Short answer, in my opinion, no. The explanation is simple economics mixed with a little cost-benefit analysis.

Buying a ref requires more than Washingtons. Let's use the Tim Donaghy example.  A referee like him gets paid, according to David Stern at yesterday's press conference, $260,000 a year.  Not to mention benefits, other income opportunities (i.e. conferences, freebies, etc.), and the potential to keep moving up in salary to, say, $300,000/yr or more.  So it's a well-paying job.  Again, it's comparable to a decent lawyer or doctor, and the lifestyle is perhaps even more prestigious (witness one newspaper account of Donaghy's run-in with a mailman, in which he supposedly screamed "Do you know who I am?  I'm an NBA referee!"). 

Now, how much would a mafia crew have to pay a referee to make it worth to endanger his job security, and possibly jail time?   Even if you presume you wouldn't get any jail time if you get caught, there goes your name, your reputation, your ability to earn a living.  I would guess you would need to pay me at least more than I make now to make it worth my time.  For a referee with Tim Donaghy's experience, that equals at least about $300,000 a year for me to endanger my career and life to fix games for you.  Minimum $300,000 to buy a formerly clean ref.  

How many Mafia outfits can afford to buy a referee?  According to the America Mafia website, there are only about 26 cities with mafia families in the US.  Tim Donaghy is being investigated in connection with the Gambino family of NYC, one of the 5 families that are alleged tied to the NYC mafia.  Actually, the Gambino family is probably the best known mafia in the country, formerly headed by John Gotti.  It has hit hard times, as have all of the NYC mafia families, because of crimebusting operations that have reduced these outfits to shells of what they once were.  Still, I'm sure there are plenty of outfits that can afford the cost of buying a ref.  But is it worth it for them?

It's Hard Out There For A Pimp... To Buy A Ref Is it profitable for an illegal outfit, whether a mafia or some sort of other mafia/mobs (Russian, drug cartel, 3-6, whatever) to spend $300,000 or more a year to "fix" basketball games?  The question is how would they capitalize on this "asset"?  If you knew tonight's insignificant NBA game was definitely going to go "over", could you make enough coin off of it to justify the investment?  How would you do it?

See, most outfits make their money by accepting bets from clients, basically playing the role of bookie.  They use the standard Vegas line (most bookies don't have to create the lines themselves anymore), and hope to get equal action on both sides of the bet so that they offset each other, and the bookie keeps the 5% fee or whatever they charge for placing a bet with them.  It's the safest way for a bookie to insure a profit.  Fixing a game doesn't make a difference to an outfit that acts as a bookie, since they don't care which side wins.  It's doubtful they would adjust their spreads or lines they offer their clientale because they had insider info... wouldn't you be a little suspicious if the newspaper had the NYG +3.5, but your bookie was had the NYG +7?

Now, the insider info could make a difference to bettors.  The outfit doesn't just have to act as a bookie, they can act as a client, too.  But who would they make their bets with?   You got it, Vegas.  It also has the added benefit of "laundering" the money, making it seem like legit earnings, if they can get winnings from bets placed in Vegas.

So let's say tonight's Pistons-Bulls game has an over/under of 185.  The great Slate article about this topic suggests that is the typical game Tim Donaghy fixed:

"He reffed 12 games in which the over/under was 184.5 or less - those games went over 10 out of 12 times, a highly suspicious number... This makes sense intuitively.  In a low-scoring game, a quick whistle would ensure that each team get enough free throws to sufficiently pad the point total."

So tonight's game is a low-scoring game, right.  Your outfit knows that tonight's ref is Tim Donaghy, and that he's going to make sure the game is going over.  You lay down some money in Vegas on the "over".  How much money do you have to lay down on the "over" in a regularly season NBA game (not even NFL!) before Vegas gets suspicious?

Vegas' casinos are on top of all kinds of illegal activities, and sniffing them out:

"Any suspicious bets taken on college campuses or the corner bar get reported back to Vegas sports books, not the local district attorney. Think back to the point-shaving scandal that hit college football this spring. A Vegas oddsmaker thought the betting activity on University of Toledo games looked suspicious. He blew the whistle to the NCAA, and an investigation ultimately revealed Toledo players' connections to a Michigan gambler. That's how game-fixing gets snuffed out—usually."

The NBA's Watchdogs. It doesn't delve into specifics, but the point is clear: even if your outfit was smart, and broke up your bet into a thousand little bets, it would draw suspicion.  Let's look at it realistically, first: How would you place, say, a $50,000 bet (the minimum it would make sense for an outfit that is paying a ref at least $300,000 to fix games)?  You could have 500 people place $100 bets, which would be very unlikely to draw attention, at first anyway.  If you are smart, you'll break it up over as many casinos and bookies as you can.  Where you would get 500 people to bet $100 in Vegas,  I don't know, but that's besides the point.  Presuming you could pull it off, you might be able to fly under the radar.

Until Vegas notices that almost every time Tim Donaghy refs a low scoring game, it goes over, and there is unusually heavy betting activity (aggregate) on the "over".

Did Vegas know or suspect anything about Tim Donaghy?  Possibly.  We don't know, because they aren't exactly sharing their knowledge with outsiders.   And, as the article pointed out, the NBA doesn't want to work with Vegas (a short-sighted decision that will probably be reconsidered now).  But Vegas doesn't have to report anything or make it public;  if they have a suspicion on what's going on, they could maybe tip off some feds or something if they really feel strongly about it.  Nobody knows more about the ins and outs of basketball scoring patterns, and what's unusual, than a professional oddsmaker.  

So the final question is: Could Vegas buy a ref?  Indeed, they could.  They are the only outfit that has enough money to pay a ref off, and still make a tidy profit.   Who would they profit off?  I don't know, they could make the under very appealing... say, raise a low scoring game that should have a line of 184.5 to 200 pts, and hope smart gamblers gravitate to the low, so they can make a cleaning when the game scores over 210 points.  That's a reach, though.  And more importantly, what's their motivation?  Unless the action on the NBA games could yield millions of dollars in profit above their normal take, why bother?  Quote Jay-Z: "If ya'll not talking about large money, what's the point?"

But wait, you might ask: This whole post doesn't make sense.  We know Tim Donaghy is busted for fixing games!  

My point is this:  Here's a referee who got into heavy gambling debt with the mob.  He had to work for them, which means they got him for cheap (whatever his debt was), as oppose to outright "buying" him clean.  He did this to himself, put himself into this position.  The mafia didn't come to him and buy him; he pretty much cause this situation on his own, thanks to his gambling problems.

Ed Hochuli, doing what we imagine he does all day - working on the guns. And I'm pretty sure that, despite all the rumors about "naming other officials and players" that people want to see, and the "NBA is fixed" storylines you might read, here is the deal:  I highly doubt this is anything but an isolated incident.  It could be that there are other refs caught up in this, but it seems very unlikely.  The only way another ref could be involved is if he, too, had a gambling problem and was indebted to the mob.  Buying NBA refs is financially unfeasible for most mobs. It might makes sense to buy NFL refs, since they are lower paid and the stakes is higher (more money is bet on the NFL), but not an NBA ref.

The NBA might be fixed by David Stern (that's a different topic, but I'm not the Sportsguy), but by outside forces... in my opinion, unlikely.

I don't know, that's my take. What do you guys think?

Prime Time Time: 

 



Leave a comment





4 Comments

Comments

[July 26, 2007 3:46 AM]  |  link  |  reply
Brian said

Here's the thing I want to know, which came first? Did Donaghy dig a hole gambling on NFL/MLB/Horse Racing/Greyhounds etc., then start fixing games to pay off the mob, or was he fixing games he was reffing for his own personal gambling gain, but couldn't bet enough to offset his losses in games he couldn't fix and when the difference became too big the mob owned him.

You're probably right about refs being bought, if they don't dig that initial hole, the amount invested is probably never going to pay off w/out raising suspicion. But refs being bent, that might be what Donaghy is going to blow the whistle on.

People always think they're underpaid. It wouldn't surprise me if some of these refs don't see themselves as well off at all, especially when some of the guys they're whistling for fouls are making $20M/year. I think Donaghy probably does have a name or two to name among his colleagues. There's no way he worked with these guys night in and night out and they never figured out what was going on. Who's to say they didn't make a bet or two with Donaghy.

The first thing criminals do is look for an accomplice, it's much easier to do something wrong if you're in it together.

[July 26, 2007 10:15 AM]  |  link  |  reply
stopmikelupica said

Very good points, Brian. You're right about a lot of these things, including the accomplice thing. I hadn't of thought about that. Plus you are right, if another ref wanted to place a bet, they might have gone through Donaghy instead of putting themselves directly at risk.

Still, you have to figure some guys are honest (or Stern-fearing), so Donaghy probably wouldn't have advertised his situation unless he was extremely comfortable with said ref.

And, like one article I read said: "NBA refs crews aren't that tight - they switch crews every game, and often only talk in the locker room, if at all. It's quite possible they wouldn't have talked enough with Tim Donaghy...", especially given his hot-head reputation. Today's Post has an article from a beat reporter about his "run-in" with Donaghy while catching a flight... it's pretty tame, but he makes it seem like some sort of big ordeal that should have tipped everyone off (it's nothing). Never the less, it does show how everyone percieved Donaghy as nothing more than a hot head. Chances are the other refs might not have interacted with him that much. We'll see what more comes out....

[July 26, 2007 6:09 PM]  |  link  |  reply
JJ said

Ya know, on all these sites, the writing is really superb lately....
what a pleasure for someone who was suffering in AOLsportsblog hell with the morons. Glad to find this network.

You make a good point, SML, about the cost of buying a ref and why it's unlikely the mob can buy them, unless they already have a problem. But gambling and living above your means are two vices in our society that are more common than you think and once there's a problem, the mob could get these guys for the cost of their gambling debts just like they did with Donaghy.

I have to agree with Brian that I'd look for an accomplice within the NBA in some way, shape or form. And I'd start with refs that are grads of Cardinal O'Hara HS to look into.

Donaghy hired a top flight whistle blowing attorney who was a former fed prosecutor. He must have something he can sing about to save his skin. And as the Feds first found out about him through their mob wiretaps, I think they're looking for those in the basketball world, not in the mob.

I really, really hope I'm wrong. I don't want to think games are fixed. Like Brian had said before, it's like being told there is no Santa Claus as a kid.

[July 27, 2007 6:13 PM]  |  link  |  reply
TD said

Hey, just stumbled upon this blog, and there were a few things that I think you may have misunderstood or not known about sports gambling.

First off, remember that what bookies want is equal action on both sides of the game. The bookie keeps 10% of all winning bets, so if Team A defeats Team B, and there is exactly $1 million dollars wagered on each team, the bookie makes $1 million from the bets on Team B, but only pays out $900,000 for the winning bets on Team A. Thus, the bookies make a $100,000 profit.

However, it is rare that there is even action on both sides of a game. Let's say there is $1 million wagered on Team A and $500,000 wagered on Team B. If Team A wins, the bookie loses $400,000. But, if Team B wins, the bookie makes a $550,000 profit. Then the bookie can contact the ref and tell him that they need team B to win.

Secondly, although Vegas is on the lookout for suspicious activity, there are plenty of illegal bookies out there that are well-financed enough to handle the size of bets that a Mafia operation would make. So, they can avoid detection simply by using other illegal bookies.

And third, sometimes a Mafia bookie with a ref in his pocket might call another bookie and ask what their action is on a game that the ref is officiating. Let's say the other bookie tells him that he has $1 million in wagers on Team A, but only $500,000 on Team B. The Mafia member will then say "How about I bet $500,000 on Team B, just to even it up for you. The bookie will obviously take that, because he is then guaranteeing himself a $100,000 profit, by having equal action on both sides. Then, the Mafia can instruct the referee to have Team B win, giving them a $400,000 profit.

Thus, if the Mafia has a ref who is in over his head in debt, there are several ways they could profit from this, without raising an eyebrow in the regulated gambling world of Las Vegas




Spring Training 08
































Site Map | Contact Us | About Us | Advertise With Us