Money Players

The wild and crazy world of basketball

Several interesting takes on the allegedly sleazy business of basketball.

The first one comes from Denise Bowman, mother of Jerryd Bayless, in an OpEd by Paola Boivin.

Bowman on the mixed up, crazy world:
"Jerryd's dad has a Ph.D.; I have a master's. But neither of us was ever taught anything about navigating this craziness."

Sometimes intelligence can work against smart people. The agent business certainly has thrived on athletes not knowing all that much. Hopefully Ms. Bowman will read Money Players!! (Another shameless plug: A nice review of book by Michael McCann, a noted sports law scholar.)

ESPN's Dick Vitale on the barriers to NBA entry:
"An absolute disgrace. An embarrassment to the student-athlete. It's a joke that they're being denied an opportunity to make a living. Look at the names in this draft. They have a similar ring."

A very forward-thinking comment from college basketball's biggest cheerleader. But keep in mind that the NBA is not forcing them to go to college; only that they are 19-years and one year removed from high school. The schools willingly accept these titular student athletes.

Apparently much ado about nothing

Don Seeholzer from Pioneer Press writes on OJ May and potential character issues.

ESPN's Jay Bilas on allegations against OJ Mayo impacting his draft status:
"He is the most NBA-ready of the guards in the draft, and I think is a really good prospect," Bilas said. "The idea that somehow he's tainted. ... First of all, if it's true, he's certainly not alone. He's just one of the guys that it's surfaced on. And second, it's hardly anything that the NBA would concern itself with."

Wolves vice president of basketball operations Kevin McHale on whether he was concerned about Mayo's character and the allegations that he violated NCAA rules:
"No, not at all. Tell you what, if you said that every person who ever took any money in college would not be drafted, it'd be slim pickings."

Wow. McHale's diss of college hoops makes Shaq rap about Kobe sound tame. Interesting on a couple levels. One, McHale believes most drafted players have (shocking) violated NCAA rules and, two, NBA personnel does not care. Let the debate begin.

More O.J., agents, runners and baseball draft

Jason Whitlock, the love-him-or-hate sportswriter, offers some interesting points about how the media and the public view college basketball and baseball players.and their interactions with agents. Writes Whitlock:

When the NCAA enacted its new, get-tough Academic Progress Report standards, a little-known fact that the media ignored is that college baseball programs traditionally performed far below basketball programs. Let me translate that for you: Baseball players were less likely to graduate from college than basketball players. The APR forced baseball coaches to bring their kids back to campus for summer school rather than allowing them to audition in front of scouts and agents in the Cape Cod League. Yeah, the "cesspool" of street agents, runners, handlers, scouts and agents we love to rail against in basketball co-mingle in baseball at high school All-American games without raising a word of dissent.

Conquest Chronicles, a USC fan blog, weaves some of my earlier comments on agents and the baseball draft to make his case that college athletics could be improved if we "Make it above board!". Writes Conquest Chronicles:

I am not naive enough to think that this sort of thinking work have stopped the alleged benefits that an O.J. Mayo might have received but instead of being a watch dog why not consider some sort of partnership with the pro leagues and agents with stiff penalties for those that break the rules.

The product would be so much better if the "minimum" requirements helped nurture the players into more responsible solid citizens that can also play at that level. I also agree that rookies should play one year in the "D" league before getting to the big dance. Surely some legitimate compromise can be made..

Money Players reader and frequent commenter Garrett Sanders emails some interesting points:

Guillory allegedly was given $250k to recruit OJ by BDA, but "only"30k ended up in his pocket. Clearly, if OJ took money from Guillory, he was wrong for this...but the larger point is that there is economic system that compensates people who have deep relationships with top players. For college coaches, the market determines what college coaches can are paid. For runners, agents can have them on the payroll (even if the practice is generally frowned upon). And then for the players, the ones who create economic value for both sports agents and athletic departments, are conveniently cut out of the deal. I am not sure I want college athletes to be paid, the  schools and the NCAA are the ones who have turned this into a big money game. So if they take the one and done players, they're telling the public it's about the money, not the education. And if they don't pay them, someone else will step in. Everyone can do their typical hand wringing, but should anyone expect a different outcome.

SportsAgentBlog.com interviews B.J. Armstrong

Darren Heitner, a UF law student and founder of SportsAgentBlog.com, scores a great interview with former NBA player and current agent B.J. Armstrong. I've known B.J. since he first came to the Chicago Buils in 1989 -- and I've got to know him a little better (he's not easy person to figure out) in the last year, as we usually run into each other on our frequent LA-Chicago trips. BJ is one of the smartest people I've met in all my basketball travels. He's very lowkey. His success, as he states in Darren's interview, is basically just dumb luck. DON'T BELIEVE THE (un) HYPE! B.J. has that rare combination of street smarts and book smarts. I quote Charles Barkley ("That's turrible.")...B.J. quotes Plato.

Read Darren's entire interview, but you know I would be all over any references to World Wide Wes, O.J. and David Falk.

On William Wesley
I have known Wesley for over 20 years. I knew him back when I was playing in the late 80s. I have a great relationship with Wes and I have no problems with him whatsoever. He was a part of our family when I was playing in Chicago, when I was traded…I have always known him. He has been nothing but a friend to me since I entered the NBA. He’s been with us forever. It’s just Wes…he’s there. I still see him; he is everywhere. You see him at sporting events, venues, games.

On O.J.. Mayo
I have not been in contact with O.J. I am a person who deals with the facts. I don’t know what has happened. I have only heard about the situation in the same way as the general public. I only deal with what I know. There were a lot of things that were said, and from what I understand from just talking with the kids, O.J. is a terrific kid and I wish him all the best. I hope it gets resolved for everyone involved. I hope that we move on and focus on the positives instead of the negatives.

On David Falk's allegations
I guess that is possible from his perspective. More importantly, he would have to answer it in more detail from his experiences. It is interesting that I have gone through the process of representing clients as an ex-athlete. I am certainly not naïve to think that the possibility of corruption isn’t there. I think David would really have to clarify his statement, though, because certainly you cannot say that it’s the only realm of possibility. It’s not the only way that things are done in this business.

OJ Mayo Breaking News

O.J. Mayo and BDA sever relationship

Reported by CNBC's Darren Rovell:

"Due to the overwhelming intensity of recent allegations regarding the recruitment of O.J. Mayo, we feel that our representation of him is a distraction for he and his family at this time,” Mayo’s BDA agent Calvin Andrews said in a statement.

Probably the best thing for both sides. BDA needs to focus its energy on its existing clients and also deal with possible investigations that may stem from this mess, including the NCAA, NBPA, California state regulators and CA bar association. And O.J. Mayo needs to get this whole episode behind him and focus on his NBA career.

Rovell also has news that Gary Hall, NBPA's chief counsel, has recused himself from any involvement in NBPA investigations related to BDA. Hall had represented BDA in past matters.

David Stern has breaking news, 30 years in the making
NBA Commish David Stern on the OJ Mayo investigation:

"I don’t know what regulations you are referring to. Those are NCAA regulations and if there's anybody watching that thinks this is a new subject, I have a bridge over in Brooklyn that I'd like to sell them because this has been going on for the last 30 or 40 years."

I think David Stern is on to something: Sell the Brooklyn Bridge. Then use the proceeds to fund the NBA/NCAA partnership to root out sleazy influences.

Stephen A. wants to know, "So what exactly is the big deal, folks?
ESPN's Stephen A. Smith writes:

Years ago, I was talking shop with an East Coast runner. "We're not going anywhere," the guy told me. "Know why? Because there will never be an end to athletes who have friends who want to profit off their talents. And there will never be an end to athletes who will let us in because they know everyone around them is getting paid."

NCAA Enforcement and the blame game

Several articles have been written on the realities of NCAA enforcement. Many have pointed out that the NCAA is mostly powerless when it comes to punishing former student athletes. There are thirty-six states which have passed some form of Uniform Athlete Agents Act (UAAA), which raises the level of an NCAA transgression to a criminal matter. It also provides civil remedies to schools that have been damaged by athletes and agents who violate NCAA rules.

Rules are great...especially when they can be followed and enforced
The NCAA has some wonderful, lofty ideals about integrity and fair play. But just in case its members can't figure out right from wrong, it has a phonebook-sized rules manual. And that doesn't stop coaches and others from exploiting loopholes. The NCAA does not have subpoena powers, so it typically has a tough time getting people outside the NCAA (former NCAA athletes, agents, runners, etc.) to cooperate. Meanwhile, an athletic department's best defense when it comes to avoiding the short-arm of NCAA enforcement is plausible deniability. The school explains that the reason it didn't know that some renegade athlete cheated was because that same renegade athlete lied on the affidavit saying the didn't cheat. It is a shop-worn defense, yet works quite effectively.

We didn't start the fire, but Jerry Tarkanian knows who's going to get burned
NCAA enforcement is a system predicated on the wonderful intentions that schools will be diligent when it comes to monitoring athletes, coaches, boosters, etc., that it will self-report violations and, above all, maintain "institutional control" over the athletic department. When the NCAA is hammered by the media for rules that seemingly make no sense, the NCAA does have a fairly decent defense: We're only enforcing the rules agreed on by the membership. That is a fair argument, but the NCAA has long been accused of selective enforcement. USC is on the hot seat for the yet-to-be-resolved Reggie Bush case and now the O.J. Mayo situation. The media has already judged USC guilty, but what will ultimately happen? Jerry Tarkanian made a side career handicapping NCAA penalties for big-time schools accused of violations. When a school like Kentucky was accused violating NCAA rules, he was nonplussed. Said Tark: "The NCAA is so mad at Kentucky, it's going to give Cleveland State two more years' probation." Tark also substituted UCLA and Cal-State Northridge.

The New NCAA
The NCAA is different today. It is more "student-athlete friendly," as NCAA president Myles Brand likes to say. And there are no sacred cows. If a NCAA member gets caught cheating, it will be punished...at least according to Dr. Brand.

From an Associated Press report:

"Saying the NCAA has 'new information,' president Myles Brand promised to investigate former Southern California basketball star O.J. Mayo, who allegedly received thousands of dollars in gifts from money given to an event promoter by a sports agency.

"Brand said he won't be afraid to sanction USC or any other high-profile school caught in violation of NCAA rules."

The O.J. Mayo Case is not just any case
The NCAA's standard policy is not to comment on possible or pending investigations. Doesn't telling the public that his organization has "new information" sound prejudicial? Rarely would "new information" exonerate anyone so this cannot be good news for USC, Mayo and others. Also, saying "he wouldn't be afraid to punish USC or any other high-profile school caught in violation of NCAA rules" is inappropriate. FYI, Myles Brand does not mete out NCAA punishment. The NCAA Committee on Infractions has the honor.

No more NCAA rules, please
Jim Haney, the executive director of the National Association of Basketball Coaches, provides the best answer yet: "From my perspective, there is no silver bullet to all this. It’s all about ethics and character. You can’t legislate that." Thank you.

--Marc Isenberg

Higher power than I coming to Duffy's defense

At the General Counsels Forum at the Sports Lawyers Association annual conference (which I attended) Joel Litvin, NBA's President, League and Basketball Operations, spoke favorably about Bill Duffy in light of the current allegations that Duffy and his firm provided illegal benefits to O.J. Mayo.

While not commenting on the O.J. Mayo situation, Litvin said:

"I do know Bill Duffy has been an honest and effective deal maker. In our experience, Bill is as far from a sleazy agent as they come."

O.J. Mayo updates

My interview with Sporting News basketball writer Mike DeCourcy [Sporting News]

DeCourcy points out that my book Money Players had not been selling well on amazon.com and that it will never "be up there with Harry Potter, because its target market is slim. But for an aspiring professional athlete, it could be a secular Bible." Update: My book is moving up the Amazon's best seller list.

O.J. comments on Louis Johnson's possible intentions [LA Times]

Highlights:

• He calls the allegations made by Louis Johnson "a publicity stunt."
• "Mayo suggested Johnson was motivated by revenge. Mayo said he told Guillory to sever their relationship with Johnson because Johnson's conviction for attempting to sell cocaine 'could be a distraction knowing how the NBA investigates' prospective players."
• "'I pray and hope that Rodney hasn't accepted anything from any agents,' said Mayo, adding that he was unaware of a fake charity from which Johnson said Guillory withdrew funds. 'He definitely didn't persuade me toward BDA.'"

USA Today discusses pro and cons of one and done rule [USA Today]

Excellent analysis, titled, "Merits of one-and-done rule in NBA face fresh scrutiny." Title is a misnomer because there is no "one and done rule in the NBA." The NBA only requires US-born players to be 19-years old and one year removed from high school. It is the NCAA and its members that have allowed elite players to spend their "gap year" playing on the college basketball farm.

Cedric Dempsey, former NCAA's president once complained to NBA officials: "We have a number of athletes who come to school and have no intention of getting a college education...I don't think that's a healthy environment at all."

What can be done to protect the college game? [ESPN's Jay Bilas]

Bilas discusses what he thinks can be done to improve the game -- and the business -- of basketball. He has some excellent ideas. I do, however, take issue with Jay's presumption of guilt, when he writes, "I am not at all surprised that O.J. Mayo was compromised by agents as a high school kid."

Four Questions About Recruiting and O.J. Mayo [TrueHoop]

Henry Abbott gives his Passover-version of the situation. Great point: "At what point do we stop assuming that more time on college campuses means more good influences on elite athletes? Yes, education is great. But when a big part of that education is in in under-the-table dealing, at some point it's better for your character just to move on into the world of the honest paycheck."

--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.