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Jay Weiner, Star Tribune
January 26, 2005 SPTBIZ012605
It's a merger made in 18-34-year-old guy heaven. It's a new-fangled Jock Market, a marriage of sports and business, of
gambling and day-trading, of bookmaking and market-making.
- Then, it's all wrapped up in the on-line world. It's the "All Sports Market," and smells like another gambling Web site.
But, said founder Chris Rabalais, most of the 3,000 "traders" on the embryonic site "are from the stock-market world."
That's the concept, which was quietly launched last summer, but that's been seeing real action the past few months.
The All Sports Market isn't about betting Your Team against The Other Team. There are no odds, no point spreads.
It's about "buying shares" with real money in your team - even the Minnesota Gophers men's basketball team.
Then, as your team wins games, the All Sports Market generates dividends derived from a sales commission fee each
trader pays to the site.
As a team performs well, its market value - like that of any successful stock - may increase. It depend on demand and the
confidence of traders.
If it sounds too complicated for a typical sports bettor, it is. But Rabalais, 35, doesn't come from the gambling world. He's a
former stock day-trader.
"I was making 500 trades a day," he admitted, talking to The Sports Biz via telephone from his office in - geth this - Costa
Rica. " generated a tremendous amount of commissions for the broker, maybe three- to four thousand dollars worth a
day. But I made something like $73.14 as a trader. It became clear to me that being in the broker business made a lot of
sense."
He went to work with a techy partner, invested "a few million dollars" of his and others' money. All Sports Market was born.
Traders are charged 5 percent of the cost of their transactions, which are all paid via credit card and Internet.
If you happened to go to AllSportsMarket.com right this minute, you'd find that "a share" of the Timberwolves is trading for
about $19. You must place a bid via this computerized marketplace for shares at that price. If you find a willing seller, you
might be able to buy, say, 10 shares for $190.
Rabalais' company will pocket $9.50 from you for that transaction. But he'll take half of that to create a pot of dough to pay out
dividends for each time the Wolves' win a game.
You can buy shares in major college basketball programs, the NFL, NBA and international soccer, too.
"By legal definition, it's not gambling," said Rabalais. "It's a player-to-player market place. It's not a probability-based system,
not a sports book."
Still, when Rabalais tried to establish his business in Arizona and Nevada, regulators told him while he was legal today, he
might not be forever.
Thus, AllSportsMarket is legally based in the Netherlands. It's president and CEO, he's getting a sun tan in Costa Rica.
Seems this Jock Market brokerage is working out just fine.
Jay Weiner is at jweiner@startribune.com.
By Jerry Work
Lets' face it: the BCS is a piece of garbage. It encourages unsportsmanlike behavior - and there really seems to be too much of that
these days - by forcing teams to run up scores to maintain high poll positions. It encourages corruption by allowing poll voters to
affect dramatic changes at the last minute, bowing to political pressure. It has resulted in weaker overall bowl matchups. And worst
of all, it denies us the ability to settle the matter of the championship on the field.
Auburn, who will face ninth-ranked and two loss Virginia Tech in the Sugar Bowl, are the first team to go undefeated in the SEC and
be denied a shot at the title. They beat three top ten teams, and a good Tennessee team twice. Auburn would actually be better off
under the pre-BCS system because there would at least be the possibility of sharing the title.
California led Texas in the BCS and was poised for a deserved shot in the Rose Bowl until, at the last minute, the last night of
college football - on a night when Cal faced a tough competitor in Southern Miss after a long trip across the country - some voters
raised Texas above Cal. This came after two weeks of politicking by Texas coach Matt Brown. There were even reports that some
ballots in Texas were submitted before the games were even done.
California passed on the opportunity to score a very late, meaningless touch down, and it's likely that move had an impact on their
drop in the polls. There is no longer any room for sportsmanship when a game is in hand. A team competing for positioning in the
BCS has no choice but to pummel its opponents.
The tie-ins the major bowls now have to conference championships has resulted in an 8-3 Pittburgh team playing undefeated Utah
in the Fiesta Bowl, and a two loss Virginia Tech taking on undefeated Auburn in the Orange. Meanwhile, one loss Cal takes on 7-4
Texas Tech in the Holiday Bowl. Are these the best possible matchups that could have been put together?
I don't think the creators of the BCS envisioned what we have now. I really believe it was an attempt to have something better. But it's
time to admit that the system is a failure, and move on. The old system is better than what we have now. A playoff system is very
feasible - given that it already exists in every sport except major college football- and would generate even more money than the
current bowl system. The argument that it would take too much time away from the players' schoolwork is rubbish. Will we ever know
the true details of the conspiracy among the university presidents, the bowls, and any number of parties, to deny us an honest playoff
system? I doubt it. But it is shameful that the presidents of the NCAA-member universities allow such a system, that encourages
corruption and poor sportsmanship, to exist.
About The Author
Jerry Work is an entrepreneur, musician, and sports fan in Nashville, Tennessee. His company, Work Media, is the founder of
SportGamble.us, a community-oriented sports and sports gambling portal with news, links, message boards, blogs, and more.
info@sportgamble.us
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