Commissioner David Stern Speaks Out About NBA Referee Scandal
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by Roblefko
NBA Commissioner David Stern spoke publicly for the first time today to discuss the alleged gambling regarding Tim Donaghy.
Commissioner Stern started by stating the NBA rules on gambling. He said the rules are “crystal clear” that referees may not gamble on games, or provide information about those games. If they do, he said, they will be subject to discipline, which will most likely be expulsion. He said the NBA educated referees about gambling and brochures are distributed. Referees may not even provide, other than to immediate family, their travel schedules.
Stern said these rules are taken seriously. He said the NBA has a large security department, including members of the FBI, U.S. Army, Police Department, DEA. He stated that the NBA subjects their referees to extensive security checks to the limits provided by the law. With their authorization, for past two years, the NBA has conducted personal background checks that cover credit, bank accounts, litigataion, assets, debt-- "if its legal to have it, we do it," said Commissioner Stern. In addition to that, Stern stated, the NBA retained a consultant in Vegas who informs them whether there are any unusual movements in betting on the NBA, and they are in contact with Nevada Gaming Board.
On the court, the NBA, since beginning of 2003-2004 has been implementing a system that captures every call a referee makes, and every non-call that is deemed by observers to be incorrect. According to Stern, the observer system works as follows. The NBA retains 30 observers, one at each team’s game. They chart the calls, review the game on tape, and then the games are selectively audited by supervisors employed by NBA (they audit the observers), and this past year, the NBA began using 2 of 30 observers to observe other games watched by other observers, and they retained 4 additional experts to audit the auditors, so the system was as “good as it can be.”
According to Stern, the primary purpose of this system was to make them better officials and to increase their call accuracy and to improve the quality of their work. But it was not predominantly developed as a screen for criminal activity.
According to Stern, with respect to Mr. Donaghy, in January 2005, it came to NBA’s attention that he was involved in a dispute with his neighbor that resulted in litigation, in West Chester, Pennsylvania. The NBA hired an investigator to look into that and looked at the complaint. It had to do strictly with a dispute and the NBA had occasion to call Donaghy where in informed the NBA that the allegations were untrue and that he was the person that was being harassed by the neighbor, not as alleged by neighbor . During that investigation, there was allegation made to the investigators on the ground, that Donaghy had gambled at Borgata Hotel in Atlantic City (not sports betting). He denied that he gambled. According to Stern, their investigators checked every casino in Borgata and Vegas to determine whether he was present in any of those places and the investigation came up negative. The only thing that persisted was the dispute with the neighbor and Mr. Donaghy was informed that this made the NBA unhappy.
In 2005 playoffs, the NBA told him he wouldn’t work second round of playoffs as a consequence of making the NBA unhappy with his behavior with respect to his dispute with neighbor.
Donaghy moved to Florida and there were no other allegations against him of any kind in the past two seasons, and nothing showed up in background checks the past two seasons.
According to Stern, Donaghy was in the top tier of accuracy the past two seasons with regards to officiating.
On June 20, Stern stated he got a call from FBI that they would like the NBA to meet with them about a referee alleged to be gambling. The NBA met with them the next day.
He then stated that the NBA is unable to comment about the continuing investigation and the information the NBA provided to the FBI and what they provided to the NBA, but within those constraints “I will give you my understanding” of what Donaghy stands accused of.
“We understand that he is accused of betting on games in the NBA.” He’s not positive its only games that he worked. It may be that he bet on other games which he didn’t work. It is his understanding that he is accused of providing information to others for the purpose of allowing them to profit on betting on NBA games. He doesn’t know the number of games. He doesn’t know which games, and until this moment he has not employed substantial amounts of people to do the work that is necessary to satisfy this because he felt constrained by the FBI’s request that the NBA not communicate this to anyone.
On July 9, Donaghy resigned. The NBA would have liked to terminate him earlier, but it was the NBA’s understanding that the investigation would best be aided if he was not terminated.
It is his understanding that the relevant time period is the past two seasons. It is his understanding that Mr.Donaghy is the only referee who is alleged to have bet on NBA games and disclosed confidential information to others that would enable them to place wagers to their advantage. It is his understanding that this is an isolated case, and he waits outcome of investigation by the FBI. He stated that all of his knowledge is second hand but he felt it was his obligation to speak about it.
He said it was not true that he knew Donaghy was betting and let him work anyway.
He finished his statement by saying that it his obligation as commissioner to retain the best outside experts and consultant about what the NBA can do better to assure fans that games are being decided on merits.
