Scandal and Arrest
Following an RCMP raid at the Gardens in 1968, Smythe was charged with income tax evasion and accused, along with Ballard, of illegally taking money from Maple Leaf Gardens Ltd. to pay for renovations of their houses and other personal expenses.
Just before the charges were laid, Bassett, who had succeeded Conn Smythe as chairman of the board in 1962, argued to the board that Smythe and Ballard should be removed from their posts. Following an 8–7 vote of the board of directors on June 26, 1969; Smythe and Ballard were both fired, and Bassett was appointed president of the Gardens. The move came just a couple of months after Smythe had fired Imlach after an unimpressive season from the Leafs.
However, Bassett did not force Smythe and Ballard to sell their shares, and both men remained on the board. This proved to be a serious strategic blunder; Smythe was the largest single shareholder in Maple Leaf Gardens, and he and Ballard controlled almost half the company's stock between them. They were thus able to stage a proxy war and regain control of the board in 1970. Smythe was once again appointed president. Facing an untenable situation, Bassett sold his shares in the Gardens to Smythe and Ballard for $6 million in 1971. Ballard would be convicted of tax evasion, but Smythe died of a bleeding ulcer at the age of only 50 just before his trial was scheduled to begin. Ballard took control of the Leafs in 1972, winning a battle with members of Smythe's family for ownership of Smythe's shares.
The Stafford Smythe Memorial Trophy, awarded annually to the MVP of the Memorial Cup tournament, is named in his honour.
Read more about this topic: Stafford Smythe
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