The new Prohibition run amok

office%20betting%20pool.jpgI swear, you can’t make this stuff up.
A couple of weeks ago, the government was moving in on Wall Street in connection with its overwrought jihad on internet gambling interests. But now, Radley Balko notes that authorities are racheting down on an even more insidious gambling problem — great-grandmothers who run betting pools on NFL games at the local Elks Lodge!:

A volunteer waitress and a widowed great-grandmother who tends bar at the Lake Elsinore Elks Lodge are due in court later this month after pleading not guilty to misdemeanor charges of operating an illegal gambling operation.
Margaret Hamblin, 73, and 39-year-old Cari Gardner, who donates her time as a waitress at the lodge, face up to one year in jail and a $5,000 fine for allegedly running a $50 football pool at the facility, the Press-Enterprise reported.
The charges stem from a Nov. 20 investigation by state Department of Alcoholic Beverage Control agents into an anonymous tip that lodge members bet on NFL games.
Behind the bar, the armed agents found an envelope with $5 from each of the 10 members taking part in the pool. The person who came closest to guessing the combined score of the Jacksonville Jaguars and the New York Giants was to pocket the contents, according to the Press-Enterprise.
“It was just regular ‘Monday Night Football,’ ” said Hamblin, who has tended bar for 40 years, six of them at the lodge. “We were sitting at the bar, and the gang wanted to do something,” she said, according to the newspaper.
Timothy Clark, who heads the department’s Riverside district, which issued the citations, said football pools “are a violation of the law, and we will take whatever we feel is appropriate action to ensure compliance by our licensees,” the newspaper reported.
Clark said he has recommended a one-year probationary period during which the lodge could host no gambling activities, or it would face a 10-day license suspension, according to the Press-Enterprise.
That means the end of events such as a “50-50” raffle in which proceeds typically go to scholarship funds and local charities for disabled children and veterans, Hamblin told the newspaper.
Hamblin and Gardner, who are represented on a pro bono basis, must return to court Feb. 28 for a preliminary hearing, at which a judge will determine if there are grounds to order them to stand trial.
In the meantime, beverage control officials are reviewing the Elks Lodge license, according to the newspaper.

Feel safer?

Nice commute

Mickelson%20021207.jpgPhil Mickelson won his first PGA Tour event of the new season this weekend by five strokes at the Crosby at Pebble Beach (I know, I know, it’s really the ATT Pebble Beach Pro-Am, but I’m old school).
Meanwhile, Geoff Shackelford notes that Mickelson committed to playing in next weekend’s event — the Nissan Open at Riviera in L.A. — where he will deploy a rather unique commuting strategy in regard to Southern California traffic:

After suggesting Thursday that he might, Mickelson did enter next week’s Nissan Open before yesterday’s deadline. He will play at Riviera for the first time since 2001.[. . .]
Mickelson said he would attempt to commute to L.A. each day from his home in Rancho Santa Fe by using his private jet, flying from Palomar Airport to Santa Monica Airport.

By the way, if you have any question that Mickelson is a good guy or that the NFL isn’t particularly appreciative of its former players, read this.

Jamie Olis Finally Goes to Bastrop

Jamie Olis, the former Dynegy mid-level executive whose prosecution and sentencing represents one of the most brutal examples of the federal government’s criminalization of business since the bursting of the stock market bubble earlier this decade, has finally received a small measure of relief in the latest stage of his ordeal.

Yesterday, the Bureau of Prisons finally transferred Olis from the downtown Houston Federal Detention Center to the Bastrop, Texas federal prison unit. The Bastrop unit is the original prison that Olis was assigned to when he began serving his sentence almost three years ago and is thankfully the most convenient location for Olis’ family members to visit him.

Olis spent over a year in the Detention Center in Houston — a facility that is meant to house prisoners for only short periods — because of prosecution foot-dragging in regard to his re-sentencing and then a four-month delay in assigning him to a permanent facility after he was re-sentenced. Here’s hoping that Bastrop will be Olis’ final prison destination before his release, probably in late 2009 or early 2010.

Shelby Metcalf, RIP

shelby%20metcalf.jpgOne of the true characters in the basketball culture of Texas — former Texas A&M coach Shelby Metcalf — died this past Thursday in College Station at the age of 76. Anyone who has lived in Texas and followed basketball knows about Metcalf, who coached at A&M when basketball was truly just a diversion between football and spring football. But Metcalf’s teams were always competitive against teams of superior personnel and the Texas A&M administration learned just how special a coach Metcalf was after they unceremoniously fired him in 1990 after 26 and a half seasons at the helm of Aggie basketball. The Aggie program promptly went into a tailspin for the next 15 years until current coach Billy Gillespie was hired three seasons ago and transformed the Aggie program into a national power.
But as good a coach as Metcalf was, he was an even better storyteller and comedian. Metcalf’s dry wit and calm demeanor are legendary in Texas coaching circles, where his observation that one of his players who had 4 F’s and a D was “concentrating too hard on one class” is probably his best-known crack. Metcalf was my one of my favorite coaches to listen to during an interview, so here are a some of my favorite Metcalf observations from over the years:

After a tough game in Lubbock, a reporter asked Metcalf in the post-game press conference about what he told his players after Tech fans resorted to throwing coins at the Aggies. Metcalf replied: “I told my players to show some class, and not pick up anything less than a quarter.”
In talking about how dramatically recruiting had changed during the course of his long career, Metcalf recalled how he had recruited a player in the mid-1960’s by taking him fishing and observed ruefully: “You just canít get real good players with catfish anymore.”
When a number of A&M players were having trouble academically, Metcalf arranged to have them enrolled in a basket weaving so that they could increase their grade point average. “Problem was,” Metcalf later admitted. “A couple of them were American-Indians, and they set such a high curve that they flunked the others out.”
Commenting on the notoriously fickle A&M fans, Metcalf observed: “The only happy Aggie is an unhappy Aggie.”
Metcalf loved nicknames. So, after recruiting a player out of Louisiana named Smart, Metcalf nicknamed him “Plenty.” After reviewing first semester grades, Metcalf changed Smart’s nickname to “Nottoo.”
After former Aggie football coach R.C. Slocum resigned under pressure during the A&M administration led by former CIA Chief and current Defense Secretary William Gates, Metcalf commented: “R.C.’s lucky. He could have just disappeared, you know.”
Metcalf always had the same pre-season observation about the keys to a successful season: “Stay happy, healthy and out of foul trouble.”
During a particularly turbulent airline flight, an A&M player was feeling quite nauseous.

ìSon, what’s wrong with you?î inquired Metcalf.
ìCoach,” replied the player. “I am dizzy, sweaty, and nauseous. I think I might throw up.”
“Well now,” Metcalf shot back. “Now you know how I feel every time I have to put you in a game!”

Update: Chronicle sports columnist John Lopez, an A&M grad who knew Metcalf for over 25 years, passes along this heartfelt tribute.

Was Manning really the Super Bowl MVP?

Peyton_Manning.jpgI was glad that Colts QB Peyton Manning finally was on a Super Bowl winner because he is truly one of the NFL’s greatest QB’s of all-time. But I thought it was a tad absurd that Manning was named the Super Bowl’s Most Valuable Player when he didn’t even play particularly well. How about one of those fellows in the trenches where the Colts dominated the Bears throughout the game?
Dave Berri agrees, but makes the salient point that it is much more difficult to evaluate the performance of football players than the performance of players in other sports (i.e., baseball) that do not require the same degree of reliance on teammates as football. After pointing out that Manning actually was statistically worse during this season’s successful playoff run than he had been in each of the Colts’ playoff failures over the past three seasons, Berri observes the following:

So what lesson has Manning learned? For his team to win, he must play bad?
No, thatís not the lesson.
There are actually two lessons. First, playoffs are a small sample and luck plays a substantial role in determining the outcome (a point made last Sunday in The New York Times). Secondly, teammates matter in football. Quarterbacks do not win or lose games all by themselves. This was true when Manningís team failed in the playoffs. And itís true this year as well.
So we should stop judging quarterbacks strictly in terms of whether their teams happen to win. Manning was not less of a quarterback when his team failed to win its last game. And heís not finally a success because his team happened to win its last game.

Berri also makes an interesting point about Bears QB Rex Grossman. Read the entire piece.

Milton Friedman’s introduction to economics

milton-friedman-020807.jpgJames Hamilton passes along Stanford University Professor John Taylor’s touching tribute to Milton Friedman, which includes this anecdote about Friedman’s participation in an entry level economics class:

[Professor Friedman] was always willing to be a guest lecturer in my Economics 1 course, speaking to hundreds of Stanford students. He would start off telling the undergraduates that two major things the government is involved in are a mess — education and drugs — and that would set off a lively round of questions with his memorable answers impressing both those on the left and the right.

Along those same lines, Professor Friedman would agree with this cogent this Jacob Sullum/Reason op-ed that cogently explores the dubious nature of the government’s Prohibition on internet gambling and the recent governmental assault on a legitimate foreign business, Neteller PLC.

Trying to get in shape the hard way

WeightScale.jpgSandy Szwarc makes sense while expressing skepticism about the FDA’s decision to approve an over-the-counter version of Xenical (orlistat) for sale, the first prescription weight loss drug to be available without a prescription:

Even the FTCís scientific expert panel reviewing the evidence for weight loss advertisements, . . . determined that any claims that a weight loss product will cause weight loss by blocking the absorption of fat or calories were false and fraudulent advertising. . . . [E]ven with the prescription strength Xenical, people canít malabsorb enough fat a day to lose a pound a week and there are limits beyond which significant gastrointestinal problems occur. The panelís scientific analysis stated: ìThe biological facts do not support the possibility that sufficient malabsorption of fat or calories can occur to cause substantial weight loss.î

Meanwhile, this NY Times article reports that one of the formerly most popular ways to attempt to lose weight has fallen out of favor:

[I]f current trends continue, aerobics will be as rare as, . . . those vibrating belts that were supposed to jiggle away fatty hips and gravity boots that were supposed to ó what was it they were supposed to do? For now, the popularity of aerobics is sharply down from when it was ìthe mainstay of fitness in America,î said Mike May, a spokesman for the Sporting Goods Manufacturers Association.
Itís why you may have noticed ó if you have shown up at your gym attired in your best leg warmers with a sweatshirt off one shoulder ó the lack of aerobics classes on the menu. Fewer than half of the 300 gyms and health clubs recently surveyed by IDEA offered aerobics classes, a number that is ìcontinuing to decline,î according to the summation of the report.
At its peak in the mid-í80s, an estimated 17 million to 20 million did aerobics, Mr. May said. But only five million did in 2005, according to a report by the sporting goods association. ìWe expect the 2006 numbers to be significantly lower,î Mr. May said. ìAerobics are increasingly out of favor.î
The legacy of injuries is one reason. Many of the original instructors like Mr. Blahnik wonít teach aerobics ó because they canít. ìThose hardest hit by all those aerobics were often the teachers, because they were pushing harder than anyone else and doing the classes a dozen times a week,î Dr. Metzl said. ìOur bodies just werenít meant to withstand all that pounding.î

By the way, Art DeVany has compiled this category of blog posts that explores the damaging physical effects of distance running and endurance training. More exercise does not always equate with better health.

Lamar Muse, RIP

Muse%20Air.jpgFormer Houstonian M. Lamar Muse, one of the founders of Southwest Airlines and a pioneer of airline deregulation, died earlier this week in Dallas. He was 86 at the time of death.
Muse was legendary in the airline industry for taking over Southwest when the airline had no planes, piles of startup debt, and nominal liquidity. He parleyed that into three 737s from Boeing so that Southwest could begin flying the planes between Dallas, Houston and San Antonio, taking advantage of close-in and underused Hobby Airport in Houston and Love Field in Dallas. Inasmuch as Southwest was flying entirely intrastate, the airline was lightly regulated in comparison to the legacy airlines of the time and, thus, slashed fares to capture the Texas market. When I moved to Texas in the early 1970’s, I could buy a ticket to Dallas or San Antonio for about $30, $50 round trip. And, yes, those orange hot pants on the flight attendants were not bad, either.
Muse left Southwest in the late 1970’s over a dispute about the rate of expansion and he was never able to regain the mojo that he displayed at Southwest. In 1982, he started Muse Air, which was sort of a luxury version of Southwest, but the timing was bad as the oil and gas business in Texas was just beginning to enter a long and deep tailspin at the time. After never generating a profit, Muse sold out to Southwest in 1985, which renamed the airline TranStar. By 1987, Southwest had had enough of the airline’s losses and shut it down.
Muse was a true character to the end, reportedly participating in internet chat rooms regarding airlines up until recently. Probably his most endearing business legacy is his championing of a company stock-based, profit-sharing plan for Southwest employees, who didn’t have pensions at the time. That plan eventually turned many longtime Southwest employees into millionaires as Southwest’s value grew over the years. A fine legacy for any businessperson, indeed.

The International is kaput

Castle%20Pines.gifThe International — the idiosyncratic PGA Tour event at Castle Pines GC in Colorado that used a modified Stableford scoring system rather than the traditional stoke play format — will shut down for good after this year’s tournament, another casualty of the increasing stratification of tournaments on the PGA Tour. John Hawkins has the story.
But for the support of Shell Oil, the same thing could happen to the Houston Open, for the reasons noted here and here. The prospects for the other Texas tournaments are not all that rosy, either. PGA Tour, are you listening?
Meanwhile, Doug Ferguson reports that several cities are vying to replace the International:

The cancellation [of the International] leaves a hole in the PGA Tour schedule on July 5-8, but tour officials have been working on a contingency plan over the last month and are expected to announce a replacement by April.
The leading candidate is Washington, the largest U.S. market without a PGA Tour event. The nation’s capital had a tour event since 1968, but that presumably ended when title sponsor Booz Allen bailed out last year because it was not part of the FedExCup portion of the PGA Tour schedule.
Other markets under consideration are Minneapolis, Philadelphia and Kansas City.

EGL deal hits turbulence

EGL.pngLooks as if Jim Crane’s proposed private equity-backed buyout of EGL is on the rocks already. That news probably makes Ben Stein happy, but what about EGL shareholders?
Crane commented that he will resubmit another bid, but the market certainly didn’t receive his first with gusto. After an initial run-up in price upon the announcement of the proposed buyout, the stock is now trading at close to its 52-week low. Interestingly, Crane’s failed offer — something that folks such as Stein would make illegal — may end up inducing more bidders to get into play for EGL than otherwise would be the case, thus increasing EGL’s value for shareholders. Stay tuned.