Initial Reports
The story first broke when the New York Post reported that the FBI was investigating allegations that an NBA referee had bet on games. The story was soon picked up by other major news agencies, as it was revealed that Donaghy was the referee under investigation. The reports claimed that Donaghy had started betting on games in 2005, and had connections to organized crime.
The day after the initial reports, NBA commissioner David Stern said "that no amount of effort, time or personnel is being spared to assist in this investigation, to bring to justice an individual who has betrayed the most sacred trust in professional sports, and to take the necessary steps to protect against this ever happening again." He then held a press conference on July 24 to address questions about the investigation. Although he called the Donaghy matter "an isolated case involving", he also said it was "the most serious situation and worst situation that I have ever experienced".
On July 27, U.S. Congressman Bobby Rush of Illinois, chairman of the Energy and Commerce Commerce, Trade and Consumer Protection Subcommittee, asked to meet with Stern regarding the Donaghy matter. In a letter to Stern, Rush indicated that he might call a hearing "should the facts warrant public scrutiny." He also said that the affair could potentially be "one of the most damaging scandals in the history of American sports." On the same day, it was reported that two high school classmates of Donaghy's, Jack Battista and Thomas Marina, had bet on game based on Donaghy's tips.
Read more about this topic: 2007 NBA Betting Scandal
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