According to the Buffalo News, the Jacobs Family has decided not to make a bid on the Buffalo Bills NFL franchise, despite a keen interest in ownership. The family’s decision to back away from such a purchase is tied directly to their interests in the gambling industry. Prior to their decision, the family had been in discussions with New York Governor Andrew Cuomo about the possibilities.
This marks the second time in a matter of months that a potential owner of the Buffalo Bills backed off a bid, due to their extensive gaming interests. On May 29, Donald Trump reiterated he would like to buy the Bills. Trump’s Atlantic City casinos and USFL lawsuit are thought to make him an unsavory choice for the owners of National Football League, who would need to approve such a sale. Yet he is said to maintain friendships with several owners, including Patriots owner Robert Kraft.
Delaware North
The Jacobs Family owns Delaware North, a Buffalo-based global hospitality and food service. The company owns and operates a wide range of ventures, including airports and lodging, as well as businesses in the sporting, gaming, and entertainment industry. Delaware North has over $2.6 billion in revenue each year and employs over 55,000 people around the globe.
Rise to Prominence
The Jacobs Family is an institution in the Buffalo Area. The name “Delaware North” was first used in 1972, but their company was founded in 1915 by Louis Jacobs and his brothers, Marvin and Charles. In the early years, the company operated theater concessions. They added ballparks to their interests in the 1920s, then signed a food services contract with the Detroit Tigers in 1930.
In 1939, the Jacobs Brothers bought their first racetrack, which is considered the beginning of the gaming division of the company, Delaware North Companies Gaming & Entertainment. Two years later, they bought an airport, which would become the first of 30 airports the family owned. When Louis M. Jacobs died in 1968, the company was run by his son, Jeremy. By this time, the family enterprise was known as Emprise. Under Jeremy M. Jacobs, Emprise began an unprecedented growth.
Racketeering Charges
In 1972, Emprise received bad press in Sports Illustrated and the Arizona Republic, which accused the company of ties to the organized crime. The company was convicted of federal racketeering charges over the purchase of a Las Vegas hotel (the Frontier). Jeremy Jacobs dissolved Emprise and founded Delaware North, emphasizing a clean operation.
In 1975, Delaware North bought the Boston Garden and the Boston Bruins. This further developed their sports interests. In recent years, the company has entered into contracts with Wembley Stadium, Emirates Stadium, Aquadect Racetrack (since ended), and Pride Park Stadium. It also acquired Jumer’s Casino & Hotel in Rock Island, Illinois.
Buffalo Bills Ownership
With its traditional ties to Buffalo and its 90 years of involvement in the American (and world) sports industry, the Jacobs Family would appear to be the perfect candidate for inclusion. Even racketeering charges in the 1970’s might be seen as ancient history, given the family’s sterling reputation in the four-plus decades since.
What seems to be the sticking point is Delaware North’s continuing gaming industry ties. Six different sources with knowledge of the family’s talks with Cuomo say they have decided their gaming interests are too integral to the business to let them go. One source described the process of divesting themselves of their gambling businesses would “gut” their company’s revenues. Divestiture would be the key to being approved by the NFL, so owning the Buffalo Bills is simply not worth the price of inclusion.
“For them, it’s about what this would bring to their core business. They see this in terms of a facility they could run and manage,” said one source close to the family. The source added, “They sell you hot dogs. They don’t want to worry about putting fannies in the seats or making sure they sign the best right guard.”
Delaware North Statement
Delaware North declined comment on the current news reports. Back in the spring, Delaware North spokesman Glen White said, “We are using our resources, our contacts, our relationships to do everything we can to ensure the Bills stay in Buffalo.” Now it appears that the Jacobs Family’s support in keeping the Bills in the Buffalo Area may be secondary in nature.
Why the NFL Avoids Gaming Interests
The NFL’s ownership groups are careful to avoid close ties to gambling interests. Sports and gaming have always had a symbiotic relationship, due to huge public interest in sports betting. For decades, newspapers will put the odds and betting lines in their sports page, always with the disclaimer “only for entertainment purposes“.
The NFL even wrote its team policies on disclosing injury information with a mind to sports gambling. During the NFL season, teams are required to release a detailed report involving all injured players. They must use specific designations, which indicate the percentage chance a player won’t play that week. Doubtful is a 75% chance they won’t play; Questionable is a 50/50 chance; Probable is a 25% chance of missing the game; and “Out” means the player is already ruled out. These are important to sports wagerers, because one or two star players can change the odds of winning or losing significantly.
Roger Goodell, commissioner of the NFL, fines teams which do not give detailed reports. A few years back, New England Patriots head coach Bill Belichick and his team were fined tens of thousands of dollars, because they did not report players correctly. Mike Shanahan of the Denver Broncos and Washington Redskins faced similar fines. In the case of Belichick, he now lists 20 to 25 of his players in the injury report each week–about half the squad–in order to assure he complies (while providing confusing information to his opponents).
NFL Wants No Formal Gaming Ties
Despite these measures, the NFL is equally concerned about the appearance of fixing games. While the NFL has never faced the kind of game fixing and gambling scandals that baseball has (Shoeless Joe Jackson, Pete Rose), the league wants to make certain suspicions never arise. Therefore, a league with no end of potential franchise suitors is going to be careful to avoid an owner with gaming interests.