Category: Sports – Various or Miscellaneous

The Greatest Gambling Story Ever Told

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “The Greatest Gambling Story Ever Told, A True Tale of three gamblers, the Kentucky Derby, and the Mexican Cartel” by Mark Paul, published in 2020.

Sidenote: Speaking of gambling, in May 1988, Paul Laxalt, a Republican from Nevada, and in June 1992, H. Ross Perot, an Independent from Texas: jumped into the race for president. The latter exceeded many people’s expectations.

Anyway, the author described the American horse-race gambling environment of the late 1980’s. At that time, off-track betting was putting smaller racetracks out of business, because gamblers could watch the races on which they bet, live– simulcast on video screens at racetracks and casinos; in other words, wherever gambling was legal. They did not need to be physically present at the racetrack.

Through the decades, the Internal Revenue Service (IRS) got wise and cracked down on gamblers’ financial crimes such as tax evasion and money laundering. The author described one guy at the racetrack who illegally paid cash to winning bettors who wanted their money immediately, who were willing to pay a twenty percent fee to him rather than to the IRS.

The suspenseful part of the author’s story began when he and his best friend identified a talented filly– a female horse– that was running in major races. Practically all horse races had previously featured colts because on the whole, they were bigger and stronger and so more likely to win races, and were worth more money because they could be hired out to breed more race horses like themselves at a much higher volume than could females.

The author and his friend took what turned out to be a life-threatening risk by driving down from California to a casino in Tijuana, Mexico, to place a bet months in advance, on the said filly that was to run in the Kentucky Derby. He explained that by placing bets on events to take place far into in the future, gamblers get tremendously advantageous odds; for instance, 50 to 1 odds three months in advance, rather than, say, 2 to 1 odds on race day, on a horse to win– because that horse has become the favorite. However, if the horse doesn’t run in the race, regardless of the reason, the gamblers will lose all of the money they bet.

Read the book to learn of the gamblers’ activities before, during and after their fateful bet on their favorite horse in the Kentucky Derby.

My Race

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “My Race, A Jewish Girl Growing Up Under Apartheid in South Africa” by Lorraine Lotzof Abramson, published in 2010.

Born in March 1946, the author grew up in Orange Free State in South Africa. Her ancestors were originally from Latvia. Many other fair-skinned people (hereinafter called “whites”) were descended from British settlers. The Afrikaners (descended from Dutch settlers) were the country’s ruling majority. They imposed apartheid beginning in 1948. They interpreted the Christian Bible in a way that depicted dark-skinned Africans (called Africans; hereinafter called “blacks” but the derogatory term is Kaffirs) as servants. All white families had sufficient wealth to employ at least one (black) servant.

The black population way outnumbered that of the white. The Afrikaners felt extreme pressure to oppress the blacks unmercifully, lest they revolt against any and all whites. The Jews were thus largely left alone. The author was the only Jew in her elementary school. She showed natural running ability at an early age, and after collecting a bunch of victories in footraces, she became a source of local pride for the community. So she was tolerated, even though she was Jewish.

In August 1961, the author was chosen to represent her homeland of South Africa in the Maccabi Games, a competition for Jews held in Israel. She met athletes of all different nationalities, including surprisingly, an Indian Jew. Under apartheid in South Africa, simply having a conversation with an Indian (or any non-fair-skinned person) was a crime, in public or in private.

The South African government used a divide-and-conquer strategy, outlawing assembly of ten or more individuals of dark-skinned tribes. The government fomented hatred of one tribe against another. Signs saying, “Whites Only” or “Non-Whites” were posted in all public places to indicate who was allowed where and what they could do. Whites would be arrested for entering a place bearing the “Non-Whites” sign. The police kept photos of protest-marchers (troublemakers– including whites). A person of any skin color who criticized the government would be punished.

In 1991, after serving 27 years in prison, (black political activist) Nelson Mandela was elected leader of South Africa. The whites were deathly afraid the blacks would wreak revenge against all whites. Mandela was forgiving, and didn’t hold a grudge against his oppressors. But he could’ve– as happened in previous decades when various other African countries achieved independence and a black person became the top leader. The South African whites were relieved as hell.

Read the book to learn much more about the author’s life and times and places.

The Longest Race

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “The Longest Race, Inside the Secret World of Abuse, Doping, and Deception on Nike’s Elite Running Team” by Kara Goucher with Mary Pilon, published in 2023.

Born in 1978, the author grew up in New Jersey and the Duluth, Minnesota area. Goucher became a professional runner. Like many of her fellow athletes, the author– who experienced an early childhood trauma– found at a young age that competing in footraces is cathartic.

Goucher focused on her training and reaching the finish-line first, rather than getting all worked up about the numerous stressful situations she endured in everyday living. However, she rationalized away some of the wrongs committed against her, because speaking out against them would ruin her career, her marriage, her friendships, etc.

In the United States, the way runners go professional is to convince a corporate, non-governmental sponsor to pay them to race. Goucher and her husband both signed contracts with Nike, the monster-sized corporation best known for making athletic shoes. The company provided her and her fellow runners in her working group with the best, cutting-edge scientifically and technologically advanced resources for winning races.

However, the Gouchers’ status with Nike was as independent contractors, so they had less legal recourse than that of employees with regard to any illegal goings-on in their field of work. Their coach and immediate boss was the celebrity runner Alberto Salazar. In the single-digit 2000’s, he led the “Oregon Project” which was an attempt to help Americans win races again around the world; their victories had been woefully plummeting for years.

Salazar did boost Kara’s confidence and helped her perform better than she thought she could. But, his behavior and many of his training practices were inappropriate and illegal. He and his colleagues (an alleged psychotherapist and medical doctor) wielded a lot of power over the Gouchers, who owed their careers to their sponsor. Salazar’s underlings hewed to his training methods through fear and force. “He [Salazar] got testy when called out for having a third drink. I could only guess how he would react to being called out about sexual harassment.”

As a female, Kara had to deal with Nike’s double standard of suspending her pay when she ran an insufficient number of races in a specified time period pursuant to her contract. Male runners were punished this way when they got caught in doping scandals or had injuries. She was subject to those same conditions, but she couldn’t race because she was pregnant. In connection with exploring her career options, Kara wrote, “… I found myself again and again in rooms of male executives explaining women’s running to me. There seemed to be more interest in how I would look on a poster than in how the sport could evolve.”

Fighting “City Hall” in so many different areas of life is difficult. Anyone who attempted to do so in professional running in the single-digit 2000’s would have to deal with Nike. It held a near-monopoly with overwhelming power and influence over regulators. Whistleblowers would suffer doxing and death threats.

BUT, it is an age-old truism that when more and more courageous people come forward with firsthand information about wrongdoing by an institution or a particularly powerful individual– the less the harm that will be done in the future because the collective mood of the community will shift against the wrongdoer. Eventually.

Read the book to learn lots of additional details of the Gouchers’ experiences in their professional running careers– their trials, tribulations and triumphs.

Life in the Trash Lane

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

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.

Black Box Thinking

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Black Box Thinking, Why Most People Never Learn From Their Mistakes– But Some Do” by Matthew Syed, published in 2015. This volume attempted to answer the question: “How does failure-denial become so deeply entrenched in human minds and systems?”

The author described two ways of thinking:

1. Some people believe their abilities are fixed, so they won’t improve with practice. They have fear of failure, and make excuses and / or blame others for their failures.

2. Other people believe they can get better with practice, and they are honest about admitting they have made errors. They learn from them. Success is achieved only through trial and error, hard work and persistence.

Number 1 above is also described in the following quote from Bertrand Russell: “There is something feeble and a little contemptible about a man who cannot face the perils of life without the help of comfortable myths. Almost inevitably some part of him is aware that they are myths and that he believes them only because they are comforting. But he dare not face this thought! Moreover, since he is aware, however dimly, that his opinions are not rational, he becomes furious when they are disputed.” Yet another way of putting it is “hubris syndrome.”

Two of America’s recent presidents– George W. Bush and Donald Trump– were this kind of thinker. According to the author’s thesis, they succeeded against the odds (if success is defined as getting elected president), considering that they were blind to their own character flaws.

BUT– their common beginnings saw them through: They both began with the special advantages of inheriting money, mentors, lawyers, and valuable career and political contacts. They proceeded to fail upwards until they reached their peak “Peter principle” level, kind of like the joke: How do you make a small fortune in Israel? Answer: Come with a large one.

The author drew parallels between the topic-areas of aviation and healthcare delivery. These involve life-and-death scenarios when things go extremely wrong. However, that is where the similarities stop. People who have shaped the evolution of aviation have built up a knowledge-base that has served to produce lower and lower death tolls when catastrophes have occurred; powerful, influential people working in healthcare have been stubbornly resistant to adopting measures that would result in a drastic reduction in unnecessary deaths.

The author cited real-life examples from Great Britain and the United States. But there are other major reasons why his comparison is mostly invalid. These involve lawsuits, unions, government regulations and the political climate at the time of the disasters, and the following:

Obviously, workers in aviation have more of an incentive to improve safety, because in a disaster, many more people might die all at once in a plane crash, compared to the one patient on an operating table or examination table. Even if members of the flight crew survive a disaster, their careers are likely over. Even when doctors are at fault, they usually continue their careers.

The author discussed the pros and cons of just-culture versus blame-culture. He described the latter thusly: “It may be intellectually satisfying to have a culprit, someone to hang their disaster on. And it certainly makes life simple.”

The author recounted how a public-relations campaign can fool even intelligent people into believing a particular method of crime-prevention among young people, works wonders. The only way to debunk such a myth is through numerous Randomized Control Trials.

Read the book to learn about additional concepts surrounding psychological self-deceptions that humans employ in order to avoid admitting failures: cognitive dissonance, narrative fallacy, top-down versus bottom-up product development, various biases, and others.

The Education of A Speculator

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “The Education of A Speculator” by Victor Niederhoffer, published in 1997.

Born in 1943 in Brooklyn in New York City, the author sorted “market advisers and investment newsletter writers” into eight different categories, providing a brief description of their behaviors or personality traits. He classified himself as “The Other World Person” because he ignored the overpaid noisemakers and distractions of conventional media outlets that purported to convey information on which securities to buy, sell, or avoid.

The author’s two data sources for his commodities, currency trading and investing ideas consisted of the National Enquirer and his research results from testing all kinds of variables in statistics-calculations of past securities-market data using software. No other sources.

The mid-1990’s saw great advances in statistics software modeling that could process scads and scads of data; hence, market players could erroneously use past performance of investment vehicles faster than ever before for predictive purposes to help themselves and others lose their money faster than ever before. And those advances might have played a part in the scandals and financial crashes that have occurred with alarmingly increasing frequency in the last thirty years. Big Tech’s and Big Media’s incestuous oligopolies (fraught with political donations) just keep getting more hegemonic, so that power and money keep feeding on themselves ad infinitum. Globalization is yet another wrench in the works.

At the book’s writing, global trade had been maturing for decades, but capitalism was still in its infancy in many territories of the world; particularly in ones that were becoming politically democratic again, or for the first time in their histories. Many European countries were in the process of adopting cooperation rather than competition in their financial and economic dealings. A large proportion of them even voted to use one currency among them. The United States kept to itself, but more and more people around the world were starting to trade or invest in foreign securities, currencies and governmental financial entities, so chain reactions occurred more and more.

The Federal Reserve (aka Fed) has always been a major influence on America’s financial markets. The author contended that the Fed was just as clueless as the rest of the country about what effects its making of rate-adjustments would have on the nation’s economy. It is currently just as clueless. But its announcements are made with such confidence and arrogance, that a large number of their listeners are brainwashed into believing they are receiving valuable information.

The incumbents– known names pre-Internet–became the most influential voices in the financial sphere. The wiliest ones use propaganda techniques to paper over their wrong predictions. They never apologize for the losses stemming from their pronouncements. The walls of the author’s business office were lined with portraits of ones who had disastrous losses.

To be fair, the author himself told various anecdotes of his own failures. In 1992, he bought IBM stock for his own kids. That was an embarrassing mistake. He learned to cut his losses at a certain level of the total money he reinvested. And, he didn’t let his greed get out of control when he was winning.

The author was a champion squash player. One similarity between squash and speculating is externalities–opponents’ actions determine players’ actions in the game. So, for instance, in ten-pin bowling, there are no externalities. In squash, there are. In one college finals-match, the author moved his body in a way that tricked his opponent into thinking the ball was going to go in a certain direction, but it went the opposite way. Traders and investors play similar tricks in their communications in the financial markets. Conditions change rapidly so even the market propagandists’ winning streaks don’t last long.

The reason is:

First, independent thinkers make observations or find obscure data that works in making them money. Then software detects their trading tricks. So word gets around, and everyone else jumps on the bandwagon so that the advantage is lost.

Human beings want so badly— to believe they can predict the future, and love to fantasize about getting rich quick– that they tend to look for patterns and order where none exist. The author did provide one vast generalization that might be valuable, though. His statistical analysis between the years 1870 and 1995 inclusive showed that years ending in the digit 5 were good years, and those ending in 7 were bad, for the American stock markets. He didn’t speculate as to why.

However, politics is one major mover of markets, and the collective mood of the United States specifically, might be a bit more upbeat in years when political uncertainty is at a minimum. Presidents and other politicians begin or continue their terms during years ending in 5. The public might be unclear about their future policy directions, or weary of them by the years that end in 7.

Anyway, read the book to learn a boatload more about the author’s philosophy, his trials, tribulations and triumphs in the markets, his research results and comparisons between financial markets and: ecology, games and sports.