GAMBLING ON THE FUTURE OF THE GAME

by Holly Horning

It takes a lot to put baseball’s Opening Day on a back burner but it appears it just may happen.  Take baseball’s most famous player, an interpreter, evidence of massive gambling and an ever-changing explanation and the focus has changed from “play ball!” to “playing the odds.”

Of course, we’re talking about Shohei Ohtani and his interpreter, Ippei Mizuhara.  But this story goes well beyond what they did or didn’t do and strikes at the heart of the game itself, putting baseball into possible jeopardy as it did back in 1919 with the Black Sox scandal.

But before we get to the real issues and concerns about all of this, let’s quickly summarize how this all came about.

• A illegal bookie in California came under federal investigation and records recovered showed a connection to Ohtani’s interpreter and close friend, Ippei Mizuhara, placing bets.
• ESPN was the first to jump on the story.  In an extensive interview, Mizuhara admitted he got into trouble and owed the bookie at least $4.5 mill.  He asked Ohtani to help him out and Ohtani paid off the bookie.
• Ohtani’s spokesperson then confirmed the story but immediately after Ohtani’s lawyers got involved, both denied their earlier statements.
• These lawyers stated that Shohei wasn’t involved at all and that he had no idea Mizuhara was gambling or that his money was being taken.  They stated that Ohtani was actually the victim of “massive theft.”  They did not explain how it could have occurred. They did state that they have turned matters over to the feds but refused to say which agency.
• It was only after the ESPN story broke that reps said that Ohtani realized something was wrong.  He had no idea that almost $5 mill had been missing from his bank account.

There are now even more questions about what actually happened.  We’ve got dozens of questions about the “facts” that simply don’t add up outside of the changing “he knew/he didn’t know” issues.

First, is how Mizuhara got access to Ohtani’s finances.  Potentially, if he was also acting as an assistant in running errands, finding housing or buying things for Ohtani, that would be a plausible explanation.

But it’s highly doubtful that Shohei is the one who is balancing his checkbook and checking his finances.  That’s why accountants are hired, esp. when you just landed a $700 mill contract.  But no one he had hired to oversee his finances noticed anything until the feds came calling.  Were they truly incompetent or were they apprised that the nine $500,000 wire transfers were legit and approved?

What also doesn’t add up is Mizuhara’s ability to run up a $4.5+ mill tab.  The gambling started back when both were with the Angels and Ippei was making $85,000/year.  Now with the Dodgers, he is believed to be making $300,000 – $500,000/year.  Even with that salary, what bookie would allow him to run up a $4.5 mill tab without making some payments along the way?

How could Ohtani willingly get involved in paying off gambling debts after being extensively schooled by MLB via Rule 21?  Every year, all players attend a session where the rules are explained and everyone signs a document stating they fully understand the implications if they break them.  Rule 21 is posted at the entry to every MLB clubhouse.

In the CBA agreement, it is the first rule emphasized in prohibited conduct.  Players cannot bet on MLB, minor league, college, international, high school or youth games.  Nor can they bet on softball or skills contest like the Home Run Derby, at-bats, particular pitches or innings.  Very simply, anything that has anything to do with baseball or softball is off-limits for betting or assisting others. 

Even fantasy baseball.  PLayers can’t even give advice to those who play fantasy baseball.

Ball players also cannot allow others to place bets on their behalf or assist others with placing bets.

And Rule 21 is also clear that MLB employees, of which Mizuhara is one, also cannot bet on baseball.  If they bet on a game that does not involve their team, it is a year suspension.  Games that do involve their organization result in a lifetime ban.

It is not yet known if Mizuhara bet on baseball.  We do know that the bets placed were in California where all gambling is illegal.  The IRS has opened a criminal investigation of him.

While there is still much information to be discovered, it appears plausible that the changing of statements about whether or not Ohtani knew anything or participated in paying off debts could have been made in order to protect him from being suspended or banned.

Which is why absolutely no one is talking – not the crisis manager, his agent, his lawyers, the Dodgers or MLB.  That is until late yesterday afternoon when Ohtani gave a press conference and firmly denied any involvement.

It appears that Ohtani may be put in some legal jeopardy.  The IRS is exploring evidence that the bookie is in receipt of wire-transfers from Shohei.

Federal law states that it is illegal to do what Shohei is alleged to have done which is why his reps are now saying that he knew nothing and did nothing to help his friend. If it did happen, Ohtani would have broken federal tax codes by paying off the bookie.

Which is why Muzuhara changed his story about Ohtani knowing and helping to one in which the player was not involved in any aspect.

Which is why he later said he lied to ESPN.

Which is why Ohtani’s new crisis communications specialist said that Mizuhara used his status as Shohei’s interpreter to control and change the communication Ohtani received.  Mizuhara flatly denies this statement.

Which is why the Dodgers fired him.  Now Mizuhara cannot be compelled by MLB to give testimony because he is no longer an employee.

All of this makes one ask if:

• Ohtani was involved at all with the bookie.
• Mizhura was placing bets for Ohtani.  That would explain the millions owed by someone who wasn’t earning a significant salary in comparison.
• Ohtani and his reps paid off Mizuhara for doing a complete 180 on his story and taking the fall.

What is of greater concern is how MLB will handle all of this.  Ohtani is the face of MLB, their golden child, their cash cow.

How much of an effort will they make to find out the extent of Ohtani’s involvement?

Under Rule 21, if Ohtani is shown to have any involvement with an illegal bookmaking operation, even if he was trying to help a friend, it gives Commissioner Rob Manfred the power to discipline in “the best interests of baseball.”

But what are those interests?  Decimating a team and killing attendance?

Is it about growing the game and attendance/viewership?

Or keeping the game honest?

So far, MLB’s statements have been fairly neutral about what they would do. Only that their investigation is completely independent from the one initiated by the government. 

Is the plan to keep things on the quiet side just in case the facts turn out to be really ugly? Keeping it behind the scenes so it doesn’t distract from the actual 2024 season?

There’s a chance the Feds won’t share info or documentation because it may jeopardize their case.  This identical situation happened with Pete Rose who was shown to have placed bets with the mob on baseball both as a player and manager. 

Because it was a RICO case, the government wouldn’t share official documents with MLB.  That evidence remains sealed and locked up in a secure government location.

How willing are they to dig into whether or not Rule 21 was broken?  Will they request an interview with Ohtani, who could decline and be supported in his decision by the MLBPA?

There is still a lot that is not known and we should not rush to judgement.  This needs to play out and it may take some time.

However, there is one thing we do know. 

MLB brought this mess upon themselves by aligning and pushing gambling that will earn them millions in profits.  Only they call it “gaming.”  A nicer term that doesn’t hint at the problems and addictions it creates.

By creating relationships with gambling organizations, an incendiary device was planted into and by MLB.  The potential for illegal actions becomes bigger and easier. 

The temptations increase and those who get into trouble gambling are more likely to consider betting on baseball in order to pay off their debts.  That’s what happened to Pete Rose who became so in debt to his bookies.

In Ohtani’s press statement, he stated that his interpreter had a huge gambling addiction.

Maybe it’s not the baseball players themselves.  Maybe it’s their friends and/or family who get sucked in and then ask the player for help.  And they will feel immense pressure to help.

As professional baseball partners with gambling, these lines of legal and illegal become more and more blurred.  The chances for compromising the integrity of the game increase significantly.

How much scandal can MLB afford if and when more of these events happen?

Will they truly dig into what really happened with Shohei Ohtani and Ippei Mizuhara, knowing that the facts could truly damage the game’s popularity just as they have been promoting the heck out of this same player?

Will the Dodgers pressure Manfred to sweep this under the rug?  Will they form a coalition of owners to push for hushing up the investigation?  Owners are the ones who hire and fire their Commissioner.

There’s just a huge conflict of interest in every aspect of this case.

But it’s really short-sighted if MLB thought they could create a cash cow without having to deal with any scandal or problems. 

They were looking at increasing revenue without considering the very real cost.

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