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Sixers Up For Sale?

According to forbes harris has a 'net value' of 1.5 billion dollars - but what's he got in cash. Marc Cuban is a multi billlion aire but most of it came from a sale of his company to yahoo at the height of the internet boom so he has a lot of cash.

If Harris is all stocks and bonds and holdings - his available cash isn't exactly huge.

No one else has reported this story yet have they?

Send up the TOM Signal

Kate actually took some time out of her Iguodala bashing schedule to post a link to the rumor and say none of her calls have been returned.

Posting a link to the original rumor isn't exactly 'running it down' or 'confirming or denying'.

It's freaking wall street - someone get on the phone to their business editor, call cnbc, jesus

My guess is that he's pretty liquid, my guess is also that he'll put very little cash into the deal if it's made. It will be some kind of intricate transaction with a ton of leverage.

Other investors in the deal include private equity executive David Blitzer and former NBA player agent and Sacramento Kings executive Jason Levien.
Blitzer moved from New York to London in 2002 to create the London-based European office of the Blackstone Group, one of the largest private investment groups in the world.
As an agent, Levien represented players including Kevin Martin, Luol Deng and Udonis Haslem.

Cool - we'll get kevin martin cheap cause he'll force a trade here - Brian loves that idea

SO Harris isn't sole owner

Bad sign

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WHAT??? reply to GoSixers on Jun 7 at 12:01
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Can you elaborate?

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WHAT??? reply to GoSixers on Jun 7 at 12:02
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Can you elaborate?

Is this a hard concept?

Sole Owner, Ownership group. More voices, more opinions, more input - more mess.

Not necessarily. There are quite a few investment groups that have done pretty well.

In the nba?

Ownership group doesn't mean a whole lot. Depends on where the power lies. If there's a bottom-line guy, that's fine w/ me. A lot of teams have ownership groups.

I just don't trust a guy who can't put up his own money. It gives me pause.

I care more about why the guy wants to own a team than where the money comes from.

Yeah, I don't care what he says, I care what he does. So his 'speech' will mean nothing unless of course he openly admits he's going to tear it down to resell it :)

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johnrosz on Jun 7 at 12:00
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Rod Thorn has to be saying "you've gotta be fucking kidding me" right about now

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johnrosz on Jun 7 at 12:26
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Will the league really approve of a sale like this if there's any indication that the ownership group intends to flip the team only a few years down the road?

For all of Sterns faults, he's definitely not an idiot. I'm sure there will be some questions if this purchase is in the interest of Apollo

Your idealism is nice and all but the approval process usually isn't about that, it's about fiscal stability and ability to make payroll and such.

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johnrosz reply to GoSixers on Jun 7 at 12:35
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Haven't really followed anything regarding the sale of the Pistons, sounds disheartening.

I guess it's disheartening.

In the gold rush - when a mine dried up a city - died - because that's the natural evolution of things. These days we don't like things die a natural death - we keep them alive much longer than they should be (people, the american auto industry, etc...). Detroit is a dead city. The American auto industry is not going to come back and it was the back bone of Detroit. Detroit hould be allowed to die a natural death

The league just let Gores buy the Pistons. He's also a PE guy.

And yet they won't let anyone buy the hornets who would move them.

It's not like the league shows common sense or its own best interests anyway all the time.

The Pistons had to be sold, and soon, they couldn't have two failed sales.

I couldn't find it quickly, but was Gores heading an ownership group, or did he buy it himself?

The team said the sale of Palace Sports and Entertainment and the Pistons to Gores and his investment firm, Platinum Equity, was formally completed Wednesday, one day after NBA Commissioner David Stern said the league's Board of Governors had approved Gores' purchase of the franchise.

Opening paragraph from the ESPN report on the sale. Seems like it was at least sold to the firm - does Gores own the firm on his own?

Gores is also worth 50% more than Harris, and oh yeah, he might be pro terrorists Check it Reads more like paranoid delusional writing but it's the 2nd link when you search gores pistons ownership

Yeah, that counts as an ownership group. What's the difference between $1.5B and $2.25B :)

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bebopdeluxe reply to Brian on Jun 7 at 12:43
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Ummm...$750 million?

Stern has been extremely accommodating to owners of all stripes. I think the Clippers, Kings, are both great examples of ownership fighting for extra draft picks to continually stay under a certain cap # to optimize the league wide sharing money. The Kings are guilty of over leveraging for a number of years and taking advantage of the success of the other teams in the NBA.

If Comcast, Snider, has pushed for selling the team and the NBA can make that deal happen, its a win for the league. The NBA will continue to do whatever it can to make it easier to own an NBA franchise. Stern will not strong arm any deal that would prevent this transaction from happening.

In a statement, Comcast-Spectacor chief operating officer Peter Luukko told The Associated Press there are "discussions about the future of the team" that are confidential, but did not address a possible sale.

Nice spin pete, i read this as a non admission admission that ESPN's source is accurate

I got the full press release. They also said "At some point, we may have something more to say about these discussions, but we will not be making any comments at this point."

Reading between the lines, it's pretty obvious.

The non confirmation confirmation.

So yeah - it's real

So the question i have now is who is abbots source :)

And where is sf1976 :)

They are going to move the team to London and trade for Luol Deng and Ben Gordon :) John Amaechi will be their PR director.

the NBA is going global...

lulz

I've not read anything in detail. Would this solely be a sale of the Sixers, or of a bigger chunk of Spectacor?

The only real source of info is the ESPN article - haven't seen anything else pop up yet and it says sixers.

I don't believe that Snider would be willing to sell the flyers - he loves the flyers - and the stadium is much more valuable than the sixers.

It doesn't make sense to me at all really

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bebopdeluxe reply to tk76 on Jun 7 at 13:00
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I think I read it is jusst the Sixers, and they would be a tenant of the WFC.

WHere'd you read that? Most stuff I read is just rehashes of the ESPN article.

What's interesting - and i doubt anyone knows the answer (tom can you ask) is the whole rent / gate relatoinship in a stadium. The sixers and the stadium owners are currently the same entity so a division of gate probably isn't necssary - and thre's no 'rent' paid by the sixers to the owner you'd think I'd be interested to hear how this could increase expenses for a new owner if they have to rent the space in the WFC that was 'all but free' when the landlord owned the tenant?

Running an arena with 2 pro teams is a whole lot more profitable (year to year) than owning an NBA team.

I really hope the Sixers get a free spending owner. It really makes or breaks a franchise.

I get that

But will operating expenses for the sixers go up (or gate receipts down) because they are now owned by 'not comcast' so they don't get a good tv deal or arena deal?

If I were buying the team - i'd immediately request a negotiation of sixer tv rights because you know CSN got a good deal if they paid at all

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jkay reply to GoSixers on Jun 7 at 13:40
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yeah I don't think they paid. If they did, it was probably recouped in the fees that they stole from other non-Comcast cable companies that had to subscribe their customers to their channel just to watch the games.

I just heard a bunch of details, can't share until later though.

Thanks for that tip.

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sooner reply to Brian on Jun 7 at 13:12
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Later as in about an hour or later today or later in the week. I'm just curious because I'm trying to figure how much longer I'm not going to be productive at work

This afternoon. It'll be worth it.

Will I be happy or sad with this news (cause honestly, that's ll that matters to me)

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sooner reply to Brian on Jun 7 at 13:14
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So does that mean you like the details you heard or they're just interesting details?

interesting.

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johnrosz reply to Brian on Jun 7 at 13:31
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eavesdropping on the negotiations over at Chili's?

dude what's the point in having this blog if you can't spill secret info to us nownownow??

Dude, don't tease us just cause the wife is teasing you. Seriously

This is just rank speculation, but I would think that a private equity firm wouldn't buy the Sixers for the point of making a profit, because any potential profit to be realized just isn't that great. The Clippers, for example, one of the league's most profitable teams and a team that plays in a much larger market than we do, makes about 9 million a year. Would a private equity firm come in just for the sake of making that kind of money? I would think it's a situation where Harris is a rich guy who likes basketball and just happens to have made his money in private equity.

Do you have a source for that $9M profit for the Clippers?

Not 9 million link but

http://www.forbes.com/lists/2010/32/basketball-valuations-11_Los-Angeles-Clippers_322952.html

But the Clippers are also one of the NBA's most profitable teams because they pay very little rent at the Staples Center, consistently draw over 16,000 fans per game and have a decent local television deal with FSN Prime Ticket, despite their horrific performance on the hardwood.

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Tray reply to Brian on Jun 7 at 13:36
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Yes, this is a quote from Forbes on nbclosangeles.com:

The Los Angeles Clippers lease at the Staples Center sums up owner Donald Sterling's philosophy of running the franchise: maximize profits by keeping fixed costs low. The Clippers pull in less revenue from premium seating and arena advertising than the typical NBA team. But they pay only $1.5 million a season in rent at the arena, which is owned and operated by AEG, owner of the Los Angeles Kings and a minority stake in the Los Angeles Lakers. The Clippers have posted more than $9 million in operating profits the past five seasons despite fielding one of the worst teams in the league.

They would if they planned on moving the team...

Not that I'm saying that is what will happen. Simply, that is a way to make more money in the short term. You get a free arena, sweetheart deal and at least a few years of sell-outs.

Comcast-Spectator discussing possible sale of Sixers:

http://ow.ly/5cfcQ

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ed oreilly on Jun 7 at 13:23
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Brian, I extended lunch till the end of the day so i can hear this interesting news. I hope i dont get fired.

Get back to work, it's going to be late in the afternoon at the earliest.

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STANtheMAN Johnson reply to ed oreilly on Jun 7 at 14:16
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Screw work. You need to get as much info asap. Don't wait till after work because then you'll be thinking about this all day and it will bring down your performance. You'll also be out of the loop once you get home.

Trust me, I am unemployed and I am more updated on the latest news now more than I ever was.

Just saw this. Flabbergasted.
Looking at the proposed trade in the context of this imminent deal, not good.
Considering the description of the new ownership, I expect an Iguodala trade, heavy marketing and advertising, and some kind of quasi-star signing.
Suffice to say these guys will be looking for a return on their 'investment' as soon as possible.

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ed oreilly on Jun 7 at 13:40
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Ok fine, ill go back to work reluctantly...question is the sixers do sell, What do you think they would do with Thorn?

Brian: if you aren't aware of it already; you're killing us here.

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Stantheman reply to jkay on Jun 7 at 13:53
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lol

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johnrosz on Jun 7 at 13:45
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Nightmare scenario: these are some of Stefanski's boys from Wharton. They take over the team and Ed is back wheeling and dealing and talking about "basketball sense"

This makes me very nervous. If I'm a PE guy, I'm looking to maximize my return, the sooner the better. The best way to do that is to shed expensive contracts/overpriced assets (Iggy) and replace them with younger/cheaper assets (draft picks, expiring contracts).

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Tray reply to Nick on Jun 7 at 13:53
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Maybe half of the fanbase thinks that's what should happen anyway. Obviously one would rather see that than Iguodala for Eliis, or Jefferson.

Yep. I'm not crazy about either option, but tearing it down is far preferable to trading Iguodala for a "sexier" player who isn't nearly as good but is signed for just as long.

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deepsixersuede reply to Brian on Jun 7 at 14:09
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Was this going on when Collins was hired? Brings new meaning to the word "relevant.

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STANtheMAN Johnson on Jun 7 at 14:12
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Brian, can't you create a fake identity on this blog and spill the details?

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deepsixersuede on Jun 7 at 14:17
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As far as when to buy a team and what its value is, isn't this a good time with the new cba and a possible amnesty clause?

maybe brian is in negotiations to buy the team and thats what he will announce later

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STANtheMAN Johnson on Jun 7 at 14:30
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Brian doesn't know anything. He says he does to get more web traffic. Basically just an over glorified version of bleacherreport.com

(just joking)

Iguodala for Ellis saves 11 million dollars in the long run. I'm scared that this guy would do that.

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Tray reply to Rich on Jun 7 at 15:10
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You know, this guy's worth 2 billion. I just don't think that he bought us because he sees a business where he can make a piddling $10 million profit. Everyone who's an NBA owner is in some profitable business; it doesn't mean they all go out of their way to cut costs and make the teams they own profitable.

That Forbes has several teams over $20M in earnings, some over $30M. That's between 5-10% of the value in the team in earnings every year, plus the increased value of the team.

Jesus, they have the Bulls at $50M+, the Knicks at $64M+.

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Tray reply to Brian on Jun 7 at 15:45
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Yeah, well, this isn't Chicago or New York.

Houston: $35M
Phoenix: $20M
Toronto: $25M
Detroit: $31.8M

Anyone near a TV, Iguodala will be on Scott Van Pelt's show in 10 minutes. ESPN 2.

Iguodala is at some broadcast camp, and he's breaking down the Finals really well. Even used the term "hockey assists" :).

Deflected the rumor, said he wasn't paying attention to basketball except for the finals. He said he hasn't been paying too much attention to the Finals, trying to rest. The only reason he's watching hoops is because he's at the broadcasting camp.

Iguodala says Turner is "a funny guy," and "loves him to death." Also says "he is going to be a great player." Van Pelt says that he'd take Iguodala for Ellis in heartbeat.

Eskin is not a real source... but he supposedly said the team would sell for 280M.

Pretty distressed considering the Warriors sold for $450M. Did that include an arena, or just the team?

Can we get some sort of ETA for the mysterious brian ifnroamtmion:

It depends on a publication schedule. Unfortunately, I'm also going to the Yanks/Sox game in about 45 minutes. The update is written and ready to be published, just not sure exactly when I can.

The Associated Press, citing a person familiar with the deal who spoke on condition of anonymity, said the team could be sold within the week. The source said Harris' group was not the only bidder but is now the lead bidder, adding the deal has been in the works for several months.

Months? Several bidders? How the hell does something like this stay quiet in this day and age?

I had heard about it 2 weeks ago, but couldn't get enough concrete info to publish it.

All I can say is look over the names of the buying group. One of them to me stands out like a sore thumb.

Are you seeing a different list than we see - the name that sticks out to me is the player agent.

Though I knew a cuck blitzer when i was a kid :)

It's the player agent that's interesting, but not because of his time as a player or agent.

Research him, his last place of employment, the terms of how he left there, and what his future aspirations might be.

Sactown Royalty for the win

Interesting and now we know who would really be running the team :)

will the blog handle need to change to distraught fan ?

Here's the 'cable deal' portion - interesting

The 76ers were valued this year by Forbes at $330 million, 17th in the NBA. Comcast SportsNet spokeswoman Maureen Quilter said the 76ers have a deal with the station through 2029.

“The thing that they’re buying is the cable,” Forbes media executive editor Mike Ozanian said. “That’s the biggest part of the asset. It’s been undermonetized, the cable deal.

“They’ve got to get at least twice of what they’ve been getting. It’s under $13 million a year. They’ll have no problem. It’s pure profit because there’s no cost associated with that.”

But wouldnt' that cause comcast to ask for more money - cause now they have more money going out of their pocket (for the next 18 years, somehow i think the tv deal would be renegotiated) :)

Nothing coming out makes me feel good about this - NOTHING

OK, the update will publish at 5:30. Enjoy. There's some new info an analysis in there, and also a bit more.

Go Yanks, by the way. If anyone watches the Yanks/Sox tonight, I'm sitting on the fence in right field, blue shirt. Take a picture if you see me.

wear a do-rag, that way theres no way we miss you

Something just occurred to me that might be good. If this happens, new ownership gives a chance for a reset - a rebuild because ownership wants to have 'their stamp' on the franchise. They might be more willing to do what's been needed since 2002.

Hopefully they're smart

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emtmess reply to GoSixers on Jun 7 at 17:14
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I know you have been stating a rebuild is the way to go. What would be your plan? and about how may years to get there. If I was going to rebuild the roster I would shop Jrue right now just because I think he gets you the most back.

I think the point of the rebuild is to build around Jrue.

If you're rebuilding your roster - you don't shop jrue - that's insane - he's the only person you don't shop - you shop everyone - you clear cap and acccumulate pick, you hope you get lucky in the lottery (cause that's how it works usually) or that some other team gets stupid and wants to trad ehtier stars and you can get it done.

Specifics aren't really a good idea it's an approach that to make a championship contender you have to tear down the house and start from scratch because all these add ons are impossible to mesh together.

Like I said - it's almost 10 years now

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deepsixersuede reply to GoSixers on Jun 7 at 17:21
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Iggy for a trade exception [Cleveland?] and a pick would be a good move than and the amnesty clause, if it happens, rids him of Elton. That would drop 15 wins off the record next year if it happened.

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emtmess reply to GoSixers on Jun 7 at 17:50
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I guess I was looking at the term "rebuild" as unless you have a super star or a budding one everyone is available. I think Jrue can be a huge part of a championship on the right team. Does the team have enough other options to get what it would seem the team would need to challenge the top teams. IMO Right now you need two legit efficient scoring options. A couple of 4/5 players who can deffend. Last of all 2 wing deffenders who can make it tough on Lebron and Wade. Just

ANd you're right, jrue is probably made available - but he's the hardest piece to get because he has the most upside - it's a point guard league (supposedly) and he's a point guard who has game already

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emtmess reply to GoSixers on Jun 7 at 19:07
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Very true. The more I think about it, maybe make everyone except Jrue and Andre (or if you think Singleton will be a very good wing deffender Jrue and Singleton) and build off of thoose two. I just think with a combo of Jrue and a very good wing deffender that is not a waste on offense you have a great start. It seems like you could "hide" a good wing scoring option who's D is sub par.


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