Sports franchise owners are often scumbags (for instance and for instance) so no one should be surprised to find that many are criminals, but the National Hockey League stands out for the sheer number of criminals that have owned teams. Toronto, Nashville, Los Angeles, Buffalo, Vancouver, and the New York Islanders have all had owners sent to jail while they still owned the teams. Edmonton’s Peter Pocklington was no longer involved with the Oilers when he went to jail but he makes the cut for the NHL All-Star Team. Player rep Alan Eagleson who robbed his clients’ pensions is honorary coach. Ladies and Gentleman, I present Great Crime Bosses of the NHL:First up: William “Boots” Del Biaggio III, one-time San Jose Sharks part-owner, who conned at least $67.5 Million out of numerous people and used $25 Million of that to buy a 27% share of the Nashville Predators in 2007. After ten disappointing years, owner Craig Leipold had decided to sell the Nashville franchise. Jim Balsillie of Research In Motion fame tried to buy the team so he could move it to Hamilton but managed to alienate everyone in sight and was shut out of further dealings. Enter Boots Del Biaggio at the head of a group who wanted to buy the Preds and move them to Kansas City where he controlled a sports arena. Del Biaggio had previously tried to move the Pittsburgh Penguins to KC. He was co-owner with Mario Lemieux of a minor league team and Lemieux was miffed at Pennsylvania’s thwarting of an attempt by a gambling combine/casino to build a new arena for the Penguins. Anyway, Nashville rallied to hang on to hockey and a local group arranged to buy the team from Leipold, who then moved on to ownership of the Minnesota Wild. Del Biaggio joined this new group and contributed his share to a rumored $193 Million purchase price. A year later, Del Biaggio was suing for bankruptcy and holding secret meetings with Balsillie to buy out his share of the Predators. The League refused to allow Balsillie to buy in and Del Biaggio’s share went to a bankruptcy trustee who may still be looking for a buyer. Del Biaggio used faked documents and personal charm to scam millions which he then gambled away, both in Las Vegas and on Wall Street where he favored high-risk offerings that usually declined in value. In 2009, Boots Del Biaggio was sentenced to eight years and ordered to repay some $67.5 Million, which may happen the same day Hell freezes over. BTW, I don’t know how $25 M gets you 27% of $193 M but that is probably one reason why I am not spectacularly wealthy. Rookie forward on this team — and they are all forwards — is Sanjay Kumar, most recent of a long list of owners who have abused the NY Islanders. Kumar was the protege of Charles Wang, founder, with Russell Artzt, of Computer Associates, a multi-billion dollar firm that is currently invested in the Cloud. Kumar joined Computer Associates in 1987 and replaced Wang as CEO in 2000. Under Kumar’s guidance CA used a “long month” bookkeeping practice to delay accounts in a way that would make them appear more desirable to investors. See, if an end-of-quarter month is 35 days long, you can show extra revenue and maybe pretend to pay off debts a bit earlier, thus enabling your outfit to reach its projections. There was other stuff, too, all designed to make Computer Associates look a lot better investment than it was. Mind you, it was a good place to work — Wang took the largest corporate bonus in history (up to that time) in 1999 when he accepted a $675 Million stock grant. Over a billion dollars was paid out in bonuses that year, even though CA was slipping in sales and profits. None of this escaped the notice of stockholders, who took a class-action lawsuit against CA claiming that, in 1996 and ’97, the company had inflated revenues by $500 Million on paper to boost stock prices. And there was a proxy fight over management practices which probably led to Kumar replacing Wang as CEO. And there were bribery charges brought against Wang. And Federal authorities were interested in the company, too. The SEC finally clamped down on CA in 2004. in 2006 Kumar was sentenced to twelve years in prison and a staggering $796 Million in restitution. Meanwhile CA agreed to repay more than $225 Million to stockholders and also clean up its accounting practices. Shortly before going to prison, Kumar sold his share in the Isles to Wang. And that means that the story is not yet over because many folks think Kumar took the fall for Wang. Certainly, that’s Kumar’s story. He says that Wang regretted leaving the CEO post and wanted back in so he stuck Kumar with the fraud that he had perpetrated. Wang is still waiting on the report of a Special Litigation Committee that has already said: “…fraud pervaded the entire CA organization at every level …and was embedded in CA’s culture, as installed by Mr. Wang, almost from the company’s inception.” Probably Wang will only be dinged in a civil court for cash, but, if there are future indictments, Kumar may have a new linemate on the Criminal Owners All-Star team.
When Wang and Kumar bought the Islanders they were seen as saviors because the franchise was in deep trouble. The team was brought into the NHL in order to stave off a Long Island franchise attempt by the World Hockey Association, catalyst for so much that is interesting in the NHL today. But the new team had to pay off more than $40 Million to the Rangers for infringing on their territory so it started out in a financial hole. The team was still in debt to the Rangers and to the League when the original owner, Roy Boe, sold to John Pickett in 1978. Pickett almost got the Islanders back in the black by concluding a cable TV contract worth a great deal in annual revenue but he signed a horrible lease on the stadium and the team tuned into a drain attached to his wallet. Four Stanley Cups (resulting from a smart management decision not to trade draft picks) were not enough to keep the team afloat at the end of the ’80s. Pickett brought in a group of investors called the Gang of Four (more on them later) who picked up a 10% share of the team and handled day-to-day management, but he was just treading water. Then, out of the blue, a buyer emerged. Our next team member, John Spano.John Spano had been a serious prospect to buy the Dallas Stars in 1995 but was somehow unable to close the deal. He also made a stab at buying the Florida Panthers that went nowhere. Then, in 1996, Spano offered John Pickett $80 Million for the Islanders and $85 Million for its exclusive cable contract which earned $13 Million a year for the team. A bit later, Spano also agreed to buy out the Gang of Four. Gary Bettman was overjoyed to have a guy with money taking over the Islanders and the NHL quickly gave its okay. Spano made a bit of a downpayment to Pickett and began acting like an owner, throwing a few bucks into players’ accounts and forcing Mike Milbury to give up his coaching job to Rick Bowness. But, in 1997, it was John Pickett who showed up at the NHL owners’ meeting. It seems Spano didn’t have any money other than the $2.5 Million he’d splashed around the Islander dressing room and he’d borrowed that. The cheque he’d given Pickett for $17.5 Million, bounced. In fact, Spano owed back taxes on his house of $85,000 and was being sued by a couple of companies he had done business with for various frauds. Awaiting prosecution on multiple charges, Spano fled to the Cayman Islands, but returned to the US after striking a deal with prosecutors. Spano delayed his court appearance for a long while but, after trying to pay rent with an expired credit card and bad cheques, he lost his bail, his lawyers quit for fear they wouldn’t get paid, he finally pled guilty to fraud charges and, in January of 2000, was sentenced to six years plus $11 Million in restitution, including $1.25 Mil to Mario Lemieux, who seems an easy mark. Let out of jail on supervised release in 2004, Spano immediately returned to fraud, was charged, convicted, and served four more years in jail before being released in 2009. He’s still out there, folks, be careful! Oh, and the Gang of Four? Two of their members were Stephen Walsh and Paul Greenwood who were indicted for fraud in 2009. They had bilked investors out of more than half a billion dollars over the years. Since they weren’t owners at the time, they don’t make the All-Star Criminal Team. Sorry, lads, I’m sure it would have been a comfort to you over the years you may have to serve in prison (sentencing perhaps next month).
The Spano affair was quite upsetting to the NHL and they vowed afterwards to use real due diligence in checking out prospective team owners — less than a thousand dollars was spent investigating Spano. Kevin Connolly has made a movie about John Spano titled Big Shot, that is on TV from time to time. Most of the material about the Islanders above comes from a great seven-part series by Dan Saraceni for Lighthouse Hockey that I highly recommend.Still from the great state of New York, let’s go upstate to Buffalo for next team pick, John Rigas. Rigas earned his millions from a family cable television operation, Adelphia, based in Pennsylvania. In 1997 the team had been losing money for years and was in deep financial trouble. It was rumored that it would be unable to meet its payroll in December. John Rigas bought the team, then fired team president Larry Quinn, replacing him with his son, Timothy Rigas. A good season followed, then a disappointing one, and the following season the team was steamrollered in the playoffs by Mario Lemieux and the Penguins. In 2002, charges were laid against John Rigas and his sons for fraud. Among other things they were accused of using company funds as their own – Timothy buying a hundred pairs of bedroom slippers out of stockholder cash – and hiding $2.3 Billion from shareholders. John still denies he has ever done anything wrong. After lengthy delays, John got fifteen years in prison and Timothy got twenty. In 2002, when Rigas was indicted, the NHL took away his ownership and ran the Sabres from Gary Bettman’s desk. In 2003, a new ownership group led by Tom Golisano and including Larry Quinn, bought the franchise. Bruce McNall made his fortune smuggling stolen antiquities into the US. Later, he produced a couple of movies including Weekend At Bernie’s which made him a few dollars, too. In 1986 McNall decided to get into hockey and purchased, over two years, the LA Kings. Shortly after assuming complete control of the franchise, in the summer of 1988, McNall closed a deal with uber-scumbag Peter Pocklington to buy Wayne Gretzky, arguably the greatest player in the history of the game. McNall also managed to pick up Jari Kurri and Paul Coffey at Gretzky’s urging. He tried to get Messier, too, but refused to trade Luc Robitaille and so wound up without a complete set of Edmonton Oiler stars. “Pocklington basically wanted the money but Glen Sather wanted the best players he could. Robitaille was number 1 on his list and it took forever to get him to realize I wasn’t giving up Luc,” said McNall in an Ask-Me-Anything session on Reddit last year. ( Highlights. Full AMA.) In 1991 McNall and John Candy purchased the Toronto Argonauts football team and hired US superstar Rocket Ismail away from the NFL. The Argos won a Grey Cup before Ismail went back south. McNall was named chairman of the NHL Board of Governors and supervised the hiring, in 1992, of Gary Bettman, which may cause you to despise the guy right away. Both the Gretzky and Ismail deals were instrumental in raising player salaries. The Kings never won the Stanley Cup in those years, but they came close in 1993. That was pretty much McNall’s high point, too. In 1994, the authorities closed in with questions about various irregularities including bribing a bank president to give him loans. McNall defaulted on a large loan at the end of 1993 and was forced to sell the Kings. It turned out that his wheeling and dealing had gutted the team financially and, in 1995, the LA Kings went into bankruptcy. Luc Robitaille was finally traded and Grant Fuhr briefly joined the Kings (McNall’s memory is that he obtained Fuhr from Pocklington at the same time as Gretzky, Kurri, et al.) Needing some cash during this period, McNall persuaded Michael Eisner to set up a franchise in Anaheim for the Disney Corporation. That deal netted him about $25 Million as Eisner had to pay to set up in Kings’ territory. But soon enough McNall was serving a six year sentence for the usual fraud charges that convict so many of these All-Star Criminal Owners. Still, he seemed not to draw the kind of disgusted sneer that the others merit. Gretzky visited McNall in prison and refused to allow his 99 jersey to be retired until McNall could attend the ceremony. Also unlike the others, McNall cheerfully admits most, or at least many, of his misdeeds. His autobiography, Fun While It Lasted: My Rise and Fall in the Land of Fame and Fortune, gives many details. When I first started looking at criminal hockey owners, I thought that no team had been successful after having suffered through a crime boss, but two Stanley Cups for LA disprove that thesis. McNall is first-line center on the Criminal Owner All-Stars. One of the people that bought the Kings from McNall, Jeffrey Sudikoff, sold out his share during the 1995 bankruptcy. Sudikoff was later convicted of insider trading and other fraudulent activities but was sentenced to less than a year in prison, plus the usual restitution, of course, which, usually no one seems to expect to get back. Sudikoff does not make the cut for this All-Star team. Is there anything else that needs be said about Peter Pocklington except that he sold Gretzky like a slab of meat processed in one of the plants where he tried to break unions? Gretzky wept but allowed Pocklington to say that he, Gretzky, had initiated the trade. Everyone else is clear that Pocklington said that he needed fifteen million dollars and would flog his greatest asset (and Edmonton’s hope for a Cup dynasty) to get it.
When Gretzky went to L.A.
my whole nation trembled
like hot water in a tea cup when a train goes by.
“The Trade That Shook the Hockey World”, John B. Lee
Pocklington wrote a book about this: I’d Trade Him Again: On Gretzky, Politics and the Pursuit of the Perfect Deal after he realized that he couldn’t stay in Canada any longer and moved to the US. So it is some satisfaction to all Canadians that Peter Pocklington was finally found guilty of something (there are so many possibilities, but fraud and perjury finally won out) and sentenced to prison. It is less satisfying when you know that the sentence was only six months plus six months house arrest, and even less satisfying than that to learn that he has yet to serve a single day. You can fantasize about Pocklington meeting his cellmate, a 250 lb. emigre Canadian hockey fan named Cookie who is serving a life term for murder, aggravated assault, and similar misdeeds, but that’s all it is — a fantasy. Pocklington is the despised member of the Corporate All-Star Criminals, sort of their Brad Marchand.By the end of the 1960s, with the NHL expanding to more cities, there was a concerted drive to finally get a franchise for Vancouver. A local group, based around the WHL/PCHL minor league franchise Canucks was in the running but, rumor has it, Stafford Smythe blocked it for some reason or other, but maybe this is just western prejudice against godawful Toronto. Anyway, Vancouver did get a team but the new owner was an American named Tom Scallen. Scallen had gotten rich with Medicor, a Minnesota company that had something to do with the incomprehensible American medical system. That was 1969. By 1972 Scallen was facing various charges resulting from his manipulation of Canucks funds, essentially using hockey proceeds to pay Medicor debts. He spent the next two years in jail and was deported on his release. The Griffiths family bought the Canucks from Medicor and since then things have improved except no Stanley Cup. Scallen insists he did nothing wrong. He was pardoned in 1982 during Trudeau’s decline. A journeyman winger, Scallen will skate on a line with Kumar and Del Biaggio, unless the All-Stars acquire Wang, in which case he may join the father/son Rigas duo. Captain of the All-Star Criminal Owners team is Harold Ballard, the man who destroyed the Toronto Maple Leafs. Ballard was buddies with Stafford Smythe (see Canucks section above), son of Conn Smythe who owned the Leafs. Stafford bought the franchise from his father in 1961 but it was Ballard who gave him the money and Ballard became part of the Leafs organization. These were good years for Toronto who won four Stanley Cups 1962-67, but at the same time Harold Ballard was showing his dark side. At one point he threatened to cut a video line with a fire axe unless the CBC agreed to his demands; he took down a portrait of the Queen in order to stick more seats up in the rafters — “What position can a queen play?” he said; when the Beatles played at Maple Leaf Gardens, he cut off the water fountains, turned off the air conditioning, and charged triple prices for soft drinks. Increasing profits was Ballard’s entire purpose in life. Meanwhile, players had begun to chafe under the serfdom imposed on them by the NHL and the World Hockey Association and the Players’ Union revealed new horizons. Ballard despised unions and he hated the WHA, refusing to ever deal with it. By the end of the 60s, Ballard had alienated several Toronto stars, especially Dave Keon. In 1969 charges were brought against Ballard and Stafford Smythe for using company — that is, stockholder — funds as their own. John Bassett, the third major owner of the Leafs, persuaded the Board of Governors of Maple Leaf Gardens to fire Ballard and Smythe, but the Board and Bassett lacked the followthrough to carry this out. Smythe and Ballard returned, got rid of Bassett, Smythe died, and Harold Ballard wound up owning the entire franchise right before going to prison in 1971 after being convicted on forty-eight out of fifty counts of fraud, tax evasion, and theft. Among other items he had bought motorcycles for his sons and charged them as expenses to the Toronto Marlboros, another of his properties. At this time the negotiations for the Canada/USSR Summit Series was going on and Ballard offered Maple Leaf Gardens as a training venue and did other diplomatic things to win a little favorable PR. Later, he billed Team Canada for every nickel he could squeeze out of them. Ballard later described his prison years as living in a motel with steaks for dinner and color TV in his bedroom. While he was incarcerated, Leafs management hired a European — something Ballard opposed — Borje Salming and made other moves that kept the Leafs a potentially good team. On his release in 1973, Ballard did all he could to destroy this work. Dave Keon’s contract expired in 1975 but the NHL Players Association was not yet able to stop an owner from controlling a player’s leaving his team. Ballard named a huge price for any team trying to recruit Keon, who jumped to the WHA. Keon, who had been a key member of the Stanley Cup winning Leafs, refused to have anything more to do with the Toronto organization for twenty years, after Ballard was dead. Meanwhile, a new young player with signs of greatness named Daryl Sittler had been acquired by the Leafs. Ballard at first lauded Sittler, then — after Sittler became active in the Players Association — tried to destroy him. He traded away Lanny MacDonald who was Sittler’s good friend and denounced Sittler to the hockey press, an action which resulted in Leafs players trashing their dressing room in protest. Sittler ripped the C from his jersey and Ballard said that was equivalent to burning the Canadian flag. Meanwhile Ballard, though micromanaging the team, hired his buddy Punch Imlach as coach. Imlach operated as a Yes man for a while but suffered several heart attacks that effectively removed him from the fracas. In 1981, Sittler finally found another team willing to pay Ballard’s price and he was traded. During all this period the Leafs’ revenues went up. Ballard tripled the franchise income in the early 60s and kept it rising thereafter. At the same time he engaged in petty nastiness that no one can quite explain, like destroying all the Stanley Cup and other championship banners that at one time hung from the Garden rafters. Why on earth? But the fact is, the man was a convicted criminal, possibly sociopathic; Harold Ballard needed no reason except his immediate desires. There are so many other stories about Ballard — his trashing of Foster Hewitt’s pressbox when the Hockey Hall of Fame wanted it as an exhibit, for instance– and the opportunities he wasted — Frank Mahovlich and Bernie Parent were two other potentially great players lost to the Leafs–but whatever the stories, the consensus is that Ballard was the worst hockey owner of all time. Which is why he is captain of this All-Star group of criminals. Can’t you see them skating on the ice in their black-and-white striped jerseys, their names just over their numbers on the back, sort of like Beagle Boys? (Ballard once refused to put players’ names on their jerseys. He was disciplined by the NHL so had names added, white letters on white jerseys, blue letters on blue ones, so that they could not be seen.) They skate out onto the ice, looking for a way to screw over their team mates, seeking a profit that can be made somehow, perhaps by throwing a game. Oh, don’t you just love the criminals that bring you hockey!