The Dangers of Signing a Blank Check . . . .
            Pat Boone, Minority Owner, Oakland Oaks

      Pat Boone, who enjoyed prominence as a singer and entertainer in the decades from 1950 to 1980, was both an active playground basketball player and an avid hoops fan. When the American Basketball Association announced its intent to start a team in Oakland, California, Boone signed on as a minority owner. For Boone, it seemed like an ideal situation. In exchange for lending his name and serving as president of the Oakland Oaks, he received a 10% stake in the team without having to invest any of his own money. He also had a written agreement indemnifying him from liability for any debts incurred by the team. When the team began to experience financial troubles, however, Boone was pressured to help out. One day, the majority owner asked Boone to sign a blank Bank of America check to pay off a team debt. Boone said, "There is no amount written on this check." The owner told him the check would be for either $245,000 or $251,000 but that he couldn't remember the exact amount and would have to fill it in later. Boone called his business manager for advice. The business manager told Boone it would be okay to sign because the other owners had agreed to indemnify him for any losses. Boone figured that, if worst came to worst, he could afford to pay the $250,000 anyway. He signed the check. Worst did come to worst. It quickly became apparent that the Oaks were going bankrupt. Boone tried to break his ties with the team. It was only then that he learned the Bank of America check bearing his signature had been written in the amount of $1.3 million. Even worse, Boone found that he would not be indemnified for the loss. Boone considered suing the bank to recoup the money, but his lawyer cautioned against it. "How can you prove that the check was blank when you signed it?" the lawyer asked. On the hook for $1.3 million, Boone was in desperate need of "some sort of miracle." Shortly thereafter, the miracle came in the form of an offer by a Washington, D.C. businessman to buy the team for $2.5 million. For Boone, it was a lasting lesson. If he had not signed the blank check, he never would have needed a miracle.