Money Players

Lester Munson thinks Cuban is guilty as charged

In response to our defense of Mark Cuban, ESPN legal expert Lester Munson sent this email, posted with his permission:

I like the blog and its agenda of topics. But I am not sure I agree with you on Cuban. I am not so sure about the presumption of innocence. I understand that it applies to someone accused of a crime and on trial for that crime. The jurors are obligated to pledge to a presumption of innocence. It is a difficult mental gymnastic, but I acknowledge that jurors are obligated to agree to it. I, as a journalist, am not so obligated. I operate under the First Amendment and its privilege of fair comment. I know that 95 percent of SEC civil complaints result in admissions of insider trading. I also know what I saw in the complaint against Cuban. Neither the statistics nor the asserted facts indicate innocence. His sale of his stock has all of the circumstantial and evidentiary badges of insider trading. If there is any inference to be drawn, it is an inference of incomprehensible stupidity on the part of Cuban. He is not a stranger to the markets. At the moment that the CEO told Cuban of the PIPE, Cuban knew that he was barred from selling his 6 percent share of the company. And then he sold it anyway. What was he thinking? Why has he not settled? He could have settled privately with the SEC at any time during the last four years. If he is trying to buy the Cubs, why would he permit this $750,000 transaction (supposedly small change to him, but I wonder) to become public? I look at the situation, and I do not see innocence. I see guilt and stupidity.

We absolutely agree that journalists and bloggers have every right to express opinions freely, even if we do not agree with what they may write. Regarding the case against Cuban...yes, it's human nature to jump to conclusions and certainly ESPN uses its analysts to, well, analyze, but in these types of cases the public (including the media) does yet not have all the facts. Based on the complaint and whatever other information Munson has gleaned from the case, he is entitled to his opinion. Yes, the First Amendment allows people to express a reasoned opinion that Cuban is guilty. But it should be acknowledged that none of us YET have all the facts. There is the real possibility that additional information may emerge to either change how people view the case...or even provide the basis to exonerate Cuban.

For more Munson analysis, check out.

CBS to NCAA: Uh, we're in business to make money

by Marc Isenberg

NFL fantasy has been a big deal for several years. But college football fantasy has lagged, not because there isn't any interest, but because fantasy sports is seemingly at odds with NCAA bylaws covering both gambling and the marketing of amateur athletes. While the NFL and many other pro leagues partnered with sites offering fantasy sports, the NCAA has steered clear. 

In June the Supreme Court refused to review the 8th Circuit's holding in CDM Fantasy Sports Corp. v. Major League Baseball Advanced Media (MLBAM) that the First Amendment rights of a fantasy league operator to publish news and statistics outweigh MLBAM and players' state law rights of publicity to their names.

(Back to plain English after the jump.)

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