Saturday, September 3, 2022

☕ Game day

College football hits the big-time...
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Morning Brew

The Ascent

Good morning. We usually save conversation starters for the bottom of the Saturday newsletter, but since it's a long weekend and you might want to start an argument among a large group of people, here's one prompt from Reddit: You get $1,000 per person you annoy. What is the fastest way you can become a billionaire?

Here are a few ideas:

  • Remove the "unsubscribe" button from every marketing email.
  • Take out a billboard on the 405 with a list of major TV/movie characters who die at the end.
  • Buy a Super Bowl ad and repeat the word "moist."

Final note: There won't be a newsletter Monday because we, too, have lives. See ya Tuesday.

—Neal Freyman, Matty Merritt, Jamie Wilde, Max Knoblauch

MARKETS

Nasdaq

11,630.86

S&P

3,924.26

Dow

31,318.44

10-Year

3.200%

Bitcoin

$19,892.02

Lululemon

$314.17

*Stock data as of market close, cryptocurrency data as of 11:00pm ET. Here's what these numbers mean.

  • Markets: Stocks suffered their third weekly loss in a row because, despite August's "Goldilocks" jobs report, investors still believe the Fed will crank interest rates much higher at its next meeting. Bucking the gloom on Wall Street, Lululemon rose after its Thursday earnings report showed that high-income shoppers were still shelling out to make their butts look good.
  • More on the jobs report: The economy added 315,000 jobs last month, about in line with expectations and a dip from July. That drop is good news for the Fed, which needs to see the labor market chill out before it's able to wind down its interest rate hikes. The economy has now added jobs for 20 straight months.

TOGETHER WITH THE ASCENT

All this cash back is making us crazy!!!

The Ascent

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Get ready to hear the craziest thing: This card has a 0% intro APR until nearly 2024 AND a $0 annual fee.

If the sound of all these amazing perks is driving you crazy, don't fret—you can apply for this card right here.

        

SPORTS

Now in year No. 2, NIL continues to disrupt college football

Tennessee college football game Icon Sportswire/Getty Images

The college football season returns in full-swing today—which many of you are well aware of, since you're reading this at a tailgate with your phone in one hand and a beer in the other.

As you enjoy your cold beverage, consider that this is the second season in which name, image, and likeness (NIL) rules are in effect for college football, transforming the labor economics of this "amateur" sport in name only.

Quick recap: Last summer, the NCAA allowed college athletes to profit off of their celebrity for the first time. Player advocates believed this decision was long overdue, given athletes' key role in a booming industry.

  • According to an ESPN analysis a few years back, a college football coach was the highest paid public employee in 28 states. (In 12 others, a college basketball coach was.)
  • The Big Ten conference just inked a TV deal that's worth more than $7 billion.

So now that we've entered the second college football season with NIL…what have we learned?

  1. College football dominates other college sports. Football players will land nearly half of the estimated $1.14 billion in NIL money this upcoming year, according to NIL platform Opendorse.
  2. Some players have become millionaires. 12 college football players are valued at $1+ million entering this season, according to NIL platform On3. Alabama QB Bryce Young inked more than $1 million in NIL deals before he played a single game.
  3. "Collectives" are becoming a force. Boosters at many powerhouse schools have formed controversial collectives that aim to funnel money into athletes' pockets. At Texas Tech, the Matador Club collective is paying every football player and women's basketball player $25,000 a year in exchange for event appearances and community service.
  4. It's causing major recruiting drama. In the spring, Alabama head coach Nick Saban got into a brief tussle with Texas A&M's Jimbo Fisher by saying that A&M "bought every player on their team" with NIL deals.

Looking ahead…college football is about to get even more big-time. Yesterday, the College Football Playoff's board of managers voted to expand the playoff from four teams to 12. The change could come as early as 2024.—NF

        

WORLD

Tour de headlines

Serena Williams Elsa/Getty Images

Serena Williams says goodbye to tennis. The superstar closed out one of the most impressive careers of a professional athlete ever after being defeated in a marathon match by Ajla Tomljanović at the US Open last night. Williams, who earlier signaled she'd retire from the sport following the tournament, has said she's going to focus on her startup investments post-tennis—so this isn't the last we'll see of her in the Brew.

G-7 plans price cap on Russian oil. The group of wealthy countries is moving ahead with a unique solution to dent Russian oil revenue and stabilize energy markets: It's going to ban the insurance and financing of Russian oil shipments unless they're priced at a certain level or below (TBD: what that level is). Western countries believe this can work given their stranglehold over the maritime insurance market—a London-based association insures more than 90% of the world's ships, per the WSJ.

Meanwhile, Russia delays reopening a vital pipeline. Russia's energy giant, Gazprom, said the critical Nord Stream 1 pipeline to Europe wouldn't reopen as planned, raising fresh concerns in Europe over scarce energy supplies. Russia had pledged to restart gas flows starting early Saturday after three days of maintenance, but yesterday Gazprom claimed it found an oil leak that would require the pipeline to be shut down indefinitely. EU leaders are skeptical of these maintenance problems, and accuse Russia of withholding gas as payback for Western sanctions.

TECH

'Art is dead, dude,' says dude who won art competition by using AI

The AI-generated picture with the first place ribbon Jason Allen

"Théâtre D'opéra Spatial," pictured above, won the top prize for digital art at the Colorado State Fair's fine arts competition last week. Game designer Jason Allen created the piece in large part by using an artificially intelligent image generator—and some human artists are big mad about it.

How it was made: Allen created 900 image variations on the theme of "space opera theater" by feeding a text prompt into AI image generator Midjourney. He then edited his favorite creations in Adobe Photoshop (like editing in a head Midjourney forgot), and sharpened the quality using another machine-learning tool before printing them out on canvas.

One online skeptic said that Allen's win is like "entering a marathon and driving a Lamborghini to the finish line." But Allen argues that AI "is a tool, just like the paintbrush is a tool." Fair spokesperson Olga Robak likened AI to photography, which "was not considered an art form for a long time; people said it was just pushing a button."

Another critique of AI-generated art is that it constitutes plagiarism. Machine-learning tools, including Midjourney and DALL-E 2, rearrange elements scraped from millions of images across the web—meaning each image they generate is an algorithmic soup of countless human artists' work.

For their part, the competition's judges and even its third-place winner said they don't have a problem with Allen's piece.—JW

        

EDUCATION

10 pieces of school tech, ranked

Mechanical pencisl, TI-89, and original iMac Photo Illustration: Dianna "Mick" McDougall, Sources: Apple, Amazon

Considering so many of our Back to School Week stories were on the heavier side (the pandemic setting learning back decades, spanking coming back, etc.), we wanted to wrap up the series with something everyone can laugh about: all the tech—some useful, most ridiculous—that we encountered at school.

Let's start with the biggest flop in classroom technology…

10. iClicker

Coming in dead last is the expensive hunk of plastic that every 2010s-era college freshman had to purchase to help track attendance and let students interact in a lecture without any hand-raising. The iClicker was invented at the University of Illinois in 2000 before spreading to the rest of the country like an invasive bug after Macmillan bought it five years later. The device cost anywhere from $40–$60, and while there were probably other uses for this gadget, it was mainly a tool for Intro to Geology professors to confirm you attended their 400-person lecture.

9. Hoodies with earbuds in them

Finally, a way to listen to Seether during AP US History. Nothing looked more natural or felt more comfortable than having your hoodie strings shoved into your ears. These sweatshirts were usually sold at Kohl's, and always seemed to be grandma's favorite gift.

See the rest of the list here.

GRAB BAG

Key performance indicators

Map of homes in the US saying "for sale" Francis Scialabba

Stat: We never thought this day would come, but in August the average US home sold below its asking price for the first time since March 2021, according to Redfin. The housing market has finally been softening as spiking mortgage rates spook would-be homebuyers.

Quote: "Where does one even buy a floppy disk these days?"

Japan's Digital Minister Taro Kono "declared war" on floppy disks, which, along with other outdated storage solutions like CDs and minidiscs, are still required for around 1,900 different government procedures. For all of the country's advances in cutting-edge tech, Japan's government has remarkably antiquated IT systems—in 2018, its cybersecurity chief acknowledged that he'd never used a computer. After he's done vanquishing floppy disks, Kono said he's coming for the fax machine.

Read: Kids yell "poop" at Alexa, and these musicians profit. (BuzzFeed News)

TOGETHER WITH CISCO

Cisco

Down, set, secure! When the NFL needed cybersecurity support for Super Bowl LVI, they turned to Cisco. Cisco helped the league design, implement, and operate end-to-end network security on game day and beyond. Learn more about the NFL partnership—and how you, too, can get pro-level security— right here.

        

CARTOON

Saturday sketch

Scene of a tailgate before a college football game Max Knoblauch

WHAT ELSE IS BREWING

  • NASA is sounding confident as it prepares to launch its massive moon rocket today, its second attempt after scrubbing the first one on Monday. Today's launch in Florida could draw up to 400,000 spectators.
  • A judge unsealed a detailed list of items the FBI took during its search of former President Trump's Mar-a-Lago residence last month.
  • Most movie tickets across the US are $3 today to celebrate "National Cinema Day."
  • We jinxed it: Tropical Storm Danielle has turned into the first hurricane in the Atlantic Ocean this season. This August was the first in 25 years that a named hurricane didn't form in the Atlantic.

FROM OUR PARTNERS

Mind your business: Morning Brew's Business Casual podcast, that is. Join journalist Nora Ali as she chats with creators, thinkers, and innovators about today's biggest and most significant business stories, what they mean, and why you should care. Head here to listen to Business Casual, sponsored by Real Vision.*

*These sponsored posts support Morning Brew.

BREW'S BETS

Labor Day weekend conversation starters:

Forget thought leadership: This is how to win on LinkedIn.

GAMES

The puzzle section

Brew crossword: Sharpen your No. 2 pencils and head back to school with today's crossword. Play it here.

Open House

Welcome to Open House, the only newsletter section that smells like Cottage Breeze. We'll give you a few facts about a listing, and you try to guess the price.

Former Estate of Yankee Candle founderSurette Media Group

Today's compound is a 60-acre section of late Yankee Candle founder Michael Kittredge II's estate in Leverett, Massachusetts. Just like lighting a large jar of Autumn Nature Walk next to a three-wick Vanilla Cupcake, this property has too much going on. Amenities include:

  • 16 beds, 13 baths, 12 half-baths
  • Nine-hole golf course (who doesn't love the smell of fresh cut grass?)
  • Panopticon-style office

How much for this home that's fun but doesn't really make much…scents?

Labor Day sale: everything 50% off

Labor Day sale: everything % off

Working hard or hardly working? Makes no difference when you're celebrating Labor Day weekend with some well-deserved relaxation. Take it easy and shop our sale NOW for discounts starting at 50% off!

Check out more from the Brew:

President Biden is canceling $10,000 of student debt, and people have a lot of opinions. We asked New Yorkers what they thought about it. Watch here.

Start Q4 on a high note with the eight-week Business Essentials Accelerator, which is designed to level up your career while you maintain your 9-to-5. Apply today with code BTS150 to get $150 off!

ANSWER

$23 million

         

Written by Neal Freyman, Matty Merritt, Jamie Wilde, and Max Knoblauch

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