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NCAA Basketball: Needless Fraud, Waste and Abuse

"Do ya think we paid too much to watch this event, coach?"

More photos » by Kody Whiteaker - AP

"Do ya think we paid too much to watch this event, coach?"

I have been a little late writing this piece because of other demands, but this all started with an article by Mike Miller of MSNBC's Beyond The Arc pointing out this New York Times piece by Pete Thamel.  What this is all about is the price coaches are forced to pay for admission to AAU tournament games, disguised as "packets" of information about the high school players.  You might reasonably believe that information would cost you around $50 bucks, tops.  You would be wrong:

Forget travel and food. Some coaches have to pay $350 simply to see players in a single game at a tournament, or even more if they want extra scouting information. You know, really top-end stuff like players’ names and where they go to school.

If it sounds nuts, that’s because it is.

That's right, coaches have to pony up some serious dough just to attend these events.  It varies from event to event, but in every case under discussion, the purchase of these packets are mandatory for coaches (presumably, the general public pays something like $10 or so to attend).  So if you are a coach, and even if you know who you are watching, you have to pony up a couple hundred or so just for the privilege, whether you want all that or not.  Here's Vanderbilt's Kevin Stallings' experience recently at a Memphis event:

Just after sitting down with some fellow college coaches, two tournament employees told Stallings that he had to pay $295 for a packet of rosters and information that doubled as an admission fee for college coaches. The coaches in attendance told him that they had been required to do the same thing.

Stallings said he had paid a $10 admission fee and did not want or need the packet, so he hit the road out of principle.

Star-divide

It's hard to blame him.  The article goes on to explain that Stallings was there just to see one recruit, and he didn't need the information packet to identify him.  He knew who he was, yet the organizers were insisting that he purchase information which was utterly useless to him for an exorbitant fee.

Needless to say, this revelation has prompted quite a bit of commentary in the blogosphere and mainstream media, and rightly so.  You can see by Mike Miler's comments that he finds this practice outrageous, as do many of the coaches.  But the problem goes even deeper than that.  Many of the coaches are paying hundreds of dollars for what are essentially blank pieces of paper:

Louisville assistant Steve Masiello was indignant at the one packet’s cost – because it had bubkis. "I refuse to pay $250 for a blank piece of paper," he told Thamel.

In most of the United States, this is not really extortion, as some have labeled it -- it is fraud.  It is so bad, and so apparently widespread to defraud coaches out of money with essentially nothing, that the NCAA has decided to suggest a radical solution -- that the organizers of these events consider, you know, providing at least some defensible modicum of value for the information:

In order to avoid NCAA intervention, event operators who choose to sell packets of information to NCAA coaches are asked to make every effort to ensure that the packets of information are complete and accurate.  In addition, it is not an acceptable practice for prospects' coaches to substitute their own demographic information for that of the prospective student-athlete.  It is important that the prospect and his/her family retain the opportunity to exercise control over the recruiting process, so please ensure that each prospect's demographic information appears in these packets.

What a hot, steaming bucket of bovine excrement.  Yeah, the big, bad NCAA might "legislate" away the right that they have apparently granted the organizers to charge ruinous fees if they don't stop providing -- I kid you not -- "prospects' coaches ... own demographic information."

So where is the outrage?  Well, coaches apparently feel that complaining too loudly about this behavior is not in their best interests, lest the AAU coaches involved in this undertaking decide to punish them by throwing sticks in the way of their recruitment of prospects under their charge.  Now, let that roll slowly around in your mind for just a second -- the NCAA coaches fear that the AAU coaches will begin acting as de-facto agents ... for themselves!  And at the expense of the young men under their charge!  Astonishing?  Yes, even for the putrid underbelly of NCAA recruiting.

Now, before I get too carried away, I don't mean to suggest that it is somehow immoral for the organizers of these events to charge coaches more.  In fact, I would argue the opposite, and Mike DeCorcy explains why:

College coaches also have spent money on fine restaurant meals and private plane travel when on the road during the NCAA's summer evaluation period. And many of these coaches are paid six figures (high-major assistants) and seven (big-time head coaches). But when some tournament organizers in July asked the coaches to pay as much as $300 for tournament "books" – essentially rosters for the competing teams – some not only balked, they griped.

The lesson: It's OK for nearly everyone involved in summer recruiting to make money, but not for the people who organize and run these summer tournaments.
 
Just so we're clear on that.

DeCourcy's right.  It is not fair for the AAU guys not to get paid, at least a little, for their event.  Let's be clear about one thing, though -- these events are sponsored by others, mainly shoe companies and other athletic interests.  It's not as if the organizers are going to be out of pocket if nobody shows up -- that's just a dodge, if anyone is actually suggesting it.

On the other hand, this is America.  People are allowed, and should be allowed, to charge for viewing of these kind of events.  Plus, DeCourcy is right about another thing -- if a coach can spring for a $300 meal at Emeril's Delmonico Steak House or Wolfgang Puck's Spago, he can afford a little extra to be seen by his star recruit in a tournament. 

So I have a really simple solution, and here's how it works:  Set up different levels of access, just like political dinners do -- up close and personal with extra information for the coaches who are willing to pay more, and just a seat in the arena for the general public and those coaches for whom that information and access is useless.  Better seats, a genuinely useful and complete data package, and ability to be seen by the recruits.  For everyone else, the regular seats  at a nominal fee.  That way, Kevin Stallings can sit up with the rest of the regular folks and watch his prospect.  Kind of like the difference between first class and coach.

With this arrangement, the coaches who are willing to pay get what they want -- an "unobstructed view," if you will.  And as a bonus, they get a packet of information that at least has all the correct, up-to-date contact information and some other useful stuff to take home as a souvenir.  The pinchpennys can sit with the rest of us, and do whatever it is they do.  As a double-super-secret bonus, the tightwad coaches or ones for whom the investment is a bad one (like the Stallings case) get to meet lots of NCAA and AAU basketball fans like you and me -- win, win, win!

But if you want to sit with the coaches, you gotta spend a little more.

0 recs  |  Comment 24 comments |

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The Invisible Hand

I would trust the solution of this problem to the marketplace; surely Adam Smith’s invisible hand can work its magic in bringing forth value. For as the master said:

"Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer."

"The urge to save humanity is always a false front for the urge to rule it."

- H.L. Mencken

by Wild Weasel on Aug 3, 2009 6:50 PM EDT reply actions   0 recs

If only ...

… the marketplace weren’t distorted by unfair influence, or at least the perception of it, I would totally agree.

A Sea of Blue -- Kentucky Sports for the Discerning Fan

by Truzenzuzex on Aug 3, 2009 10:43 PM EDT up reply actions   0 recs

It seems

Adam Smith lived in much more honorable times.

by hoboat33 on Aug 4, 2009 12:00 AM EDT up reply actions   0 recs

Off topic Tru

But are the mailbags no longer daily?
Or what is that set up now??

by BleedinUKBlue on Aug 4, 2009 1:15 AM EDT up reply actions   0 recs

Well ....

… they should be, but I have a lot of interference from real life in my blogging at the moment. I am trying to get to a process where I can get them back to daily, but I am so swamped with work that I just can’t do them and blog about anything else without making a monstrosity of a post. I get about one hour per day to blog, and it’s tough to do more than one quality post in that little time.

This work crunch will hopefully ease soon, as I have a big project coming to an end in a month or so. At this moment, I am just trying to keep my head above water. Sorry about the temporary difficulty, I’m working hard on finding extra time to get it all in. Hang in there.

A Sea of Blue -- Kentucky Sports for the Discerning Fan

by Truzenzuzex on Aug 4, 2009 6:43 AM EDT up reply actions   0 recs

Illegal Antitrust and Pricing Activities

I would think that the The Robinson-Patman Act; The Sherman Act;The Clayton Act could used in federal court to end these pricing practices. And clearly federal law has jurisdiction considering the interstate nature of AAU and NCAA basketball. One coach, one lawyer and all this goes away.

by kdpearson on Aug 3, 2009 6:59 PM EDT reply actions   0 recs

And for us fans too

I always attend the NIKE PeachJam in N. Augusta, SC. I have always wondered why there were no rosters or names on the back of the jersey’s . now I know. They charge me $5 to get in (which is actually a real steal) … I only recognize the top recruits from what I get on the NET – but the action is always great.

by ukcris on Aug 3, 2009 8:37 PM EDT up reply actions   0 recs

It does sound bad.

But is it any worse than the universities that demand a minimum (ex. $50K/yr?) to the fans and/or alums to the respective athletic department fund for the ‘right’ for to purchase premium season tickets? I think not.

'..when they bring a knife, you bring a gun...that's the Chicago way..'

by HozeKing on Aug 3, 2009 8:13 PM EDT via mobile reply actions   0 recs

As I said ...

… I don’t think it’s bad unless it’s fraudulent. If they provide value for the money (i.e. premium seating, special access) then that is fine.

A Sea of Blue -- Kentucky Sports for the Discerning Fan

by Truzenzuzex on Aug 3, 2009 10:37 PM EDT up reply actions   0 recs

I know now why Coach Cal wants

to end summer recruiting…lol….geez…..dont they call this extortion in the court system?

Remember, we're having fun now!!!

by ALLBLUCAT on Aug 3, 2009 8:42 PM EDT reply actions   0 recs

Nah

He wants to end the July recruiting because that’s when WWW takes his summer vacation. :-)

'..when they bring a knife, you bring a gun...that's the Chicago way..'

by HozeKing on Aug 3, 2009 8:47 PM EDT via mobile up reply actions   0 recs

Ho ho ho!

Merrrrry Christmas!

by mrmondaynite on Aug 3, 2009 9:08 PM EDT up reply actions   0 recs

Sounds like

somebody shared the air mattress with JJ Redick again.

by mrmondaynite on Aug 3, 2009 9:12 PM EDT up reply actions   0 recs

It seems like the coaches don't realize the power

that they actually wield. If they were really outraged then they could just skip the events altogether. When a “prospect” calls wanting to know why coach wasn’t there he can tell him that he didn’t feel like getting mugged by the idiots running the tourney.

Mind you, it would require a collective effort by the coaches. Unfortunately you can’t get a large group of Americans to boycott a damn thing. I give you Wal-Mart. Most every citizen knows about their destructive practices, yet people keep shopping there.

How about at the next NABC meeting they get together and make a pact that they avoid the tourneys that they all agree are ripoffs. Once the organizers realize that they’re only getting $5 entries and only a handfull of HS coaches are showing up, they might get the hint. SEE WW’s post about Mr Smith.

As I said, nothing will be done because that’s what we Americans do….nothing…..well, except bitch and moan about stuff, then watch tv and get fat.

I LOVE COOKING WITH WINE
Sometimes I even put it in the food.

by bluecrip on Aug 3, 2009 10:31 PM EDT reply actions   0 recs

Bitch and moan

I’ve got that down pat and pretty close on the fat part.
One coach with balls and no brains combined with a good lawyer might do some good.

"SPORTS"--Not interested----"CATS"--Pull up a chair,I've got all night.

by kydamcat on Aug 4, 2009 12:05 AM EDT up reply actions   0 recs

New practice?

I suppose this is a new racket. I’ve never heard of anything even approaching this type of activity.

One sure way to end it: All coaches agree not to attend the events, but of course that will never happen.

At least if one spends a couple-hundred at Spago or Emerils, they’re getting their money’s worth. This deal, I think not.

by Ken Howlett on Aug 3, 2009 11:37 PM EDT reply actions   0 recs

much a do about nothing

In a multi-billion dollar racket, what’s 300 dollars? I’m with DeCorcy on this one (wasn’t Coach Cal flying around in a private jet? — and I doubt he regularly went for a Subway five dollar foot long when he got hungry). This bru-ha-ha is underwhelming and was created because we’re all so darned bored of these months leading to basketball season.

If there are are important ethical issues with AAU games, then write about them. If the AAU system is unethical, then this is like worrying about the barn door when the whole barn is burning ?

No matter where you're at, there you are

by cincyblue on Aug 4, 2009 12:17 AM EDT reply actions   0 recs

Well ...

… I do think that there is a difference between offering something of value, even if that value is highly subjective. When these guys are providing essentially blank pieces of paper, or paper covered with irrelevant and non-useful information, I think that is over the top.

If they are going to charge coaches a premium, they should provide something for the money. That’s all I’m saying.

A Sea of Blue -- Kentucky Sports for the Discerning Fan

by Truzenzuzex on Aug 4, 2009 6:45 AM EDT up reply actions   0 recs

Sad thing is, that the information used to not only be free, you could

count on a high school coach getting the info out there about the kids they had that were what schools were looking for. It USED to be the AD’s job at a high school to promote the kids that could get scholarships to schools that were looking. The schools got the prestige of having scholarship athletes at their locations and could use that to build their programs. Maybe its too much big business now, but schools and coaches used to put the kids at the top of the heap when it came to helping them out.

Scholarships not only help the kids, they help schools that are not going to get national attention by other means get it. The new “sports factory” schools out there that only exist for this purpose have probably changed the game somewhat, but top level talent kids still attend regular schools.It is just too bad that some people think you have to have Oak Hill Academy, Culver Academy, or Hargrave Military Institute written across your jersey to get national attention from some programs.

Remember, we're having fun now!!!

by ALLBLUCAT on Aug 4, 2009 8:21 AM EDT up reply actions   0 recs

Detroit Is A Good Example

As to my original remarks regarding the marketplace: Detroit and the US auto industry is a glaring example of the results of defying Adam Smith’s advice of promoting interests contrary to those of the consumer. AAU organizers will realize the same sort of rejection eventually and it will not necessarily require organized revolt by NABC, NCAA or conferences. Individual coaches — perhaps Stallings is the trailblazer — will determine that their interests are not being addressed.

"The urge to save humanity is always a false front for the urge to rule it."

- H.L. Mencken

by Wild Weasel on Aug 4, 2009 8:49 AM EDT reply actions   0 recs

let us hope

for the sake of these kids

I LOVE COOKING WITH WINE
Sometimes I even put it in the food.

by bluecrip on Aug 5, 2009 12:51 AM EDT up reply actions   0 recs

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