Money Players

DeCourcy on Mayo

I'm quoted in Mike DeCourcy's article, "One year with Mayo could prove costly."

"It's like the lottery. It's a dollar and a dream," said Marc Isenberg, whose book Money Players is a guide for young athletes dealing with issues of amateurism and professionalism. "These are the program-changers, and it's very difficult to turn your back on these types of players -- knowing that if you don't take them, somebody else will.

"These guys have an artificial market value of zero and a true value of something greater. Even if we want them to be amateurs and we want them to follow the rules, the underground economy is going to kick in."

It's another good article on the high risk of bringing in top talent to our great universities. Unquestionably, there were some bad dudes involved with Mayo. I just hope the FBI and other law enforcement leave Mayo out of the mess.

Show me the money trail

Los Angeles Times writer Ben Bolch writes on summer basketball, connecting the dots for the top players from high school to college and to the pros.

Similar articles have been written before, so there's not much new ground covered here. There's the usual questionable characters mentioned (especially Rodney Guillory), the vague job description of runners and the now-regular staple of these articles: an anonymous sports agent pointing out the hypocrisy and corruption of this dirty business.

I like what John Wall, a top high school player, has to say:

"If you let one person into your circle, they can mess everything up. They would tell me I had a good game, I'm a good player and they want to start helping me out basketball-wise," Wall said. "I was like, 'Nah. If you weren't there before I had anything, there's no point in you coming around now.' "

Bolch writes:

"Some observers compare a coach who purports to guard a player's best interest with the fox guarding the henhouse."

And then there's Pat Barrett, who runs Southern California All-Stars. Bolch states that Barrett is a "controversial figure in local basketball circles, is quick to acknowledge that he's 'not affiliated with any rules. . . . I have no kids in school, I'm not a booster, I'm not alumni.' "

Had no idea that rules (or laws for that matter) are something we are or aren't affiliated with.

There is also an accompanying article on agents and intermediaries that mostly quotes an anonymous "prominent sports agent." I love this agent's reason for not identifying himself: He is apparently concerned "that his comments might be construed as an admission he had engaged in wrongdoing." Personally, I would prefer these agents who purport to follow the rules stand up and identify themselves. "Hey, look at me, I follow the rules, I don't jeopardize an athlete's eligibility."

The supposedly prominent sports agent on just how sleazy the sports agent biz is:

"Overwhelmingly, 95% of the time, there's a third party involved. If agents could get players in a fair, representative way without paying money they would, because everyone is a bottom-line businessman. But they can't."

"Most of the time the runner tells a kid, 'I'm just taking care of business so that we can do what we need to do.' "

This is probably my biggest problem with the entire sports agent industry: Agents and runners operating without disclosing the nature of this relationship with the targeted player.

The anonymous agent also thinks the NBA Players' Assn's oversight of agents is "loosey-goosey" and that "the union's investigation into whether Bill Duffy Associates Sports Management engaged in wrongdoing during its recruitment of Mayo should serve as the litmus test for whether the league is willing to get tough."

Litmus test? So if BDA is not found guilty, the NBPA is not doing its job. There were bad actors in the Mayo case, no doubt, but that doesn't mean it's fair to automatically reach these conclusions. I'm guessing this is the real reason this agent wouldn't come forward: He wanted to slam Duffy on the record. As I've said several times on Money Players, if it is proven that BDA did anything wrong, they should pay a heavy penalty. But we haven't seen that evidence yet. Only Louis Johnson showing ESPN Guillory's receipts.

--Marc Isenberg

The Brandon Jennings Experiment

Those who follow college basketball are split on the implications of star basketball player Brandon Jennings' decision to go off overseas, rather than follow the traditional, established path to the NBA. I have a tough time criticizing someone who decides that college basketball and college are not for him. I think it is premature to judge Brandon, mostly because the public and the media does not know all the factors that went into his decision. Clearly, he is not academically motivated, which for 99.999% of the population is not a good thing, but in Brandon's situation this may turn out to be fine. Hopefully, he is motivated to learn about those things that most directly impact his responsibilities and opportunities as a professional basketball player. The college basketball community and media will be watching to see how the Brandon Jennings Experiment turns out. If he succeeds in Europe, basketball's most likely "one and done" prospects will have a viable option. If Brandon fails he might end up becoming a cautionary tale, although the population of one does is still not a sufficient sample to reach any meaningful conclusion.

Let's look at a sampling of opinions:

ESPN's Doug Gottlieb (subscription required) thinks Brandon is getting in over his head, writing "Jennings is not ready for the culture shock of playing overseas, for the challenge of playing grown men as opposed to over-matched high schoolers, for the huge drop in the NBA draft stock. Yet that might not be enough to deter him from skipping school. And in the long run, he might end up a lower-rated NBA prospect but a better player and more well-rounded, grounded person."

Jason Whitlock "Why risk being the next O.J. Mayo, the USC one-and-done-er done in by sloppy ESPN reporting, a former, opportunistic friend/ex-drug-dealer and antiquated NCAA rules?" Comment: The problem going forward is every top basketball must be prepared to the get the full O.J. Mayo Treatment. If they have any skeletons in their closet or even just some questionable associations, the media and rival fan sites will bury the kid.

Sports agent David Bauman (and an Emory classmate of mine) on how the college basketball might change if Brandon succeeds: "College would be a bunch of nobodies. TV interest would drop and the overall product would suffer."

Comment: College basketball will be fine, even if the top 5 to 7 players bypass college. In fact, I think it might be even better. The focus can turn to those who want to be in college and have the ability, the interest and the motivation to do the academic work.

Several interesting comments from a Washington Post article on the topic:

Syracuse basketball coach Jim Boeheim

"[Jennings is] only doing it because he's desperate. He wants to be a one-and-done player. So he doesn't sit out [a year] some place, he wants to go play. I'm not even sure he'll be that wanted in Europe. He's a thin, little guard, and European basketball is pretty good these days. It's not like he's going to go over there and be a star."

Comment: Sour grapes. Was Syracuse's most famous one-and-done any more academically prepared and motivated than Brandon? From my perspective it is inappropriate for a college coach to comment on a player's academic background, especially since he has no direct connection to him. Also, while I respect Boeheim's coaching ability and also his international experience, since when did he become an expert on European professional basketball?

NCAA president Myles Brand

"Before the rule took effect and we had some young men jump from high school to the pros, we had a successful game and March Madness pulled in millions of dollars. After the rule, we've had some success and March Madness has pulled in millions of dollars. Either way for us is fine. It's up to the young man."

Comment: Agreed! For those who accuse the NCAA of being a monopoly, the argument weakens if players have viable options.

--Marc Isenberg

UPDATE: Sporting News college basketball writer Mike DeCourcy emailed: "Any idea if this David Bauman fellow was living in Singapore or something from 1995-2005, a period during which college basketball missed out on Kevin Garnett, Kobe Bryant and LeBron James -- and still landed a $6 billion TV contract for its postseason tournament alone?"

Comment: College basketball is a marketing juggernaut. The D-League unquestionably has more talented basketball players, but how many people follow the league? The college basketball consumer is not savvy enough to figure this out, nor do they even care. DeCourcy also writes one of the more well-reasoned articles on the topic. David may not understand the popularity of college basketball, but he certainly understands NBA free agency.

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."

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.