On Friday, LeBron James confirmed his decision to join the Philadelphia 76ers, but by the time he shared this news on X, ESPN's Pat McAfee had already taken significant action in the betting market, placing bets on Philadelphia at +700 before the announcement was public.
ESPN's Shams Charania was among the first to break this news on X, a platform he frequently uses to update sports developments. Earlier that day, he hinted to McAfee, "You’re gonna want me on the show today," indicating he had inside information that was likely to surprise fans and analysts alike.
In response to this tip, McAfee acted quickly, stating, "I just hammered top four," referring to his bets regarding LeBron's next team. At that point, Philadelphia was listed as the fourth favorite, trailing the Miami Heat (+150), Cleveland Cavaliers (+250), and Golden State Warriors (+400).
The situation raises concerns about potential insider trading, reminiscent of Timothy McCormack's recent conviction for using privileged information to place bets on NBA games. McCormack reportedly received details about team lineups, including whether James would play.
As prosecutors detailed, LA Lakers coach Damon Jones had messaged gamblers to place large bets on the Milwaukee Bucks, predicting James would be unable to play. Milwaukee went on to defeat the Lakers 115-106 in February 2023. Jones has since accepted a plea deal and awaits sentencing, admitting to misusing insider knowledge for personal gain.
While Charania did not explicitly disclose which team LeBron would join, he also did not encourage McAfee to place those bets. Notably, McAfee admitted to losing bets on other teams during the same session, which could potentially mitigate accusations against him. His history of publicizing unsuccessful wagers adds complexity to the scenario, leading to questions about the ethics of betting when one has access to insider information.
Criticism directed at McAfee has intensified, particularly from author Jeff Pearlman, who reacted strongly on TikTok, condemning the intersection of sports and gambling. Pearlman stated that ESPN's role has shifted, stating, "They’re not a journalistic entity anymore." He condemned McAfee’s behavior as "disgusting and disturbing," criticizing the nature of how inside information is treated in relation to betting.
Others in the betting world also exploited the news regarding LeBron’s team switch. Traders utilizing automated bots capitalized on the situation, as market reactions flared up significantly. Before Charania’s tweet, predictions on Kalshi had forecasted only a 9% chance of James heading to Philadelphia. However, trading activity surged shortly after, amassing over $233 million in volume. As reports indicated, bots executed trades worth over $21,000, generating returns upwards of $122,000 almost instantaneously. Following the initial buzz, the chances of LeBron signing with Philadelphia shot up and eventually reached certainty as the market stabilized. Reports suggested that many average bettors may find themselves at a disadvantage in this fast-paced environment.
