Money Players

Hold the Mayo judgment

Our sports-obsessed nation is all over the O.J. Mayo story. ESPN got the ball rolling with its explosive investigative report by Kelly Naqi; the LA Times quickly followed with the eerily similar story of Rodney Guillory's relationships with Tito Maddox and Jeff Trapagnier. Even NCAA president Myles Brand can't resist letting us know that the NCAA has "new information."

Many are calling for the firing of USC's coach, athletic director, compliance staff, and school president for lack of institutional control. Most extreme, ESPN's Pat Forde called for USC to get the death penalty.

There's also the cumulative effect the yet-to-be-resolved Reggie Bush case taking place at the same school.

Look, Guillory, Mayo, BDA and USC may be guilty as sin, but they all deserve an opportunity to state their case to the NCAA and whatever other authorities may have an interest in this case.

For anyone who wants a break from the 24/7 cycle of deciding the appropriate penalty, here's a lifeline thrown by Michael Wilbon followed by questions I have about the case and then a link to an interview radio I did on the subject.

Michael Wilbon on meeting O.J. Mayo at the Laker-Jazz playoff game:

"He was the nicest, sweetest kid you could hope to meet. Said hello and then hugged me, even though he'd seen me call him a 'punk' on television. He was polite, engaging, answered every question with 'Yes, sir' or 'No, sir.' He said: 'I would just love for you to spend some time with me, just talking. . . . Could I have your card and just be able to call or talk to you? I've got the pre-draft camp [in Chicago] coming up, a whole new world.' I realized instantly I was wrong for attacking Mayo the way I had. While Mayo isn't an innocent, he's absolutely the product of a subculture in which the ability to play basketball at an elite level is valued more than being a good father, more than formal education, more than almost anything that appears to be within his grasp. Mayo, like so many who've come before him, simply is doing the only thing he knows to negotiate the road before him."

Questions I have before I am ready to decide in my own court of opinion...
1) Why did Johnson go to media? I assume there was some kind of falling out involving Johnson and Guillory. Was there an attempt to reconcile privately? Did Johnson ask for or demand money before unloading on ESPN  (similar to Lloyd Lake in the Reggie Bush case)? I think Louis Johnson's motives are absolutely fair game.
2) Louis Johnson GUESSED that OJ got $30,000 from Guillory. He produced some receipts, but several were expenses related to Johnson and Guillory courting OJ, which is not an NCAA violation.
3) Show me the money trail between BDA and OJ. Remember, it is not remotely illegal for a sports agency to employ a runner. The $250,000 figure Johnson threw out there sounds like a lot of money, but it's really not in the grand scheme of the business of professional basketball. I would have a problem if Guillory did not disclose his relationship with BDA to OJ, but that's a private matter and definitely not an NCAA issue.
4) Regarding the cell phone and other receipts--that might be damaging evidence, but there are several instances where the NCAA has restored eligibility after an athlete serves a suspension and repays the benefit or makes a charitable donation (as OJ was required to do when he received free NBA tickets from Carmelo Anthony).
5) Is it possible that Bill Duffy and Calvin Andrews were duped by Guillory? Duffy is a smart guy. Until I see how this shakes out, I will give the benefit to Bill and Calvin that they would not so blatantly jeopardize their sports empire. It's not like OJ is BDA's breakthrough client. They represent some of the NBA's biggest stars: Yao Ming, Steve Nash, Melo, Greg Oden, etc.

Lastly I was a guest yesterday on the Petros and Money Show discussing the situation.

ESPN investigates OJ Mayo and Rodney Guillory

Last week, I was critical of people who came forward with secondhand, flimsy information alleging agent impropriety. Well, Louis Johnson, a former business associate of Rodney Guillory, blew the whistle on alleged improper relationships involving O.J. Mayo, Rodney Guillory (an LA-based promoter with a questionable past) and Bill Duffy & Associates, a sports agency. Johnson, who does have some character issues, spoke at length with ESPN’s Kelly Naqi.

A disclaimer: I am friends with Bill Duffy and Calvin Andrews. In fact, Bill gave me a nice endorsement quote for my book. I would be disappointed if it is proven that BDA was bankrolling Guillory, particularly without Mayo’s knowledge. I also know the whistleblower, Louis Johnson.

I’ve written a lot about the specter of agents providing direct and indirect benefits to high school and college players. While there are relevant issues related to NCAA rules and amateurism, I doubt I have anything new to add. Definitely read Yahoo!'s Dan Wetzel. And listen to Dan Patrick's interview with Sonny Vaccaro. My focus is on elite athletes negatively impacted by agents and their intermediaries who use money to buy them on the cheap.

I tell athletes, hypothetically, if the NCAA said tomorrow it was no longer a violation to take extra benefits from agents and runners, I would still argue strongly that they absolutely should not accept agents' money. The reasons have been discussed ad nauseam on this blog. Most important, when it comes time to select an agent, I want athletes choosing the best agents based on merit, not illicit relationships and benefits. 

A few interesting exchanges and tidbits from Kelly Naqi's investigation:

Mother's intuition
Kelly Naqi interviewed O.J.'s mother in February 2008
Naqi: Do you trust Rodney?
O.J.'s mother: No.
Naqi: Why?
O.J.'s mother: It's a mama feeling. I don't  know yet. If Rodney's intentions are good, fine. If it ever plays out that it's not, it's going to go be terrible.

Selling O.J. on the cheap
Lous Johnson on how much money BDA provided to Guillory
"I know there were roughly anywhere between $200 and $250,000 in cash and other benefits that came from the relationship with BDA.
On how much went directly to O.J.
"My best estimate would be maybe $30,000 max for him and the people that were associated him. Most of that stuff never really made it to O.J. OJ really saw a lot of the scraps. The fact of the matter is OJ has been pimped by Rodney."

Complicity
On whether O.J. was complicit in his dealings
Johnson: O.J. wasn't as complicit in some of the things that happened. And I think I've proven that because he wasn't the direct beneficiary of a lot of things that was happening.
Naqi: But he got something he wouldn't have access to he wouldn't to otherwise and he got what he wanted.
Johnson: Yeah, but at the same time, how can you, I or anyone else really sit here and blame him when his circumstances?...He played within the rules of the game. And this is the game: runners, agents, shoe companies, other elements. This is the game. He had no choice but to play it considering his circumstance, considering what was going on in his life, considering how he was living.

The most direct, damning evidence
In an ESPN Chat on Monday, Kelly Naqi wrote, "OJ told [ESPN's Andy] Katz last night that he did not 'receive any money from Calvin or Rodney or anything.' However, the cell phone number that Katz used to get that quote from Mayo was the same number that shows up on Mayo's September cell phone bill, which we obtained, which shows that that number was billed to Guillory's non-profit organization in California called the ICR Foundation. We also obtained proof that Guillory made the initial purchase of that particular cell phone of OJ's."

Best warning since, "Bin Laden Determined to Attack Inside the United States"
In an October 2006 article CBSSportsline's Greg Doyel forewarned: "Burned by Bush, Southern California should be of wary Mayo."

The fallout
While Johnson's claim that he is trying to save O.J. is dubious, I think basketball on many levels will benefit from these poorly-kept secrets being exposed. Kelly Nagy said in an ESPN chat earlier today, "The NCAA has already contacted me about my report. Based on that conversation, I suspect they'll be looking into this." Stay tuned.

--Marc Isenberg

Whistleblowing ain't easy

David Falk, famed agent of Michael Jordan and many other NBA stars, accused an unnamed agent of paying a top unnamed college player $500,000. Falk's rumors, which may be absolutely true, led to tremendous speculation about which player and powerbroker he was talking about.

After reading my original post on the subject, a former D1 basketball coach e-mailed what I think is an excellent parallel, "In coaching, assistant coaches often say 'They bought him!' when they lose a recruit to another institution. I always told assistant coaches who said that to me, 'Bring me proof and I will blind copy you with the letter I will send to the NCAA, the Director of Athletics, the Head Coach and the violating Assistant Coach.' I feel the same way about agents making these claims. While the claims may be true, it is simply too easy to drop these bombs and do so without accountability."

Being a whistleblower comes at great risk, so I understand someone's reluctance to come forward in these situations, particularly if they don't have ironclad evidence. And even if true, there's a long history of people who have tried to tell the truth, only to have their reputations and careers destroyed. Hopefully having the subject matter out there will be good for the game. We're all talking and reading about it, right?

True Hoop's Henry Abbott has done a phenomenal job covering this story. He also has written extensively about Worldwide Wes, a fascinating basketball figure. Naturally, many connected the dots, including Falk's close friendship with Wes, and concluded that Wes was basketball's equivalent of "Deep Throat."

In an interview with Abbott, Falk clarified his original comments. Definitely read the entire interview, but a few comments desconstructed below.

Falk: I'm not a guy to comment on the identity of a certain player. It was intended as a state-of-the-union comment about this industry.

Ok, we know most believe the agent business is dirty. How do we fix it? If athletes and agents are cheating, wouldn't the larger interests be well-served by exposing this?

Falk: It's not competition based on merit. It's competition based on improper inducements. I think it's an abomination as it is. There are a number of ways to fix it, if people really wanted to. My days as an activist are probably behind me.

Yes, there are a number of ways to fix it. Start by explaining to athletes and their families why it's in their self-interest not to take money from agents, even if the temptations are high. Falk makes a good case: "If you pay people $500,000 to get to represent them at the draft -- the minute you have to pay them is the minute you can no longer advise them as an impartial agent." That message needs to get out. Next, we need to root out agents who are cheating. Of course, that's not so easy. If one of the most powerful basketball agents of all time won't name names, it's doubtful others will step forward.

--Marc Isenberg
 

Oregon basketball team scores with academic success

When it comes to the Academic Progress Report, the NCAA's vital measurement tying scholarships to academic performance, the Oregon men's basketball team ranks in the top 10%. Coach Ernie Kent has been severely criticized, but he shines when it comes to the academic performance of his team.

Writes John Canzano, who typically has negative things to say about Kent:

It's not lost here that the announcement of Kent's success comes while Oregon is building a $20 million academic center for its athletes that will be off-limits to the rest of the student body. As if 325 computers and dozens of employees and a prominent campus building that will be surrounded by a moat-like body of water was what's missing, when all the rest of the coaches in Eugene need to do is save the money, and instead, study Kent.

The lesson, I hope, is that a head coach who cares about the academic success of his players is best investment an athletic department can make. Step one: Recruit guys who get it done on and off the court. I would like to think guys like Bryce Taylor, Malik Hairston and Maarty Leunen are the rule, not the exception in college basketball, but, in reality, they are pretty special. Three seniors, all graduating, and all going pro in their sport.

--Marc Isenberg

Josh Pastner has left the McKale Center

It was just announced that my friend Josh Pastner accepted a position to become an assistant coach at Memphis. Good hire for Memphis and great move by Josh. I hate to see Josh leave the Pac-10, but he's been at Arizona for 12, 13 years, first as a student-athlete and then as an assistant coach. I also think it will be good for him to learn under another great coach like Calipari, whom I become of a big fan of.

Not only can Cal coach, but he consistently puts his players' best interest above all else. (My standard disclaimer: I love when guys stay in school 2, 3 even 4 years, but it is unfair to criticize elite players and also unmotivated students when they go pro.)

Here's what Cal told Derrick Rose prior to making himself eligible for the NBA draft:
"If you want to do what's right for you and your family, you should consider leaving. If you want to do what's right for me and my family, you probably should stay."

And I put this in my Money Players book....
Memphis basketball coach John Calipari famously tore up Dejuan Wagner's scholarship immediately after his freshman year to "make sure he understood he wasn't coming back." Wagner was the sixth pick in the 2002 NBA Draft, but lasted only three years due to medical problems. Said Calipari: "Now you might say [Wagner's] out of the league, but he made $15 million."

Reebok's Chris Rivers on NCAA-NBA partnership

At the Final Four the NCAA and NBA announced an "historic partnership" to improve youth basketball. My friend Chris Rivers, Reebok's director of basketball sports marketing, writes a must-read column in Basketball Times. This month he offers his thoughts on the NCAA/NBA partnership to "raise awareness rather than offend."

From Chris Rivers, Reebok:

I applaud the fact that [the NCAA-NBA Partnership has] raised $5 million dollars to put together a task force of "later to be named" individuals to work in a "later to be named" location and specifically address "later to be named" issues.

Below are just some thoughts that make you go "hmm."

• When was the last time anyone saw David Stern or Myles Brand at a youth basketball game?
• If the NCAA's primary concern is education, how can teams fly three hours for an NCAA Tournament game – two days before it starts – and then tell parents that their son needs to attend summer school to make up for the time missed while traveling?
• If college coaches and universities can have million-dollar shoe contracts and multimillion-dollar all-school deals, why are the July shoe camps being "redflagged" as something that isn't good for the game?
• If the NCAA seems so concerned with a certain element that surrounds youth basketball, why have such a high percentage of college coaches evolved from this same system?
• Who was the last NCAA head coach who used his own personal credit card to make sure his program had hotel rooms during a recent road trip? What about airline tickets? Meals? Rental cars? Keep thinking.
• If youth basketball is in such need of a developmental overhaul to produce better fundamentally sound players, why do underclassmen annually dominate the NBA draft?
• I agree that our system should have more regulations and better training and coaching, like our national soccer system. I have studied some of their infrastructure, and they are very impressive at the youth level. But let's just hope that our international performance record is better than our soccer brethren, which last won the World Cup in 1950.

Excerpts published with permission from Basketball Times. Subscribe at www.basketballtimes.com.

BTW-- Chris has a significant role in the upcoming basketball documentary Gunnin' for that Number #1 Spot."

Nails getting hammered by lawsuits

Lenny Dykstra launched "The Players Club" magazine last month. Dykstra's publication debuted with a cannonball splash. A lengthy New Yorker feature, which anoints Dykstra "Baseball’s most improbable post-career success story." HBO's Real Sports also did a glowing feature. In the segment, Dykstra demonstrates a pretty good handle on the pro athletes' plight and their anatomy. Said Dykstra,  "People think that if they make $10 million. You pay your agent, you pay taxes, you buy the nice house, help the family out and now you have your dick in your hand." Kudos to Bryant Gumbell for expressing skepticism to segment host Bernard Goldberg, who then defended Lenny as the real deal. CNBC's Jim Cramer calls Dykstra "one of the great ones in this business."

The Players Club is not just a "lifestyle magazine," but also an investment vehicle for current and former professional athletes.

And back to reality: Reports of Dykstra's financial prowess may have been greatly exaggerated. Dykstra sued Doubledown Media for breaching its contract by "withholding the issue and interfering with the magazine's business relationships." Doubledown then countersued. Dykstra is also being sued by his former accountant.

Nails plans to fight: "I don't buckle. I go to war." Stay tuned.

--Marc Isenberg

Cheating accusations are not cheating...

and why college athlete cheaters won't prosper

Earlier I posted on CNBC's Darren Rovell interview with sports agent David Falk. Falk laments that the "sports agent business has become so corrupt." Falk made a vague accusation that an unnamed agent paid an unspecified player college player $500,000. Now that the rumor is out there it will undoubtedly pick up steam quickly, particularly since there are only a few likely candidates.

Cheating explains a lot, especially when some event doesn't quite make sense. Examples: A 170-pound shortstop hits 30 home runs; ergo he took steroids. A McDonald's All-American signs with Podunk State U; ergo he was paid. It's like the old joke explaining why Sam Bowie stayed at Kentucky five years. Answer: He didn't want to take a pay cut.  It gets a laugh, but was there ever any proof?

Falk's friend says this kid took money from an agent, but why put it out there as rumor rather than produce hard evidence? For sure we know it is an NCAA violation for a college athlete and his family to receive $500,000. There's also a 72% chance that this is a violation of a state's Uniform Athletes Agent Act (UAAA), since it is now against the law in 36 states. The next to last thing I want is for rumors to turn into witchhunts. The last thing I want, however, is for cheating agents to prosper.

I do not agree with every NCAA rule. I have spoken and written extensively about things the NCAA and its members can do to improve college athletics, BUT...I still tell any athlete or parent who listens that it is absolutely foolish to take money from an agent or their representatives.

My reasons:
1) Whatever benefit that is offered is not sufficient compensation to risk their college eligibility. That agent is knowingly exposing an athlete to a minefield of potential hazards (no eligibility = no opportunity to impress pro scouts, lawsuits, etc.)
2) I don't like blanket statements, but here's one: a cheating agent is a bad agent. He can't compete by selling vague concepts such as competency and ethics, so he diverts attention from the real issues and, instead, focuses on cold, hard cash.
3) Payments by agents are not gifts, but loans that must be repaid. $500k might sound like a lot, especially to an unpaid "amateur," but even at a 10% interest rate, this is a $50,000 annual benefit. Chump change to an athlete about to turn pro.
4) Taking money from an agent is a sure-fire way to either sign with a bad agent and/or become a victim of blackmail (see Marcus Camby, Reggie Bush). Cheaters cheat because they believe they won't get caught. However, as the media, rival fans and the Internet become more aggressive, the chances of getting caught, I believe, are increasing. You too can be an NCAA sleuth!!

--Marc Isenberg

UPDATE: David Falk explains his "$500,000 and three years too late" comment to Henry Abbott's True Hoop.

The bad business of basketball

Darren Rovell interviews sports agent David Falk, who offers some interesting comments about what he (and definitely others) think is wrong with basketball. While I don't like to deal in rumor and innuendo on this blog (not that there's anything wrong with that Buzz Bissinger), I think this is worthy of further discussion. A few snippets (definitely read the entire interview, which also talks about Falk's $5 million donation to Syracuse to start a sports management program):

Darren: How hard is it to be an agent these days?

Falk: It's easier these days because the role of agents is being diminished every year as the leagues continue to pass rules that dramatically restrict what agents can do. In the NBA, they have the rookie scale and the max deals, so they are capping salaries on the front and back end so at every turn you lose your ability to be an entrepreneurial dealmaker. I'm not angry about it. It is what it is. But it just goes to show you the nature of the leagues and their relative strength against their unions.

Darren: There's a reason that the business has a dirty reputation. What's your take on it?

Falk: Instead of evolving, the sports agent business has devolved. ...[W]e're dealing in a world where agents are splitting fees with AAU coaches all the time. And it's getting worse. I wanted to meet a college player who I really enjoyed watching this year. So I asked a friend of mine, who is a very powerful man in the game, to introduce me to him. And he said, "I'd like to help but I can't." And when I asked why. He said, "You are three years and $500,000 short."

Darren: How much are the players to blame in all of this?

Falk: They definitely play a part. I bumped into a player the other day and he said he was on his third agent in 10 years in the league. And this agent was calling him every day and I said to him, "Did you jump from high school into the league?" And he said, "Yeah." And I said, "You're 28 now. Why are you still acting like you're in high school? If you need someone to call you everyday you should have probably gone to college.
---------

If the basketball biz is so dirty, what can be done to improve?

Last month the NCAA and the NBA announced a partnership to address some of the corrupting influences associated with basketball. The NCAA and NBA have provided few details about exactly what they will do to improve the basketball culture. John Feinstein has his doubts [NBA, NCAA Plan to Make Plans].

My small -- but hopefully effective -- solution was to write Money Players, a book to help athletes (and their families) understand the business and ultimately make better financial decisions. Let me know what you think, either by posting a comment below or by e-mailing.

--Marc Isenberg

Blame agents and everyone else

Like most top college basketball freshman, Arizona's Jerryd Bayless has made himself eligible for the 2008 NBA Draft. He has also signed with a sports agent, which means he can't "test the waters" and return to college if he is dissatisfied with where he might go in the draft. Mock drafts currently have Bayless being selected anywhere from the 3rd to 5th pick.

Arizona basketball coach Lute Olson is apparently displeased that Bayless decided to leave, and is also upset that he was not consulted. Olson reportedly told ESPN's Andy Katz (ESPN Insider subscription required): "I don't think it was very intelligent on Jerryd's part, but his parents felt he should do it [and sign with an agent]."

Not intelligent? Wow. To me, it would be hard for anyone to find fault with Jerryd's decision. When these decisions are being contemplated I typically invoke legendary UNC coach Dean Smith, who generally advised players projected to be top 10 picks to come out early primarily because they could secure their financial future.

Olson is especially angry with basketball agent Jeff Schwartz, whom Bayless signed with. Said Olson,  "The agent never was in contact with us and never called anyone in the Arizona office to indicate that they would be signing Jerryd. We'll make sure that agent doesn't represent any of our players in the future as long as I'm here."

Perhaps Olson used his leave of absence to brush up on the Arizona's Uniform Athlete Agent Act (UAAA).

The University of Arizona athletic department's student-athlete handbook makes the law chillingly clear:

"You become immediately ineligible if you agree (orally or in writing) to have a person represent you in future negotiations involving your athletics abilities or worth. Be aware that Arizona State Law requires notification of your institution's athletic director within 72 hours if such an agreement is made with an agent. Civil or criminal action could result from non-compliance. You become ineligible at once if you or your family or friends accept anything (inducements) from an agent or their emissaries."

Olson may have wanted to be involved in the decision process, but Jerryd and his advisers didn't do so. That's their right. If Olson wanted to talk to Jerryd, then he should have reached out earlier. Complaining to Katz about what he thinks transpired is petty. And let's not forget that Olson, who recruited Bayless to play for him, presumably didn't consult with Bayless about his decision to not coach the team this past year.

--Marc Isenberg