May 15, 2026 • 9 mins
Do the Reds have financial issues that will make it tough for them to keep their best players? How much business sense does it make for the NCAA Tournament to expand? And are sports franchises becoming too valuable? Brad Johansen from Omega Wealth Private Capital joined us to discuss.
Learn more at OWPrivateCapital.com.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Wise Money Sports with our friends from Omegawealth Private Capital.
Speaker 2 (00:04):
We've had Joe Wilson on now for weeks, we have
not had a chance. He just heard his voice in that.
Speaker 1 (00:09):
Spot a few minutes ago to have on our guy,
Brad Johansson, also from Omegawealth Private Capital.
Speaker 2 (00:15):
It's his turn for Wise Money Sports. Brad. It's awesome
to have you. Good afternoon.
Speaker 3 (00:19):
What's going on, Hey, I'm happy to substitute. Thanks for
tapping me in MO. Nice to be with you, Bud.
Speaker 1 (00:26):
Nice to have you as always. I want you to
help me with this. So you know, as a Reds fan,
we all love Sal Stewart. Want to see the Red
sign Sal Stewart long term. Apparently that's not going to
happen if you believe the reporting in the Athletic Ken
Rosenthal reporting that the Reds financially maybe in a different
spot than they were a year ago, six months ago,
because their TV situation is so uncertain, and we've all
(00:49):
you know, we're all familiar with what's happened with a
regional sports network. So walk me through this because this
is very much a cash flow story, not so much
an indictment against Sal Stewart Shoult.
Speaker 3 (01:00):
I remember when you and you and Joe were talking
about stuff of the Reds in week one on this
and you're right, it is a cash flow story, and
they say, okay, well, why didn't you sign Schwarber. I mean,
you had one hundred and twenty five million dollar offer
to him before the year started. You signed Ellie, You
(01:21):
get a Uhanni Osuarez in on a deal of a
fifteen million dollar deal, and things change by the moment
when you'd say cash flow that this this kind of
sits in that spot of tremendous uncertainty. Yes, they are
worth more on paper than ever before, but they can't
(01:43):
spend year to year like you want to. I'm we
kind of this equal this thing out with general stories
of somebody who bought I don't know, three hundred thousand
dollars house in two thousand and now you're three hundred
thousand dollars house is worth eight hundred thousand dollars in
(02:03):
twenty twenty six. So you're richer. Right on paper, you're richer,
you just can't spend because you've got two or three
kids going to college, going to a private school. You
had a problem with the car you're going to have
to buy a new one, so you don't have flow
that you can work. If you want to sell the house, great,
(02:26):
you're what five hundred thousand dollars up, but you got
to find somewhere else to live. The Reds are kind
of in that spot right now of saying I can't
spend like this right now, and if we don't know
where we're going to air and we don't have a
deal with somebody, we've got issues. Does that make sense, man?
Speaker 1 (02:45):
Totally No, it makes complete and total sense. I think sometimes,
and I know Joe and I talked about this a
few weeks ago. There's confusion between what a franchise is
worth and what it's current cash flow is. And you
can apply that to pretty much anybody, any hooleowner or
really anybody else.
Speaker 3 (03:03):
Yeah, I think it's plus you're sitting with a potential lockout.
You don't know what's going to happen immediately after this.
And I think this whole TV thing has changed. It
certainly changed from the time that I was on TV,
where in the eighties television stations were spending like crazy.
(03:24):
You could go anywhere for any story. They didn't care
what the money was because you had an influx. Now
local TV is struggling in a real big way and
everybody is working on rights fees and trying to figure
out where you have. This is kind of your one
place to go. You're banking on one place to air
(03:46):
and get your money back from all of that, and
now you're not exactly sure where you're going to air
and how the money is going to come back into it,
so you can't figure out how to spend.
Speaker 1 (03:57):
I want to ask you about NCAA tournament expansion, which
as a college basketball fan I dislike, and I know
I'm in the majority here I'm with, but yeah, but
look this is this is more inventory. These are more units,
and so you have you have sort of a I
don't know, a split. You have fans those of us
who hate the idea of watering down the regular season
(04:17):
adding more mediocre college basketball teams, but these conferences and
these schools they want more bids, more exposure, more money.
So this makes a lot of sense from a business perspective,
even though more practical on a fan.
Speaker 2 (04:32):
If we don't like it, well, you follow the money.
Speaker 3 (04:35):
It's all about following the money. A TV deal with
what CBS Warner already pays over nine hundred million a
year that goes through twenty thirty two. It doesn't automatically
increase with expansion. So inventory, if I can have more games,
(04:56):
i can sell more ads, and then I've got more
slots to be able to put the money in. When
you're dealing with this whole thing, fans, as you say,
hate the expansion, I'm kind of with you, because you
water down the whole thing. Current format is beloved. But
if you're adding ads, sponsorship, inventory units to pay out,
(05:21):
they don't really necessarily care what the fans think because
they say, you know what, I'll get people to watch,
and I'll get people to advertise, and if you're going
to get more money, you're going to add more teams.
It's just the way the thing is going to work.
Speaker 1 (05:41):
Yeah, and I you're exactly right. I just don't like it.
Speaker 2 (05:46):
They they have met with that's because.
Speaker 3 (05:49):
More doesn't mean more doesn't mean better for the fans.
If we're going to do good, If you're going to
add more teams in basketball and now we're talking what
twenty twenty four teams, if you're talking college football, if
you're moving to a twenty four team. I think the
(06:10):
SEC is the only one out on adding to a
twenty fourteen football playoff. And you tell me, mo, is
team twenty four ever going to win a national football championship?
Speaker 2 (06:26):
No, I'm.
Speaker 3 (06:30):
Twelve will yeah, none, Yeah, I'm I'm not convinced that
twelve can do it either. Shoot, if you were down
to eight, then it kind of gets interesting. But it
doesn't matter. If you're moving to twenty four, you're dealing
with nil. You have big shoot twenty four of it.
(06:51):
Look at the way the playoffs started this year and
what Ohio State did to Tennessee just in round one,
and there were people who thought, oh okay, Tennessee's going
to be fine. It is going to be watered down
because it all comes down to the money. And I
always say that more never equals better just because of quality.
(07:16):
And I mean a lot of people will do this
even in investments. Give me something more exotic, I want
to expand my portfolio, Give me a little something more,
and it creates more risk that the product that you have,
that the ending of it all is going to be
(07:37):
a problem for you. You just want to I want
to grab at this, and usually we do all of
this by emotion, I mean in finances, either by fear
or greed, and the NCAA is airing on greed. We
need more money to make this thing gone.
Speaker 1 (07:57):
Yeah, no argument for me on that. Give me I
got about sixty seconds here, give me a minute. On
pro sports franchises, are we about to see a pro
sports franchise valuation bubble?
Speaker 3 (08:12):
Probably? I mean it's a new norm. The valuations have
risen beyond what's even reasonable at this point. And it
goes back to what we were just talking about. It
heavily dependent on media rights. You get into this what
do we call it a sticky high argument. Franchises are
(08:36):
ultra scarce, it's hard to get them. So they are
global brands. Now you get status symbols, so you're buying
really on the symbol rather than what it's worth, which
the reds are saying, Hold that you're valuating us here
and this is what we're able to spend. It doesn't work.
I think we're going to have a bubble that's probably
(08:57):
going to burst it sometime because it's all about the
big dollars.
Speaker 1 (09:00):
Yeah, it definitely feels like your brad Jill Hanson Omegawealth
Private Capital. You can learn more about Omegawealth Private Capital,
but Brad, give me thirty seconds.
Speaker 2 (09:09):
Tell me about Omegawealth Private Capital.
Speaker 3 (09:12):
Olwprivatecapital dot Com is where you go. We're going to
base everything on your retirement. We specialize on getting you
into and out of retirement with money to last until
your last breath based on the five Agreements, which is
exactly what we want to do. You want a vital retirement,
(09:32):
volatility income. We'll deal with taxes, asset preservation, and your
legacy throughout this whole thing. Give us a shout. We'd
love to sit down with you and make sure that
your retirement's great.
Speaker 1 (09:45):
Ohwprivatecapital dot Com. Brad, you're the best. We'll talk to man.
Thanks so much.
Speaker 3 (09:50):
Good to talk to you, Mo
Wise Money Sports with our friends from Omegawealth Private Capital.
Speaker 2 (00:04):
We've had Joe Wilson on now for weeks, we have
not had a chance. He just heard his voice in that.
Speaker 1 (00:09):
Spot a few minutes ago to have on our guy,
Brad Johansson, also from Omegawealth Private Capital.
Speaker 2 (00:15):
It's his turn for Wise Money Sports. Brad. It's awesome
to have you. Good afternoon.
Speaker 3 (00:19):
What's going on, Hey, I'm happy to substitute. Thanks for
tapping me in MO. Nice to be with you, Bud.
Speaker 1 (00:26):
Nice to have you as always. I want you to
help me with this. So you know, as a Reds fan,
we all love Sal Stewart. Want to see the Red
sign Sal Stewart long term. Apparently that's not going to
happen if you believe the reporting in the Athletic Ken
Rosenthal reporting that the Reds financially maybe in a different
spot than they were a year ago, six months ago,
because their TV situation is so uncertain, and we've all
(00:49):
you know, we're all familiar with what's happened with a
regional sports network. So walk me through this because this
is very much a cash flow story, not so much
an indictment against Sal Stewart Shoult.
Speaker 3 (01:00):
I remember when you and you and Joe were talking
about stuff of the Reds in week one on this
and you're right, it is a cash flow story, and
they say, okay, well, why didn't you sign Schwarber. I mean,
you had one hundred and twenty five million dollar offer
to him before the year started. You signed Ellie, You
(01:21):
get a Uhanni Osuarez in on a deal of a
fifteen million dollar deal, and things change by the moment
when you'd say cash flow that this this kind of
sits in that spot of tremendous uncertainty. Yes, they are
worth more on paper than ever before, but they can't
(01:43):
spend year to year like you want to. I'm we
kind of this equal this thing out with general stories
of somebody who bought I don't know, three hundred thousand
dollars house in two thousand and now you're three hundred
thousand dollars house is worth eight hundred thousand dollars in
(02:03):
twenty twenty six. So you're richer. Right on paper, you're richer,
you just can't spend because you've got two or three
kids going to college, going to a private school. You
had a problem with the car you're going to have
to buy a new one, so you don't have flow
that you can work. If you want to sell the house, great,
(02:26):
you're what five hundred thousand dollars up, but you got
to find somewhere else to live. The Reds are kind
of in that spot right now of saying I can't
spend like this right now, and if we don't know
where we're going to air and we don't have a
deal with somebody, we've got issues. Does that make sense, man?
Speaker 1 (02:45):
Totally No, it makes complete and total sense. I think sometimes,
and I know Joe and I talked about this a
few weeks ago. There's confusion between what a franchise is
worth and what it's current cash flow is. And you
can apply that to pretty much anybody, any hooleowner or
really anybody else.
Speaker 3 (03:03):
Yeah, I think it's plus you're sitting with a potential lockout.
You don't know what's going to happen immediately after this.
And I think this whole TV thing has changed. It
certainly changed from the time that I was on TV,
where in the eighties television stations were spending like crazy.
(03:24):
You could go anywhere for any story. They didn't care
what the money was because you had an influx. Now
local TV is struggling in a real big way and
everybody is working on rights fees and trying to figure
out where you have. This is kind of your one
place to go. You're banking on one place to air
(03:46):
and get your money back from all of that, and
now you're not exactly sure where you're going to air
and how the money is going to come back into it,
so you can't figure out how to spend.
Speaker 1 (03:57):
I want to ask you about NCAA tournament expansion, which
as a college basketball fan I dislike, and I know
I'm in the majority here I'm with, but yeah, but
look this is this is more inventory. These are more units,
and so you have you have sort of a I
don't know, a split. You have fans those of us
who hate the idea of watering down the regular season
(04:17):
adding more mediocre college basketball teams, but these conferences and
these schools they want more bids, more exposure, more money.
So this makes a lot of sense from a business perspective,
even though more practical on a fan.
Speaker 2 (04:32):
If we don't like it, well, you follow the money.
Speaker 3 (04:35):
It's all about following the money. A TV deal with
what CBS Warner already pays over nine hundred million a
year that goes through twenty thirty two. It doesn't automatically
increase with expansion. So inventory, if I can have more games,
(04:56):
i can sell more ads, and then I've got more
slots to be able to put the money in. When
you're dealing with this whole thing, fans, as you say,
hate the expansion, I'm kind of with you, because you
water down the whole thing. Current format is beloved. But
if you're adding ads, sponsorship, inventory units to pay out,
(05:21):
they don't really necessarily care what the fans think because
they say, you know what, I'll get people to watch,
and I'll get people to advertise, and if you're going
to get more money, you're going to add more teams.
It's just the way the thing is going to work.
Speaker 1 (05:41):
Yeah, and I you're exactly right. I just don't like it.
Speaker 2 (05:46):
They they have met with that's because.
Speaker 3 (05:49):
More doesn't mean more doesn't mean better for the fans.
If we're going to do good, If you're going to
add more teams in basketball and now we're talking what
twenty twenty four teams, if you're talking college football, if
you're moving to a twenty four team. I think the
(06:10):
SEC is the only one out on adding to a
twenty fourteen football playoff. And you tell me, mo, is
team twenty four ever going to win a national football championship?
Speaker 2 (06:26):
No, I'm.
Speaker 3 (06:30):
Twelve will yeah, none, Yeah, I'm I'm not convinced that
twelve can do it either. Shoot, if you were down
to eight, then it kind of gets interesting. But it
doesn't matter. If you're moving to twenty four, you're dealing
with nil. You have big shoot twenty four of it.
(06:51):
Look at the way the playoffs started this year and
what Ohio State did to Tennessee just in round one,
and there were people who thought, oh okay, Tennessee's going
to be fine. It is going to be watered down
because it all comes down to the money. And I
always say that more never equals better just because of quality.
(07:16):
And I mean a lot of people will do this
even in investments. Give me something more exotic, I want
to expand my portfolio, Give me a little something more,
and it creates more risk that the product that you have,
that the ending of it all is going to be
(07:37):
a problem for you. You just want to I want
to grab at this, and usually we do all of
this by emotion, I mean in finances, either by fear
or greed, and the NCAA is airing on greed. We
need more money to make this thing gone.
Speaker 1 (07:57):
Yeah, no argument for me on that. Give me I
got about sixty seconds here, give me a minute. On
pro sports franchises, are we about to see a pro
sports franchise valuation bubble?
Speaker 3 (08:12):
Probably? I mean it's a new norm. The valuations have
risen beyond what's even reasonable at this point. And it
goes back to what we were just talking about. It
heavily dependent on media rights. You get into this what
do we call it a sticky high argument. Franchises are
(08:36):
ultra scarce, it's hard to get them. So they are
global brands. Now you get status symbols, so you're buying
really on the symbol rather than what it's worth, which
the reds are saying, Hold that you're valuating us here
and this is what we're able to spend. It doesn't work.
I think we're going to have a bubble that's probably
(08:57):
going to burst it sometime because it's all about the
big dollars.
Speaker 1 (09:00):
Yeah, it definitely feels like your brad Jill Hanson Omegawealth
Private Capital. You can learn more about Omegawealth Private Capital,
but Brad, give me thirty seconds.
Speaker 2 (09:09):
Tell me about Omegawealth Private Capital.
Speaker 3 (09:12):
Olwprivatecapital dot Com is where you go. We're going to
base everything on your retirement. We specialize on getting you
into and out of retirement with money to last until
your last breath based on the five Agreements, which is
exactly what we want to do. You want a vital retirement,
(09:32):
volatility income. We'll deal with taxes, asset preservation, and your
legacy throughout this whole thing. Give us a shout. We'd
love to sit down with you and make sure that
your retirement's great.
Speaker 1 (09:45):
Ohwprivatecapital dot Com. Brad, you're the best. We'll talk to man.
Thanks so much.
Speaker 3 (09:50):
Good to talk to you, Mo
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