Life in the Trash Lane

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The Book of the Week is “Life in the Trash Lane, A Sports Agent’s True Story” by Mel Levine, published in 1993. This sloppily edited volume described a bygone era in terms of the financial aspects of “amateur” sports in America. Only “professional” athletes could receive compensation in the form of money or gifts from work-related people and entities. College players were considered amateurs.

The author began a career as a tax attorney and business investor, but also became an agent for college football players on their way to the pros. He offered his services as an agent, CPA, lawyer, and financial planner. Initially, representing big-name athletes boosted his ego. The author hired various scouts called “bird dogs” who would help him acquire clients who had barely started college but were perceived as talented players. On the surface, sports agency looked lucrative, but it was actually a cutthroat, sleazy business.

The convention in the late 1980’s was for agents to advance expenses to the professional hopefuls, and then, if the players made the pros, the agent was paid about 5% of the athlete’s earnings. The author paid for their cars, insurance, housing, gifts for their significant others, legal fees, etc. (a clear NCAA rule violation). The author continued to run afoul of the strict NCAA rules, but he rationalized that all of the other agents were doing so, too, and he needed to stay competitive. Many times, he was almost busted.

The author was suckered into paying big bucks to numerous players he represented, but they never paid him even in cases when they made the pros. The players owed him thousands and thousands of dollars, but he developed a version of Stockholm syndrome– acting as a father figure to a few of them, and remained fiercely loyal because he felt an escalation of commitment.

In May 1986, one of the author’s clients had an accident in the expensive car paid for by the author. Two major Miami newspapers’ stories on this prompted the question of how the athlete could afford such a car. The car was likely provided by his agent, or his college– the University of Miami. If so, the NCAA violation would end the player’s career before it started, and the scandal would ruin the reputations of the agent, the school, and many others.

The author cooked up a scheme to get a slew of parties out of trouble. He shredded all the paper contracts of his rule-violating clients, and claimed he was running a car-leasing operation; the athletes’ parents were leasing the cars for them [like everyone really believed that (!)].

The author told of another client who was nothing but a boondoggle, but the author stuck by him for years, anyway. By 1987, “He was damaged goods for a [National Football League] team to expend a valuable draft choice on a kid with a bad ankle, drug problems, legal problems, and a dishonorable discharge from BYU was more than any of them would bear.”

As can be imagined, the sports agency business will keep commercial litigators in business forever, as its seamy underbelly consists of an orgy of litigation. The author dismissed yet another client’s transgressions: “At worst, he blew up a Porsche (quite by accident), got arrested in New Jersey for carrying a concealed weapon and unfortunately got into a fight or two. No big deal.”

Read the book to learn about a slew of other details of the conduct of sports agents and their clients of the late 1980’s.

Disney, Disney – BONUS POST

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This is the song Ron DeSantis (governor of Florida) is singing now.

Disney, Disney

sung to the tune of “Monday, Monday” with apologies to the Mama’s and the Papa’s.

Call-ing, ALL ho-MO-phobes
Call-ing, ALL ho-MO-phobes
Call-ing, ALL ho-MO-phobes

Disney, Disney, [Call-ing, ALL ho-MO-phobes]
so expedient for me.

[Call-ing ALL ho-MO-phobes, call-ing, ALL ho-MO-phobes]

Disney’s learning all about how anti-woke I can be.

Oh, Disney’s torment, Disney’s torment is guaranteed.

[Call-ing, ALL ho-MO-phobes]

Anti-Disney donors, I do what they say,
’cause I need the MONEY.

Disney, Disney, I love power today.
Disney, Disney,
in my state
you’re not allowed to be gay.

Oh, Disney’s torment,
my Florida laws meant
you must go through me.

Oh, Disney, Disney, you can’t proceed
with your upgrading spree.

Every single day, every single day,
every single day of the week you’re mine, yeah.

And you’re under China’s thumb [and you’re under]
And you’re under China’s thumb.

You’re an easy target all of the time.

Disney, Disney, [Call-ing, ALL ho-MO-phobes]
so expedient for me.

[Call-ing, ALL ho-MO-phobes]

Disney’s learning all about how anti-woke I can be.

Oh, Disney’s torment, Disney’s torment is guaranteed.

Anti-Disney donors, I do what they say,
’cause I need the MONEY.

Every single day, every single day,
every single day of the week you’re mine, yeah.

And you’re under China’s thumb [and you’re under]
And you’re under China’s thumb.

You’re an easy target all of the time.

Disney, Disney, I love power today.
Disney, Disney,
in my state
you’re not allowed to be gay.

Disney, Disney, it’s time to pay.

Oh Disney, Disney…

Just About Everybody vs. Howard Hughes

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The Book of the Week is “Just About Everybody vs. Howard Hughes, The Inside Story of The TWA-Howard Hughes Trial” by David B. Tinnin, published in 1973.

In the 1930’s, Howard Hughes inherited his father’s oil-industry-equipment company, Toolco, which sold a unique, patented, lucrative drill. By the early 1950’s, Hughes had become a pilot passionate about acquiring jets (whose engines had technology that was obsolescing pistons) for his airline, TWA. He was an alpha male whose desire for control of his company led to decades of complex litigation involving age-old economic and political issues.

As American society became ever more capitalistic in the Postwar Era, businessmen hired more and more attorneys to wield more and more power and influence. They sought to change the tax laws to make more and more money.

Hughes was a victim of his own success in that he was using highly leveraged, deficit financing to purchase the new jets through his Toolco. Into the 1950’s, individuals (rather than their companies or employers) were the ones responsible for debts if they needed to borrow money for their businesses. This economic condition has come full circle with tech startups.

Hughes borrowed from banks and insurance companies, but by the late 1950’s, his debt was so high, they refused to give him special treatment. He used dirty tricks (which arguably weren’t illegal but were unethical, at best) to order jets from a few different suppliers.

Hughes’ incestuous business transactions generated an escalation of commitment among various parties, who were averse to losing even more money if they withdrew from their ongoing deals with him. Need it be said, there is nothing new under the son (or sun– either one). In the early 1960’s, his creditors terminated his borrowing privileges and created a voting trust that took control of TWA. Neither side wanted to see TWA go bankrupt. There were, of course, other wrenches in the works, which are too numerous to mention here.

The orgy of litigation resulting from Hughes’ business activities triggered a very controversial legal and economic issue. Hughes owned 78.23% of the voting stock of TWA, which was financially affiliated with his Toolco. At that time, TWA shares were not owned by the general public. His side argued that he should be allowed to control his companies as he saw fit, because he had a controlling interest in them. On the other hand, he really didn’t own them– his creditors did!

Besides that, if TWA went belly-up, there would be far-reaching economic consequences for many stakeholders. All employees of TWA would lose their jobs, competing airlines would benefit financially, contractors supplying jets and their parts to TWA would lose a customer, Hughes’ lenders would lose megabucks, etc., etc., etc.

According to the book (which appeared to be credible although it lacked Notes, Sources, References, and Bibliography), in June 1961, the big lawsuit initially launched in federal court in the Southern District of New York against Hughes was named TWA v. Howard Hughes. TWA charged Hughes with making special deals with third parties that led to financial harm for TWA. He tried to keep competing airlines from buying jets he wanted for TWA, through monopolistic practices.

BUT, due to disastrous losses (from a downturn in air travel that prompted proposals of various airline mergers, and his tax-evasion tricks), Hughes chose to cancel a portion of jet orders for TWA. Under his crushing debt load, he couldn’t afford to pay for all of his purchases. So the airline couldn’t stay competitive in the commercial airline industry. Other airlines were purchasing jets sooner at lower cost. Hughes’ series of attorneys through the years, of course used all manner of shenanigans (through: filing a blizzard of documents with creative legal arguments, counter-suing and appealing rulings) to delay the case.

One last-minute development that aided Hughes’ attorney before Hughes would be charged with contempt of court yet again, was a curious January 1963 Supreme Court ruling regarding jurisdiction in connection with a monopolistic entity. There was a little federal agency called the Civil Aeronautics Board (CAB), that had been regulating the airlines. The attorney repeatedly tried to get the case against Hughes dismissed– by arguing that CAB, rather than a federal court, should have been trying Hughes’ case.

Read the book to learn every last detail of this suspenseful story that spawned reams of tabloid fodder, but also greatly impacted the legal, economic and tax cultures of corporate America.

Ghosts from the Nursery

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The Book of the Week is “Ghosts from the Nursery, Tracing the Roots of Violence” by Robin Karr-Morse and Meredith S. Wiley, published in 1997. The authors cited scientific studies to support their assertions about the links between the increasingly younger ages at which Americans are committing increasingly more frequent horrific crimes, and the social and cultural trends that are driving this alarming revelation.

At the book’s writing, in the United States, criminal justice system spending was three times (!) the entire healthcare budget. The authors argued that the seeds of criminality in humans are planted in the womb rather than in early childhood, as previously thought.

Environmental factors, such as a future mother’s or father’s consumption or inhalation of toxic substances, alters the reproductive mechanisms in a fetus’ brain cells. If the fetus’ environment is neglectful, chaotic or hostile– people are raucous, or physically abusing the mother-to-be– it stands to reason that the child might have behavioral problems later on. These problems could range from hyperactivity, impulsivity, attention deficits and learning disabilities to criminality.

The range and extent of damage done varies with the time frame in which the abuses occur. It has been found that any amount of alcohol drunk by a potential father or mother can adversely affect: spermatozoa and ova weeks before conception, the zygote, embryo, fetus and then the child’s health thereafter. Maximum visual damage is done to the brain of a fetus, when the abuses occur during the limited time, for instance, in which the neural connection from the retina to the visual cortex is made. Language skills develop or fail to develop, similarly.

The opposite is true, too: a nurturing environment will maximize benefits for the child (even in the womb!) when parents’ soothing or happy voices are heard by the fetus during his or her audiological development. After emergence from the womb, the baby can recognize his or her mother’s, father’s or others’ voices. Preverbal memory (an emotional vibe emitted by parents and others– a mood felt by the fetus and then infant and then child) stays with everyone through their entire lives. Parents have been shown to display the same behaviors their parents did with their own babies and children.

The authors mentioned several European studies that showed the incidences of juvenile criminality and suicide increased with an increase in unwanted pregnancies. That’s obviously a can of worms. But, since reams and reams of data have been collected from decades and decades of sociological, psychological, medical and legal studies worldwide, perhaps a multi-pronged approach applied locally would help– instead of commissioning more, additional expensive studies for the purposes of procrastination and patronage.

HOWEVER, one particularly rich vein of data on how to invite failure of the multi-pronged approach at the federal level of poverty-fighting (and on a related topic, crime-prevention), can be found in the administration archives of the late president Lyndon B. Johnson. A 20/20 hindsight look at the enduring actions he did take, are unfairly omitted from the history books that show an anti-liberal bias. His administration saw the start of Medicare and Medicaid and the passing of landmark civil rights legislation. BUT, these great accomplishments were overshadowed by conspiracy theories that he plotted the assassination of JFK and of course, his role in a needless war.

Johnson had grand plans to eliminate poverty at home, but shortly after he came to power, he decided to send Americans abroad to fight a war that led to countless deaths and ruined lives. And continued to rationalize why it needed to continue. Johnson’s anti-poverty programs weren’t given sufficient time to succeed because they became starved for funds.

That is why this country has regressed on the social-programs front: Every American president has sold his soul to the MILITARY [Currently, that military is fighting a war at the Mexican border instead of overseas; a future post of this blog will elaborate on this].

The only president fully justified in diverting significant taxpayer monies from improving conditions at home, toward fighting a war, was FDR. Since WWII, alpha males with hubris syndrome have been funding military actions whose long-term costs outweigh the benefits.

As a final insult that indicated that Johnson had major control issues, was the fact that he cruelly teased his own Democratic party by withdrawing from a 1968 reelection bid at the last minute, leaving the field to a few other candidates, and uncertainty in his wake. He also gave his political opponents a golden invitation to smear him in so many ways.

Granted, there are countless other vicissitudes of history that come into play with any president’s actions, but as is well known, campaign-finance regulation in America has become horribly eviscerated in recent decades, so the increase in financial influence of special-interest groups other than the military, has also played a role in this nation’s shifting priorities.

Be that as it may, the United States’ practices fly in the face of reason by bringing in a “pound of cure” (after the fact!) via a complicated, expensive bunch of bloated, bureaucratic government services (special-education, welfare, foster care, criminal justice, etc.). Instead of an “ounce of prevention.” One specific program has been found to be the most effective solution thus far in preventing crime in the long run: infant home-visitation programs, because the problems are dealt with early! This was the conclusion of a criminology team who submitted a report to the U.S. Congress in April 1997.

Clearly, different levels of government can implement more of a combination of social programs and legislation in order of what works best pursuant to all those scientific studies (preferably longitudinal ones), regardless of costs, limited by whatever the budget will reasonably bear; instead of going the easy, greedy, or power-hungry, politically expedient (and fraught military) route.

A grass-roots movement would have to hold officials’ feet to the fire on that– perhaps appealing to their egos by giving them a legacy via a footnote in the history books crediting them for getting it done. This, while keeping political patronage to a minimum (It used to be called “honest graft” but has reached excessive levels in certain regions; time will tell whether upcoming elections oust the “Tammany Hall/Boss Tweed” contingents.).

So, for instance, a hypothetical mandate for a large, diversely-populated city might consist of:

First, an infant home-visitation program;

Second, no-charge universal pre-kindergarten program;

Third, stricter background checks and bans on specific firearms and loophole-closing;

Fourth, a community-policing program (that does not involve military hardware) like those mentioned in this blog’s posts, “L.A. Justice” and “Riverkeepers”; and

Fifth, imposing and enforcing a legal maximum to class sizes in early-childhood education.

If additional funding is found (for whatever reasons), there could be other kinds of education programs that deal with issues such as: teen pregnancy, sex education, contraception, substance abuse prevention (all possibly as a part of the high school health-class curriculum), parenting classes, family planning, welfare-to-work, at-risk youth centers, and job training– again, prioritized from the most to the least effective outcomes.

Anyway, read the book to learn much more about research results on this topic, and the authors’ suggestions on crime prevention via focusing on ways to improve outcomes in connection with pregnancy and child care.

Misfire

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The Book of the Week is “Misfire, Inside the Downfall of the NRA” by Tim Mak, published in 2021. This volume told the all-too-frequent story of alpha-male executives with hubris syndrome, who use their employer as their personal piggy bank, and bankrupt them. That of the National Rifle Association (NRA) was just the latest in a series of such scandals in recent decades.

As it began to go belly up, the NRA had 76 people on its board of directors, a few of whom were celebrities. They received no salary, but took ridiculous advantage of their expense accounts, and at the same time, and, in an obvious conflict, some were tasked with overseeing the NRA’s finances.

A power vacuum that started in the late 1980’s allowed Wayne LaPierre to assume the most powerful executive position in the organization by 1991. His colleagues– the NRA’s officers, and executives of its outside communications agency — manipulated him in order to form a cult of personality around him. This way, they, too, could partake of all the first-class travel, shopping and host of other aspects of a luxury lifestyle through their outsized salaries and expense accounts.

After the Sandy Hook elementary-school shooting in December 2012, the NRA became even more sociopathic, throwing up distractions in its messaging. It was already aggressively– as it had been since 1977– defeating every bit of firearms-restriction-legislation it possibly could using not only its money, but also its ability to influence politicians and voters through its network of priceless, powerful contacts; even to its own financial and reputational detriment. It argued that politicians should seek to improve America’s mental health system, and that everyone in the country had a right to own a firearm for the purpose of self-defense!

Countless, cowardly politicians have caved under pressure to the NRA’s demands; they voted against even weak proposed laws that would restrict gun acquisitions and gun usage, that would hardly have made a dent in sales of firearms, because they wanted to get reelected. As is well known, the NRA was a monster-sized lobbyist and political donor. It had a mean-spirited cancel-culture: publicly shaming its ex-employees on social media if they criticized it, even years after their employ.

Beginning in April 2019, a decades-long power struggle resulted in an orgy of litigation between and among the NRA, its communications agency, and its law firm, whose main go-to executive had become besties with LaPierre. That executive, too, was availing himself of the benefits derived from financial crimes of excess typical of these kinds of organizations.

Read the book to learn all about it. Wayne LaPierre has been just one (of those countless who are actually caught!) of a few poster boys whose financial crimes borne of excessive greed have been exposed, but sooo few organization leaders such as he, are punished for their misdeeds. Here are a few others, who were actually punished (and the year in which they went to jail):

2005, Dennis Kozlowski

2005, Bernie Ebbers

2006, Jack Abramoff

2007, Richard Scrushy

2012, Bernie Madoff

And here is the song they sing when caught:

I TOOK IT EASY

sung to the tune of “Take It Easy” with apologies to the Eagles.

Well, I got out on BAIL.
You can’t put me in JAIL.
I got SEVen sins on my mind.
Whistleblowers betrayed me.
Prosecutors flayed me.
My lawyers are close friends of mine.

I took it easy.
I took it easy.

Don’t believe the evil liars who say I’m guil-ty.

I live it up while I still can.
I hid my assets. Then it hit the fan.
I found a place to make my millions.
I took it easy.

Well I’m STILL your leading male.
I’m just too great to fail.
My claques, flacks and sycophants all aGREE.
I DID nothing wrong.
I’ll delay this CASE so long you’ll give up on punishing me.

Come on, payyy me,
my bonus and sa-alary.
I have no doubt that friends in high places are gonna SAVE me.

TaxPAYERS lose. I win.
You’ll never catch ME again.
So eat your heart out. Look at ME grin.
I took it easy.

Well, I got out on BAIL.
You can’t put me in JAIL.
I got NO remorse on my mind.
No matter how much you hover,
you’ll NEVER recover, all the money you say is not mine.

I took it easy.
I took it easy.
Don’t believe the evil liars who say I’m guil-ty.
Come on, payyy me,
my bonus and sa-alary.
I have no doubt that friends in high places are gonna SAVE me.

Oh, I got it easy.
YOU’RE the one who’s slea-eazy…