Canes and their Bally Sports deal, plus NC gambling impacts

So gambling in the crosshairs, we bring in Luke Tkach of The News and Observer. This was a good week for those of us, not that those of us who gamble, but for those of us who would enjoy the right to do so legally. Thoughts on all of that, maybe how it impacts the Carolina hurricane, sir?

Yeah, no, I, I think it erased the error that the legislature made last summer when it failed to do this talking about the Dixie classic and all kinds of nonsense. Yes. It's yeah. Like I'm not a, I'm not a big gambler. I used, used to, used to play the horses a little bit when I lived in places that had that. Well, you could do that now.

You soon. Yeah. And, and, and, and, you know, just in this profession, I just don't think it's ethically kosher to, to gamble on stuff.

But that said, it's just, it's just a no brainer. They've got it in Virginia. People are doing it illegally. Now, it's something it's one of those permissible vices like alcohol or cigarettes or soon marijuana eventually inevitably that the state regulates and, and supervises and collects attacks and, and, and everyone benefits from that. And, you know, for a state that owns a liquor monopoly that's wet ring its hands about the morality of getting involved in the gambling business was a little hypocritical.

So a land overdue catches us up with the more progressive parts of the country when it comes to this kind of thing. And yeah, it's a, it's a huge boon for the pro sports teams, because not only did they get to operate sportsbooks, although I'll believe it when I see it at quail hollow in Sedgefield, I can't believe they're going to throw open their doors to, to Joe average to come on in there and, and bet on the Panthers. Obviously they have the opportunity now to do it during tournament week, which will be interesting to see if either of them take advantage of that. But, you know, it's, it's good news for the pro sports teams for that reason, operate the sport books and also the advertising. You know, this, this is not the, it's not the market it used to be in terms of free money for teams to, to take advertising. But at a time when there are questions about the Valley deal with the hurricanes, there's a whole new source of potential inventory for those broadcasts that the team and the network can benefit from. And for the hurricanes in particular, Adam, as you know, in a hard cap league like the NHL, when what you can spend on players and which really means what you have to spend on players to compete is determined by league wide revenues. The hurricanes were being asked to spend an amount that was elevated by gambling revenue elsewhere. And now they'll be able to keep up. It was, it was a sort of a home field advantage that teams and gambling markets had that the hurricanes didn't. That's not a big deal if you're the maple leafs, but it's a big deal if you're the hurricanes and this catches them up there.

All right. Just a point of comparison. And you mentioned valleys.

I want to fold valleys in here in a second. But a place like New Jersey had took in more than $350 million in tax revenue last year from gambling from the 20 2022 year. Nevada actually takes in less tax revenue and the overall handle in New Jersey eclipsed the overall sports wagering handle in Las Vegas in Nevada.

Last year for the first time it was over. It was 37 $37.5 billion were wagered in New Jersey and 32.5 billion wagered in Nevada. There's a lot of money being left on the table. Let me throw to valleys. We know that valleys what they, they said, no, we're not paying you San Diego. I think they did pay the Texas Rangers to diamond sports group, which is the parent company that owns Bali sports. So, you know, we're not paying you San Diego to diamond sports group, which is the parent company that owns Bali sports group, which is the parent company that owns Bali sports.

No, not the moment. Well, you know, and we're going to learn more over the next couple weeks is valleys has rights fee payments due to a number of Major League Baseball teams, and the situation with Major League Baseball, as compared to the hurricanes and the ACC valleys does not have the streaming rights to those Major League Baseball games, nor did they do those ACC games that they've now given back to Raycon. That was yesterday's news that Valley's going to walk away from that quote unquote RSN package that everybody hated because you could never find the games. And if you were in Florida, you couldn't even watch the baseball or women's basketball tournaments. Last year, the ACC bought the baseball and women's basketball tournaments back from Raycom slash Bali Raycom had bought them from ESPN and then sold them to Valley.

And then no one wanted to give them back because they were making too much money on the deal. Now that Valley's bankrupt, they're walking away from deals they don't think they could make money on. One of them, those rights once this goes through the bankruptcy cycle are going to end back with ESPN there's nothing else Raycon can do with them. They'll cut the best deal they can so those games will show up on ESPN the ACC network like all the others.

The noon game, you know Wake Forest Syracuse won't be RSN anymore and people won't have to scramble around to find it or figure out how to stream it it'll just be like all the others. They're in a little bit of a different position there because Valley's does have their streaming rights. And they're also part of a Valley network Valley sports South it's based in Atlanta that has a really profitable deal that they like with the braves braves deal makes Valley a lot of money. It's not one of the major league deals that Valley and diamond they're looking to walk away from. So you've got the hurricanes, you've got the Hornets, you've got the Grizzlies, you've got the predators, you've got the Hawks, you've got the Braves. It's a pretty solid group of teams that Valley has in that mark in that this region. So the hurricanes aren't really in a crisis position they have looked into some contingency plans, and they didn't extend with Valley for six years last year Don Waddell told me that was before diamond and Valley declared bankruptcy, but certainly at that time, the NHL was looking into contingency plans as were the hurricanes because bankruptcy certainly seemed imminent. The short answer is nothing now.

The long answer is it's probably not going to be a problem. And the even longer answer is, once you go into bankruptcy court, no one really knows Valley and diamond are walking away from rights all over the place. We've seen it with the ACC could be the hurricanes. If that does happen, Adam, as you know, Mike Mascalco, Tripp Tracy, Shane Wilson, they're all employed by the team. So the broadcast errors wouldn't change. Even if the broadcast did even if they had to do it in house the way the Padres are now I believe Hannah Yates, though, is an employee of valleys.

All right. To the hurricanes. Let's talk to Tom Dundon on Wednesday. He says that he is confident that the Sebastian Ajo contract gets done this offseason. He thinks that they are closing in on it. So what is Sebastian Ajo's contract going to look like when he does sign this extension, which my guess is will be eight years in length. It will be eight years. That's what makes the most sense.

And I think they will be able to announce it if not on July 1st, early in July, because I do think the parties are all in a similar frame of mind. What that number is, I honestly don't want to speculate. You know, anybody can look at sort of comparable players and see where that number is likely to fall. The more interesting contract to me, Adam, is is Jordan install and how long that one goes, especially with a coach who's really attuned from his own personal experience. And one of the reasons why we didn't hear him talk nice about Palmer Easter in the playoffs that that deaccessioning a captain that rotating out a captain as his role decreases is a really touchy situation. That's something the hurricanes are going to have to address in this contract. That's I think they'll probably go out three years if there's a maybe a little longer just for cap reasons. But but I think that's a contract that is going to happen again quickly.

But also, you know, the number there is going to be really interesting. What do you pay a guy who's really important to your culture, really important your franchise. But look, you know, is declining physically is is not the player he was two or three years ago, although still obviously very valuable. And then how do you make that transition from this one guy you're signing and Jordan install to this next guy you're signing? And Sebastian, I hope is clearly your next captain.

Those those things I think are to be really interesting to watch how that process unfolds. Do you think I'm because I don't believe you have to make a move for our first of all three years seems long to me. I thought this would be closer to two. I don't think Tom Dundon really wants to go three years even with Jordan stall.

I think two and then year to year. I mean, I don't think Jordan stall is going to play anywhere else unless somebody tries to buy him away. But Jordan stall, as long as he plays for this head coach is always going to have a role prominent enough to read to remain the captain. I don't until it's over for Jordan. I don't see the captaincy changing hands. We'll see.

That's got it. Sebastian. I hope if you're going to pay him the kind of money you're paying him and for this team to develop into the team that this next generation players of players is going to make it whoever you end up keeping from this core group as their contracts go through the cycle here, whether that's Pasha or slave inertia or whoever that this group is going to have to take its own ownership of the team and you can't do that until Sebastian Aho is the captain. I think that transition is going to happen and it's just a question of managing it in a way that makes sense for everybody. Doesn't have to be next year, but I think if Jordan stall is going to go out three years, which I believe is what's going to happen.

I think that's going to happen going to have to happen during the term of that. I have a solution. Jordan stall and Sebastian Aho are co captains.

You know, no one's tried that before and I bet that would work. You mentioned Brett Pesci people hurricane fans are groaning right now. Luke Luke to cock of the NNO is joining us here. You mentioned Brett Pesci. Are you at all concerned? Worried?

What? What is I think there is just as much of a chance that Brett Pesci is traded as he is signed. Yeah, I mean, this is why we've been talking about the window on this core, especially last year when the hurricanes really underachieved in the postseason.

The window on this core is not going to be open forever. And guys are going to have to get paid, whether that's Aho or Martin Neches or whoever. If you decide he's part of your core going forward, you're going to have to pay some of these guys.

And that means making tough decisions. The Slavin and Pesci contracts and to a lesser extent, the Brady Shay contracts have been gifts that have allowed the player the hurricanes to bring in guys like Max Pacharetti and pick up a seven million dollar contract or do the Patrick Marlow deal and pick up a first round pick for eating that contract. That that sort of window where they can play cap games and use that as an asset is closing.

It's over. And they're going to have tough decisions to make going forward about who stays and who goes, not because you like or don't like a guy, but because you can only afford to keep so many of them if they're going to get paid what they deserve. Quite frankly, Jacob Slavin and Rep Pesci deserve to get paid a heck of a lot more than they are right now. Those are very team friendly contracts that's allowed the hurricanes in some ways to be as competitive as they've been. But that window is closing, may reopen to a certain extent, it may open with a different group. It may extend. But this group that we see on the ice right now, the group that played Florida has a limited lifespan. And by the end of next season, there may there may be some major changes.

There may just be some tweaking. But Brett Pesci and quite frankly, Slavin, too. I mean, I think I don't think that's still a year away. Yeah, they can't even do anything until after next year.

Well, no. Right. But but you have to be planning for those things. You can't make a decision on Pesci and Shay that puts you in a bad position with Slavin down the road. These things are all like the arena renovations and redevelopment in the lease.

These things are all interconnected and they have to happen simultaneously. So do I think it's likely that Brett Pesci gets traded? But I think that's no. But I think that's certainly a possibility because that's the position the hurricanes are in in terms of the score in this cap and how they have to position themselves going forward. Those are the kind of decisions that might have to be made.

All right. Final thing for Luke to cock. Have you been watching the Glen Campbell Los Angeles Open?

Yeah, I just I can understand why Bob Hope was was so unhappy about not being allowed to join L.A.C.C. Nine under eight under eight under. Let's just close on this. Would there be a more popular winner? Then Rickie Fowler. Yeah, Max Homer, because it's his home course, everybody there loves him.

He grew up in L.A. I mean, I feel like Ricky's moment as a celebrity has passed a little bit. That said, people overlook how well he was playing coming to the open. He's playing.

Ricky Fowler is playing week to week as well as he has in a long time. So am I surprised to see him contending? Absolutely.

But maybe I shouldn't be. I you know, it's going to be really interesting this afternoon as the wind picks up and the sun bakes down. I think those guys who had morning runs yesterday are going to find themselves playing a very different course this afternoon because, you know, the conversation in the grill room last night between the members and the USGA folks was not this went great today.

It was. You're embarrassing us. We want to see some some black numbers on the board. I think you'll see that this afternoon. Well, I think you I think you will mean just as the course dries out a little bit, but I'm not sure I'm not sure there's a defense. They can set that course up for whatever yardage they want. These guys are hitting driver pitching wedge into the five hundred and forty yard par four on the what the 16th hole. I mean, if they can't make it long enough, the six hundred and thirty two yard par five, as long as you drive it in the fairway, these guys are all reaching the greens. They just need nothing they can do.

It's a little bit like number two. The defense is going to be the greens. Yeah, there are holes that the fairway look they knew going in. These are wide fairways.

The ball was going to roll. They are going to the greens are going to get perilous and we could end up if they lose control of this thing in a Shinnecock situation because they're going to have to be on that edge if they don't want guys in the in the minus six, minus seven, minus eight range. But that said, I'm not a big believer that the U.S. Open has to be one at par. No, I'm with you if it's a good course and it's a challenging course.

And I find this a very entertaining course to watch golf. I think it does challenge players. Then I'm OK with it. If if 16 is the winning number, I don't think it's going to be. I think the winning number is probably going to be around nine.

I think guys are going to basically even out for the next three days. But that's the winning number. So be it just because, you know, it's not such field, even if the scores are like are like the Wyndham.

It's fine. It's a great course. It's cool to see it on TV. I think it's it's a fun course to watch these guys play. And I love Adam.

I'm sure you do, too, other than Chambers Bay. I love West Coast Opens, where you can watch through dinner and into the prime time golf man. John Ron Tiger Woods, like give me more prime time, prime time golf. Luke to cock.

Speaking of prime time of the news and observer at Luke to cock on Twitter. Thank you very much. Have a great weekend. We'll talk to you next week, sir. You to talk to you. You got it.

That's Luke to cock. My my disagreement is that I wasn't really talking about popular among the area popular among the golf world. Yeah. And there would be no more popular winner than Rickie Fowler, somebody who has been the face of the sport and one of the faces of the sport in terms of fan popularity for, gosh, now a decade. And you go back the last time the U.S. Open was at Pinehurst and it will be at Pinehurst next year. Fowler finished second. I mean, he was he could barely see the winner.

Martin Kymer was about 10 shots ahead of everybody. But Fowler finished second and Fowler was in the top five at all four majors that year. And it was just a matter of time before Rickie Fowler won his major.

Hasn't done it yet. And last couple of years is kind of flirted with falling off the face of the earth in terms of golf. Fowler tees off at four thirty today. So we're still three hours away from him getting on the golf course. It does look like there are still some good scores out there in the morning, but nothing crazy good like we had yesterday.