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Mike Raffensperger Examines The Business of Sports Betting

“McAfee asked some outstanding questions, as he often does, while Raffensperger pulled back the curtain on a lot of things listeners and customers of the book were wanting to know.”

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Pat McAfee has built quite a following since the end of his playing days. Last December, the former Indianapolis Colts punter signed a four-year, $120 million deal with FanDuel to make it the exclusive sportsbook of The Pat McAfee Show, where he seamlessly blends gambling talk with football talk every weekday. 

Last Thursday, McAfee welcomed Mike Raffensperger to the show for a very insightful and informative segment. The Chief Marketing Officer for FanDuel touched on numerous topics during the interview, ranging from how likely it is that each state will eventually have online gambling, to which show member was having the worst gambling run per their account history.

While some questioned the decision to give McAfee such a high amount of money in the deal, it appears to have paid off handsomely for FanDuel. In a report put out last week by their parent company, Flutter Entertainment, the book signed up 1.3 million active new customers in the first quarter of 2022. In addition, their 1.5 million active customers on Super Bowl Sunday was the highest single-day total ever, and the 19 million bets they processed during the NCAA Tournament signaled the most popular betting period in the book’s history. 

Raffensperger discussed some of the challenges that have been overcome with getting the FanDuel online service up and running in states as they slowly begin to legalize it. He stated that 15 states currently offer online services, but that getting all 50 will never happen.

He cited Utah as an example, as their state constitution clearly outlaws gambling, but stated that many states have legalized it because it is “pretty common sense legalization.” He does believe we will see many more states, including California, legalize sports wagering in the coming years, however. “You will see a continued, steady pace for the next few years, and then you will get close to a critical mass, but you will never get to 50.” 

McAfee asked how much of a role COVID-19 played in the legalization of sports gambling, and Raffensperger said many states were forced to explore new ways to recoup tax revenues lost during shutdowns. “From a state, municipal budgets, they needed tax revenue,” he said, while also discussing how it went from being something done in the shadows to commonplace. “It is taking a black market that is unregulated and unsafe, into a safe and regulated environment, and creates tax revenue for the state. It’s very common sense.”

One of the more informative discussions came when McAfee asked what Raffensperger would say to listeners that complained they were unable to take advantage of odds boosts or promos that FanDuel offered through his show, yet were not available to listeners in every state. This is a common issue for radio stations throughout the country that have gambling ads in multi-state markets.

“It tends to be a little more restrictive,” Raffensperger said regarding how states tend to regulate what can be offered in the months following legalization. “Then over time, as states get comfortable, we build a good relationship with our regulating partners.” He added, “it does tend to open up a bit more over time” as they build that rapport within a state, but fully understands the frustration for customers and listeners. “At the end of the day, we gotta own what the customer experience is, and it’s FanDuel’s job to work through those regulatory challenges to make it as easy on customers as possible.”

When McAfee asked him about whether more brick-and-mortar book sites might be coming in the future at professional stadiums, Raffensperger was quick to point out it was also impacted by state regulations. Stating that 90% of all their bets were made online, he also questioned to what end a physical site would be a prudent investment.

“Beyond a physical teller and placing a bet, what is a super premium or luxury experience that would make being at a sportsbook different than what you have in your mind of a Vegas sportsbook,” he asked theoretically, “but being at a retail stadium?”

He also said that physical sites, like online apps, are tied to regulation on a state-by-state basis. “You’re either allowed to take a physical bet in a sports facility or not. Most of the time, and in most of the laws, you have to have already been a gambling establishment, either a race track or a casino, to have a physical book.” 

They also touched on the McAfee same game parlay for Super Bowl LVI, which Raffensperger confirmed was tailed by more than 200,000 of his listeners. Paying out nearly eight-to-one, the wager was for Cooper Kupp to score a touchdown and to have more than 60 yards receiving, in addition to Odell Beckham Jr scoring a touchdown, and Joe Burrow rushing for 12 or more yards. Raffensperger said the parlay, which needed just nine rushing yards from Burrow to hit, may have been “the biggest parlay liability in the history of gambling,” and would have cost the book nearly $50 million had it come through. 

One final interesting fact was the rise of women in the sports gambling space. A report over the weekend from Global Wireless Solutions stated that the growth rate of women signing up with sportsbooks is 63% higher than the rate of men during the same time frame. They also reported that in 2021 FanDuel added almost 1.7 million new female customers, with DraftKings adding close to 900,000 in the same span. As sportsbooks look to bring in higher market share and look to find new ways to advertise their services, women are likely the next major demographic the books fight over. 

All in all, it was a terrific interview from all sides. Entertaining and enlightening, McAfee asked some outstanding questions, as he often does, while Raffensperger pulled back the curtain on a lot of things listeners and customers of the book were wanting to know. The partnership appears to be greatly beneficial for all parties involved, and hopefully the positive reception to the McAfee interview will lead to more transparency and open dialogue from sports book executives to their consumers.

BSM Writers

Being Wrong On-Air Isn’t A Bad Thing

…if you feel yourself getting uncomfortable over the fact that you were wrong, stop to realize that’s your pride talking. Your ego. And if people call you out for being wrong, it’s actually a good sign.

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WRONG BAD

In the press conference after the Warriors won their fourth NBA title in eight years, Steph Curry referenced a very specific gesture from a very specific episode of Get Up that aired in August 2021.

“Clearly remember some experts and talking heads putting up the big zero,” Curry said, then holding up a hollowed fist to one eye, looking through it as if it were a telescope.

“How many championships we would have going forward because of everything we went through.”

Yep, Kendrick Perkins and Domonique Foxworth each predicted the Warriors wouldn’t win a single title over the course of the four-year extension Curry had just signed. The Warriors won the NBA title and guess what? Curry gets to gloat.

The funny part to me was the people who felt Perkins or Foxworth should be mad or embarrassed. Why? Because they were wrong?

That’s part of the game. If you’re a host or analyst who is never wrong in a prediction, it’s more likely that you’re excruciatingly boring than exceedingly smart. Being wrong is not necessarily fun, but it’s not a bad thing in this business.

You shouldn’t try to be wrong, but you shouldn’t be afraid of it, either. And if you are wrong, own it. Hold your L as I’ve heard the kids say. Don’t try to minimize it or explain it or try to point out how many other people are wrong, too. Do what Kendrick Perkins did on Get Up the day after the Warriors won the title.

“When they go on to win it, guess what?” He said, sitting next to Mike Greenberg. “You have to eat that.”

Do not do what Perkins did later that morning on First Take.

Perkins: “I come on here and it’s cool, right? Y’all can pull up Perk receipts and things to that nature. And then you give other people a pass like J-Will.”

Jason Williams: “I don’t get passes on this show.”

Perkins: “You had to, you had a receipt, too, because me and you both picked the Memphis Grizzlies to beat the Golden State Warriors, but I’m OK with that. I’m OK with that. Go ahead Stephen A. I know you’re about to have fun and do your thing. Go ahead.”

Stephen A. Smith: “First of all, I’m going to get serious for a second with the both of you, especially you, Perk, and I want to tell you something right now. Let me throw myself on Front Street, we can sit up there and make fun of me. You know how many damn Finals predictions I got wrong? I don’t give a damn. I mean, I got a whole bunch of them wrong. Ain’t no reason to come on the air and defend yourself. Perk, listen man. You were wrong. And we making fun, and Steph Curry making fun of you. You laugh at that my brother. He got you today. That’s all. He got you today.”

It’s absolutely great advice, and if you feel yourself getting uncomfortable over the fact that you were wrong, stop to realize that’s your pride talking. Your ego. And if people call you out for being wrong, it’s actually a good sign. It means they’re not just listening, but holding on to what you say. You matter. Don’t ruin that by getting defensive and testy.

WORTH EVERY PENNY

I did a double-take when I saw Chris Russo’s list of the greatest QB-TE combinations ever on Wednesday and this was before I ever got to Tom Brady-to-Rob Gronkowski listed at No. 5. It was actually No. 4 that stopped me cold: Starr-Kramer.

My first thought: Jerry Kramer didn’t play tight end.

My second thought: I must be unaware of this really good tight end from the Lombardi-era Packers.

After further review, I don’t think that’s necessarily true, either. Ron Kramer did play for the Lombardi-era Packers, and he was a good player. He caught 14 scoring passes in a three-year stretch where he really mattered, but he failed to catch a single touchdown pass in six of the 10 NFL seasons he played. He was named first-team All-Pro once and finished his career with 229 receptions.

Now this is not the only reason that this is an absolutely terrible list. It is the most egregious, however. Bart Starr and Kramer are not among the 25 top QB-TE combinations in NFL history let alone the top five. And if you’re to believe Russo’s list, eighty percent of the top tandems played in the NFL in the 30-year window from 1958 to 1987 with only one tandem from the past 30 years meriting inclusion when this is the era in which tight end production has steadily climbed.

Then I found out that Russo is making $10,000 per appearance on “First Take.”

My first thought: You don’t have to pay that much to get a 60-something white guy to grossly exaggerate how great stuff used to be.

My second thought: That might be the best $10,000 ESPN has ever spent.

Once a week, Russo comes on and draws a reaction out of a younger demographic by playing a good-natured version of Dana Carvey’s Grumpy Old Man. Russo groans to JJ Redick about the lack of fundamental basketball skills in today’s game or he proclaims the majesty of a tight end-quarterback pairing that was among the top five in its decade, but doesn’t sniff the top five of all-time.

And guess what? It works. Redick rolls his eyes, asks Russo which game he’s watching, and on Wednesday he got me to spend a good 25 minutes looking up statistics for some Packers tight end I’d never heard of. Not satisfied with that, I then moved on to determine Russo’s biggest omission from the list, which I’ve concluded is Philip Rivers and Antonio Gates, who connected for 89 touchdowns over 15 seasons, which is only 73 more touchdowns than Kramer scored in his career. John Elway and Shannon Sharpe should be on there, too.

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BSM Writers

Money Isn’t The Key Reason Why Sellers Sell Sports Radio

I started selling sports radio because I enjoyed working with clients who loved sports, our station, and wanted to reach fans with our commercials and promotions.

Jeff Caves

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Radio Sales

A radio salesperson’s value being purely tied to money is overrated to me. Our managers all believe that our main motivation for selling radio is to make more money. They see no problem in asking us to sell more in various ways because it increases our paycheck. We are offered more money to sell digital, NTR, to sell another station in the cluster, weekend remotes, new direct business, or via the phone in 8 hours. 

But is that why you sell sports radio?

In 2022, the Top 10 highest paying sales jobs are all in technology. Not a media company among them. You could argue that if it were all about making money, we should quit and work in tech. Famous bank robber Willie Sutton was asked why he robbed twenty banks over twenty years. He reportedly said,” that’s where the money is”. Sutton is the classic example of a person who wanted what money could provide and was willing to do whatever it took to get it, BUT he also admitted he liked robbing banks and felt alive. So, Sutton didn’t do it just for the money.

A salesperson’s relationship with money and prestige is also at the center of the play Death of a Salesman. Willy Loman is an aging and failing salesman who decides he is worth more dead than alive and kills himself in an auto accident giving his family the death benefit from his life insurance policy. Loman wasn’t working for the money. He wanted the prestige of what money could buy for himself and his family. 

Recently, I met a woman who spent twelve years selling radio from 1999-2011. I asked her why she left her senior sales job. She said she didn’t like the changes in the industry. Consolidation was at its peak, and most salespeople were asked to do more with less help. She described her radio sales job as one with “golden handcuffs”. The station paid her too much money to quit even though she hated the job. She finally quit. The job wasn’t worth the money to her.

I started selling sports radio because I enjoyed working with clients who loved sports, our station, and wanted to reach fans with our commercials and promotions. I never wanted to sell anything else and specifically enjoyed selling programming centered around reaching fans of Boise State University football. That’s it. Very similar to what Mark Glynn and his KJR staff experience when selling Kraken hockey and Huskies football.  

I never thought selling sports radio was the best way to make money. I just enjoyed the way I could make money. I focused on the process and what I enjoyed about the position—the freedom to come and go and set my schedule for the most part. I concentrated on annual contracts and clients who wanted to run radio commercials over the air to get more traffic and build their brand.

Most of my clients were local direct and listened to the station. Some other sales initiatives had steep learning curves, were one-day events or contracted out shaky support staff. In other words, the money didn’t motivate me enough. How I spent my time was more important. 

So, if you are in management, maybe consider why your sales staff is working at the station. Because to me, they’d be robbing banks if it were all about making lots of money.  

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BSM Writers

Media Noise: BSM Podcast Network Round Table

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Demetri Ravanos welcomes the two newest members of the BSM Podcast Network to the show. Brady Farkas and Stephen Strom join for a roundtable discussion that includes the new media, Sage Steele and Roger Goodell telling Congress that Dave Portnoy isn’t banned from NFL events.

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