Money Players

William Wesley: Man of Mystery

GQ runs a terrific article this month on William Wesley, the heretofore unknown basketball impresario, written by Alex French. (GQ also offers a photoshoot of Jessica Biel in the same issue which will ensure that a whole lotta men will know not only what Jessica looks like in a bathing suit, but also all about William Wesley.)

Wesley is a modern day Seinfeld, supposedly peddling nothing. Nothing?

According to Wesley's good friend LeBron James, Wesley has "never asked me for anything. He's always been trustworthy to me, and I respect him for that."

LeBron's sentiments are echoed by others.

Reebok executive Tom Shine: "Wes doesn't have a hidden agenda, unlike a lot of other people in the grass roots and the college-basketball business and the agent business and all of the other businesses that attach themselves like barnacles to these players."

2Live's Luther Campbell (in case you don't believe no shoe exec): "He doesn't come on as no salesman. You know, Wes never asks for nothing."

John Calipari: "Why would a pro player shun everybody else but bring this guy into the fold? Because he never asks for anything."

The author surmises all these "nothing for nothing" claims are dubious:

He never asks because the players already provide him with what he needs most: access. Wes's relationships with the NBA's elite players give him access to the owners and general managers of every team in the league. (Not to mention agents, media, and corporate execs.)...Nike also provides Wes with access to the nation's premier prep players at their summer basketball camps. And access to these kids means access to college coaches. William Wesley's world is integrated to the max. Working for nobody allows him to work for everybody.

Definitely worth reading the entire article. Also Henry Abbott from TrueHoop (who is mentioned in the article) has a great interview with GQ writer Alex French.

Sean Jones Speaks Yiddish and Gobbledygook

By Marc Isenberg

Last week, I posted on Sean Jones' arrest on bank fraud charges and a few of his past misdeeds. It's a sad, but not unfamiliar story.

A quick google search of "Sean Jones" and his investment firm "Amoroq" and you begin to see a disturbing pattern. Not only is Jones a bad speller with a penchant for silly metaphors, but he's also a slimy fraudster.

Back in his post-NFL heyday, Sean Jones was an agent, "representing" top NFL players such as Courtney Brown and Julius Peppers. He was also a financial adviser who founded Amaroq, which advised not only many professional athlete clients, but was also paid $60,000 per year by the NFLPA to provide advice about its pension plan.

Amaroq listed a “who’s who” of famous sports clients, including John Elway, Dan Marino, Jeff Hostettler, Corey Dillon, Ed McCaffrey, Harris Barton, Aaron Taylor, and Courtney Brown. In reality, these were clients of sports agent Marvin Demoff, who had some type of business relationship with Sean Jones.

Amaroq's website provides some interesting lessons about investing (along with nonsensical words, poor spelling, and bad grammar).

To wit: 

At AMAROQ we utilize computer algrorithms[SIC] to do the combinationatorial [SIC IF THAT'S IN FACT AN ACTUAL WORD] mathematics and to identify a limited number of candidate portfolios.

 And:

Scoring the game should be more than just counting the runs. We seek to go beyond the numbers of a manager or a portfolio of managers, and explain the "whys" of manager and portfolio performance. While a rising tide may lift all boats, it takes constant oversight in order to differentiate investment skill from market performance. [OR IF YOU INVESTED WITH JONES, YOUR BOAT SINKS]

Jones did provide some decent advice which clearly neither he nor Amaroq's clients ever followed:

Amaroq Asset Management is in regular contact with all managers charged with investing client assets, and when the situation warrants we require managers to report all account activity on a daily basis in order to ensure appropriate oversight and risk control. [OH REALLY?]

 And discussing its retirement consulting services:

We also assist our clients in determining the adequacy of communication materials, and developing customized presentations and materials for their plan participants. By allowing us to assist them, our clients have been able to successfully establish their programs while safely navigating the fiduciary waters that are so fought [THE WORD SHOULD BE FRAUGHT] with peril.

In a 2000 profile by Northeastern magazine (his alma mater), Jones said he managed a hedge fund. Apparently it wasn’t doing well. So bad, in fact, that he resorted to Yiddish to describe the fund’s poor performance. Said Jones, “It's putzing along. It's had its trials and tribulations”

Not only was Jones a former NFL player, but his firm once did business with the NFLPA. According to an undated ESPN.com article by Len Pasquarelli, “The problem for the NFLPA is that Jones' asset management company, Amaroq, is paid $60,000 annually by the union to help choose money managers with whom to invest funds. Documents that were filed by the NFLPA with the U.S. Department of Labor, and which were obtained by ESPN.com, confirm that amount.”

Len adds, "Jones has essentially been a poster boy for conflicts of interest since his retirement. He is noted as a 'prominent agent' in [a] magazine article, but rarely represents a player, instead turning over negotiations to Los Angeles-based agent Marvin Demoff, one of the pioneers of the business. And his cozy status with the NFLPA has raised eyebrows over the years."

Bottom line: I hope Jones' days working with NFL players, whether for a team or as an agent or financial advisor, are over.

Ich bin ein Anteater

By Marc Isenberg, UC Irvine (MBA, class of 2005)

UC Irvine athletics is on a hot streak. In May the men's volleyball team won the NCAA Championship. The baseball team advanced to the College World Series. After losing the first game, the Anteaters went on to win two thrilling extra-inning games before getting eliminated last night. Everybody is rooting these days for the Anteaters, even President Bush, who said "Go Anteaters. Fight Anteaters." Unfortunately, Bush's enthusiasm was about a 1 on the  "Brownie, you're doing a heckuva job" meter.

As the Los Angeles Times reported, Omaha really got behind the Anteaters:

Vendors all over Omaha have been cashing in on Anteater hype. Ashley Grover was at a merchandise stand near the stadium selling hats, shirts and other memorabilia Wednesday afternoon. One shirt had pictures of an anteater and a beaver. Written on it was "BEAVER or EATER, who's going down?"

"Cashing in on Anteater hype"? Really? I think the example illustrates (almost too graphically) that tshirts with double (actually triple) entendres sell, but nice work by the Times writers to sneak this by their editors.

The more people know about the Anteaters, the better our world will be. For your consideration. And this.

Go Zots!

Money Surfing

John Canzano questions the NCAAs decision to eject a reporter/blogger and then mocks them. [Oregonian]

The players at the College World Series are acting differently around ESPN's Erin Andrews. [Baseball America]

Coach John Wooden preached to never let making a living get in the way of making a life .. will Tiger Woods be able to achieve that balance now that he's a father? [Chicago Tribune]

Don't fight your teammates that are more skillful than you .. you might get yourself traded. [Chicago Tribune]

Could the NFL's new concussion guidelines actually hurt players more? [New York Times]

The NFL provides a "broadcast boot camp" to help players move from the field to the booth. [New York Times]

The Bush administration doesn't have a good Title IX record. [LA Times]

With the NBA Draft approaching, some are remembering the tragic story of Len Bias. [Awful Announcing]

USC receives a verbal commitment from a 14-year old basketball phenom. [Chicago Sun-Times] Which reminds us of this gem (Thank you Deadspin)...

The increasing importance of Mr. Irrelevant

This is Irrelevant Week.

It began in 1976 as an opportunity to "do something nice for someone for no reason." That someone is the last pick in the NFL draft.

When Paul Salata founded the Mr. Irrelevant 32 years ago the football player selected last was pretty much irrelevant. Not so today. 1999 Mr. Irrelevant winner Jim Finn is the starting fullback of the New York Giants. This year Mr. Irrevant is Ramzee Robinson, cornerback from Alabama, was selected by the Detroit Lions. Here's a look at the number of rounds through the years:

                           

Years	Rounds
1950-59	30
1960-66	20
1967-76	17
1977-92	12
1993	8
1994-present	7

Now that there are fewer rounds in the NFL draft, the Mr. Irrelevant Trophy is no longer something to mock.

T.J. Simers writes a nice (yes, glowingly nice) article on Paul Salata in today's LA Times.

Ramzee Robinson is being honored throughout the week, highlighted by a banquet on Wednesday where he will be presented with the Lowsman Trophy. Doubtful we'll ever see players striking the Lowsman pose, like we do the Heisman. The statue depicts a player dropping the ball.

Former Gamecocks sucker investors

Get ready for the next big SEC scandal. It involves South Carolina, but in this case it's the real SEC -- Securities & Exchange Commission -- that might have a keen interest in the questionable activities of current and former USC athletes and coaches.

Not again!!

Let's review:

In 1999 the real SEC (as in the Securities & Exchange Commission) shut down Cash 4 Titles, an auto title loan company. The SEC called Cash 4 Titles "one of the largest pyramid schemes in the nation’s history." More than 2,000 people invested $200 million with the company, including former former USC receiver Robert Brooks and former USC football coaches Brad Scott and Jim Carlen.

One of the ringleaders of the Cash 4 Titles scam was notorious sports agent and former USC assistant football coach Tank Black. In 2002 Black was convicted of stealing at least $12 million from several professional athlete clients.

Which brings us to the present. Apparently South Carolina is still fertile ground for money scams. According to a story in The State, ex-USC running back Rob DeBoer, founder of online music retailer BurnLounge, "now stands accused by the Federal Trade Commission of operating a pyramid scheme. DeBoer's partner is ex-USC quarterback and Gamecock football announcer Todd Ellis — helping turn Columbia into ground zero for BurnLounge."

According to The State, "Gamecocks receivers coach Steve Spurrier Jr. invested in BurnLounge a year ago after Oklahoma coach Stoops introduced him to the concept."

As a loyal USC assistant football coach Spurrier, Jr. isn't going to point fingers, right? After all, he's the ultimate coach's son. Actually Spurrier, Jr. in full-on-cover-his-ass mode, said:

"When Bob Stoops got me, he said, ‘I’ve spoken to a lawyer about this. I’ve spoken to my agent. I’ve spoken to some people to find out if this is a legitimate thing. And everything they told me, this is a legitimate (business). Put your name on it and go do it.’”

This appears to be a classic multi-level marketing scheme: a chance to easy make money, perceived credibility (even if none actually existed), and strong word of mouth.

UPDATE: According to Darren Rovell over at CNBC some pretty big sports figures are connected to BurnLounge, including "Shaquille O’Neal, who signed to represent the Web site in September. Danica Patrick, Dale Earnhardt Jr. and John Salley have been listed on the company’s materials."

Sean Jones: pro and con

By Marc Isenberg

Former NFL pro and current con artist Sean Jones irritates me. I wrote about Jones in my upcoming book, Money Players, talking about his shady work as a sports agent. Apparently his bad work wasn't yet finished.

Yesterday, Jones was indicted on bank fraud charges. It is alleged that he and four others "ran a scheme to pocket portions of more than $42 million in mortgage loan." Prosecutors contend that the men "defrauded three Houston banks by acquiring mortgage loans far in excess of the properties' value and then diverting the money for personal use."

Let's rewind: When Jones retired he became a sports agent. Chris Dishman, a former Jones’ teammate on the Oilers, became one of his clients. Dishman allowed Jones to manage his investments in addition to negotiating his playing contract. Dishman alleged that Jones engaged in unauthorized trading and in “churning” his account. The National Association of Securities Dealers awarded Dishman awarded $550,000 in damages. Dishman didn’t collect any money from the judgment. Said Dishman, "It got too expensive to keep trying to track [Jones] down. I didn’t have the money to keep fighting it. I didn’t win anything.” Of course, the Joneses, as namesakes go, have always been hard to keep up with.

In 2003 Jones was de-certified as an agent by the NFL Players Association related to his financial dealings with Dallas Cowboy Ebenezer Ekuban, a Jones client. Jones persuaded Ekuban to guarantee a $1-million real estate loan that ultimately defaulted; and to lend Jones $300,000, some of which was never repaid.

With his career options dwindling, Jones called the one (perhaps only) person willing to overlook all his flaws. So Al Davis hired Jones to work for the Raiders in 2004. On the team's website, Jones described himself this way: "I work in the Personnel department of the Raiders. Given my financial background, my experience as an agent, and having been in the broadcast booth, I bring a unique perspective to the team. I assess players to determine their weaknesses and also look at how they might be able to help us in the future." In what may be his best post-NFL career outcome, Jones was fired in 2007 without any criminal charges or allegations.

Money Surfing

• MLB Commissioner Bud Selig is considering a suspension for Jason Giambi if he doesn't cooperate with the Mitchell steroid investigation - and the union won't stand idly by to let it happen. [MLB.com]
• Scientists who once published a study that said it would be okay for players to return to games they suffered concussions in are now disputing their own claims. [New York Times]
• Is the sports business topping out? Since "no one's watching anything anymore", that could be possible. [USA TODAY]
• The NCAA decides to eject a journalist who posted his observations of a College World Series game in a live blog, citing broadcast concerns. [New York Times]
• The NFL and Reebok will allow Jack Del Rio and Mike Nolan to wear suits at home games. [San Francisco Chronicle]
• What culpability do NFL players have with for their own financial well-being and health care after their careers are over? [Chicago Tribune]
• A win for the MLS: Even though David Bekham's European team wants to keep him because he's playing well, he's still coming to the Galaxy. [Los Angeles Times]
• NBA Players Association has announced an initiative to feed one-million Kenyans. [News Digital Media]
• Athletes need to be careful with muscle creams like Ben Gay and Icy Hot when recovering from strenuous athletic activity. [Washington Post]

Athletes on Notice

By Preetom Bhattacharya

A trip out to Monument Park in Yankee Stadium reveals a collection of baseball legends - Babe Ruth, Micky Mantle, and Joe DiMaggio. They were treated like celebrities and royalty, getting anything they wanted, Marilyn Monroe included. Being treated like a celebrity these days, however, is very different than it was in the 20th Century.

Welcome to the new age of sports journalism: last week, the New York Post chronicled a late-night exploit of Yankee third-baseman Alex Rodriguez with a "mystery blond," complete with a picture of the two and their schedule for the night. The paper has gone so far as getting fan reaction of the "news" and witness accounts from people who have seen A-Rod with the woman in Seattle, Las Vegas, and Dallas. The Post isn't the only paper on the story, as the less-tabloidy New York Daily News also digs deep with their foray into this travesty of investigative journalism.

This kind of paparazzi treatment had been reserved for movie stars and British royalty/the Bekhams. In this digital age, websites like TMZ.com and various blogs like PerezHilton.com rely on camera phones and legions of rabid readers ready to get a picture at any time. Athletes have found embarrassing situations and their personal relationships exposed on the internet, but delving into a player's personal life to this degree is new for mainstream print media, away from the sensational, gossip-filled tabloids at the newsstand and next to the daily dish of news. Journalists are no longer protecting the athletes' exploits as they have in the past, when leagues worked with the media to upkeep the most pristine image of their players and their game. And fans are eager to become news makers rather than news consumers.

By paying for the exclusive rights to the photo, the New York Post has opened the same can of worms that the National Enquirer and Star have - creating a market for pictures of athletes in salacious situations. Why would a photographer be one of 30 others trying to get the best shot of Lindsay Lohan or Paris Hilton when they can be one of three trying to do the same with an athlete-celebrity like A-Rod or Peyton Manning? If they're paid well, they have no reason not to stalk athletes like they do Hollywood's finest. The tactics of blogs and websites that conventional media scoffed at just ten years ago are now being employed by those very detractors.

Does this mean a throng of photographers will be camping outside of LeBron James' house? Will they wait outside of a team's practice facility like they did for Michael Jordan? Jordan found a way around it - he sped his car up and exited the parking lot with such speed, no one could follow him. He even employed police escorts.

The day where all athletes need to consider such precautions seems to have arrived. Legitimate print media is only fulfilling the demand sports fans have to know the personal lives of the athletes that the fans invest so much of their time and money into. This kind of interest in the private lives of sports stars unfortunately isn't going to go away, meaning athletes won't be able to have many secrets.

As unfortunate as that may be, this is the new territory of professional athletics and sports stars must learn to protect their own persona.

The truth will set you (and your fat contract) free

By Marc Isenberg

Yankee Jason Giambi faces a 50-game suspension for telling the truth about steroids.

Last month Giambi told USA Today, "I was wrong for doing that stuff. What we should have done a long time ago was stand up — players, ownership, everybody — and said: 'We made a mistake.'"

Not a shocking revelation by Giambi, but it was nice to hear someone involved in the whole steroid controversy speak directly in the light of day, rather than hear from alleged uses in staged Congressional hearings or in leaked grand jury testimony. Most gave Giambi an attaboy for his admission, but not MLB. To them this was their Al Capone moment.

Selig has "ordered Giambi to meet with Sen. George Mitchell,, the chairman of baseball's steroid investigation, within two weeks and said he would defer imposing discipline until then."

MLB can't catch guys red handed so they take after the only "alleged" truthteller. Selig wants Giambi to literally take one for the team -- actually the owners. Giambi can talk to Senator George Mitchell in a confidential forum with full immunity. Anyone want to bet money that the testimony gets leaked?

What kind of messed up world do we live in when the truth has more consequences than outright lies and deception. In the bizarro world of Major League Baseball, the truth can lead to 50-game suspensions. (And in the military, the truth can kill. The military recently discharged 58 gay (not that it matters) Arabic language experts under "Don't ask, don't tell.")

David Zirin wrote on Giambi two weeks ago, but it's even more relevant today now that Selig has made his strong-arm tactics known. Some highlights:

[Giambi's] statement last week constitutes the most honest and interesting talk in two years--ever since the anabolic institution of Major League Baseball was born again as straight-edge.

Tim Keown, in a moment of sanity, wrote on ESPN.com, "If Major League Baseball attempts to get punitive with Jason Giambi for his tacit but not explicit admission that he used steroids, it will constitute a new level of hypocrisy. And if baseball's investigation gives the Yankees the shield they need to attempt to void Giambi's contract, it will constitute a new new level of hypocrisy... Baseball, the entity that closed its eyes and counted its money for years and years while extolling the virtues of the artificial long ball, is now threatening to come down hard on the one guy who might provide a sliver of salvation to the whole episode."

Often I am asked why athletes don't speak out more on issues of the day. Here is another example of how the athletic industrial complex hammers those who step out of the shadow of cliches, who actually have something to say.