New York, NY - NBA Commissioner David Stern met with the media Tuesday to discuss the gambling investigation of former league referee Tim Donaghy.
Donaghy is under investigation by the FBI for allegedly betting on and fixing games that he worked during the past two seasons, in a gambling scam that reportedly involved members of the organized crime community in New York.
Choosing his words very carefully because of the ongoing investigation, Stern called it “the most serious situation and worst situation that I have ever experienced — either as a fan of the NBA, or as a lawyer for the NBA or as commissioner of the NBA.”
Stern spoke for more than an hour, first illustrating the guidelines for officials and the league’s security system that involves former FBI officials, Secret Service and police. He then tried to give as many details about the investigation into the alleged gambling scandal.
According to Stern’s timeline, the league was notified of the investigation, and Donaghy’s alleged involvement, on June 20 and could not take action without hindering the process. Donaghy then resigned on July 9, 11 days before the story broke in a New York Post report on July 20.
“We understand that [Donaghy] is accused of betting on games in the NBA,” Stern said. “We’re not positive it’s games that he worked, although I understand it was some games that he worked. I understand that, maybe, he bet on other games in which he didn’t work.
“I understand that he is accused of, or will likely be accused of, providing information to others for the purpose of allowing them to profit on betting on NBA games.
“I don’t know the number of games. I don’t know which games, and until this moment I have not deployed substantial amount of people to do the work that would be necessary to satisfy us because I felt constrained by the FBI’s request that we not communicate this to anybody, and so the smallest number of people possible knew this in the NBA office.
“On July 9, Mr. Donaghy resigned. Suffice it to say that we would liked to have terminated him earlier upon learning of certain things, but it was our understanding that the investigation would best be aided if we did not, so we did not and he resigned.
“We understand the relative time period being investigated is the past two seasons — 2005-06 and 2006-07. I can tell you that during that period of time, Mr. Donaghy refereed 139 regular-season games, eight playoff games and four preseason games.
“I also understand that Mr. Donaghy is the only referee who is alleged to have bet on NBA games and disclosed confidential information to others, with respect to NBA games that would enable them to place wagers with an advantage.
“I understand this is an isolated case involving an NBA referee engaged, not only in violation of our rules, but in criminal conduct. I await the outcome of the investigation by the NBA and the determination by the Justice Department to what they are going to do with it.”
Stern refuted reports that said the league knew of Donaghy’s betting activities this season and still allowed him to work. He said there was league knowledge of a prior incident Donaghy had in a dispute with a neighbor while he lived in Pennsylvania.
The dispute, according to Stern, occurred in January of 2005 and the league was unhappy with the issue. Donaghy was unable to work playoff games that season as punishment and he soon moved to Florida because Stern said the league threatened the official’s job if the problem had persisted.
Stern also said there were allegations of Donaghy gambling in Atlantic City, something officials are prohibited from by the NBA. An investigation into those allegations came up negative.
Gambling of any kind, other than horse racing in the offseason, is prohibited for NBA officials, although Stern said “we are going to re-visit everything,” in relation to officiating.
Everything apparently includes the system used to review game work by officials. Stern said the system was instituted to help officials develop and improve, and it was not put in place to check into potential criminal activity, although he added that could now change.
Stern also noted that the league will do its best to restore the credibility of the games.
“We take our obligation to our fans in this matter very, very seriously,” Stern stated. “I can stand here today and pledge that we will do every look back possible to analyze our processes and seek the best advice possible to see if there are changes that should be made and procedures that should be implemented to continue to assure our fans that we’re doing the best we possibly can.
“Doing the best you can doesn’t always mean that criminal activity by a determined person can be prevented. All you can do in many cases is deal with it as harshly as you can when you determine it and hope that acts as a deterrent.
“If there is anything that is possible, virtually regardless of cost, we plan to pursue that and to, in effect, re-affirm our covenant with our fans that the NBA is a product that will remain proud of its officiating staff, which we believe is the best in the world, and that our games are decided on their merits.”
Stern said he felt “betrayed” by what happened, but still said he believed it was an isolated incident.
“We think we have a rogue, isolated criminal,” Stern reiterated. “I still have to be protective of my officials, including those who likely have been and will continue to be unfairly besmirched because of the allegations that have been made against Mr. Donaghy.
“By and large, they get it right most of the times. They get it wrong sometimes. They do their darndest to get the result right.”
In one of his closing statements, Stern was adamant about restoring the league’s good name.
“I think we are going to regain the confidence of our fans,” he said.
