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Congressman: Snowden Worked with Russians; Republican Calls for Christie to Step Down from RGA; NCAA's $800 Billion a Year Business

Aired January 22, 2014 - 10:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

CAROL COSTELLO, CNN ANCHOR: Well I think -- I think critics would say it was wrong of her to leave out the fact that her ex-husband helped pay for her college education.

(CROSSTALK)

JESS MCINTOSH, COMMUNICATIONS DIRECTOR, EMILY'S LIST: Oh and she --

(CROSSTALK)

COSTELLO: And also provided care for her.

MCINTOSH: Right, and they were married when she was in Texas Christian College. And it's not something that she has left out. It's something that they have decided to seize on because she had frankly the best week of her campaign last week. She surprised everybody by outraising her Republican opponent, Greg Abbott and she put forward an education platform that garnered amazing press in every corner of the state.

She is appealing to Texas voters, because she is talking about their daily lives. If Greg Abbott wants to make this campaign about whether she lived in a trailer with her young daughter for long enough to tell that story, I don't think that's going to be a real compelling message to Texas voters. I don't think they want to know when she got divorced or who paid for the loan on the law degree.

I just think they want to hear politicians talk about what they can do to approve their daily lives. That's what Wendy Davis is doing in life and she's going to be successful.

COSTELLO: Jess McIntosh from Emily's Lists thanks so much for joining me.

MCINTOSH: Thanks for having me.

COSTELLO: Still to come in the NEWSROOM, Seattle Seahawks cornerback, Richard Sherman, regrets his rant but pushes back against his critics. CNN's Rachel Nichols sat down for an exclusive interview with Sherman.

RACHEL NICHOLS, CNN CORRESPONDENT: Carol, Richard Sherman is not who a lot of people think he is. And he has a lot to say on this subject and many others coming up after this break. (COMMERCIAL BREAK)

COSTELLO: Good morning. I'm Carol Costello. Thank you so much for joining me.

NSA leaker, Edward Snowden is firing back at claims he may actually be a Russian spy. Listen to what House Intelligence Chairman, Mike Rogers, said earlier on "Meet the Press" about Snowden.

(BEGIN VIDEO CLIP)

REP. MIKE ROGERS (R), CHAIRMAN, HOUSE INTELLIGENCE COMMITTEE: I believe there is a reason he ended up in the hands, the loving arms of an FSB agent in Moscow. I don't think that's a coincidence number one. Number two and let me just talk about --

DAVID GREGORY, NBC NEWS HOST: Do you think the Russians helped Snowden?

ROGERS: I believe there are questions to be answered there. I don't think it was a gee whiz luck event that he ended up in Moscow under the handling of the FSB.

(END VIDEO CLIP)

COSTELLO: Snowden is fighting back against those allegations in an interview with "The New Yorker" calling them absurd and clearly false and saying Americans were too smart to believe it.

Phil Black is live in Volgograd, Russia, with more on this. Hi, Phil.

PHIL BLACK, CNN CORRESPONDENT: Hi, Carol. Yes. Edward Snowden he's commented on this before and denied any sort of relationship with Russian intelligence. But he's saying it very, very strongly this time.

Clearly, unambiguously he says he acted alone. He said if he was a Russian spy, why would he have gone to Hong Kong first, why would he have spent around six weeks waiting in Moscow airport to receive asylum and permission to actually enter the country. He says Russia was never intended to be his final destination.

He would have moved on would have gone on to Havana, Cuba, if he could have, if the United States hadn't canceled his passport he says. And indeed he says he still talks about the possibility of moving on towards Latin America if he felt the United States would not interfere with his travel but he says he doesn't feel that way -- Carol.

COSTELLO: Phil Black, reporting live from Russia this morning.

It is the post-game rant that stole the thunder from the NFC title match up and a still reverberating this morning. Quarterback, Richard Sherman, saved the day for his Seattle Seahawks but unleashed a storm of criticism on social media but verbally slamming San Francisco receiver Michael Crabtree. Now, Sherman's showing some regret but he's also defending himself. CNN's Rachel Nichols sat down for an exclusive interview with Sherman. She joins me now from Los Angeles to tell us more. Hi, Rachel.

NICHOLS: Hey Carol you know on the field, Richard Sherman is one of the most brash, most outspoken guys in the NFL. But he is also one of the smartest players in the NFL. He not only graduated from Stanford he started working on his masters while he was playing football there.

So when there was a huge backlash against him the other night, it's no surprise he had a smart take. I asked him about how race factored into all of this especially after he was hit with just an avalanche of racist tweets and e-mails-- calling him a monkey and much, much worse. Take a listen.

(BEGIN VIDEO CLIP)

RICHARD SHERMAN, SEATTLE SEAHAWKS: Yes you know it was really -- it was really mind-boggling and it was kind of -- it was kind of sad that the way the world reacted. I can't say the word. I don't want to generalize people like that because there are a lot of great people who didn't react that way. But for the people who did react that way and threw the racial slurs and things like that out there, it was really -- it was really sad, especially that close to Martin Luther King Day.

You're judging, you're not judging a guy, I'm not -- I'm not out there beating on people or committing crimes or getting arrested or doing anything. I'm playing a football game at high level. And I got excited.

But what I did was within the lines of the football field. What they did was an actual reality. They showed their true character. That was -- those were real comments, not in a moment not in a -- you know, they had time to think about it. They were sitting at a computer and they expressed themselves in a true way. And I thought society had moved past that.

NICHOLS: We have a black president. We like to think that as a country, things have changed. And of course, to some degree, they have. But what did you learn about the state of race in this country just from the few days after that game?

SHERMAN: Well I've learned we haven't come as far as I thought we had come. And if -- if that's all it took to bring that out of people, then it might have already been on the surface.

You know I didn't -- I didn't go out there and scream at anybody, anybody's family or attack anybody but Michael Crabtree, which was wrong -- which was wrong I understand that. But these people were acting like I attacked them in some way, like I went after them.

I did my job effectively. And afterwards, they interviewed me and I had an interview. Regardless of how that interview goes, it doesn't give you the right to say the things they were saying. And that's the part that's sad. NICHOLS: Do you have to be a little bit brash if you are a fifth- rounder, if you are a defensive pick, to be in the position of getting those endorsements to get the attention for your charity work?

SHERMAN: It's a tough, it -- I haven't seen it done any other way, truthfully. A lot of quiet -- there have been a lot of quiet players, a lot of quiet players who have given total right answers who have done everything and who have played at incredibly high level that you couldn't name, that you couldn't name, that you've never seen on TV, that are having a hard time getting into the hall of fame, because they weren't that brash, because they weren't that forward. And that doesn't say anything about their play.

They were still great players. They were probably as good as anybody in the hall of fame, but they didn't do enough for enough people to know who they were, which is sad. It's really sad that they weren't able to get those endorsements just because they were who they were.

And but that's just how the world is.

NICHOLS: And this is who you are.

SHERMAN: And this is who I am.

(END VIDEO CLIP)

NICHOLS: Well, Carol, it's probably no surprise that Sherman told me he modeled himself to some extent after Muhammad Ali, another smart guy who knew how to play to a crowd. And by the way it is working his agents says that advertiser and endorser interest has only increased since the other night and Sherman has got a little bit more interest going now in his charity as well.

He did some great work in his hometown, Compton in Los Angeles bringing school supplies to underprivileged children there.

COSTELLO: Well you've got to -- you've got to think when the Super Bowl rolls around, the camera will be on him a lot. It will be interesting to see how he reacts on camera.

NICHOLS: Yes and this is again this is a fifth round pick, a defensive player. I mean quarterbacks, you stick a ball in their hands and people want to hand them endorsement money. It's very rare for a guy on his side of the ball who was picked so late. So he really has been able to make a name for himself. And so far he's shown that he is able to handle the pressure.

We'll have to see how it goes this next week. You know there is nothing like the New York media.

COSTELLO: That's true, great interview. Thanks so much, Rachel.

NICHOLS: Thanks Carol.

COSTELLO: Of course, there is a lot more to Richard Sherman than what we saw on the field the other night. You can catch his full interview on this Friday's "UNGUARDED" with Rachel Nichols, 10:30 p.m. Eastern right here on CNN.

And -- and this, Richard Sherman, is expected to speak at a teen news conference this afternoon. CNN will have it for you live. That starts around 3:40 Eastern we think.

Still to come in the NEWSROOM a major Republican player says it's time for Chris Christie to step aside from a high-powered position and focus on New Jersey. We'll tell you who said that next.

(COMMERCIAL BREAK)

COSTELLO: In the wake of all these scandals coming out of New Jersey one high profile Republican is now calling for Governor Chris Christie to step aside from his new role as the Chairman of the Republican Governor's Association and focus on his own state.

CNN's national political reporter Peter Hamby is live to talk more about this. Tell us more, Peter.

PETER HAMBY, CNN NATIONAL POLITICAL REPORTER: Hi Carol that's right Ken Cuccinelli, the former attorney general of Virginia, who ran for governor in Virginia last year and lost very narrowly was on CNN's "CROSS FIRE" last night and became the first prominent Republican voice to call on Christie to step aside from the Republican Governor's Association, that big fund-raising committee that helps elect Republican governors around the country.

Listen to what he said last night on the show -- Carol.

(BEGIN VIDEO CLIP)

KEN CUCCINELLI, FORMER VIRGINIA ATTORNEY GENERAL: I think just from the perspective of setting aside this as an issue in other races, it makes sense for him to step aside in that role. He does not serve the goals of that organization by staying as chairman.

Every governor does better by setting everything else aside. If the goal is to be the best governor you can be, that's done better by setting everything else aside.

(END VIDEO CLIP)

HAMBY: When he said this last night, Carol, Twitter kind of exploded. Democrats started pushing this saying, ah-hah, Christie should step down.

But let me -- let me tell you the truth here. The reasons why this isn't a big deal actually outweigh the reasons why it is a big deal. Cuccinelli is no longer an elected official and has no political future in sight. Every Republican governor that's made a comment about Christie has expressed support for him.

I sent a round of text messages and e-mails to a variety of Republicans working for Republican governors around the country last night saying is this symptomatic of a larger feeling. Are we going to see a cascade of governors now come out and calling Chris Christie to resign? And I heard not a single peep. This is not a widespread sentiment.

And I should also note, Carol, that Ken Cuccinelli after he lost his governor's race last year in Virginia, him and his team were actually really angry at the RGA for not spending more money in that race to help push them over the edge and instead spending about $2 million in the New Jersey race for Christie which was really a cake walk. So there is a little bit of ax grinding going on here -- Carol.

COSTELLO: I was just going to say -- isn't the Governor's Association, its main task is to raise money for gubernatorial candidates across the country? One of its main goals?

HAMBY: Yes. That's exactly right.

COSTELLO: So as long as Chris Christie is able to raise money for Republican candidates, I think he's going to be OK?

HAMBY: Yes, I think that's right. Look -- a lot of people should understand the RGA is not involved in legislating running states. It is all about raising money and winning campaigns. And make no mistake, if you look at the class of Republican governors in this country, even with the scandal surrounding Chris Christie, he is by far, the most marquee fund-raiser in the Republican Party.

And as one chief of staff to a Republican governor told me, anyone who would refuse Chris Christie at a fund-raiser in their state is an idiot -- Carol.

COSTELLO: Put very bluntly -- as Chris Christie would like, actually.

HAMBY: Exactly.

COSTELLO: CNN's Peter Hamby, thanks so much.

Still to come in the NEWSROOM, turning the heat up on a big-time sports debate -- will college athletes be paid to play? It could happen. Christine Romans is here to tell us why. Hi Christine

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Carol, these are amateur athletes and nonprofit organizations that have turned into professional sports, right? Experts say this business model, not really sustainable for much longer. I'll have that after the break.

(COMMERCIAL BREAK)

COSTELLO: The NCAA is facing a momentum swing. The five most powerful conferences in the country could soon be able make their own rules. No specifics yet, but the concept of paying college athletes to play is one step closer to becoming reality.

Chief business correspondent, Christine Romans has been looking into this. Tell us more.

ROMANS: Carol -- Ticket sales, TV rights, merchandise, corporate sponsors -- college sports, as you well know, it is a big business. It has been growing for decades. But the largest revenue streams run through the NCAA. We will take a look at how much it is making and who is benefiting.

(BEGIN VIDEO CLIP)

ROMANS: School letters, hundreds of millions of dollars and a major influence on a massively popular sports industry. The business of the NCAA is thriving.

But is it sustainable? The nonprofit organization says it puts its money where its mission is, equipping student athletes to succeed on the playing field, in the classroom and throughout life. The NCAA rakes in around $800 million each year. Its endowment is more than half a billion. So where does all the money come from?

ANDREW ZIMBALIST, SMITH COLLEGE: The institution itself that's based in Indianapolis makes money primarily through television rights to the March Madness Basketball Tournament. They get somewhere in the neighborhood of $770 million a year. That constitutes around 90 percent of all of the revenue that goes to the NCAA.

ROMANS: CBS and Turner Sports, part of the Time Warner family along with CNN, own those broadcast rights. Ticket sales also make money for the NCAA and corporate sponsors pay millions to get their names in the game -- AT&T, Capital One and Coca-Cola are NCAA corporate champions. Other big names are official corporate partners.

But most of that cash is headed back to campus. About $100 million supports programs for players. More than $500 million is distributed directly to schools or to the conferences they belong to. The schools can spend the money however they choose. But much of it pays the salaries and benefits of coaches and staff.

The rest is split between expenses, facility costs of team travel. And then, there is the scholarships -- more than 150,000 student athletes get athletic scholarships every year, from colleges and universities. A value, the NCAA puts at $2.4 billion. It is a perk used to justify the money it makes off of players. Some critics say the NCAA is at a crossroads.

ZIMBALIST: The organization is in a difficult position, because they are supervisors of a system that is a hybrid system that is presumably halfway between commercialism and amateurism.

ROMANS: Many now say it is time to pay athletes.

ZIMBALIST: They are talking about $2,500 up to $5,000 a year which would be optional. You would give it to obviously only your star players. But they would then be able to go to college and not have to dip into their own pockets or not have to look for boosters to help them pay for many of their living expenses.

ROMANS: There is a huge class action lawsuit challenging the NCAA rules that prohibit athletes from being paid. A few thousand dollars a year is obviously far from the millions professional athletes make but it would mark one of the most significant changes in the NCAA's 100-year history.

(END VIDEO CLIP)

ROMANS: Carol, the NCAA says its members don't support the professionalization, as they call it, of college sports. The NCAA board of directors chairman, Nathan Hatch, says he is opposed to the idea of paying players. He says it gives the wrong incentives for student athletes and it could have a very damaging effect on other sports, particularly women sports, with much of the revenue going to football and basketball -- Carol

COSTELLO: I was just looking up what some college coaches make. I think Nick Saban makes what -- $7 million a year. It just doesn't seem right somehow that you don't want to give a couple of thousand dollars to the players.

ROMANS: It is such a big business. I think hybridization as our expert in that piece said is a really good way to look at it. It's somewhere between amateur and professional, that's why this discussion gets so much traction, Carol because so many people think that the NCAA is at a crossroads.

For the record, the NCAA says that its members, a nonprofit organization representing its members, its members don't want to do that.

COSTELLO: Christine Romans, many thanks. That was interesting.

ROMANS: You're welcome.

COSTELLO: Coming up tomorrow, one of the most powerful figures in sports right now is actually an assistant high school basketball coach in Nevada who also works at a car dealership. Former basketball star, Ed O'Bannon is suing the NCAA and could change the future of college athletics as we know it.

ED O'BANNON, HIGH SCHOOL BASKETBALL COACH: I am not going to ruin college sports. College sports is changing -- the rules need to change.

COSTELLO: We take an inside look at the man behind a landmark case at the 10:00 Eastern hour of NEWSROOM tomorrow.

(COMMERCIAL BREAK)

COSTELLO: Seems like we have quite a few stories this week about bad sportsmanship. Well, you can now add speed skating to the list. A Dutch skater was so unhappy about losing a relay race, he let his fingers do the talking.

Here is CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): How not to lose a race. Meet the finger skater.

UNIDENTIFIED MALE: It's disgraceful. MOOS: He's a Dutch skater whose team lost a championship relay race to the Russians.

UNIDENTIFIED FEMALE: It's pretty sad.

MOOS: That's the Russian in blue, making the we're number one gesture, while Dutch skater, Sjinkie Knegt, makes a double-barreled single finger salute.

UNIDENTIFIED FEMALE: He's ripping him off. That's something I would do.

MOOS (on camera): You would?

UNIDENTIFIED FEMALE: No.

MOOS (voice-over): And as if that weren't enough, first the upraised middle fingers, then a pretend kick.

UNIDENTIFIED MALE: Very unsportsmanlike. You know, I'm a sportsman. I wouldn't do that. If I lost, I would shake the man's hand, say congratulations, I hope you do very well, you know?

MOOS (on camera): You would be shaking his finger.

(voice-over): And here we thought the Dutch tradition was for a little boy to stick his finger in a dike to stop the leak. Not raise two fingers at a competitor. Is he sorry?

SJINKIE KNEGT, DUTCH SPEED SKATER (through translator): Of course I regret it. It happens out of emotion and not actually conviction. It just sucks.

MOOS: Skating officials disqualified Knegt for his behavior, but that won't prevent him from facing his Russian rival next at the Olympics in Sochi. Netherlands broadcasting played old video of the skater, saying he has a history of losing his temper.

Knegt had at least one New York defender.

UNIDENTIFIED MALE: It's the spirit of competition. I can understand the guy throwing the finger.

MOOS: This guy has thrown fingers of his own.

UNIDENTIFIED MALE: A cab was trying to cut me off.

MOOS: Some are making comparisons. Sports grid joked, Sjinkie Knegt is Dutch for Richard Sherman.

RICHARD SHERMAN, SEATTLE SEAHAWKS: Don't you ever talk about me.

MOOS: Sore winners, sore losers.

(on camera): When is the last time you flipped someone off. For what? UNIDENTIFIED MALE: It might be you, because you keep me here in the snow.

MOOS (voice-over): Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COSTELLO: Yes, I understand that. Thank you so much for joining me today. I'm Carol Costello. Legal view with Ashleigh Banfield starts now.