WOKE WEDNESDAY: MLK vs. the NFL, plus Disney's activist with Doug (not Chia) from Jersey

LIVE from the State Farm Mercedes-Benz Gillette Levi’s Lumen Nissan Lincoln Financial MetLife Caesars U.S. Bank Allegiant Lucas Oil TIAA Bank M&T Bank Ford NRG AT&T Bank of America First Energy FedEx Stadium it’s 2023’s third Woke Data Wednesday featuring Matt Moscardi, Lord of Board Sabermetrics, and me, Duke of Earl. In today’s Wednesday-stained bag called January 18, 2023: ESG MLK Woke Day!

Our show today is being sponsored by ESGauge, your ESG data solutions provider.

Also, before we start, a remind that tomorrow’s show features our favorite Anti-Woke/Anti-ESG crusader Vivek Ramaswamy who will be playing the Good Game!

MLK DAY & the NFL

1. NFL and USAA Announce Finalists for the 11th Annual Salute to Service Award Presented by USAA

1. The panel of judges, consisting of representatives from the U.S. military, the NFL and USAA, includes:

1. VICE ADMIRAL JOHN BIRD (Ret.), U.S. Navy veteran, USAA Senior Vice President of Military Affairs: White dude

2. LENNY BANDY, U.S. Marine Corps Veteran and NFL Vice President of Security Black dude… who is this guy??

3. CHAD HENNINGS, Air Force Academy graduate, three-time Super Bowl champion: White dude

4. DONNIE EDWARDS, NFL Legend and 2019 Salute to Service Award recipient:  of Mexican, Native American, and African American descent

5. JIM MORA, SR., Marine Corps veteran, former NFL head coach: White dude

6. STEVE CANNON, CEO, AMB Sports & Entertainment (Atlanta Falcons) and 2020 Salute to Service Award recipient: White dude

1. YOUR WINNER: NFL And USAA Announce Denver Broncos TE Andrew Beck As Recipient Of 11th Annual Salute To Service Award: White dude

2. Military ESG data

1. Active duty Members/Officers racial minority: 86%/14%

1. 18%/8% Hispanic

2. 19%/9% black

3. 5%/6% Asian

4. 2%/1% native

5. 3%/2% multi-racial

6. 3%/6% unknown

7. 50%/68% White

2. NFL Announces 32 Nominees For Walter Payton NFL Man Of The Year Award Presented By Nationwide

1. 9/32: 28% White

2. Los Angeles Rams Tackle ANDREW WHITWORTH has been selected as the 2021 WALTER PAYTON NFL MAN OF THE YEAR PRESENTED BY NATIONWIDE

3. Walter Payton: Black dude

4. Andrew Whitworth: White dude

5. Over past 15 years: 8 Black/7 White

6. NFL player/head coach/assistant coach/league office management/CEO/GM/VP demographics

1. NFL Announces Diversity Advisory Committee Members

1. The six-member committee will lend its expert, external perspective on industry best practices and will evaluate league and club diversity, equity and inclusion (DEI) strategies and initiatives, including all hiring processes, policies and procedures, with a primary focus on senior-level coach and front office personnel positions.

1. Pamela Carlton, Founder and President, Springboard: black woman

2. Peter Harvey, Former Attorney General of New Jersey; Partner, Patterson Belknap: black man

3. Patricia Brown Holmes, Managing Partner, Riley Safer Holmes & Cancila: black woman

4. Stefanie K. Johnson, Associate Professor, University of Colorado Boulder's Leeds School of Business: white woman

5. Rick Smith, Former General Manager, Houston Texans: black man

6. Don Thompson, Founder and CEO, Cleveland Avenue, and Former President and CEO, McDonald's Corporation: black man

2. 2022 NFL Diversity and Inclusion Report.

1. 2021 report: An Examination of Leadership, Access, Opportunity, Social Capital and the Reshuffling Effect within the NFL

2. Authors: Dr. C. Keith Harrison (black man) and Scott Bukstein (white man), both faculty at the DeVos Graduate Sport Business Management Program

1.  Richard DeVos

1. Billionaire Amway (multi-level marketing) co-founder and owner of the orlando Magic

2. A known politically active conservative:

1. President Ronald Reagan appointed DeVos to the President's Commission on the HIV Epidemic,and was criticized at the time for characterizing people with AIDS as wanting "special treatment"

2. He was a dedicated opponent of same-sex marriage

3. co-founded the Richard and Helen DeVos Foundation, an American conservative foundation

2. NFL & NFL Films Announce Collaboration With The HistoryMakers, Nation’s Largest African American Video Oral History Archive: Agreement brings together the gold standard in sports documentary production to assist the nation's largest African American video oral history archive

3. NFLAnd The Shoe Surgeon Team Up To Empower Local Community And Youth Through Fashion, Football And Philanthropy

1. partnership with pioneering shoe customizer Dominic Ciambrone, aka ‘The Shoe Surgeon’. Recognized for his bespoke one-of-a-kind creations, Ciambrone is the founder and creative director of The Surgeon, a household name synonymous with luxury custom footwear. He has continuously transformed the high-end fashion customization and sports landscape by offering his made-to-order services for top football athletes such as Odell Beckham Jr and Jalen Ramsey. The collaboration, consisting of two key initiatives, will empower the local community and youth through fashion, football, and philanthropy.

2. The first initiative will be a monthly series of SRGN Academy clinics in partnership with Big Brother Big Sisters of America, a longstanding partner of the NFL and through its “Inspire Change” social justice initiative. Each SRGN Academy Workshop will teach fifteen Littles and their Bigs from local Big Brothers Big Sisters agencies about creativity and customization, as they transform a blank cleat canvas into works of art with NFL Clubs and players.

3. WTF??

1. Dominic Ciambrone (white dude, not that there’s anything wrong with it) Started Out Air Brushing Sneakers, Now He’s Making $200,000 Shoes

4. NFL Renews Support Of The Trevor Project

1. League matches Tampa Bay Buccaneers linebacker Carl Nassib's $100k commitment to further support the LGBTQ community

2. Today, on National Coming Out Day, the National Football League (NFL) announced its renewed support of The Trevor Project, the world's largest suicide prevention and mental health organization for lesbian, gay, bisexual, transgender, queer & questioning (LGBTQ) young people. The NFL will work collaboratively with The Trevor Project on programming, training and more as a part of the league's ongoing effort to create a more diverse, equitable, and inclusive organization.

3. One active out player in its history?

5. Joint Statement From NFL Clubs On Commitment To Increasing Diversity Among Ownership

1. Following a discussion among the 32 NFL clubs, the membership adopted today the below statement and resolution that outlines its commitment to increasing diversity among ownership.

2. "The NFL member clubs support the important goal of increasing diversity among ownership.  Accordingly, when evaluating a prospective ownership group of a member club pursuant to League policies, the membership will regard it as a positive and meaningful factor if the group includes diverse individuals who would have a significant equity stake in and involvement with the club, including serving as the controlling owner of the club."

6. NFL Votes Enters Its Third Season, Adds Partner In Continuing League-Wide Voter Education, Registration And Activism

1. Today, at the Pro Football Hall of Fame Game, the NFL family kicks off the third season of its NFL Votes initiative. NFL Votes is a league-wide, nonpartisan initiative that supports and encourages civic engagement among NFL players and Legends, club and league personnel, and fans. The initiative was founded in August 2020 as a joint effort between the NFL and the NFL Players Association and focuses on three key components of the electoral process: voter education, voter registration, and voter activation.

7. NFL Hosts Seventh Annual Careers In Football Forum To Provide Opportunities For HBCU Students

1. More than 50 students from Historically Black Colleges and Universities (HBCUs) have been invited to attend the seventh annual 2022 NFL HBCU Careers in Football Forum.

2. The event will open with a panel discussion entitled Business Operations Inside the League Office featuring:

1. President and CEO of the Atlanta Falcons, Rich McKay (white dude)

2. President of the Baltimore Ravens, Sashi Brown (black dude)

3. President of the Denver Broncos, Damani Leech (black dude)

3. Since 2016, the Forum has introduced over 300 students and entry-level athletic department administrators to career opportunities in professional football. Each year, the Forum invites participants to hear from sports industry professionals and creates networking opportunities for students to learn more about their desired career path. Since the program's inception, 14 students from the Forum have gone on to secure internships or full-time opportunities with the NFL, NFL clubs, colleges and universities, and other sports entities.

1. Less than 5%

8. 2022 Bill Walsh Diversity Coaching Fellowship And Nunn-Wooten Scouting Fellowship Enhance NFL’s Legacy

1. The National Football League (NFL) successfully completed this year's Bill Walsh Diversity Coaching and Nunn-Wooten Scouting Fellowships to continue their efforts to strengthen the League's diverse talent. The Bill Walsh Diversity Fellowship had 171 fellows go through the initiative this year while the Nunn-Wooten Scouting Fellowship had 28 fellows.

1. Bill Walsh (white coach dude; never played)

1. Coaching

1. California (1960–1962) Receivers coach

2. Stanford (1963–1965) Defensive backs coach

3. Oakland Raiders (1966) Running backs coach

4. San Jose Apaches (1967) Head coach

5. Cincinnati Bengals (1968–1975) Assistant coach

6. San Diego Chargers (1976) Offensive coordinator

7. Stanford (1977–1978) Head coach

8. San Francisco 49ers (1979–1988) Head coach

9. Stanford (1992–1994) Head coach

2. As an administrator:

1. San Francisco 49ers (1979–1982), (1999–2000) General manager

2. San Francisco 49ers (1983-1987) President

3. San Francisco 49ers (1999–2000) Vice president

4. San Francisco 49ers (2002–2004) Consultant

2. Bill Nunn (black player dude)

1. Leadership with Pittsburgh Steelers

1. Assistant personnel director (1970-1987)

2. Scout (1987–2014)

3. John Wooten (black player dude)

1. Leadership

1. Dallas Cowboys

1. Scout (1975-1979)

2. Director of Pro Personnel (1980-1992)

2. Philadelphia Eagles

1. Player Personnel (1992-1994)

2. Vice President of Player Personnel (1994-1998)

3. Baltimore Ravens

1. Assistant Director of Pro and College Scouting (1998-2000)

2. Consultant (2000-2003)

MATT1

Doug from Jersey wants to know:

• The Disney proxy war - what happens?

• Peltz wants - fix streaming, rely less on parks, get Iger successor, restore magic - everyone wants that, right?

• Proposed his son as backup board member

• Doug: 75% chance Nelson wins after Iger realizes it isn’t worth it, 20% chance Disney fights hard to end, 5% son is on the board

• Obviously ends up as a Netflix series with Al Pacino as Nelson Peltz

• Proxy statement chronology is… comical

Thanks for the call Doug from Jersey, if that is your real name Doug Chia, President of Soundboard Governance and Fellow at the Rutgers Center for Corporate Law and Governance.

First off, I think Peltz Jr is a better bet than Peltz Sr actually - Nelson’s board track record is actually spotty at best.  In the last five years, Nelson has managed to achieve a staggering market returns relative to peer companies, a whopping average worker productivity, a mind numbing average carbon footprint, and a super average CEO pay.  So, average across the board.

Matthew’s not much better, but at least he’s YOUNGER and the boards he’s been on in the last five years include a chocolate candy maker and Wendy’s.  He’s Vice Chair at Wendy’s where, granted Daddy is the Chair, but he brought the average age down.

But the Peltz’s and Trian has a point about Disney’s board at least.  

• The strongest individual performer was Derica Rice - and the best he mustered across the last 5 years and all his boards was “neutral” performance on every metric - TSR, ROA, worker productivity, carbon, and executive gender diverse hiring

• Chapek was not good, but if we’re honest, more than 50% of the board was weak during their tenures at:

• Worker productivity ($m revenue per worker)

• CEO pay ratio (increases every year)

• Those things together say one thing: the board was happy to pay Bob Iger for being Bob Iger, not increasing worker output or increasing ROA, much less TSR which was basically league average

• Probably because the board is chummy - 73% of the board is connected inside of 3 degrees to one another

But will investors buy Peltz’s argument?

• Disney disclosed in the proxy that Peltz asked to join the board more than 20 times since July of 2022. Peltz talked to the following board members:

• Chapek x6 starting July 2022

• Chang x1 starting July 2022

• Catz x3 starting July 2022

• Arnold x?, starting Jan 2023

• Notice he asked the most influential person on the board at the time, Susan Arnold, ONLY AT THE END

• Mostly he was rebuffed by Chapek, who was not great, and Safra Catz, who I can’t figure out - she’s not a member of the nominating committee, but Isaac Perlmutter reached out on behalf of Peltz multiple times, suggesting they know each other from somewhere.

•  Perlmutter once said of replacing Terrance Howard with Don Cheadle in a Marvel movie that no one would notice because “black people look the same.”

• CARRY ON!

End of the day, I think this is Bob Iger’s white knight moment - he pulls this out, fights back activists AND Ron Desantis, and isn’t he shortlisted for President of the United States in 2028?  Or at least governor of California in 2026?  This is basically a wash for investors - Peltz brings potential mediocrity versus Iger’s charming averageness, I think they bet on the horse that Iger rode in on.