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tv   Bloomberg West  Bloomberg  December 13, 2013 12:00am-1:01am EST

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>> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i'm cory johnson in for emily chang. our focus is on innovation, technology, and the future of business. let's get to the rundown. we have just learned a new candidate to replace steve ballmer, not exactly a household name. johnny-come-lately, that is the largest public pension and apple
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shareholder is describing carl icahn. he is called a rater trying to cash. i'm ron burgundy and i will read anything in the teleprompter. it seems the anchorman has been everywhere, lately. he has the viral marketing blitz, a new business of buzz. breaking news and a new name emerging in the microsoft ceo search, the board considering qualcomm ceo steve mollenkopf. we don't know yet, but one candidate who may be fading is forbes ceo mullaly. there were concerns about his lack of technology experience. they want a new ceo, ideally,
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before the end of the year. tom giles, good to see you on the east coast. >> it is like bloomberg east here. >> this is a big deal. they are busting the phones to find out what they heard, tell us about it. >> it turns out we found the name of the person, he is the coo of qualcomm. a well regarded company and has done well in terms of the stock price and growth. they are a leader in wireless technology, specifically the chips that a lot of phones you and i use. microsoft has had an area of weakness, and that is where it that is an area of
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expertise that he can bring. >> it is a really different focus for the company. >> someone who can fix the company, he has done it once or arguably twice. another guy outside is looking at mobile. all of them >> this is where areas that microsoft could focus on. >> this is where microsoft needs strength. this is a scenario in which mullally is taking a short-term role at the company. one scenario being considered. you can imagine him playing some kind of a role. people that we have talked to have said one area where he lacks computer technology -- these other candidates like tony bates have a great deal of expertise. he certainly shows no sign of lacking energy.
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>> it seems like he is on the ball. >> absolutely. he is well regarded and has a great reputation. you right off into the sunset sunsetride off into the after your stint at ford where you had a very good run? they brought that company back from a great deal of difficulty as was the case of gm. >> he is also quite wealthy, worth over $100 million in just his shares alone. now we take a look inside foxconn and some of the other asian manufacturers of some of the world's most popular gadgets. apple supplier foxconn is allowing employees to work excessive overtime in order to meet production goals. apple, a fair labor association
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members says that foxconn has addressed 99% of the fla's recommendations, adding that apple has led the industry in addressing excessive overtime, reducing the average work week to 53 hours. it is well below industry norms. there are internationally recognized standards. it was a great concern that one of those employees is only 15 years old. gordon, let me start with you. when i read the story this
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morning, the thing that jumped out at me was not apple's that these deaths are not related to working conditions, but that the worker, at least one of them, was only 15 years old. >> with tight timetables, things like this are going to happen. there is a stressing frequency to these reports. these are going to continue as long as apple puts pressure on its contractors. >> i am really kind of leaning on apple are the ones out there saying that they are the problem, they are trying to change it. i am really torn about this. there are lots of other companies manufacturing in the
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same facilities and they are mom. um. >> first of all, condolences to the families. it is terrible news to find out that a son has passed away. the child was working at a factory. anywhere in the world, you can have kids run away and it can happen. i am curious as to when the last time a factory in china belongs to either foxconn -- atron. >> i walked around the factory in 2011. >> are they different? cleaning up working conditions, making them better for the employees there? >> gordon?
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>> i think that there has been some progress, especially since the worker suicides at foxconn in 2010. obviously, these problems persist. these problems persist for a reason. you have contractors under very tight timetables. this is going to continue for quite some time. how apple can say that the number of hours are 53. i don't believe it, largely because we know the way this system works, a lot of unreported overtime. these contractors don't tell apple the truth. apple actually knows this. so what is going to happen? people are going to die. >> we have seen similar reports about samsung. samsung has said nothing about this. if they are doing anything to investigate this, but i wonder if we find out that samsung is moving 40% of their production to vietnam, if they
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are going after even cheaper labor, who knows? maybe worse conditions? >> the last time i went there was 2011 foxconn reported a when number of suicides. the factory i saw was still very impressive. >> in what way were they impressive? >> they were huge. the number of employees was 400,000. that is roughly the population of oakland. the number of murders in oakland was 104. i will argue based on statistics that it is safer to work at the plant then to be nearby in the bay area. the second statistic, one million factory workers in china. over one million. we look at that versus
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elsewhere, and it is way better. this is not the shoe manufacturers of the 1980s before people had awareness. >> i don't know if it is fundamentally fair to compare ofcompare the conditions poor people in their homes to people working in factories making expensive computer devices to face the same risks. >> china is still developing. it is a third world country. [talking over each other] foxconn versus apple, i will have to agree with gordon. it is something that they should think about.
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not just the factory workers, but also the terms for the manufacturers themselves. they are much better people than people portray them to be. >> thank you very much. we will be right back on "bloomberg west." ♪
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>> carl icahn wants apple to take its giant pile of cash and give it to shareholders. what do the rest of shareholders think? calpers with a pension of 2.5 million apple shares, they say he is uncomfortable with the news. they spoke and broke the story with bloomberg. >> this is one of the most influential pension funds. and a major apple shareholder that is not afraid to speak out when it is not happy with what and a somewhat similar tone this
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it sees from other investors. time around. when i asked what he thought of this carl icahn plan to buy back stock, her response was that he is a johnny-come-lately. the stake in apple goes back to the ipo and we are uncomfortable with a raider coming into a company with a proposal. cash. ultimately, this will be decided by long- term holders of apple stock and not raiders. she also said they were ready to stand up shoulder to shoulder, as was the case with david einhorn. apple did not immediately respond to a request for comment. carl icahn as well. >> apple has a ton of cash that they are not putting to use. a lot of shareholders think they should use it. calpers think about
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giving it back to shareholders? >> what and simpson says is that we like what they are doing. returning money to shareholders. carl icahn is late to the party. remember that apple has already committed to a large plan to return money to shareholders. that is the context on that, but to your point, here is a company that every quarter is generating lots of cash. you expect this story to continue to be debated out, but here is one large investor in apple with a different opinion than that of carl icahn. >> he owns barely .5% of the company, but it is nearly twice as much as calpers. insuring stuff there, john. >> .3% is what they're saying. >> between the two of them, they might have one percent but they speak with a loud voice.
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from car commercials to espn, ron burgundy has been all over the media lately. but will the blitz translate to big bucks in the theater? that and more, coming up on "bloomberg west." ♪
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>> i'm cory johnson. this is "bloomberg west."
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one of the kickoffs to the hollywood awards season, the golden globe nominations came out. "12 years a slave," "american hustle" tied for the most nominations. "nebraska," "captain phillips," and "gravity" scored multiple nominations. house of cards scored four golden globe nominations, kevin spacey nominated for his portrayal of conniving politician frank underwood. jon erlichman back from l.a. and was that the nominations this morning. what is it like? >> we do our duty, and this continues a conversation on awards and house of cards that started with the emmys. the executive producer joins us now on what has been a pretty busy day for him. we talk about what these nominations mean for programs.
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the platform that you find it, what does this mean? >> we had no idea whether we will be eligible for any awards. so now with the emmys and now the golden globes, it was closer to the eligible and the icing to be nominated. when the press invite you to the table and says we take it -- we think you are worthwhile. we like the recognition. >> what is it about the story and the characters that has gotten so much attention from audiences? >> i think there is something delicious about someone is conniving and nefarious as frank underwood. he is able to toss all the rules out the window and doesn't have any allegiances. that gives him the liberty to do whatever he wants.
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through him we get to do that. >> i am curious about the marketing story of house of cards as you get ready for the second season. february 14, this big golden globes event the month before. it is pretty nice timing. you're obviously focused on the show itself what are the kinds . what are the kinds of things that netflix can take advantage of given the fact that house of cards is something we will be talking about for the next few weeks. >> there are plenty of people that haven't even watched episode one yet. because netflix gives the viewer the choices to how they want to experience the show, there are people that hopefully, because of the attention we got today, will watch season one now and will be caught up and ready. i don't think there is anything more romantic than take-out chinese and watching season two
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this valentine's day. >> we can think of a couple but i will give you that. people want to know how far this show can go. the content, netflix told us three seasons for sure. beyond that, how far can you go? >> i am not trying to be cagey, but we are really focusing one season at a time. the very question you are asking is one that we hope viewers are asking. >> what about content creators? what are they gravitating towards these days? every time there is another nomination or award for her show -- for a show that is on a new platform, i imagine there are writers and show runners that say, maybe i should be thinking about netflix or another platform. >> i think you have seen great
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artists gravitating towards television because that is where the boldest stories are. now that you have content providers like netflix that are willing to take chances, artist s will gravitate toward these online ones. we are certainly beneficiaries of that. >> we talk so much about binge viewing. people who come to a platform like netflix and not just watch one hour, but watch it all. it is like watching a 12 hour movie. great for everybody involved in the production. how does that affect your decision-making on the storyline, each episode? you thinking process for the second season, especially. >> ultimately, it hinges on the story. a good story is what is going to sell the show and it has to be able to work both ways, either
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as a binge experience or a something that you watch week to week or month to month. just because we deliver all episodes at once doesn't necessitate that you watch it in a binge fashion. so we focus on telling the best story possible and leave it to the viewers to figure out what is best for them. >> now we know what your valentine's plans are, not that we thought they would be much different than that. congratulations and we will certainly eagerly be watching for season two. thanks for joining us. that is the executive producer and show runner of house of cards. cory, i will send it back to you. >> that is it for this edition of "bloomberg west." up next, "portfolio."
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-- sportfolio.
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valley savvy to rebuild the downtown golden state warriors. build is got his sights an nba championship and building a basketball palace in france and cisco. -- in san francisco. meanwhile, in los angeles, kobe bryant is back in the basketball court, but he has his eye and success in a large arena. >> i'm looking toward getting into the trenches and doing more. >> ports as part of the plan. -- sports is part of the plan. big dreams, big names and big money.
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another big edition of sportfolio starts right now. hello, i'm rick horrow and welcome to sportfolio, bloomberg's weekly inside look at the business of sports. in july of 2010, hollywood producer peter guber and his partner bought the golden state warriors for $450 million. it was the highest price ever paid for an nba franchise. since then, they have gone from perennial losers to bona fide championship contenders. recently beenhas revalued at $800 million, nearly twice what they paid three years ago. did anyone see this coming? and found outh what he knew in 2010 at the rest of the world didn't.
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>> it hadn't been properly developed. i don't know that we knew anything more than the average fan, i was a fan for 20 some odd years and i thought there was a tremendous opportunity if someone were to really pay attention. >> when you bought the franchise, concorde was ok, but now you have almost double the waiting list for season tickets. winning helps, but it can explain all of that. >> we have done something that you are doing any business if you're coming in and wanted to turn it around. you'd hire the best people. we spent six months trying to figure out who was good and who wasn't good. we gave everybody an opportunity and then six months into it started making changes. there was a lot of hard work and it is not about me and peter guber, it is about the people who are here in the great work that they're doing. at youru spend time
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former company? >> no. though i was transitioning, had a lot of responsibilities. necessity i have had to spend a lot of time here and i am virtually 100% here. >> he is immersed in the nba now, but he first immersed his -- with the austin sock the boston celtics. >> now it puts you in a position to be a majority owner. was that tough for you? you're are not a minority owner guy. was it tough at first? >> actually, that is not entirely true. i come from venture capital where you never control or own the business. we always own between 10 and 40%. i have been in that position before and that has helped me in this as well. to your point, if it's turned really did help me quite a bit
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by giving me advice. i got to note david stern and know the leak. that really helped when an opportunity came up in my hometown in terms of acquiring a franchised area >> the hometown lacob.ion is critical to smile but i wasn't smiling inside. it was personally a hard thing to do and to absorb at that moment. three years later, everywhere i walk around san francisco and oakland, people are really nice to meet. they always say, joe, so sorry you got food that day. think living in the town where you own your franchise is really important because you get involved. you have to hear the boos if
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you're here. you have to hear the cheers. you know what is working and what isn't. that is what is really important, to be local and international. impassioned. >>lacob will need to incorporate every ounce of civic capital. they plan to open a state-of- the-art arena with retail space and open public space. the plan faces hurdles and will require hundreds of millions in financing. theseason vcc is opportunities beyond the obstacles. >> this will be something to be proud of. i don't know if you know this, but when the golden gate bridge was else, there were a lot of opposers to that. it was tricky. now it is considered an icon. view this building
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and what we're doing there and all the advantages for the city in terms of seven acres of public space and a park and all the other things like the fire forion as a great advantage the city. >> the bottom line is, having done a lot of these over 30 years, it requires tenacity but requires stability to involve and compromise. you've had the intellectual and emotional skills to get this done long-term. >> the point is that you have to work with everybody. you have to listen to people and everyone has a voice. owning a basketball team and owning a business like this requires a lot of skills that aren't required normal businesses heard we own this but we are really part and parcel of the community as well. we do have to listen and hopefully at the end of the day we get that arena situation to a point where the majority of people believe we have got it right. >> the success on the floor, is
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it as you had hoped? it is easy to say the expectations are there, are you surprised at how the team is come together and captured the hearts and minds of san francisco? >> when do we get to talk about basketball? surprise? i will tell you this. we had a plan and that plan was to emphasize defense, rebounding and size. we have stayed true to that plan. we turned it around. fewrafted well, we made a good trades and signings and we need to continue that heard we are not there yet. getting the playoffs in the second round, nice. we need to go further. the goal is to win a championship and we are very serious about that. >> the warriors released version 3.0 of the project in november after san francisco voters rejected a ballot measure to allow a high-rise condominium development along the waterfront . the team's latest plan scales down the height of the arena and expands the amount of public open space to 60% of the entire
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site. the design must be reviewed by the seven cisco port commission and other local agencies as the permit process goes forward. coming up, kobe bryant unveils a new design for his latest shoe and tells jon erlichman that these days he's wearing many different hats. the theyou have to wear the satin get the public backlash. >> sportfolio is coming right back. ♪
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>> welcome back to "sportfolio." eight months after achilles surgery, the lakers star kobe bryant is playing again. his two-year extension contract is worth over $40 million. jon erlichman cut up with him last week at an event celebrating the release of the kobe nine, his latest sneaker. and while the player may have lost a step, kobe the businessman is clearly just hitting his stride. i am an executive for whole brand of products. i learned a great deal from nike. it is tough for athletes because you are asking to wear two hats
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that contradict each other. if i -- from an athlete's perspective you have to be passionate about her sport and think team first and winning first, right? then you have to put on the business that and get the public backlash for being a business minded businessperson. for whatever reason, i think athletes have become reluctant to do business things and make business decisions because of that. i think that is something that needs to change. >> magic johnson's business pa t th, is that something you see yourself going after your days on the court? >> i really enjoy building things. i enjoy the process of starting a company and partnering with someone that is launching a company and adding creative in marketing and helping with the design of the product from the inception of the brand. lending your name
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to an established brand. i enjoyed doing into the trenches and growing something from the beginning to the end. >> and you are already thinking about the next kobe? >> kobe tens and kobe elevens. >> will there be more? >> may be well beyond my playing days. the nike partnership and the lakers partnership are both important to you or it was important to you to get the contracts signed before he got back on the court? >> i guess from an individual perspective, yes, because obviously whenever you have an opportunity to have security and have things locked up you'd rather have that. it, ihe way i was viewing wanted to do what was best for the lakers because i was extremely thankful for everything they had done for me throughout my career. i was really just stepping back saying whatever they wanted
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to have a conversation. they were great and we went through a myriad of offers and they presented an offer that i accepted. >> what about next year? will you be chief recruiter for and making calls on the teamstaff? that is athe things pet peeve of mine is that i am concerned about what will happen to the lakers organization when i step away from the game. i don't want them to have any dip whatsoever. i want them to continue to win championships and do what they do. i absolutely will. >> michael jordan recently made headlines saying that he could put together a team of five guys to have some fun on the court. ife's who i would pick and he i ask you the same question? >> i'm liable to pick the same team. that is not a bad group. that's if i could name some. i can name the same players he named? >> you can do whatever you want.
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myself,ld do magic, bill russell, kareem abdul- jabbar and larry bird. to my colleague, ownership is not something that interests you. >> i might reconsider not that new collective bargaining rules. i might consider owning a new team. >> what about other sports like soccer or something like that? >> i will look into it. obviously another sport is something i'm passionate about. to be around sports and any type of fashion, never say never. >> kobe bryant identifies passion as a factor that can lead him to the owner's suite once his playing career is done. epic ceo mark greenberg tells us why his company is sold on
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sports. investments and content are a major part of reaching a younger audience. sportfoliothe stumper. can you name the nba team that has been in its current ownership the longest? teams -- been -- nine we will give you the answer when we return.
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>> here's the answer to the stumper. los angeles laker has been another current owner since 1979. his family continues to own and operate the franchise. and overeard it over and over again on sportfolio that sports properties are among the most valuable assets in media and the market for sports programming, especially live event programming is hotter than ever. does that premise extend beyond traditional sports networks? can premium entertainment channels leverage the sports boom? epics is giving it a shot. they're putting resources and promotion behind sports programs and the president and ceo of epix joins us.
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how do sports fit into your model? >> sports has been a component ofepix ) the beginning. comes from history putting on boxing events. dealt with mike tyson as well as felix trinidad. events thatsporting were part of the network. we evolved that to really more storytelling on the world of sports. for us, a big part of that was to reach a younger audience. a very engaged and very involved audience. for us as a network, we think we can take on stories others can't and really bring them to live in a very interesting way and a unique way. more of a nothing reality show than dealing with mike tyson. as you said, you did the mixed
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martial arts and boxing, but the focus on documentaries as well now. give us the investment and revenue perspective on that change. >> for us as a premium network much like hbo, we are not selling a cpm per show because we are a subscription service. that allows us to take on issues that are more controversial and complex. we are not worried about advertisers. we are looking to the end-user and subscriber as a way for them to look at what our content is. for us, we are making a significant investment in our -- bill roden is doing a series called personal. our first one was with oscar de la hoya. a half-hour show. we have been the same thing with another franchise called in the moment or it would've taken lindsay vaughn, mare stoudemire and we have a production on dwight howard. those investments and content are really a major part of
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reaching that younger audience. epix today is reached on over 400 devices like the gs four, that younger audience really wants to engage. review sports and telling the shows as a way to -- for that younger audience, we know that sports is a passion. we really want to be able to activate that passion group. >> you launched in 2009. your five coming up. what would you like to be doing as a sports part of your network grows. >> we continue to look at life andts and constantly look entertain what might happen in the boxing or mma world if we see a good opportunity. i think we feel really good about expanding our sports
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telling franchise. our first hard-hitting doc was schools and the price of college sports which deals with the ncaa on football and basketball and are these kids really being appropriately rewarded? we want to take on an issue like that whereas other networks have conflicts because they are doing business with the ncaa or with the leagues. we are really excited that ross greenberg who is an emmy award- winning producer and has run hbo sports for years has brought to us a great documentary called "the forgotten for." --is really the first time with jackie robinson breaking the color barrier in 1947. no one knows that the nfl broke the color barrier in 1946. the los angeles rams and the cleveland browns.
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so we will continue to tell stories that people didn't know and that help provide insight and understanding. we will continue the in the moment franchise which we have done with lindsay vaughn and i callhich are what inspirational stories. we will expand that. we are doing three a year and will try to wrap that up in the next few years. we think those franchises will really have a lot of value for us over the next few years. we will continue to expand that the cause we know that this , whether it is live or on-demand, which is where this world is going, it will be a great way to take those stories and bring them to life. >> storytelling involves a lot of passion. you absolutely have it heard mark greenberg, best of luck here thanks for joining us on "sportfolio." still plenty left on sportfolio. did you notice that it snowed up and down the east coast last sunday? here's a preview of super bowl xlviii.
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bether contingencies will handled as sportfolio plows forward. ♪
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>> congratulations are in order for three masters. the expansion era committee selected bobby cox, tony larussa and joe torre for enshrinement this summer. apparently, managing in the steroid era did not tarnish their candidacy. last sunday, a winter storm dumped several inches of snow along the eastern seaboard. it affected nfl playing conditions in baltimore, washington and philadelphia. with a first outer cold-weather super bowl about to be held in the new york area, and turns over possible snow snafus remains high. satmberg stephanie ruhle down with al kelly, head of the new york and new jersey host committee to discuss the business impact of unpretty bull elements. elements.npredictable >> what is the contingency plan if we get a snowstorm? if we play outside in the state that is this cold? i was certainly not
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predicting that we would do anything but be prepared. there are so many great things about this area and one of them is that we know how to clear snow. i spent time this afternoon with folks of that department of transportation in new jersey. we can bring thousands of allows here to move the snow. it would really take a very bad storm at exactly the wrong time to be an issue. i think there are two very wrong times during the course of the week. one is what affects economics of the week which as we get a bad storm on thursday and friday and it prevents people from getting into the airports because they are close to slow down. closed or they're slowed down. obviously the other bad thing is to get a bad snowstorm at the wrong time that prevents the kick off at six: 30 on sunday evening. >> you mention the economics of
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bringing it to new jersey. what about the economics if you have to bring a thousand plows in? that costs a lot of money for the state of new jersey. >> the state will have to clear the roads no matter what the event is. the state has been very supportive as is the city of new york and making sure whatever public services we need are provided at a first-class rate. asre is no differentiation to what happens on a saturday or sunday on that weekend or during the week. i think our government has our back on this because they realize it is important that people can move around the region and move around freely and safely and comfortably. that way they will go out and go to restaurants and bars and entertainment venues and still spend money. >> for what it is worth, only one half inch of light snow fell last weekend at the meadowlands. impossible tos agree on what will happen on the
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weekend of february 2. our thanks to al kelly, mark greenberg and kobe bryant. thanks for watching. for more video and bloomberg sports business coverage, visit our website i'm rick horrow, great to be with you, see you next time on "sportfolio." ♪
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>> the u.s. budget deal passes its first hurdle. the government averts another shutdown. puegeot,roblems for gm plans to sell its stake in the carmaker. maker looks tot make a new waves in luxury luxury. >> we like to be perceived as the ferrari of the sea. hello and welcome to "countdown. quote


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