NBA teams are now turning over phones to attorneys investigating the leagueâ€s sports betting controversy. While this may seem dramatic, this is a standard move in sports league probes that does not necessarily signal a broader or escalating scandal.
As first reported by The Athletic, the NBAâ€s outside law firm, Wachtell, Lipton, Rosen & Katz, has requested access to cell phones, phone records and other materials belonging to team employees. One of those teams is the Los Angeles Lakers; Damon Jones, whom the Justice Department has charged with conspiracy to commit wire fraud and money laundering, served as a shooting coach to LeBron James and unofficial assistant to the team. He reportedly had “special access†to Lakers information, which Jones is alleged to have sold as part of an illegal betting operation.
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The leagueâ€s investigation follows charges by the Justice Department against Jones, Miami Heat guard Terry Rozier and Portland Trail Blazers head coach Chauncey Billups. The charges involve separate conspiracies: Rozier is accused of sharing insider information and manipulating his play to advance prop bets, while Billups allegedly participated in a Mafia-linked scheme to rig poker games. Jones was allegedly involved in both conspiracies.
The NBA says that teams†employees are complying with requests in the probe.
“The NBA engaged an independent law firm to investigate the allegations in the indictment once it was made public,†a league spokesman told Sportico. “As is standard in these kinds of investigations, a number of individuals and organizations were asked to preserve documents and records. Everyone has been fully cooperative.â€
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A sports league demanding phone data and other electronic evidence highlights the different roles at play. Federal prosecutors want to prove that more than 30 defendants across two cases committed crimes. NBA investigators are focused on determining whether Jones, Rozier and/or Billups—and potentially others—broke NBA rules and, if so, how they did so and what lessons can be learned.
Even if Jones, Rozier and Billups are ultimately acquitted of criminal charges, they could still have violated NBA rules. From that lens, the request for phones is an employment matter for Billups and Jones, and a labor issue for Rozier, who is an active player.
NBA commissioner Adam Silverâ€s role is also notable. He has not just the authority, but the duty, to investigate. Article 24 of the league constitution states that the commissioner has “the responsibility for the general supervision and direction of all business and affairs of the League and shall have all such other powers as may be necessary or appropriate to fulfill this responsibility.â€
Betting conspiracies threaten the integrity of the league and its relationships with fans, business partners and the public.
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Employment by a team in a league of independently owned franchises has unique features. Employees do not work for the league itself. However, league operating documents, employment contracts and employee handbooks obligate team personnel to preserve and share evidence relevant to league investigations. Failure to cooperate can result in termination or suspension.
Sports leagues have routinely used this framework to conduct investigations and gather evidence.
For example, MLB obtained phone records and text messages from Houston Astros employees during its electronic sign-stealing probe. In her investigation into allegations of abuse and sexual misconduct in womenâ€s pro soccer, former Deputy U.S. Attorney General Sally Yates reviewed numerous texts, calls and emails. When the NFL investigated the New England Patriots in Deflategate, the leagueâ€s report relied on text messages from Patriots locker room assistants. The NFL also gathered texts and other evidence in its investigation of then-Dallas Cowboys running back Ezekiel Elliott, who was accused of domestic violence. The NBAâ€s ongoing inquiry into whether the Los Angeles Clippers circumvented the salary cap through a sponsorâ€s payment to Kawhi Leonard similarly involves evidence collection.
Sometimes league investigations arenâ€t public matters, especially when investigations find no wrongdoing. Like most businesses, leagues prefer to handle controversies internally.
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While leagues can use contractual agreements to require cooperation, their authority is limited by the scope of those contracts. Despite their wealth and scale, leagues like the NFL and NBA are mere private entities, not government bodies.
Unlike government entities, the NBA lacks subpoena power. It cannot threaten a team employee or player with contempt of court or criminal charges for refusing to provide testimony or share evidence. Nor can the NBA compel people outside the league to cooperate, and those who choose to speak usually do so without being under oath. As a result, witnesses may knowingly lie to league investigators and conceal facts. By contrast, federal prosecutors can threaten witnesses with criminal charges if they fail to play ball or lie.
Not only do leagues lack governmental powers, but they must adhere to legal constraints. The NBAâ€s collective bargaining agreement and the leagueâ€s relationship with the NBPA include confidentiality provisions. Privacy laws and norms further limit how leagues can investigate players†communications and off-court activities.
While the NBAâ€s steps in this investigation are typical thus far, itâ€s possible the collection of phone evidence could uncover more evidence of wrongdoing.
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You never know whatâ€s on a phone.
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