Sports Law Roundup – 9/8/2017

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I used to write the sports technology roundup at TechGraphs, an internet website that died, and now I am writing the sports law roundup at ALDLAND, an internet website.

Here are the top sports-related legal stories from the past week:

  • Athlete advisor fraud: In February, Brian J. Ourand, who worked as a financial advisor to athletes, including Mike Tyson and Glen Rice, admitted stealing over $1 million from his clients and pleaded guilty to federal wire fraud charges. On Wednesday, a federal trial judge sentenced Ourand to thirty-three months in prison, less than the thirty-seven months federal prosecutors requested, but more than the year (plus some home confinement) Ourand sought.
  • Radio host ticket fraud: Earlier on Wednesday, FBI agents arrested Craig Carton, who cohosts WFAN’s (New York City) morning sports talk program with former NFL quarterback Boomer Esiason, on fraud charges based on allegations that Carton was operating an event-ticket scam. According to federal prosecutors, Carton induced investors to fund a concert ticket resale venture by claiming that he had special access to purchase the tickets when, in fact, he did not. Carton and an associate instead used the investors’ money for themselves, including to repay casino debts and some initial investors in a Ponzi-style arrangement.
  • Rockets sold: Tilman Fertitta bought the Houston Rockets on Tuesday for $2.2 billion. Fertitta, a Houstonian, is the owner of Landry’s, Inc., a corporation that owns restaurants and other commercial properties including Bubba Gump Shrimp Company, the Golden Nugget casino, and multiple aquariums in Texas, Colorado, and Tennessee, among many other things. Microsoft CEO Steve Ballmer set the previous record for the purchase price of an NBA franchise when he bought the Los Angeles Clippers for $2 billion.
  • NFL sanction standards: In light of the ongoing Ezekiel Elliot saga, PFT’s Mike Florio (who, people forget, is a lawyer) penned an essay on the NFL’s low standard of proof used in determining violations of its personal conduct policy, which concludes: “As long as the league has the power to impose discipline based on the very lowest legal standard of proof, any player who finds himself under scrutiny had better be able to show that there is no credible evidence of any kind that could be viewed in any way as suggesting that he has any responsibility for anything that happened.”

Sports court is in recess.

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ALDLAND Podcast

Even the ALDLAND Podcast is not immune from Lebron discussion, and so we start off the episode with that very topic. Where will he go? Why will he go there? All these questions and more are discussed. But don’t worry, Carmelo Anthony, Chris Bosh and Dwyane Wade, we haven’t forgot about you and also predict your landing destinations. Not to be left out, soccer makes its presence felt in this edition of the ALDLAND Podcast as the World Cup final gets a healthy preview.

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ALDLAND Podcast

A very special edition of the ALDLAND podcast this week as blog founder AD joins us to talk NBA free agency and the MLB all-star game. Marcus and I revisit some of our MLB picks from the start of the season and AD makes his own.

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Download the ALDLAND podcast at our Podcasts Page or stream it right here:

C-3P-No: Chris Paul, David Stern, the fourth wall, and McCulloch v. Maryland

In a matter of hours last night, the following events occurred, in sequence, beginning around 8:00 Eastern:

  1. The Hornets, Rockets, and Lakers agree to a trade that would send Chris Paul (aka CP3) to Los Angeles, Lamar Odom, Louis Scola, Kevin Martin, and Goran Dragic to New Orleans, and Pau Gasol to Houston. Or something like that.
  2. The NBA and the re-formed players’ association finalize the new collective bargaining agreement, officially ending the lockout.
  3. David Stern, on behalf of the league, nullified the trade for “basketball reasons.”

In trying to understand what happened here, citing “basketball reasons” is pretty unhelpful. I suppose it’s preferable to “bocce ball reasons,” but still. Stern ostensibly was acting on behalf of small-market owners, including Cleveland’s Dan Gilbert, who objected to the deal. What he won’t tell you in this conversation, but everyone else knows, is that the league owns the Hornets. Keep reading…