The intrigue of the NFL Draft

reggiebush-usc07b.jpgThis NY Times article from over the weekend discusses the ups and downs that prospects endure in the run-up for the annual National Football League draft, but even that did not prepare me for this:

For the first time, there is legitimate reason to think that USC running back Reggie Bush is not going to be wind up in Houston, the city that currently holds the No. 1 overall pick.
This does not come from one source or from one team. This comes from multiple sources, from across the league, without any agenda to push.
The mounting evidence includes this:
As of Monday, the Texans had not had any contract discussions with Bush and his representatives. None.
Yet the Texans have approached North Carolina State defensive end Mario Williams, trying to see if he would be receptive to discussing a deal.
But the evidence goes beyond contracts. When Bush was in Houston, a certain segment of the organization never introduced itself to the running back. This might not be unusual, but if the organization was convinced it was taking a certain player, it should be rolling out the welcome mat with everyone trying to make the player feel as at home as possible. This, according to those who know Bush, did not happen.

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Oil settles at over $70 per barrel

oil_well19.jpgCrude oil closed above $70 a barrel yesterday for the first time despite the fact that U.S. oil inventories are at their highest levels in nearly eight years. Thus, this current price spike appears to be a reflection of a new phenomenon — investment in oil futures driving higher prices rather than the typical principles of supply-and-demand.
The U.S. is the world’s largest oil market, generating almost a quarter of world demand of about 85 million barrels a day. U.S. benchmark oil for May delivery settled at a record of $70.40 a barrel yesterday on the New York Mercantile Exchange, up $1.08 a barrel. Although oil prices are up almost 15% for the year, the inflation-adjusted record price for oil remains the April 1980 price, which equates to $97.21 in 2006 dollars. Yesterday’s price came after the U.S. Energy Department reported last week that commercial crude-oil inventories had risen to 346 million barrels, the highest level since May 29, 1998. At that time, the crude-oil market was about to crash and, by the end of 1998, prices fell below $11 a barrel from an average of over $18 in late 1997.
The seeming contradiction of rising prices and inventories probably is best explained by concern over supply constraints in Iraq and Nigeria and the steadily increasing demand in large countries such as China and India. As a result, investors are flocking to oil markets where it is currently estimated that investment managers are holding between $100 to $125 billion in commodities investments, which compares to less than $10 billion in such investments back in 2000. That level of investment indicates that the market is betting that demand for oil will continue to rise under tightening supplies.
For over a year now, the three-year bull market in oil has resulted in what energy traders call “contango” — i.e., futures contracts for a given product are priced substantially higher than that same product for near-term delivery. As a result, it pays to buy and hold oil now to sell it later at the higher price. “Backwardation” is the opposite of contango and occurs when near-term prices are higher than long-term contracts. That market condition would prompt buyers to dump inventories, which would in turn dampen prices considerably.
For more expert views on the current spike in oil prices, check out James Hamilton (also here and here) and the Oil Drum.

UH Law Center Dean Rapoport resigns

dean rapaport.jpgUniversity of Houston Law Center Dean Nancy Rapoport resigned yesterday. This Chronicle article on the resignation suggests that the resignation was prompted by a stormy meeting last week in which the Dean was criticized by students and faculty for, among other things, a drop by the UH Law Center of almost 20 places (from 50 to 69) over the past four years in U.S. News & World Report rankings of U.S. law schools. Christine Hurt over at Conglomerate provides perspective on Dean Rapoport’s tenure at UH.
I do not know the reasons for Dean Rapoport’s resignation, but if it is truly a result of criticism over the drop in the U.S. News & World Report rankings, then the critics ought to be ashamed of themselves. True experts in law school evaluation have long considered the U.S. News rankings as highly defective and misleading. University of Texas Law Professor Brian Leiter, who authors a much more well-reasoned and objective ranking of U.S. law schools than the U.S. News rankings, currently ranks the UH Law Center faculty as the second-best of Texas law schools (behind only UT) and better than the faculties of the law schools at SMU and Baylor, both of which are ranked higher than UH in the U.S. News rankings.

TSU cans Slade for cause

slade4.jpgThe Board of Regents of Texas Southern University voted Monday to terminate the employment of embattled TSU president Priscilla Slade for cause after an outside law firm’s report concluded that Slade and TSU’s former chief financial officer had violated TSU policy regarding reimbursement of hundreds of thousands of dollars of Slade’s expenses. The prior posts on the Slade affair are here.
Slade’s problems began in January after she had moved into a new home near Memorial Park. Slade billed TSU for $86,467 in home furnishings, $138,159 in landscaping services and $56,010 in security-related equipment for the new home. After regents questioned certain of the expenses, she reimbursed the university for the landscaping expenses, which Slade contends she always planned to pay but which TSU employees mistakenly paid. However, a report by Bracewell & Giuliani — the outside law firm that the board hired to conduct an investigation into Slade’s expenses — found that Slade authorized the landscaping work without knowing how she would pay for it and without prior approval of the board. The law firm concluded that Slade initially intended for the university to cover the costs.
Of course, it didn’t help Slade that TSU’s former CFO who actually signed the checks for the reimbursements to Slade has a criminal background stemming from passing hot checks several years ago. No one has explained to date how the former CFO got the position at TSU in the first place.
The DA’s office continues to investigate the matter.