by By Robert Travis Scott, and Mike Triplett, Staff writers , Times-Picayune

Houser said Payton was businesslike and did not discuss the film studio investment controversy that has affected more than two dozen current and former Saints players and coaches who could lose nearly $2 million.

Interrupting a family vacation in Niagara Falls, N.Y., Houser flew back to New Orleans on Thursday to explain how he and others got involved in a financial deal with Louisiana Film Studios in Elmwood. Although he championed the studio tax credit program, its failure was the fault of studio executives who did not live up to their end of the deal, Houser said.

"If anything, I feel like I was an ambassador for the state," Houser said. "We were going to bring a bunch more money into the locker room by utilizing a program that was helping the state, that was helping generate jobs."

Payton, quarterback Drew Brees and former quarterback Archie Manning were among those who followed Houser's lead in giving money to the studio with the expectation of receiving state income tax credits in return. The state tax credits program has nurtured many movie and studio projects that have helped turn Louisiana into a thriving location for the film industry, but the Elmwood project has failed to qualify for the credits.

Houser has hired an attorney to assist in recovering the money and has been weighing whether to file a lawsuit. Archie Manning said he received a call from an FBI agent seeking information about the film studio's financial deals.

U.S. Attorney Jim Letten and the regional office of the FBI did not confirm or deny an investigation, their normal response when asked whether they are pursuing a case.

--- 'Heart-wrenching' ---

Houser is a specialty player handling long snaps for punts and field goals. When Payton called, at a time both men were on vacation, Houser was not told that the tax credit controversy or any potential ill feelings among his teammates played a role in his dismissal.

"Was I prepared for it? No. Was it heart-wrenching? Yes. Did I lock myself in the bathroom and cry like a baby? Sure," Houser said.

"But, that being said, listen, it's a business world. We're . . . put out there to win a championship," Houser said. "And if . . . maybe this could have caused a rift, and if there are any underlying issues out there that people didn't come out and say to me, or that people did not have all the answers to the questions that they had for one reason or another . . . listen, I understand."

Studio chief executive Wayne Read said he is lining up investors who will help upgrade the studio and repay the players and others who invested or did construction work for the project.

Houser said he previously used the state tax credits program supporting the film industry without any problems.

Last year, he met Read through a mutual acquaintance. Read explained the plans for converting an old Winn-Dixie warehouse into a motion picture complex. Houser said he turned down Read's invitation to become an investment partner, but he expressed interest in buying tax credits from the studio.

Motion picture productions and studio projects can earn Louisiana tax credits according to how much money they spend. The credits are converted into a financing mechanism for making movies. They can be sold at a discount for cash to any individual or business that wants to reduce their state tax liabilities. For the Elmwood project, the purchasers expected to get about $1.33 worth of tax credits for every $1 they gave.

But the studio project never submitted a final application for the credits and appears to have fallen short on requirements to earn them. Read said the Saints members were not buying tax credits but were risking an investment in the studio that could result in a payoff in the form of tax credits.

--- Quarterback interested ---

Houser said he talked with team members about the credits.

"After training camp and no matter where you are, you're with these guys 24/7, and you learn a lot about each other," Houser said. "Everybody knows what everybody's interests are."

Brees was one of the Saints interested in the credits and referred Houser to his investment adviser, John Palguta of Cleveland.

"It was one of those things, we're walking around the locker room, we're talking, everybody's talking about these things," Houser said. "We're talking about the films, talking about whatever is going on in and around New Orleans. Drew said, hey, will you call my guy John about this. I gave him a call."

When contacted, Palguta asked whether the studio might have enough credits for one of his other clients, Archie Manning. Brees spent $100,000, and Manning spent $80,000.

Defensive end Charles Grant has the most at stake, $425,000. The studio in all had collected about $1.88 million in late November.

Houser put in $125,000 and said he expected enough tax credits in return to cover his liabilities over four years. He said he's taken the responsibility of paying for legal assistance in an effort he hopes will help recover everyone's money.

About a month after the Saints members put money into the deal, a construction company partly owned by Houser's wife got a contract to do renovation work for the studio offices and other jobs. After performing the work and receiving only a partial payment, the construction company filed a lawsuit to collect $681,000 still owed. That suit is still pending.

--- No animosity from team ---

The credits were supposed to be delivered by the end of March. Houser said he tried to communicate with the team members when the tax credits did not come through.

"We set up a couple of different meetings where we tried to get the group of guys together . . . just to let them know," Houser said. "We tried to keep people in the loop as much as we could with what was going on."

He said the players and coaches have called him a lot with questions, but he has heard no anger about the situation directed at him.

"I've yet to have one guy question me on why I got them into anything," Houser said.

As to whether the tax credit controversy might have contributed to his dismissal, Houser said, "If there were to be any animosity or any other issues due to this . . . the most important thing for the organization and for the city of New Orleans is to win and to win a championship."

"If some of that stuff did happen, I'd feel terrible that they would have those sorts of feelings when we've had ample opportunity to try to clear anything up," Houser said.

The financial issue did not come up during Payton's brief call on Monday, Houser said. "He's a man of his word, and he was straight up with me," Houser said.

The Saints' coach could not be reached for comment. Saints spokesman Greg Bensel said this week that the organization was not involved in the tax credit issue and does not comment on the individual investment or financial decisions made by players and coaches.

--- 'Chance to upgrade' ---

Saints General Manager Mickey Loomis said in a statement Monday that the team would replace Houser and has signed 14-year veteran Jason Kyle because they "saw in him a chance to upgrade our kicking game."

Kyle is as experienced as Houser, and Loomis was working in the Seattle Seahawks' front office when they drafted Kyle in 1995.

Also, in an indication the team might have been looking for a new player in the position, the Saints converted backup defensive end Rob Ninkovich to a full-time long snapper during their organized team activities in May and June to compete for the job.

Looking to the future, Houser said he was not counting out playing for another team.

"It would be a shame to know that God gave me a talent, and I didn't use it for what I was meant to do," Houser said.

"In my heart of hearts . . . I believe that . . . this situation is a detrimental one. Obviously it's affected our lives in multiple ways," Houser said. "Do I feel optimistic that the money will come back? Why not?"

. . . . . . .

Robert Travis Scott can be reached at rscott@timespicayune.com or 225.342.4197.

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