is to hold the powerful accountable "'and be a watchdog. "'When the chancellor slash president of the university

Starting point is 00:03:42 "'decides to block me on here "'and yet also brag about how great our journalism School is that's a huge problem And here's the thing as far as choice side of this situation There was a university spokesperson that spoke to the kansas city star and they confirmed that yes In fact choi did block the students and they added he's been on the receiving end of messages slash tweets that were disrespectful and not Constructive he is always open to respectful conversations with students Here's the thing

Starting point is 00:04:04 It turns out out Choi's feelings might not be enough to cover his bases. Reportedly, some of the people blocked by Choi actually got a lawyer to send Choi and other school officials a letter. With that letter reading, not only is it immoral and repugnant for President Choi to block students and other persons in social media

Starting point is 00:04:17 who are trying to raise awareness of campus safety issues in the middle of a global pandemic, it is also unlawful. With that letter going on to argue that by using his Twitter account as a tool of his office, President Choi's Twitter account has become government controlled property. There is no official account for the UM system president, and so his handle is the only public facing account

Starting point is 00:04:35 for President Choi. As President Choi's Twitter account is a government forum, blocking people for their criticism of the university's handling of a public health crisis constitutes viewpoint based discrimination in violation of the First Amendment. With the letter essentially going on to say, hey, Choi, unblock these students or get ready for court. And ultimately what we've seen so far there is it appears that Choi is backing down and some students have shared that they were unblocked. Here's the thing, with this

Starting point is 00:04:56 story, I'm not doing it just to bust Choi's chops. You know, the mess in Mizzou is unique because of the blocking situation, but also the general fumbling of bringing students back to campus is unfortunately not. There are schools all across the country with massive outbreaks that started essentially right as students were brought back. You know, we have new reports indicating that colleges in all 50 states have reported cases,

Starting point is 00:05:13 many schools linking clusters to social gatherings. There have been at least more than 40,000 coronavirus cases among college students and staff. And I say at least because of some issues that we've seen as far as getting testing, as well as the lag for some schools when it comes to reporting data. So there is all of that. But actually, if I can end the story

Starting point is 00:05:27 on a potentially positive note, reportedly nationwide, right? Each state and each county is different, but nationwide new coronavirus cases dropped 13% the past week. Hopefully we see that trend continue because even though there was a 13% drop, that is a ton of new cases each day.

Starting point is 00:05:41 Right now in the States, we're still averaging 37,000 new cases a day. And unfortunately last night, we passed 190,000 plus dead Americans, which one is a genuinely horrifying number. It feels like this continuously growing number no longer has the impact that it once had. Right, like the reaction to hearing 190,000 plus have died

Starting point is 00:06:01 is so muted compared to when the first 30,000 did. Though that may be a result of it feeling like we've been in the bad times for months now, and two, makes the following transition incredibly jarring. Then let's talk about the PPP, right? The Paycheck Protection Program. It was passed under the CARES Act, meant to give out loans to small businesses to help keep them afloat during the pandemic, and specifically to help them keep their employees on the payroll. And you know, in the past, we've seen controversies pop up over who got the loans and who hasn't, right?

Starting point is 00:06:27 The money was intended to help small businesses. And so people were outraged when they saw things like Shake Shack getting $10 million. Money, which I will say after the outrage, Shake Shack did give back to the government. But it should also be noted that they were by no means the only incredibly large company that got one of these loans.

Starting point is 00:06:42 Some did return, some have kept. But the reason we're talking about this situation today is because of a new report that came out. A report that found out that some of YouTube's biggest names actually were the recipients of PPP loans. With Mashable specifically pointing out Jeffree Star, MrBeast, and the FaZe Clan. And according to a ProPublica database

Starting point is 00:06:58 that tracks all the federal loans that have been given out. Jeffree Star Cosmetics was approved for a loan ranging from 350,000 to $1 million on May 3rd. MrBeast Cosmetics was approved for a loan ranging from $350,000 to $1 million on May 3rd. MrBeast YouTube LLC was approved for a loan in the same range about a month earlier on April 14th. And FaZe Clan Inc. was approved for a loan ranging from $1 million to $2 million on April 27th. You know, this was seen as very notable because as Mashable explains, all three companies, or at the very least the people who own them, are perceived to have massive wealth with them writing, MrBeast and Jeffree Star's loans are particularly surprising

Starting point is 00:07:25 because both YouTubers have built brands on luxury and extravagance. Their article then goes on to dive into that, looking at the finances of each company and creator in further detail. The outlet describing MrBeast as someone who frequently gives away cash prizes, cars, and most recently, a private island

Starting point is 00:07:38 throughout Landish stunts. Then going on to note his big charitable giveaways, including one back in June where he pledged to split a $150,000 donation to organizations supporting racial justice and police reform, as well as several small businesses. As far as why Mr. B's company applied for

Starting point is 00:07:51 and got a PPP loan, a representative reportedly said, "'Multiple sponsors pulled out of projects. "'Our advertising revenue plummeted by 70%, "'and we had numerous finished videos we couldn't post. "'We didn't have access to testing, "'so we also had no idea at the time "'when we would be able to produce new content. "'We felt this was the best avenue avenue that would help us weather the storm.

Starting point is 00:08:07 And also arguing that the company is different from Mr. B's personal accounts. And adding all charitable donations, including a $150,000 to Black Lives Matter and $250,000 to Special Effect, of course, did not come from company resources. Then, of course, as mentioned, the article mentions Jeffree Star, who they note was listed among Forbes' highest paid YouTubers in 2018. With Forbes reporting that he brought in $18 million that year and his makeup company, Jeffree Star Cosmetics, was worth an estimated $100 million. Though they do also note that he took a hit because Morphe cut ties with them.

Starting point is 00:08:34 Also noting here that all of that happened after he was already approved for the loan on May 3rd. And then finally you have FaZe Clan, which the article says is currently valued at $240 million and ranks fourth on Forbes' most valuable esports companies. Also here, the head of communications for FaZe Clan confirmed to the article says is currently valued at $240 million and ranks fourth on Forbes' most valuable esports companies. Also here, the head of communications for FaZe Clan confirmed to Mashable that they did receive $1.1 million. Also, really significantly here, the outlet notes

Starting point is 00:08:53 that in early April, just a few weeks before they were given that loan, the organization had just closed out a $40 million funding round that also secured an exclusive partnership with Network, which is an e-commerce platform that also works with Nike and Puma, with it going on to say that at the time,

Starting point is 00:09:05 FaZe Clan CEO, Lee Trank, told Forbes, I do not look at this terrible moment as an opportunity, but we are fortunate we are in the right industry for a moment like this, when everyone is turning to e-sports and streaming, and we are positioned to be bigger on the other side of it. Right, so the general idea some people get when they hear that is,

Starting point is 00:09:19 okay, so you were set up for success in this moment, which of course you weren't rooting for. But if that was the case, why would you need this PPP loan that could have actually gone to a much smaller business, or actually a few smaller businesses? And regarding that, we saw Trink give a statement to Mashable about the loan,

Starting point is 00:09:32 saying that the business had expanded its staff in January and that they were grateful for the loan because it has allowed us to retain 100% of our employees, despite having to reduce our revenue projection by many millions in esports alone due to the pandemic, and adding that they always intended to pay back the loan in full. Though we also did see some people confused

Starting point is 00:09:48 by that statement. One of the main things with the PPP loans is that if you jump through the right hoops, these are actually forgivable loans. And so with this story coming out, we saw a number of people responding on social media mad that these people and these companies got this money instead of what they considered much smaller businesses.

Starting point is 00:10:02 With people noting that tons of businesses have had to close because they could not get PPP loans. We also saw some taking specific aim at Mr. Beast. With people writing things like, "'Small businesses desperately applying for PPP loans "'and shutting down after not receiving it "'are victims of the actions of Mr. Beast "'and others like him.

Starting point is 00:10:16 "'He has no right to take government money "'and then re-give out to those he deems worthy. "'That's simply powerful people playing with money.'" But also on the other side of this, you had people saying, no, Mr. Beast actually does deserve it. This because despite whatever his own personal wealth is, he employs people.

Starting point is 00:10:28 Also with what he has, he helps people. He also gives money away. And also a kind of more broad defense, you had people arguing that these companies and creators are not directly to blame. That if anything, it's really on the government to decide who the loans go to and distribute the money. Which I will say here,

Starting point is 00:10:41 this is kind of just the most recent version of this story. Right, as I mentioned earlier, you had that Shake Shack example. But also you have other big organizations. Ruth's Chris Steakhouse, Potbelly Sandwich Shop, the Catholic Church, the Lakers. As well as companies owned by incredibly wealthy celebrities getting PPP loans, like Khloe Kardashian, Kanye West, Reese Witherspoon. While also here, of course, there's always the argument that people should have never applied in the first place. We've also now seen hard evidence on a ton of issues with how this money has been allocated from the top down. Right, earlier this month, the House Oversight Committee

Starting point is 00:11:09 concluded that thousands of PPP loans were given to companies that should not have received them. And, according to a report released just last Tuesday by the Select Subcommittee on the Coronavirus Crisis, turns out the Trump administration gave out some loans to companies that didn't even fill out complete applications. This, in addition to providing hundreds of loans to government contractors that had previously been flagged for significant performance and integrity issues, as well as giving nearly $100 million to companies that were literally ineligible for PPP money. This because they had been banned from doing business with the federal government.

Starting point is 00:11:36 And at the same time, other studies and reports have found that many large companies got loans before small businesses, who horribly were largely left out of the first round of loan distributions despite needing the money the most. In fact, economists at the University of Chicago and MIT found that just 15% of companies in the areas most affected by declines in hours worked and business shutdowns received PPP funding. And in fact, in areas least affected, 30% of companies received PPP funding. And even beyond that, there are a ton of problems with the data and records

Starting point is 00:12:02 of the loans that not only call into question how the program is managed, but also how effective it has been in helping companies keep employees on the payroll. According to a report from the Los Angeles Times, out of the roughly 4.9 million loans awarded as of July, over 550,000 approved applications listed zero jobs retained and over 320,000 left it blank entirely. With the Times also reporting that many small businesses were approved for loans much larger than what they actually got, and that there was no explanation for the discrepancy in the data. And all of that is extremely notable because one of the only things that Republicans and Democrats can agree on right now regarding the next coronavirus stimulus package is giving out more PPP. And if there is an issue with that, that needs to be addressed. But with all that said,

Starting point is 00:12:39 I would love to know your thoughts on this. We've talked about a version of this situation that's a little farther away from our home, right here on YouTube, right? More mainstream celebrity type companies. But when you hear the news that a FaZe Clan, a Jeffree Star, MrBeast got a PPP loan, what are your thoughts on that? Do you think that it makes sense?

Starting point is 00:12:55 Because regardless of how much perceived massive wealth they have at the end of the day, they are a small business. Right, they technically qualify. They as an individual should not have to take a personal hit or no, you think at the end of the day, it is a moral and individual choice. That if you have an organization that is valued at $240 million, that just closed a $40 million round, that they should either not receive it or be further back in a priority and that the money first go to more mom and pop businesses.

Starting point is 00:13:18 Yeah, I would really love to know your thoughts on this one. And actually, the last thing we're going to talk about today, we touched on for a second, coronavirus relief. Will we see a bill passed to help the millions of Americans that are suffering right now? And the answer is probably not. While I was filming today's show, we saw Republican and Senate Majority Leader, Mitch McConnell tweet,

Starting point is 00:13:34 every Senate Democrat just voted against hundreds of billions of dollars of COVID-19 relief. They blocked money for schools, testing, vaccines, unemployment insurance, and the Paycheck Protection Program. Their goal is clear, no help for American families before the election. And the unfortunate thing with this story is it appears that it is largely partisan politics.

Starting point is 00:13:52 Right, so it appears that both sides do wanna have a coronavirus relief package, but the difference that we've seen in the proposals is massive, right? There's been a coronavirus relief package in play since May. This because back in May, the House of Representatives, or notably the House Democrats,

Starting point is 00:14:05 passed a $3 trillion bill with their proposal, including among other things, an extension of that $600 a week for people that are unemployed, 500 billion for state governments, 375 billion for local governments, 175 billion for testing and other health-related expenses, 75 billion for housing assistance,

Starting point is 00:14:21 25 billion for the U.S. Postal Service, 10 billion for small businesses, 3.6 billion for election security and preparation. This would also provide another round of stimulus checks, up to $6,000 per household. Individuals earning up to 75,000 will get a one-time $1,200 check, and couples earning up to $150,000

Starting point is 00:14:37 would be eligible for $2,400. Also for dependents with a maximum of three, regardless of age, you would get $1,200 each. And it's because the first round of stimulus checks excluded dependents that were older than 16, including many college students and even a good chunk of high schoolers. And the general idea with this proposal, as Axios explains,

Starting point is 00:14:52 was that Democrat House leadership sees the proposal as a way to lay down a marker regarding their priorities and force congressional Republicans and the Trump administration to the negotiating table. And this because the Republicans control the Senate. The idea that this would pass the Republican-controlled Senate, it just wasn't going to happen. So what we ended up seeing was Senate Republicans proposing a $1 trillion bill, which we talked about back in July, but that

Starting point is 00:15:11 bill largely fell apart, and so instead they put forward what has been described as a skinny bill. The price tag on this bill, much lower, landing somewhere between $500 to $700 billion. Notably, as the Associated Press pointed out, the $500 billion measure is roughly half the size of legislation promoted by GOP leaders this summer, but was too big for most conservatives. With the AP noting the Republican bill would provide $105 billion to help schools reopen, enact a shield against lawsuits for businesses

Starting point is 00:15:35 and others moving ahead to reopen. Right, so if a company or other entities like schools and churches decided to open back up and someone got COVID, that organization is shielded from a lawsuit. The Republican bill would create a scaled back $300 per week supplemental jobless benefit, write off 10 billion in earlier debt at the US Postal Service,

Starting point is 00:15:51 set aside 31 billion for a coronavirus vaccine, 16 billion for virus testing, and 15 billion to help childcare providers reopen, provide $20 billion for farmers, and devote $258 billion for a second round of paycheck protection subsidies. With the AP pointing out, it did not contain a new round of $1,200 direct payments going out under Trump's name, and the new $300 weekly jobless benefit would expire just after Christmas on December 27th.

Starting point is 00:16:13 Right, and regarding that proposal, anyone kind of paying attention knew that this was not going to pass. You had Chuck Schumer saying Thursday's bill is not going to happen because it is so emaciated, so filled with poison pills, so partisanly designed. Also saying that Republicans are trying to check the box and give the appearance of action rather than actually meet the truly profound needs of the American people. With the AP reporting that Democrats say

Starting point is 00:16:32 the GOP bill is far too small and leaves out important priorities, including hundreds of billions of dollars for state and local governments, more generous jobless benefits, and help for renters and owners, along with other provisions. But ultimately, that is where we are

Starting point is 00:16:42 with this story right now. Essentially, to boil it down, oversimplify it, you have both sides saying the other side, it's all about partisan politics, political theater. Also, I will say to keep from making a false equivalency here, one of these proposals provide far more relief to your average American than the other. And if you're gonna talk about political theater,

Starting point is 00:17:00 Mitch McConnell won't even bring the House bill to the floor so the Republicans can shoot it down because he knows that the headlines would look bad. But hey, that's the story, also some of my personal takeaway, and of course, I pass the question off to you. What are your thoughts on this? And that, my friends, is where I'm gonna end today's show.

Starting point is 00:17:14 As always, thank you for watching today's video. Also, thank you for hitting that like button like it called you fat back in high school, with speed and precision, knowing full well that it is definitely the right thing to do. Also, if you're looking for more to watch, maybe you missed yesterday's hyper suppressed

Starting point is 00:17:26 by YouTube Philip DeFranco show. Or if you need something lighter, I have that brand new podcast with a fantastic Jacksepticeye. I just, it was such a good chat. Yeah, that is where this Thursday Philip DeFranco show ends. And of course, my name's Philip DeFranco. You've just been filled in.

Starting point is 00:17:39 I love your faces and I'll see you next time.

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The Philip DeFranco Show - PDS 9.10 Rich Youtubers Grabbed Millions in COVID-19 $$$, Jeffree Star, Mr Beast, FAZE Clan, & More

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