22 April 2021
The 48-hour rise and fall of the European Super League is the perfect encapsulation of how anti-greed sentiment has changed the rules of capitalism.
Why it matters: The highly-complex structures of capitalism are built from the mostly base motivations of individuals chasing money. That's been condemned and celebrated in equal measure — but has also largely been accepted.
- Not everyone makes most decisions on the basis of financial considerations, and no one makes all their decisions on that basis. But, in aggregate, economies tend to behave as though people generally act that way.
- When entrepreneurs get the opportunity to become dynastically wealthy by taking their startups public, for instance, it is almost certain they'll end up doing exactly that.
The big picture: The structure of European soccer does not maximize profits. It creates a lot of l0w-interest matches that are hard to monetize (Osasuna vs. Eibar, for instance) and many fewer of the big-name match-ups like Manchester United vs. Barcelona that are avidly watched around the world.
- The Super League was an attempt to create many more of the real money-spinners, with the profits, naturally, mostly accruing to the owners of the super-elite clubs.
- That violated the sense of fair play that underpins most sport, as I explained on Tuesday. Even if the Super League was Pareto-optimal, thanks to its "solidarity" payments to lower-ranked clubs, it wasn't fair. And that brazen unfairness led to its almost-immediate death.
What's new: A small group of 12 ultra-elite soccer clubs had access to the finest strategy, polling and public relations advice that money can buy. The deal they unveiled on Sunday night was years in the making. But they and their advisers missed something big — that society as a whole is now willing to forego wealth if it means more equality.
- Brexit made almost everybody in Britain worse off, for instance — but it also hit the rich London cosmopolitans and bankers the hardest.
- The Fed is openly embracing the prospect of higher inflation — something that erodes wealth and hits rich savers, while inflating away the debts of the poor.
The bottom line: If Peter Thiel is right that "monopoly is the condition of every successful business" — and a lot of Americans would agree with him on that — then every successful business should start getting worried.
- When the source of a company's profits is manifestly unfair, those profits are more likely than at any time in decades to be facing existential threats.
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.