Prioritize Integrity and Mitigate Threats to Ethical Behavior
In 2014, NBA Commissioner Adam Silver wrote an op-ed calling for the legalization and regulation of sports gambling. The piece was released seven years after NBA referee Tim Donaghy plead guilty after an FBI investigation that revealed he bet on games, provided inside information, and fixed games in collaboration with an organized crime syndicate.
Silver continues to call for federal oversight of sports betting, but as sports face more scandals, the short term financial windfall might be threatening the long term integrity of the games, hurting the reputation and financial stability of leagues. The temptation for players and league personnel to act unethically has only increased with the legal proliferation of sports betting.
A Reputation built on integrity and trust is the foundation for long term success. Your company may find short term gains or profits in collaborating with certain groups or third parties, but you must consider the long term implications otherwise it may damage your organization’s reputation and success.
Develop and Communicate Clear Policies While Providing Necessary Support
The investigations involving Billups, Rozier, and others include allegations that they collaborated with organized crime networks, so if true, it is doubtful they were unaware of the illegality. However, beyond directly gambling on league games or conspiring to impact the games, there are still grey areas in how much inside information can be shared with friends and family who are not league personnel.
Donaghy allegedly faced significant debt due to his gambling addiction, whereas Rozier reportedly had an $8.2 million tax lien the IRS filed in 2023 where he resided in Florida, the same year Rozier allegedly began providing inside information and manipulated his performance. Financial and personal hardship can lead to desperate, unethical actions especially when personnel feel as though they have nowhere to turn without judgement.
Companies that do not set out clear policies for conduct or actions, both in the scope of the job and in their private lives, that may impact the reputation of the organization and its employees can be left scrambling when there are indiscretions by those working for or representing the company. Also, providing support for mental health struggles like addiction can help employees manage issues before they spiral.
Laying out clear policies through an employee handbook and making those policies, and the consequences for breaking rules, easy to find can help avoid more significant issues or legal action when an employee is held accountable. This includes clearly communicating any changes or updates while explaining the reasoning behind these changes.
Address Vulnerabilities As Soon As They are Identified
Jontay Porter, a former NBA player who pleaded guilty in 2024 to conspiracy as a part of a gambling scheme was accused of feeding inside information regarding his own performance then taking himself out of games. Proposition, or prop, bets are wagers on an event or performance in a game unrelated to the final outcome, like points scored or yards gained by an individual player. Both Porter and Rozier were accused of providing information to bettors then manipulating their performance based on that information, like taking themselves out of games early.
In January 2024, three months before Porter was arrested, NCAA president Charlie Baker had called for a federal ban on all prop bets due to harassment of players and the ease in which they can be manipulated. Later in 2024, in the wake of Porter pleading guilty, the NBA announced that its betting partners would no longer take certain prop bets on players making a “low-salary” or are on short-term contracts. Rozier, in the last year of a 4 year $97 million contract, was not subject to that rule change. Now leagues are calling to limit prop bets as the NBA and MLB both navigate the fall out from separate betting scandals.
The concerns regarding the manipulation of prop bets and sports gambling have been communicated since PASPA was overturned. In spite of these clear vulnerabilities, leagues and their betting partners have been slow to limit or ban prop bets. It is up to leaders to address these vulnerabilities, especially as they relate to possible unethical or illegal behavior by those inside and outside the organization that could hurt the company or its reputation. These vulnerabilities can range from weaknesses in cybersecurity to a lack of safeguards or protections on access to the finances.
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