With a Little Help From My Friends

Share photos on twitter with TwitpicI promise this will be the last book blog for awhile. For one thing, I’ll get to finally play a little poker this week now that the book is out. So you have my bad beats to look forward to…

Our agent Sheree Bykofsky humped Check-Raising the Devil to major publishers. Here was a typical response: “Unfortunately I have to pass on this. While I personally think this is an exciting read everyone else here thinks that “poker books are dead.” Our sales team says it was hot last year but this year the buzz has died down. I tried explaining the other fascinating aspects to Mike’s story but the unequivocal response in the room was negative.” Read More »

The Matusow Book: The Crossroads

Collaboration is powerful. When done right, the resulting sum is greater than its parts. When done badly, it can end up in a body count.

The collaboration process with Mike was involved but surprisingly functional. We amassed hundreds of hours of interviews. Tim would draft a chapter. I would re-write it. He would edit it. I would re-edit it. (Somewhere in there I would tell him to “bite me” and he would call me a “nitpicking *****.”) The chapter would then be read to Mike and recorded so he could make changes.

In the end, collaboration involves getting past your personal attachments, dealing with change, and being able to find the best compromises.

The last change and compromise was perhaps the hardest for me and came after the book was submitted. The publisher really wanted to open the book with Mike living in his trailer. It was a strong image and I understood why he wanted it. But ever since I started working on the book, I had envisioned a particular opening scene. I eventually had to let it go.

Today Tim is posting his, slightly different, version of the opening scene over at Poker Shrink. This is mine:
____________________________________________________

The Crossroads

It was July 14th and it was going to be another scorcher in Las Vegas; at noon the radio said it was already 108. I was driving downtown to Binion’s Horseshoe for the second-to-last day of the 2005 World Series of Poker Championship event. Today, only 27 players remained to battle it out for the richest final table in poker’s history. And I was one of them.

The poker boom was in full swing and the 2005 Championship had drawn more starting players than ever before; 5619 players had paid their $10,000 entry into the no limit Texas hold’em tournament. Harrah’s was claiming that it was the largest sporting event in history. The winner would take home $7.5 million and every one of the final nine players would leave a millionaire. Only five years earlier, Mickey Appleman finished in ninth place in the main event and won less than 75 grand; that’s how big and how fast poker had grown.

As I pulled into the Binion’s valet, I called Michael Craig on my cell phone. Michael had flown into town from Arizona the night before so that he could watch me play. He was walking around Fremont Street and he wanted me to meet him a couple of blocks away. I popped inside and cut through the cool, dark casino until I saw daylight again.

When I saw Michael he said, “I wanted to meet you here today. Do you know where we are?”

”Of course I know where we are. We’re outside in the middle of the desert on the hottest fucking day of the year.”

”No,” he said. “That’s not what I mean. I mean that we’re about two blocks away from Binion’s.” He pointed back down Fremont.

“Yeah. I know. I was just inside there and it was about fifty degrees cooler.”

He laughed. Michael wasn’t just a great writer; he was a really good friend. And I knew we were out here for a reason.

“Take a look down here” he said as he turned and pointed down First Street. “We’re also just about two blocks from the Clark County Detention Center.”

I looked where he was pointing. I could just make out the jail where I had spent six months of my life.

”Not too many people actually get to see their crossroads, Mikey. Everything that you’ve gone through this year, it made you stronger. Think about that today. Do you realize that you’re already guaranteed more money from this tournament than you’ve ever made in any single event? “

What he said about the money was true. I had won a quarter of a million dollars in Aruba right before I went to jail. The only bigger score I had was my win at the 1999 World Series of Poker for $265,000. The first player to bust out at Binion’s today, in 27th place, was guaranteed over $300,000.

What he said was true, but I couldn’t focus on the money. I started thinking about that building he’d pointed to. I’d been out of jail less than three months and just seeing the Detention Center, even from a distance, was having an effect on me. And I didn’t need that distraction right now.

Michael was just trying to help, and he did. But for me, this wasn’t a crossroads. I knew where I was going. My job today was to lift chips off of inexperienced players and stay out of the way of the big stacks. The newbies would be impatient today, but I knew there would be time to pick my spots. I knew, because I had been here before. I had made the 2001 Championship final table – granted I was on crystal meth at the time. But my drug days were now long behind me. And jail was behind me. The only thing that mattered to me now was the eighteen players that needed to bust out today so I could make the final table.

I turned to Michael and said “Only suckers are thinking about the guaranteed 27th place money today. Let’s get the fuck out of this heat.”

He smiled, “O.K. Mike.” He nodded and patted me on the back, “O.K.”

As we walked back to Binion’s I stared at the big neon Horseshoe sign, still pulsing to the same beat as it did when it was the heart of Las Vegas’ once healthy downtown. I remember thinking that this was the last World Series final table that was ever going to be played at Binion’s. They had already moved all the preliminary events to the Rio and in two days the World Series of Poker would leave Binion’s forever.

I was pretty sure the once great gambling hall wasn’t going to get a second chance to relive its glory days.

I knew these kinds of things. I was a fucking expert when it came to second chances.

________________________________________________
Photo Note: The second picture was lovingly borrowed from Card Player. It was taken of Mike later that same day, just as the 10th placed finisher busted out. Mike Matusow had made the 2005 WSOP Championship final table.

Personal Note: When I first started writing about poker, a family friend suggested that I collaborate with a player to tell his or her story. Years later I took her advice.

Sarah Wernick was an expert collaborator. Along with her bestselling collaborations, Sarah wrote the chapter about collaboration in the The ASJA Guide to Freelance Writing: A Professional Guide to the Business, for Nonfiction Writers of All Experience Levels. She died just as we were putting the finishing touches on the proposal for Mike Matusow: Check-Raising the Devil.

Why Do I Want to Pay a Rake?

Like most of y’all, I’m on the Poker Players Alliance’s email distribution list. I think I may have been a member once. Don’t get me wrong. There are clearly some things they’ve done that have had value. They did some good work in PA and MA and they arranged for some responsible and coherent testimony at a Congressional hearing. But more often than not, their shotgun approach to an agenda annoys me. So when I saw the title of their last email “We need your help in Texas,” I immediately deleted it. The gist of it can be found here.

Poker is already legal in Texas. As long as a game is fair, private, and the house doesn’t rake, you can play poker all day long for any stakes you like. I’m down with that. As a player, what’s not to love? So why does the PPA insist that they are humping in my best interest to “legalize” poker in Texas? Read More »

Shronk 1981-2009

I called BJ yesterday. But when I started to leave my message, I just broke down. BJ emailed me, saying he couldn’t call me back, because he wasn’t sure he could keep it together.

It was one thing to know Shronk was gone. It was a whole different level of pain to have to say it out loud. It may be the conversation BJ and I never have — although I think we’ll both try.

Young or old, most people die without living out their fantasy. It is perhaps the deepest tragedy of death. But that wasn’t Shronk’s tragedy. He lived his fantasy every day. I’ve never known anyone who loved what they did for a living more than Shronk. He had the work ethic of a pit bull and the enthusiasm of a puppy.

While I knew Shronk, I never had a chance to work along side him until the 2007 WPT Championship. He was doing video and I was doing photos – so we both “processed” up in a room at the Bellagio. No matter what time of day or night, he was behind his laptop, cursing at some technical glitch that kept him from loading something onto YouTube or celebrating a perfect segment. And when he talked about poker — and about his work — it was like he had discovered sex for the first time. He just couldn’t believe the poker world existed for him to live in. He was a Lost Boy in his own Never Never Land.

From there we rolled into the 2007 WSOP. Every day he looked for the “perfect” piece. Shronk never rested until he had it nailed. When I walked into the media room each day, he’d call out, “Have you seen this yet? You gotta see this.” And he’d cue up a video. I think we watched “Coffee, Soda, Juice” a dozen times — dancing from our chairs. There was no better way to get pumped up for a long day in the Amazon room than starting it off with Shronk. His enthusiasm was infectious and everyone in the media room was the better for it.

I loved that he not only got to play in the $2000 NLHE event that year but cashed in 81st place out of 2038 players. John Caldwell and I sat side by side with dumb grins on our faces as Shronk would run to the sidelines and retell his latest play. I’m sure we looked every bit like proud parents when their kid hits one out of the park.

The tragedy of Justin Shronk’s death wasn’t that he never lived his dream. He lived it every day. The tragedy is ours.

Other Shronk tributes:
The Shronk tribute by Philadelphia Phillies announcer at MLB.com
The Shronk Tribute Show on PokerRoad Radio Part I
The Shronk Tribute Show on PokerRoad Radio Part II
The Shronk tribute by Pauly

The Shronk Poker Road Radio Tribute Shirts
On the back of one it quotes BJ, saying:

No matter how long
We live and breathe,
and whether or not
We remember the name
JUSTIN
We will never forget
the force of nature that was
SHRONK

Online Gaming: Hope Springs Eternal

Both poker and investment seem to be hanging their hats on hope this spring. Where the two worlds intersect is perhaps the epicenter of hope. Online gaming stocks have popped both on the news that PartyGaming settled with the U.S. government and the promise of Barney Frank’s new stand alone bill that would serve to legalize and regulate online gaming in the U.S.

Party’s settlement opens up the company’s ability to be acquired. Without the threat of U.S. retaliation for its pre-UIGEA activities, the company is free and clear to be picked up by a U.S. regulated casino operation.

In better times, Party would probably be flooded with offers. Both Harrah’s and MGM have expressed interest in acquiring an online gaming site. But both casino operators, like many in the casino space, have few pots to pee in right now. Harrah’s is mired in debt from its private takeover and MGM is tapped out, still looking for more money to complete CityCenter. But Harrah’s has at least taken the first step, hiring PartyGaming’s ex-CEO Mitch Garber for the vague assignment of running a newly created company that includes the WSOP and online operations. Read More »

Afterbirth

Last week I dropped my cellphone in the toilet. Luckily it was “pre-game” and I was willing able to fish it out. It started working again the next day – although it doesn’t ring anymore. That’s kind of been a metaphor for my life over the last few weeks – a number of “oh shit” moments that eventually worked out to some acceptable level.

Like Prissy in Gone With the Wind, “I don’t know nothin’ ’bout birthin’ no babies.” But I’m beginning to think that getting a book out is like having a baby. At first, you’re all starry eyed with the romantic notion. By the end of it, you’re calling everyone in the delivery room a cocksucker.

The only difference is that just as you’re ready to push out your book, the doctor starts saying things like, “Are you married to the name? Let’s change the name” or “It would be a lot easier to deliver if we could lose a few apendages. Look, it’s never gonna be a Major League pitcher. We can lose a few fingers and the kid won’t even miss them.” In the end, you hope that what comes out resembles the vision you had going into the project. Read More »

MGM Mirage Busto…Harrah’s Next?

I suspected something was brewing at MGM Mirage. Its earnings announcement was overdue with nary a peep. Then, instead of reporting its fourth-quarter earnings, MGM filed two other SEC forms. The first one was to confess they had tapped out their $4.5 billion revolving credit line by withdrawing the last remaining $842 million. And the second filing confessed why it was late with its earnings announcement. In a nut shell, MGM’s finances have shit the bed and it has its hands full. It is about to be in breach of its senior debt covenants – and if that happens, MGM’s debt laden house of cards starts to collapse.

Just to be sure everyone got the message, MGM added, “it is likely that…the Registrant’s consolidated financial statements for the year ended December 31, 2008 will contain an explanatory paragraph with respect to the Registrant’s ability to continue as a going concern.” Translated, this means if MGM isn’t able to sweet talk its senior debt holders into revising their agreement, bankruptcy is the next stop down the line.

MGM is carrying a mountain of debt, primarily related to the $9 billion CityCenter project. And a lot of it is scheduled to come due in the next couple of years. They have about $1.2 billion due this year and about another $1.1 billion due next. MGM will get a nice check for $500 million on its sale of Treasure Island this year, but that ain’t gonna get it done.

Speaking of which, it looks like Phil Ruffin is the only one who has successfully played the casino downturn. He sold his New Frontier property for about $1.2 billion (about $35 million per acre) at the height of the market and bought Treasure Island for $775 million (about $15 million per acre).

Normally, MGM’s debt might be manageable. But credit continues to be tight and casinos look like a bad bet to banks who all of a sudden think they know how to recognize one. But MGM’s current debt holders are between a bit of a rock and a hard place, themselves. Banks don’t want big debt going into default – it totally fucks up their already fucked up balance sheets. So MGM might be able to work out a deal with its current lenders – but I suspect the deal will only come after MGM agrees to put some more properties up for sale.

Harrah’s stock is no longer publicly traded; otherwise we’d be hearing a lot more about their current debt issues. It doesn’t have a multi-billion expansion holding them down. Harrah’s ridiculous amount of debt is a holdover from the $17 billion leveraged buyout by private equity companies Apollo Management and TPG. But since Harrah’s debt is publicly traded, it still has to file with the SEC. On February 13, Harrah’s filed that it, too, was drawing down the last of its revolving credit facility — the last $740 million of its $2 billion. It said it was also suspending matching contributions to employee retirement plans. Harrah’s also put finishing approximately 600 rooms in the Octavius Tower (Caesar’s) on hold.

If MGM can’t see its way through its current debt problems, it won’t be the first casino company to file for bankruptcy this year. Trump Resorts already beat them to it. And Station Casinos, who has debt associated with taking itself private in an $8 billion management-led buyout, has already reserved the next spot in line. Interestingly enough, Boyd Gaming bid $950 million in cash for some of Station’s assets. Boyd’s not in particularly great shape, itself, but figured it might be able to get some properties on the cheap. Station wasn’t interested, telling Boyd, “Should circumstances change, we’ll call you.” So it doesn’t look like a honeymoon in Vegas is gonna happen for these two. Station’s bondholders have until April 10th to approve a restructuring plan that would put the company under bankruptcy protection.

Photo Notes: All pictures taken in Vegas in May 2006.

Another Bust and a Bank Sings Proud Mary

“You sure do know a lot of people who get arrested,” said a co-worker after reading my last blog. I quipped, “Maybe it’s just that your friends can afford better lawyers and accountants.”

If I needed any ammunition to support my argument, I found it while cleaning out my closet yesterday. I unearthed an old bowling score sheet, dating back to my college days. (I found it next to a Valentines Day card from my father dating back to the same era; it read “Up Freud’s. Love you, Dad.”) The names on the yellowed paper from the Columbia University bowling alley were mine, my brother’s, and the name of a friend, who is now doing time for something that only cost Tom Daschle a Cabinet appointment.

But to some extent it is also because I know a lot of people in the gambling industry. Say what you will, but even after the wild popularity of televised poker, being a professional poker player still hurts you if find yourself in the unfortunate position of going up against a jury of “your peers.” The fact that gambling and poker still live in the legal grey zone doesn’t help matters, either. But I guess I also have to acknowledge that gambling, like capitalism, can encourage people to push the edge of the legal envelope. The more time you spend on the edge, the more likely it is that you’ll end up with a paper cut. Read More »

Consulting the WTF Guru

I was having a total WTF moment on Friday, trying to ride out the market’s bank nationalization paranoia and the new rabid bevy of speculators who profit on the short. I needed to make a decision about a bank preferred stock that was getting hammered. I thought it was way oversold. But the problem with investing is that sometimes it doesn’t pay to be right when the rest of the market wants to be wrong. There was only one person in the office who could help me — our resident “WTF” guru.

Like a stoner attending a physics lecture, my co-worker listened with a bemused, vacant expression. I suspect Anthony has lived his entire life creatively side-stepping panic. His book, WFT?: How to Survive 101 of Life’s Worst F*#!-ing Situations is only a one delicious slice of a philosophy that basically kicks panic in the junk. Within three minutes, a solution was born. Within hours, it had played out as genius.

Since he was there, I decided to tap the Guru on a more personal “WTF” front; my lost blog posts. As I described how my early blog posts were lost – my blog host a likely victim of foreclosure and unemployment – Anthony barely raised an eyebrow. He mumbled, “I’ll send you a link.” Three minutes later, I had a link to the Internet Archive: Wayback Machine. It doesn’t have everything, but it has enough to rebuild some of my favorites. Who knew? The Guru, obviously.

I’m not sure what WTF solution my friend and poker player Vinnie Procopio has up his sleeve. For months I’d been following the news of the defendants in the Borgata sports betting arrests without seeing any further hint of his name. But last week I came across this. It looks like he’ll get tapped with a $20K fine. And while he faces a recommended 364 day jail term, maybe it will come in lighter than that.

Another friend and poker player, MJ Bernstein, is also trying to overcome a serious WTF situation — and he’s asking for our help. Please read his blog here. The littlest bit of help would mean a lot to this young family, battling one of life’s toughest breaks.

And WTF is up with Jamie Gold? Does anybody else think it’s strange that Gold is reported to have received an eight figure sponsorship deal from a newly formed online company – considering he is hardly an “A” list pro and even the most established and profitable online companies are ratcheting back on deals in the wake of the economic downturn? I’m calling bullshit on this story. I suspect Jamie has a piece of this fledgling company – either as part of a sponsorship agreement or through personal investment. Value that for what it’s worth.

Photo Notes: Vinnie “The Prairie Dog” Procopio at the 2007 LAPC and Jamie Gold at the 2006 WSOP.

Lipscomb Scores, Berman/Beal Burnt?, Phelps Chillin’

Proving bankers aren’t the only ones to profit when their stocks tank, it appears that Steve Lipscomb won’t suffer much with the World Poker Tour’s stock languishing in the sub-$0.50 range. In a recent SEC filing, Lipscomb will now get 5% of the company if it changes hands this year – which will come right out of the shareholders’ pockets. His now worthless 600,000 stock options (currently at a strike price of $8) will be exchanged for 500,000 stock options priced at the current market price. And he’ll get six months of severance.

Needless to say the shareholders, who have watched the stock plummet from a high of $29.50, were not pleased. A stock message board poster wrote:

“As much as I would like to see a sale of this company, it absolutely disgusts me that Lipscomb will receive even further compensation if it happens. Let’s see, they pay him $500K annual salary and awarded him 2.3M shares when the company was taken public. He then dumped 700K of these shares at an avg price of about $19 for a profit of around $13M before setting off to destroy 95% of shareholder value over the next three years. He then repurchases 375K share at an avg price of around $.35, and is exchanged 500,000 new options at current market prices to replace the 600,000 he was granted that had a strike price of $8. To top it off, he’s then granted an additional 5% stake of the gross proceeds of the company (minus cash) should it be sold. I must ask, what has he accomplished to be awarded such additional compensation? This is a complete outrage, and just another grotesque example of corporate governance in this day and age.” Read More »