1 00:00:10,362 --> 00:00:25,362 Speaker 1: This is an iHeart original. They call it March Madness. 2 00:00:25,842 --> 00:00:31,282 Speaker 1: It's the annual NCAA College Basketball Championship, a single elimination 3 00:00:31,402 --> 00:00:35,642 Speaker 1: tournament that features sixty eight teams who play game after game, 4 00:00:36,002 --> 00:00:41,162 Speaker 1: favorites versus underdogs, big schools versus small until finally one school, 5 00:00:41,202 --> 00:00:44,722 Speaker 1: one team is crowned the champion of them all in 6 00:00:44,802 --> 00:00:49,562 Speaker 1: early April. Every March, millions of Americans fill out a bracket, 7 00:00:49,802 --> 00:00:54,162 Speaker 1: chasing perfection, office glory, or a huge cash prize. It's 8 00:00:54,242 --> 00:00:58,722 Speaker 1: a ritual as familiar as the games themselves, but long 9 00:00:58,882 --> 00:01:03,282 Speaker 1: before college basketball became a billion dollar business, before the 10 00:01:03,322 --> 00:01:07,122 Speaker 1: office pools, before the madness had a name in all 11 00:01:06,922 --> 00:01:13,642 Speaker 1: Well started in a neighborhood bar on Staten Island. Welcome 12 00:01:13,722 --> 00:01:18,282 Speaker 1: to very special episodes and iHeart original podcast. I'm your host, 13 00:01:18,482 --> 00:01:22,282 Speaker 1: Zaren Burnett, and this is the million Dollar Bracket. 14 00:01:28,962 --> 00:01:31,922 Speaker 2: Welcome back to very special episodes. My name is Jason English. 15 00:01:31,922 --> 00:01:35,482 Speaker 2: I'm usually joined here at the top by Zaren Burnett 16 00:01:35,562 --> 00:01:38,242 Speaker 2: and Danish Schwartz. Today it's just me. I'm gonna get 17 00:01:38,242 --> 00:01:41,202 Speaker 2: you back out to Zaren in a moment. This has 18 00:01:41,282 --> 00:01:44,722 Speaker 2: not been a great March Madness for me personally. I'm 19 00:01:44,722 --> 00:01:48,602 Speaker 2: in dead last place in our English family bracket. I'm 20 00:01:48,642 --> 00:01:52,042 Speaker 2: a Duke graduate, so I'm still reeling from our historically 21 00:01:52,082 --> 00:01:55,882 Speaker 2: devastating loss to Yukon last weekend. Still not over that. 22 00:01:56,682 --> 00:01:59,402 Speaker 2: I'm lucky at and plan at Duke centric episode today 23 00:01:59,602 --> 00:02:03,642 Speaker 2: to coincide with the National Championship game. I am way 24 00:02:03,682 --> 00:02:05,762 Speaker 2: too superstitious to be doing that with one of my 25 00:02:05,882 --> 00:02:08,322 Speaker 2: teams today. Aaron's going to take us back to the 26 00:02:08,362 --> 00:02:12,442 Speaker 2: beginning of the March Madness craze and talk about a 27 00:02:12,442 --> 00:02:15,722 Speaker 2: pool that got out of hand. So, unless your team 28 00:02:16,002 --> 00:02:18,802 Speaker 2: lost in heartbreaking fashion and you can't bring yourself to 29 00:02:18,842 --> 00:02:22,002 Speaker 2: watch enjoy the game tonight, I hope your brackets are 30 00:02:22,002 --> 00:02:24,682 Speaker 2: looking a lot better than mine. 31 00:02:27,122 --> 00:02:29,722 Speaker 1: Have you ever filled out a bracket for March Madness? 32 00:02:30,442 --> 00:02:33,362 Speaker 1: If so, you've taken part in an annual tradition that 33 00:02:33,562 --> 00:02:36,882 Speaker 1: millions enjoy each year. And if you work in an 34 00:02:36,882 --> 00:02:40,082 Speaker 1: office with more than ten people, I'd wager your company 35 00:02:40,202 --> 00:02:43,922 Speaker 1: probably has a March Madness betting pool. For instance, take 36 00:02:43,962 --> 00:02:47,962 Speaker 1: the office of Berkshire Hathaway, the holding company made famous 37 00:02:48,002 --> 00:02:51,722 Speaker 1: by the Oracle of Omaha Warren Buffett. Not only does 38 00:02:51,762 --> 00:02:55,722 Speaker 1: that office have a March Madness betting pool employees have 39 00:02:55,842 --> 00:03:02,602 Speaker 1: the chance to win one billion dollars. Yes, one billion dollars. 40 00:03:03,282 --> 00:03:06,642 Speaker 1: But there is a catch. You have to fill out 41 00:03:06,642 --> 00:03:10,722 Speaker 1: an absolutely perfect bracket. You have to call the winner 42 00:03:10,762 --> 00:03:14,362 Speaker 1: of every single game. The odds of you pulling that 43 00:03:14,522 --> 00:03:17,282 Speaker 1: off are estimated to be about one hundred and twenty 44 00:03:17,362 --> 00:03:21,482 Speaker 1: billion to one. It's not a surprise that in the 45 00:03:21,642 --> 00:03:25,962 Speaker 1: decade plus since he first started the challenge, nobody has won. 46 00:03:26,482 --> 00:03:30,122 Speaker 1: So Warren Buffett added a second way to win in 47 00:03:30,162 --> 00:03:33,282 Speaker 1: twenty sixteen. He offered another prize for anyone in his 48 00:03:33,362 --> 00:03:36,722 Speaker 1: company who could fill out a perfect Sweet sixteen bracket. 49 00:03:37,122 --> 00:03:40,202 Speaker 1: If you could guess those early two rounds correctly forty 50 00:03:40,242 --> 00:03:43,802 Speaker 1: eight games, Warren Buffett would give you one million dollars 51 00:03:43,922 --> 00:03:48,082 Speaker 1: a year for life. For years, no one managed to 52 00:03:48,122 --> 00:03:51,802 Speaker 1: do it, and so in twenty twenty five, Buffett once 53 00:03:51,842 --> 00:03:55,162 Speaker 1: again lowered the bar. He offered a million dollar prize 54 00:03:55,202 --> 00:03:58,002 Speaker 1: if someone could fill out their bracket and correctly pick 55 00:03:58,402 --> 00:04:02,082 Speaker 1: thirty winners from the round of thirty two games. As 56 00:04:02,122 --> 00:04:05,922 Speaker 1: Warren Buffett told the Wall Street Journal, quote, I'm getting older. 57 00:04:06,202 --> 00:04:08,922 Speaker 1: I want to give away a million dollars to somebody 58 00:04:08,962 --> 00:04:13,122 Speaker 1: while I'm still around as chairman it worked. After all 59 00:04:13,162 --> 00:04:18,482 Speaker 1: those years, someone finally won a million dollars. But there 60 00:04:18,682 --> 00:04:21,202 Speaker 1: was a time when you could walk into a local 61 00:04:21,402 --> 00:04:25,122 Speaker 1: Irish pub in Staten Island, PLoP down a ten spot 62 00:04:25,162 --> 00:04:28,922 Speaker 1: for a bracket, and walk out a millionaire. You didn't 63 00:04:28,922 --> 00:04:31,602 Speaker 1: have to work for Warren Buffett. All you needed was 64 00:04:31,642 --> 00:04:35,122 Speaker 1: a ten dollars entry fee. You could say that little 65 00:04:35,122 --> 00:04:39,002 Speaker 1: Irish pub was the birthplace of brackets, bedding pools, and 66 00:04:39,122 --> 00:04:42,802 Speaker 1: what's come to be called March Madness. The spot was 67 00:04:42,882 --> 00:04:46,962 Speaker 1: and still is called Jody's Club Forest and the man 68 00:04:47,002 --> 00:04:50,042 Speaker 1: who gave us march Madness was the owner of that bar, 69 00:04:50,242 --> 00:04:54,442 Speaker 1: a man named Jody Haggarty. In an interview with the 70 00:04:54,482 --> 00:04:58,402 Speaker 1: Associated Press last year, his son Terrence Haggerty, the bar's 71 00:04:58,442 --> 00:05:01,802 Speaker 1: current owner, said quote, we created a pool that just 72 00:05:01,882 --> 00:05:04,842 Speaker 1: blew up over time. Looking back at it now, how 73 00:05:04,842 --> 00:05:06,402 Speaker 1: do we pull it off? I mean, how do we 74 00:05:06,442 --> 00:05:09,042 Speaker 1: do it? It was crazy. We never in a million 75 00:05:09,122 --> 00:05:13,122 Speaker 1: years would have ever imagined where it got. Imagine the scene. 76 00:05:13,242 --> 00:05:17,402 Speaker 1: It's early afternoon in Staten Island. You're walking along Forest Street. 77 00:05:17,762 --> 00:05:21,242 Speaker 1: The crisp march air feels like spring is coming, and 78 00:05:21,322 --> 00:05:24,922 Speaker 1: then you spot an Irish pub. You decide to check 79 00:05:24,962 --> 00:05:27,682 Speaker 1: it out. You pull open the door and step inside. 80 00:05:28,122 --> 00:05:31,602 Speaker 1: You're greeted by the sound of basketball, multiple games on 81 00:05:31,682 --> 00:05:36,842 Speaker 1: multiple TVs. The bar is packed. People's faces are excited 82 00:05:36,922 --> 00:05:40,522 Speaker 1: and expectant, like they're waiting for magic to happen. They 83 00:05:40,602 --> 00:05:44,642 Speaker 1: drink beers and down cocktails. Some folks eat bar peanuts 84 00:05:44,922 --> 00:05:48,642 Speaker 1: as they all watch the games. This Irish pub is 85 00:05:48,762 --> 00:05:52,362 Speaker 1: clearly a neighborhood bar. There are framed photos of little 86 00:05:52,442 --> 00:05:56,322 Speaker 1: league teams and pictures from local golf tournaments. They give 87 00:05:56,362 --> 00:05:59,442 Speaker 1: the place a quaint charm, but at the moment no 88 00:05:59,442 --> 00:06:02,442 Speaker 1: one notices them because all eyes are on the college 89 00:06:02,482 --> 00:06:06,082 Speaker 1: games on the mini screens. As you squeeze in, take 90 00:06:06,122 --> 00:06:08,402 Speaker 1: a seat at the ball and wait to order a drink, 91 00:06:08,762 --> 00:06:11,002 Speaker 1: you hear a pair of guys who walk in just 92 00:06:11,122 --> 00:06:16,682 Speaker 1: after you shout joo. A man behind the bar looks up. 93 00:06:16,962 --> 00:06:19,762 Speaker 1: He waves to them. That must be Jody, and you 94 00:06:19,882 --> 00:06:23,042 Speaker 1: guess he must be the owner of this spot, Jody's 95 00:06:23,042 --> 00:06:28,042 Speaker 1: Club Forest. Jody Haggerty first opened the doors of his 96 00:06:28,122 --> 00:06:31,642 Speaker 1: local Irish pub back in nineteen seventy six. It was 97 00:06:31,722 --> 00:06:34,202 Speaker 1: the year of the bi centennial, a very good year 98 00:06:34,242 --> 00:06:36,922 Speaker 1: to own a bar in Staten Island, people were in 99 00:06:36,962 --> 00:06:40,242 Speaker 1: a mood to celebrate and to drink. The next year, 100 00:06:40,282 --> 00:06:43,842 Speaker 1: in nineteen seventy seven, when the year long party was over, 101 00:06:44,282 --> 00:06:46,682 Speaker 1: in order to drum up some business in the final 102 00:06:46,762 --> 00:06:50,122 Speaker 1: weeks of winter, Jody Haggerty came up with the idea, 103 00:06:50,962 --> 00:06:54,202 Speaker 1: what if he offered a betting pool for the NCAA 104 00:06:54,322 --> 00:06:58,842 Speaker 1: College Basketball Tournament? And what if he showed all the 105 00:06:58,882 --> 00:07:02,602 Speaker 1: games on different TVs in his bar. That would draw 106 00:07:02,682 --> 00:07:05,082 Speaker 1: folks in to watch the games as they rooted on 107 00:07:05,162 --> 00:07:09,682 Speaker 1: their teams from the brackets they'd The college basketball tournament 108 00:07:09,722 --> 00:07:12,722 Speaker 1: would last for about a month. It was a brilliant 109 00:07:12,762 --> 00:07:17,762 Speaker 1: business idea for a bar owner. Back then, only thirty 110 00:07:17,762 --> 00:07:21,402 Speaker 1: two teams competed, so in order to win Jody's betting pool, 111 00:07:21,442 --> 00:07:23,722 Speaker 1: a person only needed to pick the teams in the 112 00:07:23,842 --> 00:07:27,202 Speaker 1: last two rounds that is, the final four and the 113 00:07:27,322 --> 00:07:31,322 Speaker 1: national champion. That first year in nineteen seventy seven, there 114 00:07:31,322 --> 00:07:34,042 Speaker 1: were eighty eight people who took part in the pool. 115 00:07:34,322 --> 00:07:36,922 Speaker 1: It cost ten dollars to enter, so the winner of 116 00:07:36,922 --> 00:07:40,842 Speaker 1: the pool won eight hundred and eighty dollars. That was 117 00:07:40,882 --> 00:07:44,602 Speaker 1: the beginning of a beautiful tradition, one that would one 118 00:07:44,642 --> 00:07:48,082 Speaker 1: day lead to the President of the United States, Barack Obama, 119 00:07:48,362 --> 00:07:53,122 Speaker 1: filling out his bracket on ESPN Back when Jody Haggerty 120 00:07:53,162 --> 00:07:56,562 Speaker 1: first hosted his March Madness betting Pool. It helped that 121 00:07:56,682 --> 00:08:00,602 Speaker 1: the late seventies was a special time in college basketball. 122 00:08:00,922 --> 00:08:05,322 Speaker 1: You had UCLA, which was the fading powerhouse school a 123 00:08:05,402 --> 00:08:09,642 Speaker 1: favorite to beat. Also had Michigan State with its young star, 124 00:08:09,842 --> 00:08:13,842 Speaker 1: a kid named Magic Johnson. His team was formidable, as 125 00:08:14,042 --> 00:08:17,202 Speaker 1: was Indiana State with its trash talk and leader known 126 00:08:17,242 --> 00:08:20,802 Speaker 1: for his corn fed swagger, a kid named Larry Byrd, 127 00:08:21,282 --> 00:08:25,362 Speaker 1: facing off in the championship game. Their early rivalry made 128 00:08:25,522 --> 00:08:29,922 Speaker 1: college basketball exciting. That sort of excitement in the tournament 129 00:08:30,042 --> 00:08:33,282 Speaker 1: also helped to bring the customers back to Jodie's Club 130 00:08:33,322 --> 00:08:36,882 Speaker 1: Forest year after year to fill out their brackets. As 131 00:08:36,922 --> 00:08:41,682 Speaker 1: the Bedding Pool grew bigger and bigger, the excitement continued 132 00:08:41,722 --> 00:08:45,682 Speaker 1: in the eighties, Patrick Ewing at Georgetown, Michael Jordan at 133 00:08:45,682 --> 00:08:49,562 Speaker 1: North Carolina, and the nineties kept it going. More great games, 134 00:08:49,762 --> 00:08:54,082 Speaker 1: more dramatic rivalries, the Fab Five from Michigan, Christian Lightner, 135 00:08:54,162 --> 00:08:58,202 Speaker 1: and Grant Hill from Duke. For three decades, the NCAA 136 00:08:58,322 --> 00:09:01,602 Speaker 1: College Basketball Tournament offered up some of the best sports 137 00:09:01,642 --> 00:09:06,322 Speaker 1: moments around. Folks who never watched a single college basketball 138 00:09:06,362 --> 00:09:09,322 Speaker 1: game also season long, would tune in for the tourney 139 00:09:09,522 --> 00:09:11,842 Speaker 1: and rush to fill out a bracket with their friends 140 00:09:12,202 --> 00:09:15,562 Speaker 1: or play along and their office pool. That's why March 141 00:09:15,602 --> 00:09:19,962 Speaker 1: Madness is now an annual billion dollar industry. The only 142 00:09:20,002 --> 00:09:23,162 Speaker 1: other sporting event that attracts as a much attention from 143 00:09:23,242 --> 00:09:28,042 Speaker 1: fans and non fans alike is the Super Bowl, which 144 00:09:28,122 --> 00:09:30,762 Speaker 1: brings us back to our friend Jody Haggerty and his 145 00:09:30,882 --> 00:09:34,322 Speaker 1: Irish local pub. This spot where brackets and the idea 146 00:09:34,362 --> 00:09:38,082 Speaker 1: of a betting pool really gained steam. As Jody's son 147 00:09:38,202 --> 00:09:41,722 Speaker 1: Terrence Haggerty recalled of those early years in an interview 148 00:09:41,762 --> 00:09:47,642 Speaker 1: with wbur for the NPR affiliated show Only a Game Quote, 149 00:09:48,322 --> 00:09:51,282 Speaker 1: it was really just a Staten Island thing, and overtime 150 00:09:51,322 --> 00:09:54,162 Speaker 1: it grew, it grew, I'd say mid nineties. Maybe that's 151 00:09:54,202 --> 00:09:56,962 Speaker 1: when it started getting a little recognition. You know, people 152 00:09:57,002 --> 00:10:00,402 Speaker 1: as far as California, Hawaii. I remember us getting a 153 00:10:00,402 --> 00:10:03,322 Speaker 1: call from a family member of a soldier serving in Iraq. 154 00:10:03,682 --> 00:10:06,842 Speaker 1: They were getting in the pool. The reason why folk 155 00:10:07,042 --> 00:10:10,482 Speaker 1: from as far off as Hawaii were taking part wasn't 156 00:10:10,562 --> 00:10:13,482 Speaker 1: because they didn't have their own March Madness betting pools 157 00:10:13,522 --> 00:10:16,642 Speaker 1: on the islands. They did. It was because the betting 158 00:10:16,682 --> 00:10:19,642 Speaker 1: pool for the original home of the Brackets had grown 159 00:10:19,922 --> 00:10:24,322 Speaker 1: so large. As Terence Haggerty tells it, quote the very 160 00:10:24,362 --> 00:10:27,002 Speaker 1: last year in two thousand and six, the total prize 161 00:10:27,042 --> 00:10:30,002 Speaker 1: was one point six million. This is a true story. 162 00:10:30,162 --> 00:10:32,162 Speaker 1: In two thousand and six there were over one hundred 163 00:10:32,202 --> 00:10:37,602 Speaker 1: and sixty thousand entries. Now notice that he said, quote you, Tyler, 164 00:10:37,802 --> 00:10:40,282 Speaker 1: the very last year in two thousand and six. What 165 00:10:40,482 --> 00:10:43,842 Speaker 1: happened in two thousand and six? What made that year 166 00:10:44,082 --> 00:10:46,882 Speaker 1: the last year for the March Madness betting pool at 167 00:10:46,962 --> 00:10:51,242 Speaker 1: Jody's Club Forest. Grab yourself a drink. We'll meet you 168 00:10:51,402 --> 00:11:01,882 Speaker 1: on the other side of this break. One could say 169 00:11:01,962 --> 00:11:05,442 Speaker 1: that Jody Haggerty's March Madness Brackets betting pool was a 170 00:11:05,522 --> 00:11:08,562 Speaker 1: victim of its own success. Yes, Or you could say 171 00:11:08,602 --> 00:11:12,242 Speaker 1: that times change. Or you might say Jody Haggerty got 172 00:11:12,282 --> 00:11:14,602 Speaker 1: a little sloppy with the law as his betting pool 173 00:11:14,642 --> 00:11:19,242 Speaker 1: got more famous. All three of those statements are essentially true. 174 00:11:20,002 --> 00:11:24,002 Speaker 1: According to Terrence, the pool became unmanageable as it grew. 175 00:11:24,322 --> 00:11:27,122 Speaker 1: In the late nineties, they had to invest in computers, 176 00:11:27,122 --> 00:11:29,722 Speaker 1: to keep track of all the brackets and all the 177 00:11:29,802 --> 00:11:32,362 Speaker 1: data entry. But what did they know about all that. 178 00:11:32,682 --> 00:11:35,802 Speaker 1: The family ran a local Irish pub in Staten Island. 179 00:11:36,002 --> 00:11:40,722 Speaker 1: They weren't computer people, as Terrence Haggerty remembers in his 180 00:11:40,802 --> 00:11:44,482 Speaker 1: interview with only a game, quote, we had a computer guy. 181 00:11:44,562 --> 00:11:47,002 Speaker 1: We had a program for it. We had probably thirty 182 00:11:47,042 --> 00:11:49,522 Speaker 1: people in putting picks in. We had them in different 183 00:11:49,562 --> 00:11:52,442 Speaker 1: houses on Staten Island, and you know, in basements, and 184 00:11:52,482 --> 00:11:56,682 Speaker 1: it was interesting basements of local houses. That's also where 185 00:11:56,682 --> 00:11:59,282 Speaker 1: they kept all the money paid into the betting pool. 186 00:11:59,562 --> 00:12:03,762 Speaker 1: And we're talking about roughly a million dollars, largely in tents. 187 00:12:04,322 --> 00:12:07,802 Speaker 1: As Terrence Haggerty tells it, quote, money was in banks 188 00:12:07,842 --> 00:12:10,722 Speaker 1: and you know it was divvied up here them everywhere. 189 00:12:11,602 --> 00:12:15,122 Speaker 1: The Haggarty's even once turned to a nun to help out. 190 00:12:15,522 --> 00:12:18,002 Speaker 1: They asked the sister to hold some of the betting pool, 191 00:12:18,082 --> 00:12:20,322 Speaker 1: keep it safe. I mean, if you can't trust a nun, 192 00:12:20,362 --> 00:12:24,922 Speaker 1: who can you trust. Each year, when Jody's Club Forrest 193 00:12:25,002 --> 00:12:29,362 Speaker 1: started accepting brackets, lines would form outside the bar. Folks 194 00:12:29,362 --> 00:12:33,162 Speaker 1: would stretch down the sidewalk for blocks. It wasn't just 195 00:12:33,322 --> 00:12:37,802 Speaker 1: bar patrons. The line would include local Staten Island politicians 196 00:12:37,802 --> 00:12:41,722 Speaker 1: as well as cops and firefighters. Everyone in the neighborhood 197 00:12:41,802 --> 00:12:45,082 Speaker 1: knew about it and look forward to it. And thanks 198 00:12:45,122 --> 00:12:47,682 Speaker 1: to the local press and all the attention they paid 199 00:12:47,722 --> 00:12:51,002 Speaker 1: to the eye popping sums of money that this little 200 00:12:51,082 --> 00:12:54,442 Speaker 1: mom and pop Irish pub was taking in, the pool 201 00:12:54,722 --> 00:12:58,762 Speaker 1: kept growing. Also, each year, the New York Press tried 202 00:12:58,802 --> 00:13:01,402 Speaker 1: to find out who won the annual betting pool and 203 00:13:01,482 --> 00:13:04,802 Speaker 1: find out what they would do with their huge payday. 204 00:13:05,922 --> 00:13:09,962 Speaker 1: As Terrence Haggarty told the Associated Press quote, it got 205 00:13:10,002 --> 00:13:12,202 Speaker 1: to the end where the people that were involved that 206 00:13:12,282 --> 00:13:15,242 Speaker 1: were still alive, you wouldn't see them because there was 207 00:13:15,282 --> 00:13:18,082 Speaker 1: our local newspaper that was always asking for an interview, 208 00:13:18,362 --> 00:13:21,002 Speaker 1: or the New York Post or the Daily News. Guys 209 00:13:21,042 --> 00:13:23,482 Speaker 1: would basically go into hide and we wouldn't really see 210 00:13:23,522 --> 00:13:28,562 Speaker 1: them till you know after Soon enough, folks from across 211 00:13:28,602 --> 00:13:31,282 Speaker 1: the five boroughs of New York wanted in on the 212 00:13:31,282 --> 00:13:34,842 Speaker 1: betting pool, and then with the arrival of the Internet, 213 00:13:35,482 --> 00:13:38,922 Speaker 1: folks all around the world wanted their chance to win 214 00:13:39,082 --> 00:13:42,962 Speaker 1: what would soon become a million dollar pot. In two 215 00:13:43,002 --> 00:13:45,602 Speaker 1: thousand and four, the winner took home nine hundred and 216 00:13:45,722 --> 00:13:49,442 Speaker 1: ninety seven thousand dollars. The next year it was one 217 00:13:49,482 --> 00:13:52,522 Speaker 1: point two million. The final year, two thousand and six, 218 00:13:52,882 --> 00:13:55,522 Speaker 1: the winner from more than one hundred and sixty six 219 00:13:55,682 --> 00:14:00,682 Speaker 1: thousand entries won a one point six million dollar prize. 220 00:14:01,002 --> 00:14:04,322 Speaker 1: But also that same year, the winner decided to do 221 00:14:04,402 --> 00:14:08,562 Speaker 1: something no previous winner had ever done. The winner told 222 00:14:08,602 --> 00:14:14,482 Speaker 1: the IRS. Suddenly the local neighborhood Irish pub was in 223 00:14:14,602 --> 00:14:18,162 Speaker 1: serious trouble. That report of profits from betting led to 224 00:14:18,202 --> 00:14:23,082 Speaker 1: an IRS investigation of the betting pool and the previous winners. 225 00:14:23,642 --> 00:14:26,962 Speaker 1: Here's why the bar was in trouble. If a bar 226 00:14:27,122 --> 00:14:30,162 Speaker 1: forms a betting pool and someone wins all of the 227 00:14:30,202 --> 00:14:33,682 Speaker 1: money from the entry fees, no problem. But if the 228 00:14:33,722 --> 00:14:38,362 Speaker 1: bar keeps any of the money, that constitutes gambling and 229 00:14:38,602 --> 00:14:42,882 Speaker 1: that's illegal. As the annual March Madness Bar betting pool 230 00:14:42,922 --> 00:14:45,882 Speaker 1: grew bigger and bigger, it required more and more time 231 00:14:46,002 --> 00:14:49,082 Speaker 1: and energy to tabulate all the games and to enter 232 00:14:49,162 --> 00:14:52,202 Speaker 1: all the brackets. They had to hire computer guys to 233 00:14:52,282 --> 00:14:56,482 Speaker 1: run it. Authorities wondered was Jody Haggarty keeping some of 234 00:14:56,522 --> 00:14:59,842 Speaker 1: the money from the entries, and so when the IRS 235 00:14:59,922 --> 00:15:03,522 Speaker 1: launched an investigation and agent started sniffing around the pub, 236 00:15:03,882 --> 00:15:08,322 Speaker 1: Jody did what many Staten Island businessman would do. He 237 00:15:08,402 --> 00:15:11,362 Speaker 1: clammed up. He didn't want to talk about it. As 238 00:15:11,402 --> 00:15:14,682 Speaker 1: The New York Daily News reported in two thousand and seven, 239 00:15:14,842 --> 00:15:18,522 Speaker 1: quote what's scaring him now is that the IRS has 240 00:15:18,562 --> 00:15:22,522 Speaker 1: been looking into previous winners. That was according to what 241 00:15:22,562 --> 00:15:25,722 Speaker 1: a law enforcement source had told the Daily News. That 242 00:15:25,882 --> 00:15:30,002 Speaker 1: sounded like big trouble in Staten Island. While the IRS 243 00:15:30,042 --> 00:15:32,962 Speaker 1: started poking its nose into things. The New York Police 244 00:15:33,002 --> 00:15:37,762 Speaker 1: Department and prosecutors assured the local press that Jody Haggerty's 245 00:15:37,762 --> 00:15:41,442 Speaker 1: betting pool had always been run legally, meaning the bar 246 00:15:41,602 --> 00:15:45,442 Speaker 1: wasn't profiting from it. Bill Smith, a spokesman for the 247 00:15:45,562 --> 00:15:49,642 Speaker 1: Staten Island DA, helpfully explain that quote this type of 248 00:15:49,762 --> 00:15:52,402 Speaker 1: tournament pool is legal as long as the house is 249 00:15:52,442 --> 00:15:55,282 Speaker 1: not taking a cut and the owners can't charge a 250 00:15:55,322 --> 00:16:00,202 Speaker 1: fee for service in the pool. However, the NYPD would 251 00:16:00,202 --> 00:16:04,122 Speaker 1: not confirm whether or not they were assisting the IRS 252 00:16:04,162 --> 00:16:08,962 Speaker 1: in their investigation of two thousand and seven. Just before 253 00:16:09,082 --> 00:16:12,562 Speaker 1: that next year's March Madness, when the New York Daily 254 00:16:12,642 --> 00:16:17,162 Speaker 1: News contacted Jody Haggerty, he said, quote, I never ran 255 00:16:17,242 --> 00:16:20,362 Speaker 1: the pool. My name is not on any of the forms. 256 00:16:20,762 --> 00:16:24,282 Speaker 1: It's not run out of here. It's all here said now. 257 00:16:24,482 --> 00:16:27,842 Speaker 1: That same year, Jody decided, just to be safe, not 258 00:16:28,042 --> 00:16:31,242 Speaker 1: to go forward with his annual March Madness pool for 259 00:16:31,322 --> 00:16:34,442 Speaker 1: the first time in thirty years, dating back to nineteen 260 00:16:34,602 --> 00:16:38,562 Speaker 1: seventy seven. Haggarty laid the blame at the feet of 261 00:16:38,602 --> 00:16:42,002 Speaker 1: the media and the firestorm of attention they'd fanned with 262 00:16:42,122 --> 00:16:46,482 Speaker 1: their coverage. Yes, it's canceled, Haggarty told The New York 263 00:16:46,562 --> 00:16:51,762 Speaker 1: Daily News. You and your cohort did it. The question 264 00:16:51,882 --> 00:16:55,042 Speaker 1: to ask is if Warren Buffett can run a billion 265 00:16:55,122 --> 00:16:59,402 Speaker 1: dollar bracket challenge, why can't Jody Haggarty. Again, the law 266 00:16:59,562 --> 00:17:02,842 Speaker 1: is clear, a person like a bar owner can't turn 267 00:17:02,882 --> 00:17:06,042 Speaker 1: a profit from a betting pool he runs, which, in 268 00:17:06,082 --> 00:17:11,002 Speaker 1: the case of Odie's Club Forest that was debatable what 269 00:17:11,322 --> 00:17:16,042 Speaker 1: constitutes a profit. The first official consequence came from the 270 00:17:16,042 --> 00:17:21,202 Speaker 1: state liquor Authority. Haggarty pleaded no contest to promoting gambling 271 00:17:21,282 --> 00:17:25,122 Speaker 1: in his bar, which was a violation of his liquor license. 272 00:17:25,402 --> 00:17:28,522 Speaker 1: He didn't admit any wrongdoing and was assessed a fine 273 00:17:28,562 --> 00:17:34,802 Speaker 1: of fifteen hundred dollars. Next came Thers, after conducting their 274 00:17:34,842 --> 00:17:39,322 Speaker 1: investigation the IRS deemed that Haggarty was indeed running an 275 00:17:39,322 --> 00:17:42,722 Speaker 1: a legal gambling operation, and that he'd been doing so 276 00:17:42,922 --> 00:17:47,122 Speaker 1: flagrantly for twenty nine years. The IRS also determined that 277 00:17:47,162 --> 00:17:51,362 Speaker 1: Haggarty had under reported his income for over three years. 278 00:17:52,042 --> 00:17:56,402 Speaker 1: That last charge could mean prison time for Haggarty, and so, 279 00:17:56,642 --> 00:18:00,122 Speaker 1: in order to avoid any time behind bars, Haggarty pleaded 280 00:18:00,122 --> 00:18:03,922 Speaker 1: guilty to tax eVision. He was forced to pay restitution 281 00:18:04,282 --> 00:18:07,762 Speaker 1: and as a result, he received no prison time. Instead, 282 00:18:07,922 --> 00:18:12,362 Speaker 1: he received probation. The way his son Terence Haggerty remembered 283 00:18:12,402 --> 00:18:16,722 Speaker 1: in his interview with wb Ure quote, my father ran 284 00:18:16,762 --> 00:18:19,282 Speaker 1: into some problems. You know, the IRS came after him, 285 00:18:19,322 --> 00:18:21,922 Speaker 1: but there was nothing. He had to pay some fines 286 00:18:21,962 --> 00:18:24,442 Speaker 1: and he was on probation. He didn't do any like 287 00:18:24,602 --> 00:18:27,162 Speaker 1: jail time or anything. But you know, he got into 288 00:18:27,202 --> 00:18:29,842 Speaker 1: a little bit of trouble because he just got too big. 289 00:18:30,482 --> 00:18:32,882 Speaker 1: They basically told us, you can't do it anymore. And 290 00:18:32,922 --> 00:18:35,122 Speaker 1: you know, in the first couple of years it was 291 00:18:35,242 --> 00:18:37,802 Speaker 1: rough not doing it. But I think in the long run, 292 00:18:37,882 --> 00:18:40,882 Speaker 1: now I think we're all very relieved that it's over. 293 00:18:41,522 --> 00:18:44,602 Speaker 1: It's been a hell of forty years. My father would say, 294 00:18:44,642 --> 00:18:49,802 Speaker 1: definitely sadly the IRS investigation, the court fight, and the 295 00:18:49,962 --> 00:18:53,242 Speaker 1: end of his annual March Madness tournament all combined to 296 00:18:53,282 --> 00:18:57,762 Speaker 1: cause a strain on Haggerty's well being. Jody Haggerty passed 297 00:18:57,802 --> 00:19:01,642 Speaker 1: away in twenty sixteen. Some close to him believe the 298 00:19:01,642 --> 00:19:05,362 Speaker 1: pain and the shame of the IRS investigation shaped the 299 00:19:05,442 --> 00:19:08,882 Speaker 1: last ten years of his life. As his son Terrence 300 00:19:08,962 --> 00:19:11,922 Speaker 1: puts it, quote, part of it killed my father. I 301 00:19:11,962 --> 00:19:14,962 Speaker 1: feel like my father was never really the same after it. 302 00:19:16,562 --> 00:19:20,282 Speaker 1: When asked if he would ever consider restarting the annual tradition, 303 00:19:20,842 --> 00:19:24,842 Speaker 1: Terrence Haggerty told the Associated Press quote, what we were 304 00:19:24,922 --> 00:19:27,882 Speaker 1: put through was horrible, but if I did it, I 305 00:19:27,922 --> 00:19:31,602 Speaker 1: think it would skyrocket right away. We started something that 306 00:19:31,642 --> 00:19:36,002 Speaker 1: nobody's come close to since. So if you filled out 307 00:19:36,042 --> 00:19:39,362 Speaker 1: a bracket this year for March Madness, please raise a 308 00:19:39,402 --> 00:19:43,962 Speaker 1: glass or spara kind thought and perhaps spread the word 309 00:19:44,362 --> 00:19:47,562 Speaker 1: that Jody Haggerty was the man who started it all, 310 00:19:48,082 --> 00:19:51,642 Speaker 1: a humble Staten Island bar owner who gave the world 311 00:19:51,722 --> 00:19:59,842 Speaker 1: one of its finest sports traditions. 312 00:19:59,922 --> 00:20:02,962 Speaker 2: Very Special Episodes is made by some very special people. 313 00:20:03,762 --> 00:20:07,202 Speaker 2: The show is hosted by Zaren Burnett, Danish Ward and 314 00:20:07,322 --> 00:20:12,242 Speaker 2: Jason English. Our Senior producer is Josh Fisher. Today's episode 315 00:20:12,322 --> 00:20:15,842 Speaker 2: was written by Zarren Burnett, editing and sound design by 316 00:20:15,922 --> 00:20:21,362 Speaker 2: Jonathan Washington, Mixing and mastering by Josh Fisher. Original music 317 00:20:21,362 --> 00:20:26,082 Speaker 2: by Alise McCoy, show logo by Lucy Quintinia. Executive producer 318 00:20:26,122 --> 00:20:30,042 Speaker 2: is Jason English. Very Special Episodes is a production of 319 00:20:30,162 --> 00:20:31,402 Speaker 2: iHeart Podcasts.