This announcement arrived in my inbox yesterday:
NEW YORK, Aug. 21, 2007 – NBA Commissioner David Stern announced today that the NBA has named Lawrence B. Pedowitz, a former Chief of the Criminal Division in the United States Attorney’s Office for the Southern District of New York and current partner at law firm Wachtell, Lipton, Rosen & Katz, to lead a comprehensive review of the league’s rules, policies, and procedures relating to gambling and its officiating program.
One has to wonder if the $30,000 or so that Tim Donaghy took to cover gambling losses hasn’t only ruined his and his family’s financial well being, but also cooled the NBA on the possibility of ever having a team in Los Vegas. For those who don’t follow the NBA, all-star weekend was in Los Vegas last year and was rumored to be a kind of “paving of the way” to having a franchise there in the future. If the final counting of the cost includes the loss of an NBA franchise for the city of Los Vegas, then that will be one of the most expensive 30,000 dollar decisions ever made.
Donaghy faces up to 25 years in prison and part of he plea bargain includes the additional implication of other officials in various gambling activities. The details of what Donaghy will disclose are yet to shake out. For the city, consider this comment from a 2003 report on the valuation of NBA franchises:
According to the report, the Bucks had operating income of $74.3 million in 2002-’03, the lowest in the 29-team league. By comparison, the Los Angeles Lakers had operating income of $149.2 million.
Most cities would love to have an extra $100 million flowing into the local economy on an annual basis. You’ve got to wonder who the people making the money off the betting were and if they’ll have some questions to answer in the coming weeks.
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