From Front Office Sports <[email protected]>
Subject Sports Betting’s Dark Side Exposed
Date March 22, 2024 11:24 AM
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March 22, 2024

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Good morning, and congrats to anyone who stayed awake to see 14-seed Oakland (with its men’s basketball budget this year of $2.3 million [[link removed]]) upset 3-seed Kentucky ($23.6 million—more than 10 times the Golden Grizzlies’). On the docket today: The still-emerging Shohei Ohtani gambling situation still has lots of open questions, but it also highlights a darker side beneath the rapid growth of sports betting. … Both Comcast Spectacor and the 76ers are looking to advance their separate arena-related development projects. … Former USWNT star Sam Mewis joins the Front Office Sports Today podcast. … NHL commissioner Gary Bettman conveys more frustration about the Coyotes’ venue efforts. … The Royals and Chiefs look to sweeten the pot in advance of an upcoming election to provide taxpayer funds for planned stadium projects.

— Eric Fisher [[link removed]] and David Rumsey [[link removed]]

Confounding Ohtani Episode Exposes Dark Underbelly of Sports Betting [[link removed]]

Mark J. Rebilas-USA TODAY Sports

What happens when the highest-paid [[link removed]] player in the history of U.S. pro team sports is connected, at least indirectly, to illegal gambling? We still don’t entirely know, but the disturbing and oft-contradictory saga that is still very much unfolding also exposes a dark underbelly to legalized sports betting that has otherwise enjoyed a historic and meteoric rise over the past six years.

There’s something happening with Shohei Ohtani, but what it is isn’t exactly clear. What isn’t in dispute, however, is that a bank account owned by the Dodgers’ superstar wired [[link removed]] millions of dollars last year to an illegal gambling operation. An initial story coming from Ohtani’s camp was that the payments were made to cover gambling debts run up by his interpreter and close friend Ippei Mizuhara. A subsequent account from Ohtani’s lawyers pivoted sharply and instead claimed that Mizuhara stole the money without the player’s knowledge.

MLB has yet to comment formally, and after prior embarrassing sagas involving stars such as Mark McGwire, Sammy Sosa, and Alex Rodriguez, the league will be closely scrutinized on how it responds to its most famous player—who ordinarily enjoys a virtually spotless reputation—venturing into this type of area. The matter, however, is already being turned over to authorities, and the Dodgers have fired Mizuhara.

Rapid Growth, Darker Realities

More broadly, this situation highlights an entirely different and far darker side of the rapid expansion of U.S. sports betting since 2018, when the Supreme Court allowed individual states to set their own rules in this space. Much of the focus since then has been the massive growth of overall user activity [[link removed]] to unprecedented levels, fan engagement fostered through the legalization, and the extensive dealmaking between leagues and major sportsbooks such as DraftKings and FanDuel.

But just in the last two weeks in addition to Ohtani:

Cleveland Cavaliers coach J.B. Bickerstaff said [[link removed]] he and his family have been threatened by gamblers. Indiana Pacers star Tyrese Haliburton said he feels like a “prop” and that his social media has been dominated by gambling chatter. The NBA fined Minnesota Timberwolves center Rudy Gobert $100,000 for making a money gesture toward a referee, seemingly implying he was on the take, and Gobert subsequently said that “betting is hurting our game.” Former Jacksonville Jaguars employee Amit Patel was sentenced to more than six years in prison for embezzling more than $22 million from the NFL team, and he said he has struggled with a serious gambling addiction.

Earlier this month, Sportradar similarly detailed [[link removed]] how suspected match-fixing in 2023 stayed roughly equal to the year before and how artificial intelligence is now being used to help fight against that.

Following the Dodgers’ second and final game Thursday in Seoul to start [[link removed]] the 2024 regular season, Ohtani’s locker was guarded by team officials, and the star left without speaking to reporters, leaving many more questions unanswered.

Building Up? Philadelphia’s Arena Developments Gain Steam, Tension [[link removed]]

Kirby Lee-USA TODAY Sports

Let the arms race in the Philadelphia arena battle commence.

Sides in the long-simmering debate have already been drawn [[link removed]], with the Flyers’ parent organization Comcast Spectacor openly pushing to keep the 76ers at its Wells Fargo Center, and the NBA team instead advancing its separate efforts to build a new downtown arena. And, for months, that divide has run along that very straightforward one-arena-or-two philosophical difference.

But both sides are now actively burnishing their respective arguments.

Comcast Spectacor has formally brought in [[link removed]] the neighboring Phillies as a development partner for a dramatic $2.5 billion makeover planned for the south Philadelphia sports complex. The multistage effort calls for the development of two hotels, residential and office space, retail shops, a mid-sized concert venue, outdoor plaza, and upgrades to the existing Xfinity Live! dining and entertainment destination.

“We’re taking a big step forward,” Phil Laws, Wells Fargo Center president, said to Front Office Sports. “Getting the Phillies on board officially and formally really signals that this project is going to happen. And it highlights the vision we have to take this complex to the next generation.”

Retail Politics

The 76ers, meanwhile, have released [[link removed]] an updated building plan for their proposed $1.55 billion venue near Philadelphia’s Chinatown and, in particular, have added more street-level retail and restaurants to the overall development in an effort to help attract more visitation on non-game days, as well as altered planned street closures during games. The shifts arrive in response to community feedback the team has received.

“While we have made many updates … we are grateful for more opportunities to hear from Philadelphians about how to further strengthen this project,” said David Adelman, 76ers co-owner and lead developer on the team’s project.

The amended 76ers plan, however, is still drawing rebuke from some groups, with arena opponent Asian Americans United saying it “raises more questions than answers,” and that “developers still fail to address the most persistent public feedback on 76 Place: It’s in the wrong location.”

Laws said the announcement of the Phillies’ involvement is not designed as a gesture toward the 76ers. And while there has been no change in the respective and hardened positions, Laws added the development plan could be altered to accommodate the 76ers should the team radically change course and opt to stay in south Philadelphia. To that end, Comcast Spectacor has had a standing offer to partner equally with the 76ers on a new arena in the existing sports complex.

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FRONT OFFICE SPORTS TODAY All In on Women’s Soccer

Rob Kinnan-USA TODAY Sports

Former U.S. women’s national team star Sam Mewis (above) was recently named editor in chief of Men in Blazers’ new vertical, The Women’s Game. She joins the show today to talk about the rise of women’s soccer in Europe, where she sees the U.S. game headed, and how she plans to use her new platform to grow the impact of a sport that is beginning to attract huge crowds.

🎧 Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

LOUD AND CLEAR On Thin Ice?

Matt Kartozian-USA TODAY Sports

“We would have preferred [them] to be in a new arena by now.”

—NHL commissioner Gary Bettman on the Coyotes, whose future [[link removed]] in the greater Phoenix area likely hinges on the results of an upcoming land auction. Arizona’s owner, Alex Meruelo, is expected to bid on a 95-acre parcel of land in north Phoenix for a potential new arena after the Arizona State Land Department Board of Appeals unanimously approved a $68.5 million appraisal. Failure to secure the property would leave the Coyotes without a permanent arena, with the franchise currently playing at a temporary 5,000-seat venue at Arizona State University (above).

ONE BIG FIG There’s a Catch

Kirby Lee-USA TODAY Sports

$266 million

The total amount of money pledged [[link removed]] via community benefits agreements (CBAs) with Jackson County, Missouri, by the Chiefs and Royals. The CBAs are contingent on a majority “yes” vote during the Jackson County general municipal election April 2, which would extend an existing sales tax that would help fund the MLB team’s new $2 billion proposed ballpark [[link removed]] and renovations to Arrowhead Stadium.

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Conversation Starters The NBA plans to shut down the G League Ignite team after this season, according to The Athletic’s Shams Charania [[link removed]]. The team’s purpose, developing players outside of college basketball, has diminished with the emergence of name, image, and likeness opportunities and the transfer portal. What does watching March Madness look like from Stadium Swim in Las Vegas? Check it out [[link removed]]. The inaugural Best Venues Award will use data-driven methodology backed by Sports Innovation Lab to showcase the most innovative facilities in sports. Rates for Best Venues increase this Sunday at 11:59 p.m. ET. Submit your venue [[link removed]] now. Editors’ Picks How Cable’s Slow Death Led to a New Era of Gambling Scandal [[link removed]]by Michael McCarthy [[link removed]]What seemed like free money in fact comes at a price. Another Wall Street Giant Wants a Piece of Sports [[link removed]]by Eric Fisher [[link removed]]The investment bank forms a new team devoted to sports deals. Ted Leonsis’s Quest for Public Money Leads to Maryland, per Report [[link removed]]by Alex Schiffer [[link removed]]The future home of the Wizards and Capitals remains unclear. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Catherine Chen [[link removed]]

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