- After a Washinton Post report showed that Equinox and SoulCycle owner Stephen Ross was hosting a Trump fundraiser, many big names decided to boycott the exercise chains.
- Chrissy Teigen, Jonathan Van Ness, and others all said they would be boycotting to the gym.
- Equinox and SoulCycle responded to the boycotts and said they had nothing to do with the fundraising event.
- Ross also responded, saying that he is an active participant in the democratic process, and is a champion for racial equality and inclusion.
Stephen Ross Set to Host Trump Fundraiser
Celebrities like Chrissy Teigen are calling for a boycott of Equinox and SoulCycle after it was revealed that the owner would be hosting a fundraising event for President Donald Trump.
On Tuesday, the Washington Post reported that Stephen Ross would be hosting a fundraising event in the Hamptons for Trump on August 9. Ross is a chairman and the majority owner of Related Companies, which runs Equinox and SoulCycle, and is the owner of the Miami Dolphins.
Tickets for the event can cost up to $250,000, with those paying the highest pricetag getting lunch, as well as a photo and roundtable discussion with the president.
Celebrities Call for Boycott
On Wednesday, both Equinox and SoulCycle were trending topics on Twitter, with many calling for boycotts of the locations. Some were specifically frustrated as Equinox has prided itself on being LGBTQ friendly, and has had a presence at several pride events throughout the country.
Many celebrities joined the discussion of boycotting, including actor and comedian Billy Eichner.
“Considering @Equinox’s clientele and how they’ve pandered to us, this one feels particularly hypocritical and shameful,” he wrote.
Queer Eye’s beauty guru Jonathan Van Ness also canceled his membership.
Miami Dolphins player Kenny Stills also chimed in about his team’s owner. He specifically called out a non-profit called Rise, which Ross is a co-chair of. The mission statement claims that the organization “educates and empowers the sports community to eliminate racial discrimination, champion social justice and improve race relations.” Stills found this to be hypocritical based on Ross’ support for Trump.
Model and regular critic of Trump Chrissy Teigen also spoke up about the news.
“Hello, I don’t normally make posts like this but a lot of my very cool, socially aware, progressive, awesome, amazing friends are members of Equinox or Soul Cycle,” she said on her Instagram story. “And I just want to let you know that their owner is hosting a giant Trump fundraiser and so fuck them. Cancel your memberships today.
“You can come to my house and work out,” Teigen offered. “But yeah, just think about it. If you’re fine with that cool, go right ahead. But if you’re not, and I know a lot of you are not fine with that, cancel. Thank you!.”
It appears these stars were not alone in reaching out to the company. Teigen tweeted a screenshot of what looks like a cancelation confirmation from Equinox. That e-mail said that the company was “experiencing extremely high volumes of emails.”
However, Teigen did get some backlash for encouraging the boycott. On Instagram, she shared a post of a user who said, “Are we SERIOUSLY not using businesses now that don’t have the same political views as us????”
“Yeah we fucking are,” Teigen commented. “These ‘different views’ you speak of are fundamental differences in compassion, empathy, humanity.”
There were, however, others who disagreed with the boycott. Fox News contributor Rachel Campos-Duffy said that Democrats were “further dividing & bullying the nation.”
Equinox, SoulCycle and Ross Respond
Equinox eventually released a statement about the matter and claimed that they “have nothing to do with the event and do not support it.”
SoulCycle released a similar statement as well. Some online took issue with their statement referring to Ross as a “passive investor.” They felt this downplayed his role, as he is the chairman of their parent company.
Ross ended up releasing a statement of his own via Miami Herald reporter Adam Beasley.
“I always have been an active participant in the democratic process,” Ross said.
“I have known Donald Trump for 40 years, and while we agree on some issues, we strongly disagree on many others and I have never been bashful about expressing my opinions,” he later added.
Ross finished his statement by saying, “I have been, and will continue to be, an outspoken champion of racial equality, inclusion, diversity, public education and environmental stability, and I have and will continue to support leaders on both sides of the aisle to address these challenges.”
See what others are saying: (Los Angeles Times) (Business Insider) (Reuters)
NFL Reaches Agreement to End Race-Norming, New Testing Formula Remains Unclear
The practice, which was adopted by the league in the ’90s, assumes that Black players operate with a lower cognitive function than players of other races.
NFL Ends Race-Norming
The U.S. District Court of Philadelphia uploaded a confidential proposed settlement between the NFL and former players on Wednesday that confirms the league’s plans to abolish race norming.
The NFL previously halted the use of race-norming in June as part of a$1 billion settlement with retirees Kevin Henry and Najeh Davenport, but details of the deal weren’t supposed to be released until it underwent review from a federal judge.
In fact, it currently seems as if someone in the court accidentally uploaded the document, as it was deleted hours later.
Among the details reaped from the settlement, it was revealed that the league plans to modify cognitive tests over the next year as part of a short-term change regarding how it verifies dementia-related brain injury claims. Previously, it used race-norming — the practice of assuming Black players have a lower cognitive function than players of other races — to test whether retirees seeking financial compensation had sustained brain injuries from the sport.
Black retirees who were denied access to compensation originally will also have their tests automatically re-evaluated over the course of the next year, if the settlement pushes through.
The NFL has additionally agreed to develop a long-term replacement system with the help of experts and players’ lawyers.
Still, the exact formula behind these new testing metrics, which will be designed as race-neutral per the agreement, is unknown. For example, retirees don’t know how the new changes will affect their scores or if they might potentially need to take additional tests before becoming eligible for compensation.
The Issue With Race-Norming
Race-norming was first adopted by the league back in the ’90s, and in theory, it was meant to help offer better treatment to Black retirees who had developed dementia from brain injuries related to football.
Essentially, the thought process was to take socioeconomic factors into account since Black people come from disadvantaged communities at higher rates; however, that quickly became a major issue since Black players were held to a higher standard of proof than players of other races.
For example, since the tests assumed Black people have less cognitive skill, Black retirees seeking claims needed to score lower to be granted compensation. That then led to many having their claims denied because they tested too high — even if they would have tested within the range to receive compensation had they been white.
See what others are saying: (Associated Press) (The Washington Post) (ABC News)
Facebook Plans Name Change as Part of Rebrand
News of the alleged rebrand came the same day Facebook was fined nearly $70 million for breaching U.K. orders related to the company’s 2020 acquisition of Giphy, as well as the same day it reached a $14 million discrimination settlement with the U.S. Justice Department.
Facebook Allegedly Plans To Debut New Name
Facebook, Inc. is planning to announce a new company name next week, according to a Tuesday report from The Verge.
The rebrand would reportedly align with CEO Mark Zuckerberg’s vision to shape the company into a full-fledged “metaverse” — AKA a virtual reality space where users can interact with one another in real-time.
The new name is currently unknown, but it would likely not affect the social media platform Facebook. Instead, the change would target its parent company, Facebook, Inc. — similar to how Alphabet became the parent company of Google following a 2015 restructure.
On Monday, Facebook said it is currently planning to hire 10,000 people in the European Union to help make its metaverse goal a reality.
Still, plans for the metaverse have not gone uncriticized, especially given the recent weeks of increased scrutiny regarding Facebook’s dominance over people’s daily lives. “Metaverse” was first coined in 1992 by American author Neal Stephenson in his novel “Snow Crash,” which depicts a corporate-owned virtual world.
Twitter CEO Jack Dorsey even cited one user who referenced the novel, agreeing that Stephenson was right in his prediction of “a dystopian corporate dictatorship.”
Facebook To Pay Fine and Settlement
Also on Tuesday, regulators in the United Kingdom fined Facebook nearly $70 million for breaching orders related to its 2020 acquisition of Giphy.
While that’s only a fraction of the $400 million it paid to purchase Giphy, UK regulators warned that they could eventually order Facebook to sell off Giphy if they find proof the acquisition has damaged competition.
In the U.S., the Justice Department said the same day that Facebook has agreed to pay up to $14.25 million to settle discrimination allegations brought by the agency under the Trump administration.
In December, the department accused the company of favoring foreign workers with temporary work visas over what it described as thousands of qualified U.S. workers.
“Facebook is not above the law and must comply with our nation’s federal civil rights laws, which prohibit discriminatory recruitment and hiring practices,” Kristen Clarke, an assistant attorney general at the department, said.
Notably, this settlement is the largest ever collected by the department’s Civil Rights Division.
See what others are saying: (The Verge) (Engadget) (The New York Times)
SEC Releases Long-Awaited Report on January Memestock Frenzy, Pokes Hole in “Short Squeeze” Narrative
Among other findings, the SEC said hedge funds weren’t broadly damaged by January’s unprecedented trading event.
SEC Publishes Findings
The Securities and Exchange Commission released a long-awaited, 44-page report on Monday detailing its findings regarding this year’s “Memestock Frenzy,” which involved companies such as GameStop and AMC.
During the frenzy in late January, the share prices of those companies soared exponentially. According to one of the key narratives of the situation, smaller investors piled onto GameStop as a way to directly attack hedge funds that were actively betting against GameStop’s success and future. As CNBC reported at the time, those “hedge funds and other players had to rush in to cover their bets against the stock.”
What followed were reports that hedge funds had lost billions of dollars all at once. In fact, one notable hedge fund, Melvin Capital, received what many described as a nearly $3 billion bailout. Meanwhile, in June, it was reported that the London-based White Square Capital had shut down its main fund due to the losses it suffered in January.
However, now, the SEC has said there is no real evidence to support some of the key pillars of this narrative, including that hedge funds were substantially hurt in the long run.
“Staff believes that hedge funds broadly were not significantly affected by investments in GME and other meme stocks,” the agency said in its report. “Staff did not observe that any advisers to private funds and registered funds experienced liquidity issues or difficulties with counterparties.”
On the whole, hedge funds even saw a 1.2% increase in profits in January, according to data from the HFRI Fund Weighted Composite index.
The agency also noted that GameStop purchases to cover bets were just “a small fraction of overall buy volume,” adding that “GME share prices continued to be high after the direct effects of covering short positions would have waned.”
“The underlying motivation of such buy volume cannot be determined,” the agency concluded. “Perhaps it was motivated by the desire to maintain a short squeeze. Whether driven by [that] desire… or by belief in the fundamentals of GameStop, it was the positive sentiment, not the buying-to-cover, that sustained the weeks-long price appreciation of GameStop stock.”
SEC Not Currently Issuing Any Recommendation
The agency did not offer any policy recommendations with this report, though it did stress that a number of small-time investors who either initially bet against GameStop’s success or tried to ride the wave of gains saw significant losses.
Given that the number of investors trading GameStop rapidly jumped from 10,000 at the beginning of January to 900,000 by the end of the month, it’s not surprising that the FTC confirmed heavy losses for many.
With that in mind, the SEC aligned its next focus on commission-free trading apps and the way in which they promote potentially excessive trading. Notably, that includes apps such as Robinhood and Webull, both of which faced controversy during the frenzy for severely restricting users’ ability to trade so-called memestocks.
“Consideration should be given to whether game-like features and celebratory animations that are likely intended to create positive feedback from trading lead investors to trade more than they would otherwise,” the SEC said in its report.
SEC Chair Gary Gensler said Tuesday that by April, the agency could propose rules limiting how those apps make money from each trade, which is known as “payment for order flow.”