The Best Vegas Sports Book

Stardust casino.jpgIn late 1980, I helped my friend, prominent criminal defense lawyer David Chesnoff, move to Las Vegas. Inasmuch as it was the first trip to Vegas for either of us, Dave and I ventured on to the Strip and quickly discovered the Stardust Casino’s venerable Sports Book. For a couple of single young lawyers with a little bit of money and a lifelong interest in sports and betting, Dave and I thought we had died and gone to Heaven.
Over the years, the Stardust’s Sports Book has been surpassed by bigger and glitzier sports books at the newer Vegas hotels and casinos. Nevertheless, it was with a touch of sadness that I read this fine Jeff Haney/Las Vegas Sun article on the closing of the Stardust’s Sports Book last week. Interestingly, the success of the Stardust’s Sports Book was based on a fundamentally sound business principle — hire the most competent people available and then let’em rip:

The secret of the Stardust’s success, [Scotty Schettler, the boss of the Stardust sports book from 1983 to 1991] said, lay in the skill of its oddsmakers. They not only could create point spreads with uncanny accuracy, but also set betting limits – higher than most, but not unmanageable – with precision.
“We were a true ‘book joint,’ ” Schettler said. “We knew the limits we could get away with that would give us the maximum amount of action laying 11-10 both ways.” [. . .]
For six years in a row, the book never sustained a losing month, Schettler said.
“The other guys said the Stardust was lucky,” Schettler said. “I say it was skill.”
A bookmaker in his native western Pennsylvania as a teen, Schettler held others from that part of the nation in high esteem.
“I hired all guys from back East,” he said. “Kansas City was the furthest west I ever hired anybody from. They were bookmakers – no suits and ties.”

What a place. There is nothing quite like the feeling of nailing and collecting on a three-game parley for the first time. Thank you, Stardust. Rest in peace.

The 2006-07 Houston Rockets

rockets.jpgAfter a rather uninspiring effort against Utah on the road to start the season, the Houston Rockets open their 2006-07 home schedule tonight at Toyota Center against the Dallas Mavericks.
As noted here and here, the Rockets have performed poorly for the better part of a decade now and have been far surpassed during that time by Texas’ two other NBA teams, the San Antonio Spurs and the Dallas Mavericks. After waiting too long to do so, Rockets’ owner Les Alexander finally hired some new blood earlier this year for the Rockets’ front office in the person of Daryl Morey, who is effectively taking over this year for longtime Rockets GM, Carroll Dawson. As this Wall Street Journal ($) profile explains, Morey represents a new wave of NBA executives who base their player evaluations primarily on statistical analysis of a player’s contributions to his team’s performance.
The early indications of Morey’s effect on the Rockets are positive. The roster has been re-tooled since last season’s disappointing 34-48 record, and such NBA experts as the Wages of Wins bloggers believe that the Rockets are primed for a good season, albeit still below the Spurs and the Mavs. Given the Rockets’ decade of deterioration, I remain skeptical that the team will be much better than a .500 club this season — the team still has glaring holes at power forward and point guard, which will result in rebounding and turnover problems. However, there is no doubt that Yao Ming, Tracy McGrady, Bonzi Wells and Shane Battier are a solid core of key players that is capable of turning the Rockets into a playoff-caliber team once the latter two players are integrated into the team’s style of play. I will take the under on the current over/under of 46 wins, but it will not be shocking if this Rockets team surpasses 50 wins if Yao and McGrady are reasonably healthy and can play for 70 games or so.
Just don’t expect the Rockets to have a better record than either the Spurs or the Mavs.

The insolvency of big-time college athletics

ohio_stadium2.jpgMy son Cody and I enjoyed a splendid Texas autumn afternoon on Saturday while attending the University of Houston’s football game against Central Florida. But only about 13,000 other folks showed up for the highly-entertaining game in an enjoyable on-campus environment, and that’s sadly an all-too-common experience for UH.
UH is a member of Conference USA, which was formed a decade or so ago by about a dozen universities that were not offered membership in one of the Bowl Championship Series conferences. As a result of its creation by necessity rather than design, few of the C-USA members have natural rivalries with other members and virtually all of the members struggle to attract fans to their games. UH’s situation is particularly difficult because UH competes in a market that offers NFL football and two effectively local universities (A&M and Texas) that compete in a BCS conference (the Big 12) with many traditional rivals. And that does not even include the competition represented by Texas’ hugely popular high school football scene.
With that backdrop, this Vic Matheson post over at the Sports Economist is the most cogent analysis that I’ve seen in some time of the underlying instability of the present structure of big-time college football. Using Florida International University’s recent foray into major college football as an example, Matheson concludes as follows:

Big-time college athletics is an lure that many schools find difficult to resist. The reality is, however, that even revenue sports such as football and menĂ­s basketball are money losers for most programs. Certainly FIU must be rethinking their decision to step onto the football field.

Despite a storied history in intercollegiate athletics and excellent on-campus facilities, the University of Houston is facing the same problems as Florida International in attempting to finance a big-time intercollegiate athletic program without the infrastructure of a BCS conference affiliation. Moreover, virtually every other non-BCS conference university — and even a number of the universities in BCS conferences — are experiencing the same dilemma. Although a model exists for the reorganization of big-time college football and basketball into a true adjunct to the academic experience rather than minor league professional enterprises, my sense is that the current instability in the structure of college football will more likely trigger the development of three or four super conferences comprised of member institutions that are willing to pay the price — both financially and morally — to compete at the highest levels of minor league professional football and basketball.
Although such a development may be the natural evolution of big-time intercollegiate football and basketball, I can’t help but think that something valuable — such as the old Southwest Conference and UH’s intense rivalries with UT and A&M — is lost from the fabric of the most university communities as intercollegiate football and basketball mimic professional sports franchises.

The tax ruse of big-time college sports

ncaa-logo.jpgAs the Universities of Texas and Oklahoma prepare to reap millions this weekend during their annual shootout in Dallas, the National Collegiate Athletic Administration is preparing a response to a possible federal challenge to the tax policy that facilitates the universities’ financial windfall.
This Indy Star.com article reports that the House Ways and Means Committee has delivered an eight-page letter to NCAA President Myles Brand demanding that the NCAA justify why the multi-billion dollar business of big-time college sports deserves its education-based tax exemption (related Miami Hawk Talk post here; also see this Sports Law Blog post). The letter observes in part:

“Educational organizations comprise one of the largest segments of the tax-exempt sector, and most of the activities undertaken by educational organizations clearly further their exempt purpose. The exempt purpose of intercollegiate athletics, however, is less apparent, particularly in the context of major college football and men’s basketball programs.” [. . .]
“To be tax-exempt . . . the activity itself must contribute to the accomplishment of the university’s educational purpose (other than through the production of income). How does playing major college football or men’s basketball in a highly commercialized, profit-seeking, entertainment environment further the educational purpose of your member institutions?”

As noted here (see also here and here), NCAA member institutions sold out long ago to the owners of professional sports franchises by effectively agreeing to subsidize minor league systems in football and basketball for the owners. The education-based tax break fuels the raising of funds necessary to capitalize that system, and directly benefits the owners of professional sports franchises who do not need to allocate capital to development of minor league systems because of the NCAA members’ cooperation in doing it for them. The contrast between college baseball — a thriving but relatively small economic model that competes for players with a well-developed minor league professional system — and college football — a booming industry (at least for a relative few universities) that does not compete with a minor league for players — reflects the high stakes involved for everyone involved in the current system.
My sense is that nothing will come of this current Congressional inquiry because — as one of Larry Ribstein’s colleagues points out in the article — politicians from states that thrive on big-time college sports would probably never allow the gravy train to end. Moreover, foreign professional leagues in basketball are creating a minor-league system in that sport that is changing the nature of college basketball for the better, so arguably markets will eventually work to mitigate the hypocrisy of the current system, anyway. But given the extraordinary run-up in the value of National Football League franchises over the past couple of decades, don’t you think it’s about time that universities quit subsidizing a part of that growth?

Getting off cheap

Les Alexander.jpgThe Houston Rockets are off to Austin for pre-season training camp and, although the basketball team hasn’t achieved much lately, Rockets owner Les Alexander recently joined for the first time fellow Houston professional sports franchise owners Bob McNair (the Texans) and Drayton McLane (the Stros) on the Forbes 400 Richest Americans list. Alexander came in at no. 322 on the list with an estimated net worth of $750 mil.
Thus, some eyebrows were raised recently when this Palm Beach Post article revealed that Alexander had gotten out of his 30-year plus marriage to former wife Nanci in 2003 for a mere $150 million. That information is just now coming to light because Alexander had his attorneys obtain an improper sealing of the court records at the time of the divorce settlement.
Looks as if Alexander has done quite a bit better than the Rockets over the past few years.

Appreciating Agassi

Agassi3101.jpgDon’t miss this superb Jay Winick/Opinion Journal op-ed on tennis icon, Andre Agassi, who retired gracefully this past weekend after after putting on a stirring performance during the first three rounds of the U.S. Open tournament in New York.
I’ve never met Agassi, but I have followed his career with interest because of our mutual friendship with prominent Las Vegas attorney, David Chesnoff. Several years ago, I had the pleasure of spending a morning with Agassi’s parents while Andre’s father gave David’s son a tennis lesson at the Agassi’s Las Vegas home where they have lived for several decades. Andre’s parents are wonderfully down-to-earth folks who are a joy to be around, so it’s no surprise to me that their son has matured into a fine man.
By the way, although probably not the greatest tennis player of his generation, Agassi nevertheless is one of the most remarkable athletes of this era. A case in point is a golf game that he played several years ago with David in which Agassi faced a daunting recovery shot around trees to a small green protected by a lake. Agassi grabbed a 3-iron, sized up the situation and then hammered a 200 yard shot that sliced around the trees on to the green, stopping 15 feet from the cup. Agassi calmly put the club back in his bag, jumped into the golf cart, looked at David and asked with a wink:

“So, David. What’s so tough about this game again?”

Barbaro continues to beat the odds

barbaro eating roses3.jpgThis NY Times article continues its excellent coverage of the recovery of Kentucky Derby champion Barbaro from a life-threatening injury suffered in the Preakness Stakes (previous posts here). The article does a good job of explaining the tremendous resources that are being deployed to attempt to save the horse’s life, which could still have great financial value if the horse can recover sufficiently to be leased as a stallion for breeding purposes.
Although Barbaro’s health is still at great risk, the thoroughbred no longer needs the sling that was used immediately after surgery to keep weight off the horse’s legs and the epidurals that he required for pain have not been necessary for several weeks. Moreover, Barbaro is now being walked outside each day in a field and being allowed to graze. As a result, the horse is appearing to become stronger by the day. Stay tuned.

Update on Barbaro’s condition

barbaro eating roses.jpgThis NY Times article provides an update on the rehabilitation of Kentucky Derby champion Barbaro’s injured leg and related complications. Previous posts on Barbaro are here. The bottom line is that Barbaro is not out of the woods by any means, but is showing progress. Interestingly, the biggest problem that the horse faces in his fight for survival is not the original injury, but an infection to the hoof that often occurs after such an injury.

Meet Steven Gerrard

Gerrard.jpgI don’t follow soccer closely (previous posts here), but I’ve come to appreciate the sport during this World Cup season and I particularly enjoyed Chronicle sports columnist John Lopez‘s World Cup reports from Germany.
Now, Bill Simmons passes along this video of star Liverpool, P.C. midfielder Steven Gerrard‘s ten greatest goals, which is well-worth the seven minutes it takes to view it. Gerrard is the English soccer equivalent of Reggie Bush, so take a moment to marvel at this wonderful talent.
By the way, the comments of the British announcers are priceless!

Barbaro is struggling

Barbaro2.jpgIt’s beginning to look as if Barbaro may not make it (related, subsequent stories on Barbaro’s increasing health problems are here, here, here and here).
The condition of the Kentucky Derby champion who broke down at the beginning of the Preakness took a turn for the worse late Saturday when veterinarians had to remove the plate and some of the screws from his injured right hind leg to stave off infection. Although Barbaro’s leg appears to be healing reasonably well, the horse is having a hard time shaking off an elevated temperature, which is an indication that attempts to control infection are failing.