Money Players

The Agent Riddler strikes again

In the last couple weeks basketball agent David "The Riddler" Falk has floated a couple rumors to demonstrate just how dirty the agent business is. He first told CNBC's Darren Rovell that an unnamed agent paid an unnamed college player $500,000. I questioned the whole point of putting unsubstantiated rumors out there. But wait, there's more: Falk's next riddle, as told to Darren Rovell:

“A guy who has been in the sports business for 40 years, and was basically cryogenically frozen, resurfaced last year,” Falk said. “And we both competed for the same player this year. The player eventually went with me, but three days after this player told this agent he selected me, this agent told him, ‘You’ve made a terrible mistake. David is a really bad person. I’m here for you if you change your mind.’"

"The joke is that this was a person I once worked for and later he worked for me," Falk continued. "Then I find out from this player that this agent told him that he did Michael Jordan’s first Nike deal. That’s ridiculous. That’s like Pluto saying he invented the Polio vaccine that everyone knows was invented by Jonas Salk. So I told this player, ‘All you have to do is call Michael and he’ll tell you David did the deal.'"

Extra demerits for Falk referring to himself in the first person and also suggesting that Pluto, the already-down-on-its-luck planet, is spreading scurrilous rumors about Jonas Salk.

Whom is David Falk referring to? Most assume Falk is talking about his former partner Donald Dell. So I emailed a sports lawyer friend for confirmation. This person, who worked at ProServ, answers Falk's riddle with a riddle:

"I was there, but this is a question of ego and point of view.  Of course, at the time, Donald was trying to promote Falk as the go to guy for [Michael] Jordan and Falk took the reins and ran with them, but Donald handed him the reins. So, who did the deal? You tell me!"

And continued:

"Falk HATES Dell which is most unfortunate. Falk acts as if he is immune from criticism. He is so arrogant it is difficult to believe he can recruit anyone. And his hatred of Donald colors his views and his comments."

Note to David Falk: If you truly want to improve the sports agent industry, donating $5 million to Syracuse University to found the David B. Falk Center for Sport Management is a good start, but I also suggest you stop planting rumors in the media. If you've got the goods on fellow agents, then go to the proper authorities.

--Marc Isenberg

More OJ...responding to a True Hoop comment

TrueHoop's Henry Abbott (my go-to guy for NBA info) thinks in my previous post that I "let BDA more or less entirely off the hook." That was certainly not my intention. In fact, I wrote: "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." Our judicial process is supposed to provide individuals with the presumption of innocence until proven guilty. No question, Duffy and Andrews have serious allegations before them:

• Was there a real or implied relationship between BDA and Guillory?
• Was there a verbal (of course, this is hard to prove) or actual signed (highly doubtful, but not impossible) agreement between BDA and OJ?
• Are there any California agent laws that may have been broken? (See below for further analysis by agent regulation expert Joshua Golka)

My defense of BDA is based on two factors:

1) I am friends with Duffy and Andrews, something I disclosed the very first time I wrote on this matter.  I am still quite capable of criticizing friends. I believe they are both honorable agents, but of course I don't know with absolute certainty.

2) Since this story first aired on ESPN's Outside the Lines, the rush to judgment has been swift and fierce. ESPN's Kelly Naqi did a good job telling the story through Johnson's eyes. I didn't come away from Naqi's investigative report thinking this would be an open and shut case against BDA.

This whole situation has generated great discussion -- and I anticipate there will ultimately be significant fallout. I also hope this will bring about positive regulatory (doubtful) and structural change (more optimistic, especially if there is compromise between the NCAA and the NBA that would provide certain elite players with viable, constructive options).

Of course, I think the best outcome that could -- and hopefully should -- come from all this is that elite athletes (and their families) become more savvy, sophisticated and skeptical about ALL people involved in their lives and that they demand complete disclosure.

I am in San Fransisco attending the Sports Lawyers Association Conference. Joshua Golka, an expert on state agent regulation, is also here. I asked him to comment on possible legal implications regarding BDA and its principals:

If BDA, its agents or employees are involved: There are certainly possible violations of California's athlete agent act, the Miller-Ayala Athlete Agent Act. When I last checked, Duffy was registered in CA as an agent, but I'm not sure about BDA as an entity or Andrews. Failure to register would be a violation. The major violation would be a violation of the prohibition against the direct or indirect provision of anything of value. There may also be violations of notice requirements. In addition to the potential for criminal (misdemeanor) penalties, a court could suspend or revoke the privilege of someone convicted to conduct the business of an agent. The athlete, school, league, conference, association, etc. may bring a civil suit for damages. There could also be punitive damages, court costs and attorney fees. Finally, if Andrews or Duffy is an attorney licensed in CA, they may also be subject to discipline by the state bar.

Read Golka's "scary" explanation of California's Miller-Ayala Agent Act.

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