In an attempt to impress regular guy author Houghton, Niles tells the tale of Boston Red Sox owner Harry Frazee selling Babe Ruth to the Yankees to finance the popular 20's musical, No No Nannette. This is in fact a sports "urban legend" and had been factually debunked in several works.
Goof: At about three-minutes, John Mahoney (Martin Crane) is too early for a cue and is visible just off camera to the left.
Martin: Boy, I've had it with you guys. If you were Hoss and Little Joe, Ben Cartwright would kick your sorry butts right off the Ponderosa!
Niles: I can't just walk up to a god like that.
Roz: Well, then find a subtler way.
Niles: In your vernacular that would be what? To slingshot your panties across the street?
Niles: Oh my God. It is T.H. Houghton. We're a stone's throw away from one of the giants of American literature.
Roz: Not the way you throw.
(Roz sighs while ogling a male customer outside the Café Nervosa)
Niles: Are you quite finished undressing him with your eyes?
Roz: Oh, please. I'm already looking for my stockings and trying to remember where I parked my car.
Robert Prosky appeared on Cheers as a different character. There he played Rebecca Howe's father in the episode "Daddy's Little Middle-Aged Girl".
Character: T.H. Houghton
The reclusive T.H. Houghton is based on J.D. Salinger.