The ‘fancy financing’ used to draw Lionel Messi to Miami over Saudi’s $1.5B offer
Media Landscape
See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below. Learn more about this dataSIMONE DEL ROSARIO: SOCCER SUPERSTAR LIONEL MESSI SHOCKED THE WORLD THIS WEEK, ANNOUNCING HE’S TURNING DOWN MORE THAN A BILLION DOLLARS FROM SAUDI ARABIA TO PLAY INSTEAD IN…MIAMI. THE REIGNING WORLD CUP CHAMPION WILL BRING HIS GOAT SKILLS TO STRUGGLING MLS TEAM INTER MIAMI, OWNED BY NONE OTHER THAN DAVID BECKHAM. TO TALK ABOUT THE BIG SCORE AND THE DEETS BEHIND THE DEAL, I’M JOINED BY SPORTS ECONOMIST VICTOR MATHESON, PROFESSOR OF ECONOMICS AT COLLEGE OF THE HOLY CROSS IN MASSACHUSETTS. Victor, how shocked were you to hear that one of the greatest soccer players of all time was turning down a contract from the Saudis reportedly worth more than $400 million per year to come to Major League Soccer, which, as we know, on a global scale, is just not one to usually score this kind of talent.
VICTOR MATHESON: Well, so Messi had been linked with MLS for many years prior to this. But in the last couple of years, we had seen that gigantic contract go to Christian Ronaldo to go play in Saudi Arabia. And so it looked, at least initially, like there’s no way that MLS would be able to have the sort of money needed to pry away a player like Messi for the sort of money that the Saudis had already shown they were willing to pull up for Ronaldo.
SIMONE DEL ROSARIO: Yeah, and we know the Saudis are not really happy with this development. And they’ve warned messy, you know, this deal is not going to be the same in a couple of years. If you change your mind, as you mentioned, paying him was a difficult challenge for anyone. He wanted to go back to Barcelona, but they couldn’t pay him again. And the Saudis were offering the world as far as compensation was concerned,
we see that MLS and inter Miami got creative on this one, I know that the deal is not final. But here are the things that have been floated an ownership stake after playing commercial partnerships with Apple and Adidas, and no salary restrictions. How unusual is this deal structure in sports in the US?
VICTOR MATHESON: So what’s really interesting is the only other soccer player that we can actually think of who has been linked to a deal like this is no other than David Beckham. Right? So David Beckham came to the United States about 15 years ago, again, probably one of the three biggest highest profile players ever to play in the United States. That would be Pele back in the 1970s, Beckham, and then, of course, Messi. And what Beckham got, as part of his deal is not only the largest salary paid to any MLS player, but he also got the rights to an ownership of a club at some point in the future. And he turned those rights into Miami, right, which is now going out and hiring Messi. So it looks like this is a sort of full circle deal. We see exactly what happened to Beckham 15 years ago. And it looks like this will be the same sort of offer being made to Messi now.
SIMONE DEL ROSARIO: There was so much hype back in 2007 when Beckham came over everyone saying that this was going to change the landscape of MLS. Do you think that it did that back then? And how would you compare the potential impact of Messi being here now.
VICTOR MATHESON: So it absolutely changed things it put United States on the map in terms of professional soccer, we’ve already kind of been on the map in terms of international soccer, but it put Major League Soccer on the map for sure. This was a league that had gone from 12 teams down to 10 teams, a couple teams had been contracted, including the Miami team that had been playing there earlier. And this was a gigantic jolt. He attracted gigantic crowds all across the United States. It was an actual player that non soccer fans could identify playing in the United States. And what we saw from the basically the moment that Beckham came, we saw a whole slew of new investors coming into the into the league. We’ve gone from a league of 10 teams when Beckham came into the league to to a league with 20 over 25 teams. So he’s been there’s almost no under estimating how big an impact Beckham had. Now, in terms of Messi, he’s coming into a league that’s already extremely well established. I don’t think he has to be the same sort of ambassador for the sport that Pele was back in the 1970s with the old NASL or that Beckham was for the early days of MLS. I think he’ll just be an extremely popular player who, who crowds are going to turn out for sure. Miami has already talked about installing as many new seats as they can in their temporary stadium before moving to a new stadium here and you know, it’ll be a gigantic boost for the individual team. It’s not clear that MLS needs that same shot in the arm that it did back when Beckham.
SIMONE DEL ROSARIO: Yeah, to your point as far as the teams are concerned, MLS is going to be the fastest major league sports in the US to grow to 30 teams. They’re going to do it in under three decades and the next closest was the end NBA, which took twice as long to get to 30 teams. So you’re right, Messi is really going into an avenue that has already been seeing tremendous growth. I’m curious more about this commercial aspect of his deal. You know, I was thinking about where have we seen that push to compensate players in a more commercial way before. And we’re really seeing it in the NIL, which obviously those athletes don’t get paid by the schools. So they’re looking at marketability in which school they go to. But with this Apple deal, especially now that the MLS is experimenting with this, do you think we’re going to be seeing this more in other sports?
VICTOR MATHESON: We certainly could, although again, most other sports have deeper pockets in MLS. And you can pay, for example, a LeBron James or you can pay a Patrick Mahomes directly out of revenues being generated by the sport rather than having to come up with some sort of fancy financing to afford a player of messy stature. I also suspect that these sort of, again, NIL deals but this isn’t an IRL deal. This is just a flat out sponsorship deal, is the sort of thing that attracted Messi to the United States instead of Saudi Arabia, he did take the risk of going to Saudi Arabia and tarnishing his brand, which is undeniably the best brand in modern soccer. He’s, he’s without question. One of the greatest players ever to play the game. And I think he thought, look, for I could take a few 100 million dollars a day, money that I don’t need. I’m already the highest paid athlete in the world. But it could tarnish my long term earning capacity. I’m only going to be playing for a few more years as an actual player, but I could be a brand ambassador for decades. Last thing I want to do is tarnish that decades of brand ambassadorship by taking a job at the end of my career at a place that clearly has a troubling kind of troubling associations.
SIMONE DEL ROSARIO: Yeah, Victor, that’s such a good point. It’s obviously not the path that Cristiano Ronaldo made. And he used to be one of the, you know, biggest players out there as far as endorsements went, but there is a question about when you go to Saudi Arabia to play for them. What are you compromising? What kind of blow Do you think this does deliver to the Saudis?
VICTOR MATHESON: Well, I think we see a case here where you know, money doesn’t necessarily buy everything. And we’re looking at kind of that full package with Messi saying, Do I need to associate with the Saudis in order to get what’s going to be the best deal for me? On the other hand, we’ve seen exactly the opposite thing with golf right? Where we have a potential merger coming between live golf against sponsored by the Saudis and the PGA. I think a lot of the golf professionals that stayed in PGA didn’t want that association either. But at least based on preliminary toxic merger here, sometimes it’s just too hard to resist that huge amount of money that’s coming in from the Middle East. Same thing with FIFA again placing the World Cup in Qatar last year.
SIMONE DEL ROSARIO: Yeah, mixed bag for Saudi Arabia this week when it comes to their efforts to really grow in sports sports economist Victor Matheson, professor of economics at College of the Holy Cross in Massachusetts. Really appreciate your insight today. Thank you.
VICTOR MATHESON: Well, thank you for having me.
SHANNON LONGWORTH: “ON MONDAYS, AT WEEPING WATER HIGH SCHOOL, THE HALLWAYS ARE EMPTY, ROOMS ARE DARK, AND CHAIRS ARE ON DESKS –
THAT’S BECAUSE STUDENTS WON’T ARRIVE UNTIL TUESDAY.”
KEVIN REIMAN: “THIS IS OUR FIRST FULL YEAR OF A FOUR DAY SCHOOL WEEK, WE STARTED THE TRANSITION LAST MAY”
KEVIN REIMAN IS THE SUPERINTENDENT OF WEEPING WATER SCHOOL DISTRICT IN EASTERN NEBRASKA. WITH 30 STUDENTS IN EACH GRADE, THIS RURAL SCHOOL HAS TRANSITIONED TO SHORTER WEEKS.
REIMAN: “I BROUGHT IT TO THE BOARD AS THIS IS A POSSIBLE WAY FOR US TO RETAIN AND RECRUIT TEACHERS, BECAUSE WE CAN’T COMPETE AGAINST THE BIG SCHOOLS AND THE FINANCIAL RESOURCES.”
TURNS OUT – IT WORKED.
TEACHER APPLICATIONS INCREASED THIS YEAR.
EVEN FOR SUBJECTS THAT’RE TYPICALLY HARDEST-TO-FILL–LIKE MATH.
REIMAN: “LAST YEAR, I WAS LUCKY TO GET ONE OR TWO APPLICANTS. I WAS UP TO FIVE OR SIX THIS YEAR.”
LONGWORTH: WHILE THE SHORTENED SCHOOL WEEK SUCCESSFULLY ATTRACTED CANDIDATES, IT DIDN’T COME WITHOUT CHALLENGES.
REIMAN: “I THINK THE BIGGEST ISSUE THAT WE HAD GOING INTO IT WAS WE INCREASED OUR DAY BY 20 MINUTES, AND SO IT ENDS UP BEING ABOUT 10 DAYS LESS.” / “WE SPENT A LOT OF TIME, THOSE FIRST COUPLE OF MONTHS REPACING ALL OF OUR COURSES BECAUSE WE NEEDED TO GET MORE CONTENT IN FEWER DAYS.”
REIMAN SAYS WEEPING WATER DIDN’T HAVE MUCH OF AN ISSUE WITH PARENTS NEEDING CHILDCARE, AS HIGH SCHOOLERS ARE ABLE TO BABYSIT YOUNGER CHILDREN…AND THE SCHOOL OFFERS A CARE PROGRAM ON MONDAYS WITH FINANCIAL ASSISTANCE.
STUDENTS WHO RELIED ON A SCHOOL-PROVIDED LUNCH FOR THAT FIFTH DAY CAN PARTICIPATE IN A PROGRAM THAT PROVIDES A BACKPACK FULL OF FOOD FOR THE THREE-DAY WEEKEND.
BY MOST ACCOUNTS – THE FOUR DAY SCHOOL WEEK IN WEEPING WATER HAS BEEN SUCCESSFUL IN ATTRACTING TEACHERS AND THE CONCEPT IS CATCHING ON ACROSS THE COUNTRY.
850 DISTRICTS ARE DOING IT–UP FROM 650 IN 2019, ACCORDING TO THE FOUR DAY SCHOOL WEEK POLICY GROUP AT OREGON STATE UNIVERSITY.
AND IT SEEMS MORE SCHOOLS IN METROPOLITAN AREAS ARE CONSIDERING THE SWITCH.
DR. CHRIS FIEDLER IS THE SUPERINTENDENT OF THE 27J SCHOOL DISTRICT IN BRIGHTON, COLORADO…ON THE OUTSKIRTS OF DENVER.
THEY MADE THE TRANSITION IN 2018 AFTER STRUGGLING TO HIRE TEACHERS.
CHRIS FIEDLER: “WE ARE AN EXTREMELY FAST GROWING DISTRICT, WE HIRE BETWEEN 150 AND 200 NEW TEACHERS A YEAR. SO IT MATTERS, RIGHT?” /
[29:43]
“WE WERE AT A FINANCIAL DISADVANTAGE TO GET THE BEST ADULTS TO COME WORK WITH OUR KIDS BECAUSE OF OUR FUNDING.”
LONGWORTH: FIEDLER SAYS THE FOUR-DAY SCHOOL WEEK HAS BEEN A SUCCESS DESPITE PARENTS’ INITIAL SKEPTICISM. IT’S GIVEN 27J A COMPETITIVE EDGE WITH RECRUITMENT.
FIEDLER: “I DON’T WANT ANYONE AROUND US TO MAKE THAT MOVE. RIGHT? BECAUSE EVENTUALLY IF EVERYONE’S ON A FOUR DAY WEEK THAT IS NOT AN ADVANTAGE FOR US AND I YOU KNOW, BE PROPONENT OF PUBLIC YET I WANT ALL ALL KIDS TO BE SUCCESSFUL. BUT I’VE GOT A SCHOOL DISTRICT TO RUN AND I WANT THE BEST TEACHERS FOR OUR KIDS ARE 27J.”
LONGWORTH: AS MORE URBAN SCHOOLS SHOW INTEREST IN THE SHORTENED SCHOOL WEEK AS A RECRUITMENT TACTIC, IT WILL NOT ONLY CREATE MORE COMPETITION IN THOSE HIGHLY POPULATED AREAS, BUT IT COULD ALSO ELIMINATE THE INCENTIVE FOR TEACHERS TO GO TO THOSE MORE RURAL SCHOOLS.
RESEARCHERS IN THE FOUR-DAY SCHOOL WEEK POLICY GROUP SAY THE SHORTER WEEK ALSO HURTS STUDENT ACHIEVEMENT. YOU CAN LEARN MORE ABOUT THE RESEARCH BY CHECKING OUT MY PREVIOUS REPORTING.
KARAH RUCKER: A SEA OF YELLOW IS WASHING OVER LARGE PORTIONS OF THE U-S SOUTHWEST. THESE BEAUTIFUL YELLOW BLOOMS BEGAN CARPETING PORTIONS OF CALIFORNIA AND ARIZONA AFTER HEAVY STORMS THIS WINTER.
PRETTY – BUT ALSO PROBLEMATIC. THESE FLOWERS BELONG TO A NOXIOUS WEED CALLED ‘STINKNET’. IT’S FAST SPREADING, CHOKES NATIVE PLANTS, AND ABOVE ALL IS A MASSIVE FIRE DANGER.
SHAWN GILLELAND | RURAL METRO FIRE PIO, CENTRAL ARIZONA: “It’s just like, like a kindling carpet out there.”
SHAWN GILLELAND IS THE PUBLIC INFORMATION OFFICER WITH RURAL METRO FIRE DEPARTMENT IN CENTRAL ARIZONA.
GILLELAND: “It is probably the most prevalent danger. There’s also the side effect of causing a lot of irritation, and the allergies, people with allergies and asthma, stuff like that. But, as we’re coming into fire season, particularly, it poses a great threat because it’s a pre-emergent weed that comes out in late winter. So now as we enter the summer season, and temperatures start to rise, especially here in Arizona, and across the Southwest, all that stuff starts to die off. And because of its invasive growth, it’s everywhere. And so now you have a whole new source of fire fuel across the desert floor.”
STINKNET IS NOT NATIVE TO THE U-S. IT WAS FIRST FOUND IN SOUTHERN CALIFORNIA IN 1981- POSSIBLY CARRIED OVER FROM SOUTH AFRICA OR AUSTRALIA. IT WAS DETECTED IN THE PHOENIX AREA IN 1997.
MICHAEL CHAMBERLAND | AGENT IN URBAN CULTURE FOR UNIVERSITY OF ARIZONA: “It moves along road corridors, we think that it can be picked up on vehicles, or just on people’s clothing as they get in and out of vehicles. So it’s very likely that our plants got here from Southern California from the infestation there. We find that in Phoenix, it’s actually spreading and being more of an issue than it has been in Southern California.”
MICHAEL CHAMBERLAND IS AN AGENT IN URBAN CULTURE FOR THE UNIVERSITY OF ARIZONA, MARICOPA COUNTY COOPERATIVE EXTENSION.
CHAMBERLAND: “By the time people really started realizing how serious it was, it had really overrun a large portion of the Phoenix area. It was first in the city and in the residential areas. But now we see it moving out into parks and natural areas and deserts around the city. And unfortunately, it’s also moving to other parts of Arizona too.”
CHRIS MCDONALD | NATURAL RESOURCE ADVISER, UNIVERSITY OF CALIFORNIA: “One of the things that’s concerning about stinknet is that it has such a broad habitat, it can invade a wide variety of habitats. So yeah, it can grow near the coast, it can grow in the mountain foothills, it can grow in valleys that are filled with grasslands. It can grow in disturbed areas, it can grow in natural wildland type areas like your national parks or national forests.”
CHRIS MCDONALD IS A NATURAL RESOURCE ADVISER WITH THE UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSIONS. HE SPECIALIZES IN MANAGING INVASIVE PLANTS.
MCDONALD: “It was being monitored locally. And there were land managers who were trying to stop it. We call this early detection, rapid response, like once something, you try and find a new piece of species quickly, and then you rapidly respond to it by trying to control it. And that idea wasn’t necessarily as strong and prevalent as it is now. So back when it was here in the 80s, and 90s, people noticed it, they tried, but there wasn’t kind of a large scale effort with, you know, funding to try and help them eradicate it before it spreads further. And on top of that, there was not a lot of research in North America, if any at all on this plant.”
STINKNET GERMINATES AROUND OCTOBER. AS SOON AS IT BEGINS SPROUTING GREEN LEAVES, IT GIVES OFF A NOXIOUS ODOR – MUCH LIKE TURPENTINE. HENCE ITS NAME. IN WINTER, IT BLOOMS INTO BEAUTIFUL YELLOW ORBS THAT CONTAIN HUNDREDS OF SEED. ONCE THE PLANTS DRY OUT AT THE BEGINNING OF SUMMER, THEY BECOME A TICKING TIME BOMB.
GILLELAND: “The unfortunate thing is we’re getting early monsoon type activity. So dry lightning or lightning with just a very minimal amount of water or rain associated with it. So that becomes again, another hazard that we’ll be facing.”
BETTY JANIK | SCOTTSDALE CITY COUNCILWOMAN: “There are several organizations starting at the federal level, the state level, the county level, and the city level, to deal with problems with invasive fire type plants that can cause the spread of forest fires.”
SCOTTSDALE CITY COUNCILWOMAN BETTY JANIK SAYS THE STATE IS THROWING MONEY AT THE INVASIVE WEED SWALLOWING THE SONORAN DESERT.
JANIK: “In the past year and a half, we’ve gotten $350,000 for the Forestry and Fire Management invasive plant program. And then we also got another $192,000, just in January to get rid of invasive plants.”
BUT JANIK SAYS GETTING RID OF THE PLANTS MIGHT COME DOWN TO USING HARSH CHEMICALS. SOMETHING SHE KNOWS HER CONSTITUENTS WON’T BE HAPPY ABOUT.
JANIK: “I know they will be upset. I know they will be upset because we have a very, very active community in Scottsdale. And we’ve already
had some criticism for using herbicides./ And we’ve had quite a few complaints about the use of Roundup, asking us if we can find another way to do it. And the other problem / they will destroy any plants that come in contact with the herbicide etc. So, it is a problem. It is a problem.”
A PROBLEM THAT NEEDS TO BE ADDRESSED – BEFORE SPREADING TO MORE PARTS OF THE U-S.
SHANNON LONGWORTH: ARTIFICIAL INTELLIGENCE WILL SURELY PLAY MANY DIFFERENT ROLES IN THE FUTURE OF JOURNALISM.
EXPERIMENTS ABOUND–AND NOT JUST IN THE FORM OF CREEPY VIRTUAL ANCHORS.
ONE NEWS PUBLISHER IS DEVELOPING A.I. TO EASE THE BURDEN OF AGGREGATION.
VON RAEES: “IF IT’S ALREADY ON THE INTERNET, IT’S ALREADY BEEN DONE, SOMEBODY PUT IT THERE.”
LONGWORTH: VON RAEES FOUNDED A MEDIA COMPANY IN 1996 AND HE’D NOTICED THAT AGGREGATION WAS A DRAG ON RESOURCES IN DIGITAL NEWS, WHICH IS ALREADY STRUGGLING TO FIND A SUCCESSFUL BUSINESS MODEL.
RAEES: “OUR JOURNALISTS ARE SPENDING A LOT OF TIME ON THE INTERNET, LOOKING FOR LEADS, RESEARCHING STORIES, AND THEN WRITING THEIR OWN VERSIONS OF THAT. THAT TAKES AWAY FROM THEM BEING OUT IN THE FIELD DOING LIKE, TRUE JOURNALISM, LIKE ORIGINAL CONTENT, INVESTIGATIVE WORK THAT’S OUT THERE IN THE WORLD–NOT SO MUCH ON THE INTERNET.”
NEARLY ALL NEWS OUTLETS HAVE TEAMS TO SEARCH AND GATHER THE BIGGEST STORIES OF THE DAY, ORIGINALLY COVERED BY OTHER SOURCES. THIS CAN PROVIDE VIEWERS WITH MORE COMPREHENSIVE NEWS, IN ADDITION TO THEIR OWN REPORTING.
WE CAN’T ALL SEND REPORTERS TO BEIRUT, FOR EXAMPLE. [SOUND POP]
SO SOME AGGREGATING IN NEWS IS REQUIRED. BUT WITH LIMITED RESOURCES, THAT MAY NOT LEAVE ENOUGH MONEY, OR PEOPLE TO COVER ORIGINAL, MORE SUBSTANTIVE STORIES, WHICH DO COST MORE TO PRODUCE.
TO SOLVE THIS ISSUE IN HIS OWN PUBLISHING COMPANY, RAEES FOUNDED HEYWIRE AI, WHICH CREATED A FULLY AUTONOMOUS AI NEWS ENGINE.
IT’S CALLED WELLS–NAMED AFTER 19TH CENTURY JOURNALIST IDA B. WELLS.
RAEES: “THE PURPOSE OF WELLS IS TO DO THE MUNDANE WORK OF RESEARCH, FINDING LEADS, RESEARCHING VARIOUS STORIES, AND GENERATING ARTICLES FROM THOSE STORIES, SUBMITTING THAT TO EDITORS FOR PUBLISHING. IF WE ALLOW WELLS TO TAKE CARE OF THAT, THEN JOURNALISTS CAN ACTUALLY BE IN THE FIELD, DOING WHAT THEY’RE PASSIONATE ABOUT DOING.”
LONGWORTH: I ASKED RAEES HOW HE CAN BE SURE THAT WELLS IS ACCURATE.
BECAUSE I’VE TESTED CHATGPT AND BARD’S ABILITY TO WRITE ARTICLES…AND THEY SOMETIMES MAKE UP INFORMATION. HOW DO WE KEEP AN AUTOMATED NEWSROOM FROM SPREADING MISINFORMATION TO MASSIVE AUDIENCES?
RAEES: “THIS IS WHY OUR PATENT WAS 66 PAGES. BECAUSE WE SPENT A LOT OF TIME CREATING ARCHITECTURE FOR MULTIPLE REDUNDANT SYSTEMS.” / “IT RECHECKS TO MAKE SURE THERE’S NO HALLUCINATION GOING ON BY VERIFYING WITH MULTIPLE SOURCES, EVERY SINGLE FACT THAT’S IN THAT STORY. AND AFTER IT’S DONE ALL OF THAT, AND ENSURES THAT THERE’S NO HALLUCINATION, THAT’S WHEN IT GETS SUBMITTED TO EDITORS FOR PUBLISHING.”
RAEES SAYS EDITORS ARE STILL A PART OF THE PROCESS AS ANOTHER LAYER OF VERIFICATION. WELLS WOULD DO MOST OF THE WORK, BUT IT WON’T PUBLISH ARTICLES ON ITS OWN.
RAEES: “OUR INTENTION IS TO SORT OF DEMOCRATIZE THE USE OF JOURNALISM TOOLS, AND EMPOWER SMALL TO MEDIUM SIZE NEWS ORGANIZATIONS, AND TO ENABLE SMALL ORGANIZATIONS LIKE OURSELVES TO, LIKE OUR OWN PUBLISHING COMPANY, TO BE ABLE TO COMPETE WITH THE LARGER ORGANIZATIONS ON SCALES THAT THEY CURRENTLY ARE NOT AVAILABLE TO COMPETE.”
LONGWORTH: THE LOSS OF BUZZFEED NEWS AND VICE MEDIA’S BANKRUPTCY SHOW SMALLER DIGITAL OUTLETS CONTINUE TO STRUGGLE COMPETING WITH LEGACY MEDIA. AI TOOLS LIKE WELLS CAN AUTOMATE TASKS LIKE AGGREGATION, FREEING UP RESOURCES TO FOCUS ON BETTER REPORTING.
AN AP-NORC POLL FROM EARLY 2023 SHOWS 57% OF RESPONDENTS FOUND DEEPER REPORTING TO BE “VERY HELPFUL” IN TRYING TO UNDERSTAND CURRENT EVENTS.
RAEES SAYS HEYWIRE IS HOPING TO LAUNCH WELLS SOMETIME MID-2024
RAEES: “THERE ARE MULTIPLE NATIONAL AND LOCAL PUBLISHERS THAT WE’RE IN CONVERSATIONS WITH, TO PARTNER WITH FOR BETA TESTING. SO WE’RE GOING TO SPEND SOME SUBSTANTIAL AMOUNT OF TIME AND VOLUME TESTING, TESTING, TESTING, TRYING TO BREAK IT, SEE WHAT WE COME UP WITH, AND MAKE ALL OF THOSE CHANGES AND CORRECTIONS, BEFORE WE EVER LAUNCH A PRODUCT FOR GENERAL MARKET.”
LONGWORTH: I’M HUMAN REPORTER SHANNON LONGWORTH, ON THE A.I. BEAT FOR STRAIGHT ARROW NEWS.
KARAH RUCKER: HURRICANE SEASON IS ABOUT TO PICK UP STEAM AGAIN. WITH MANY COMMUNITIES IN THE U-S STILL PICKING UP THE PIECES FROM LAST SEASON – SOME ARE LOOKING TO LEARN LESSONS ANYWHERE THEY CAN.
AND IN FLORIDA – A PLACE KNOWN AS AMERICA’S FIRST SOLAR CITY – HAS NOW EARNED A REPUTATION AS THE CITY THAT SURVIVED HURRICANE IAN.
IT’S CALLED BABCOCK RANCH – A COMMUNITY 25 MILES NORTH OF FORT MYERS ON FLORIDA’S WEST COAST.
SYD KITSON | CEO KITSON & PARTNERS: “I can tell you, I was here. And we had sustained winds over 100 miles an hour, and we had gusts of over 150 miles an hour. And if you’ve ever experienced that, it’s like a freight train running through your house and it lasted for eight hours. I think if you talk to most of the people here at Babcock Ranch, they will tell you that the thing that mattered, most of them was the fact that not the electricity never went out, the internet never went out. And that’s because we worked with Florida Power and Light for eight years, and put a system together.”
SYD KITSON IS CEO OF KITSON & PARTNERS. THEY BEGAN DEVELOPING BABCOCK RANCH 17 YEARS AGO.
KITSON: “I consider myself a strong environmentalist. And I wanted to prove that a new city could work hand in hand with the environment.”
THE LAND DEAL TO MAKE BABCOCK HAPPEN REMAINS THE LARGEST IN STATE HISTORY.
KITSON @ 3:30ish “We stayed out of the wetlands as best as we possibly could. So that’s kind of how the shape of it came into being. But we ended up with 18,000 acres, and out of the 8000 acres, we’re preserving half of that. So really, at the end of the day, 90% of that original Ranch is in preservation forever and might be what we’re most proud of.”
BY PARTNERING WITH FLORIDA POWER AND LIGHT, THEY WERE ABLE TO BUILD 150 MEGAWATT SOLAR POWER GENERATING FACILITY WHICH INCLUDED 700-THOUSAND PANELS ON 840 ACRES. IT TOOK EIGHT YEARS, WHICH WAS PAID FOR – AT LEAST IN PART – WITH TAXPAYER DOLLARS.
KITSON: “During the day, when the sun is shining, Babcock Ranch is powered by solar energy, the entire town. And then we had a we had actually it was one of the first solar to battery facilities in the world that was built here 10 megawatts. The ultimate goal here would be for them to build a battery facility that actually can power this town through the night.”
EVENTUALLY, THAT SOLAR ENERGY WILL SUPPORT 55-THOUSAND PEOPLE IN 20-THOUSAND HOMES AND 6-MILLION SQUARE FEET OF COMMERCIAL SPACE.
KITSON: “We have apartments here, or we have single family rentals. We have townhouses, we have condos, we have single family homes, small, lot, large lot, median lot, you name it, we have here. And that’s what a town is all about. It’s that diversity that creates diversity of products creates a diversity of people. And that’s what makes one of the things that makes this place special.”
AS THE COMMUNITY GROWS, SO TOO WILL THE NEED FOR BATTERY STORAGE. DR. JENNIFER LANGUELL IS THE GREEN BUILDING ADVISER TO BABCOCK RANCH. SHE NOTES THAT BATTERY TECHNOLOGY IS RAPIDLY CHANGING, AND THAT AS THOSE ADVANCES ARE MADE AND IMPLEMENTED – THE COMMUNITY ALSO HAS BUILT-IN POWER REDUNDANCIES, INCLUDING BEING TIED IN TO A NATURAL GAS POWER PLANT.
- JENNIFER LANGUELL | BABCOCK RANCH SUSTAINABILITY ADVISER: “The builders, we really focus on efficiency, resource efficiency, and whether it’s energy efficiency, water efficiency or materials, and help them fine tune where they want to go with green building.”
AND AS SEA LEVELS CONTINUE TO RISE – AND STORMS CONTINUE TO BATTER FLORIDA – SUSTAINABILITY IS TOP OF MIND FOR DEVELOPERS.
LANGUELL: “When we trained the builders, initially, we talked to them about durability. And we really wanted them to focus on durability, because Sid wanted a safe from the storm type community. He wanted people to be able to shelter in place.”
SAFETY FROM COASTAL STORMS WAS KITSON’S MAIN GOAL. SO HE CHOSE LAND THAT WAS NATURALLY 30 FEET ABOVE SEA LEVEL, BUILT THE COMMUNITY AROUND NATURAL WETLANDS THAT PREVENT FLOODING, BURIED ALL POWER LINES AND INCORPORATED STORMWATER DRAINS AND RETENTION PONDS. KITSON SAYS LOCATION, COUPLED WITH ECOLOGICAL PRESERVATION, ARE CRUCIAL TO FUTURE FLORIDA RESIDENCY.
KITSON: “It’s very, very important because, you know, as developers, we impact the land we have impacts and 1000 people a day are moving to Florida. A lot of that reason is because of the natural resources, our beaches, the water, the landscapes, I mean, they come down here, this floor is beautiful. If we destroy that, there’s gonna be no reason for people to come down here. And we need to be thinking about our kids and our grandkids and we truly need this to be sustainable and to get back in and make sure all this works in a proper way. So the kind of planning that we’re doing, the idea that we can work with nature is incredibly important. And we’re proving that. And I’m hoping that because of that, that type of development will continue throughout the state of Florida, maybe even throughout the country. As we continue to grow, let’s do it the right way.”
SIMONE DEL ROSARIO: FAKE NEWS CAN BE PRETTY DAMAGING, ESPECIALLY WHEN IT COSTS HUNDREDS OF MILLIONS OF DOLLARS. HERE ARE FIVE TIMES FAKE REPORTS CAUSED REAL DIPS IN THE STOCK MARKET IN THIS WEEK’S FIVE FOR FRIDAY.
IN 2013 A SINGLE TWEET SENT THE DOW DOWN 145 POINTS IN TWO MINUTES. THE TWEET CAME FROM THE VERIFIED ASSOCIATED PRESS TWITTER ACCOUNT, CLAIMING TWO EXPLOSIONS AT THE WHITE HOUSE INJURED THEN-PRESIDENT BARACK OBAMA.
JAY CARNEY: the president is fine i was just with him.
SIMONE DEL ROSARIO: A SEPARATE A-P ACCOUNT QUICKLY SAID THE TWEET WAS BOGUS – AND THE MARKET REBOUNDED. TURNS OUT, A-P’S MAIN ACCOUNT WAS HACKED, AND THE SCARY CLAIM WAS SENT TO ITS ROUGHLY TWO MILLION FOLLOWERS AND APPEARED ON THE BLOOMBERG TERMINAL. THE SYRIAN ELECTRONIC ARMY CLAIMED RESPONSIBILITY FOR THE CHAOS.
SCOTTISH INVESTOR JAMES ALAN CRAIG FACED SECURITIES FRAUD CHARGES FOR SENDING FAKE TWEETS IN 2013 TO DRIVE DOWN STOCK PRICES. THE SEC SAYS HE MADE FAKE ACCOUNTS POSING AS SHORT-SELLING FIRMS MUDDY WATERS AND CITRON RESEARCH, TWEETING ABOUT FAKE INVESTIGATIONS INTO TWO PUBLIC COMPANIES. AUDIENCE INC’S SHARE PRICE PLUNGED 28% BEFORE THE NASDAQ HALTED TRADING, WHILE SAREPTA THERAPEUTICS DROPPED 16% BEFORE THE FRAUD WAS REVEALED. BUT CRAIG WAS REPORTEDLY TOO SLOW TO CAPITALIZE HIMSELF, HE ONLY MADE $97 BUCKS ON THE TRADES. PROSECUTORS SAID THE SCHEME ITSELF COST OTHER INVESTORS MORE THAN $1.6 MILLION.
THIS ONE COST UNITED AIRLINES A COOL BILLION IN MARKET VALUE AND LOTS OF FINGER POINTING. SOMEHOW AN UNDATED SUN SENTINEL ARTICLE ABOUT UNITED’S 2002 BANKRUPTCY RESURFACED SIX YEARS LATER UNDER “MOST VIEWED,” WITH THE CURRENT DAY’S DATE AT THE TOP OF THE WEBSITE. A GOOGLE NEWS ALGORITHM PICKED IT UP AS NEW, A RESEARCH FIRM SENT OUT A SUMMARY TO A BLOOMBERG NEWS SERVICE, BLOOMBERG FLASHED A HEADLINE AND BAM, THE STOCK WENT FROM 12 BUCKS TO 3 BEFORE TRADING HALTED. EVEN AFTER IT BECAME CLEAR UNITED WAS NOT BANKRUPT, THE STOCK STILL CLOSED DOWN 11% ON THE DAY.
IN 2013 CHINESE JOURNALIST CHEN YONGZHOU CONFESSED TO ACCEPTING BRIBES TO PUBLISH DEFAMATORY ARTICLES ABOUT HEAVY EQUIPMENT COMPANY ZOOMLION. THE NEW EXPRESS REPORTER SAID A MIDDLEMAN PAID HIM TENS OF THOUSANDS OF DOLLARS TO SUBMIT MORE THAN 10 ARTICLES UNDER HIS BYLINE THAT ACCUSED ZOOMLION OF FALSE FINANCIAL REPORTING AND OTHER CRIMES. THE STOCK TOOK MULTIPLE HITS FROM THE ARTICLES, WHILE MEDIA SUSPECTED A ZOOMLION RIVAL WAS BEHIND IT.
THIS A-I GENERATED IMAGE OF BLACK SMOKE BILLOWING NEAR THE PENTAGON SPOOKED THE STOCK MARKET IN MAY. THE FAKE SHOT FOOLED NEWS OUTLETS LIKE RUSSIA’S R-T AND ZEROHEDGE AND WAS SPREAD BY A NUMBER OF BLUE CHECK ACCOUNTS MADE TO LOOK LIKE NEWS ORGS, INCLUDING ONE CALLED “BLOOMBERG FEED.” IT MAY BE THE FIRST TIME AN A-I GENERATED IMAGE MOVED MARKETS, BUT EXPERTS FEAR IT WON’T BE THE LAST.
SOMETIMES, SOMEONE’S TRYING TO MAKE A BUCK. SOMETIMES, IT’S AN HONEST MISTAKE. BUT ALL THE TIME, A LITTLE FACT CHECKING GOES A LONG WAY. THAT’S FIVE FOR FRIDAY. I’M SIMONE DEL ROSARIO AND IT’S JUST BUSINESS.
SHANNON LONGWORTH: SCHOOLS ACROSS THE COUNTRY ARE FACING A TEACHER SHORTAGE. TO ATTRACT AND RETAIN QUALIFIED STAFF, MORE AND MORE SCHOOLS ARE OFFERING A SURPRISING PERK:
A FOUR-DAY SCHOOL WEEK.
RESEARCH SHOWS IT HURTS STUDENT ACHIEVEMENT.
PAUL THOMPSON’S BEEN STUDYING THIS FOR SEVEN YEARS, AS PART OF THE FOUR-DAY SCHOOL WEEK POLICY GROUP AT OREGON STATE UNIVERSITY.
PAUL THOMPSON: “THOSE DROPS IN TIME IN SCHOOL KIND OF LINK ALMOST DIRECTLY TO THE ACHIEVEMENT DECLINES THAT WE’VE SEEN.”
LONGWORTH: MANY OF THE SCHOOLS MAKING THIS SWITCH WILL EXTEND THE DAYS THEY *ARE* IN CLASS…BUT IT’S OFTEN NOT ENOUGH TO COMPENSATE FOR DROPPING THAT FIFTH DAY.
850 SCHOOL DISTRICTS ACROSS THE COUNTRY USE THE 4-DAY MODEL, ACCORDING TO THE FOUR DAY SCHOOL WEEK POLICY GROUP. WHILE THERE’S MOUNTING RESEARCH ON THE DRAWBACKS…THERE ARE POTENTIAL BENEFITS TOO.
IN A RAND STUDY OF 12 RURAL SCHOOL DISTRICTS, ADMINISTRATORS, TEACHERS, STUDENTS AND PARENTS SAID THE CHANGE IMPROVED MORALE. TEACHERS REPORTED FEELING LESS BURNT OUT.
ONE STUDY SHOWS IT COULD REDUCE STUDENT BULLYING.
THESE DISTRICTS TEND TO BE IN RURAL AREAS, WHICH HAVE A PARTICULARLY HARD TIME RECRUITING QUALITY TEACHERS, AND THEY HOPE THE PROMISE OF A THREE-DAY WEEKEND COULD HELP.
THOMPSON: “WITH ISSUES OF TEACHER SHORTAGES, TEACHER BURNOUT, IT SEEMS THAT, YOU KNOW, SCHOOL DISTRICTS ARE THINKING THAT THIS MIGHT BE AN EFFECTIVE MECHANISM. IN TERMS OF THE RESEARCH, WE DON’T REALLY KNOW WHETHER THAT’S AN EFFECTIVE STRATEGY, WE’RE PLAYING CATCH UP.”
LONGWORTH: THOMPSON POINTS OUT THAT THIS RECRUITMENT TACTIC CAN BE CONTAGIOUS. IF ONE RURAL SCHOOL DISTRICT SWITCHES TO THE 4-DAY MODEL, THEN OTHERS NEARBY ARE LIKELY TO DO THE SAME TO STAY COMPETITIVE.
THOMPSON: “I THINK MANY STATES ARE SAYING, WELL, IF THIS GOES TO URBAN AREAS, WE’RE GOING TO SEE ALMOST ALL SCHOOL DISTRICTS MAKE THIS SWITCH TO THE 4-DAY MODEL. AND THEN NONE OF THOSE SCHOOL DISTRICTS GET THOSE POTENTIAL BENEFITS OF KEEPING TEACHERS, RIGHT, IT JUST GOES BACK TO KIND OF THE WAY IT WAS RIGHT, WHERE SCHOOLS THAT ARE OFFERING THE BEST MONETARY BENEFITS ARE WHERE, YOU KNOW, TEACHERS ARE GONNA GO.”
LONGWORTH: THOMPSON SAYS DISTRICTS STRUGGLING TO RECRUIT AND RETAIN TEACHERS ONLY HAVE A FEW ALTERNATIVES: LOWER HIRING STANDARDS OR INCREASE CLASS SIZE.
THE FOUR DAY SCHOOL WEEK IS BECOMING MORE AND MORE POPULAR AMID A DIRE TEACHER SHORTAGE IN THE U.S.