Another Bill Simmons Grantland article about the Bucks sale

[Dobber-16]

Great article of the "Exclusive" NBA owner's club, and exploding franchise values.

http://grantland.com/features/the-world ... sive-club/

Meanwhile, Milwaukee made history Wednesday by breaking the NBA purchase-price record while also serving as our new floor for “here’s the lowest number anyone is getting for a 2014 NBA franchise.” What did Lasry and Edens agree to purchase? A small-market team, no franchise star, no state-of-the-art arena, a 25-year legacy of losing (save for 2001), apathetic and tortured fans, Larry Sanders’s entire TMZ archive, O.J. Mayo’s buffet bills, black-sheep brother status in the local sports scene … I mean, they basically landed the Greek Freak, a top-three lottery pick, some revenue-sharing money and a chance to tell people they own an NBA team while secretly hoping they don’t ask “Which one?”

[Treebeard]

These guys are buying in at the right time:

And I didn’t even mention basketball grabbing the no. 2 spot behind soccer as the world’s most popular sport. I’m not sure when it happened, but it happened. Buy an NBA franchise in 2014 and deep down, you’re thinking about stuff like, I wonder if fans from 250 countries will be paying for League Pass 20 years from now? Throw in the other breaks and that’s how you end up climbing from here....

[MickeyDavis]

I can only imagine what a good team would sell for right now.

I liked this: "apathetic and tortured fans"

[Treebeard]

I don't know how true, but I love the line:

Stars are more likely to gravitate toward great owners and great situations than great cities.

[glenn]

I don't know how true, but I love the line:

Stars are more likely to gravitate toward great owners and great situations than great cities.

I'd say that it's relatively accurate. There is some severe small market self-hate that happens around here, but if you back up and look at the big picture there aren't that many special markets out there. New York and LA for sure. But who else? Boston's stature is seriously over stated. Miami drafted Wade and was better run than Cleveland and Toronto, which I think is a greater reason or that free agent trio staying/going there.

[El Duderino]

The OKC hijacking also created the league’s first extortion city — Seattle, the NBA’s version of L.A.’s Potemkin NFL franchise. These days, the mere threat of Sonics 2.0 can get a state-of-the-art arena built in other markets and bump up bidding wars by $100 million–$125 million.

This is why i'm not all that scared about the Bucks being moved to Seattle. The NBA loves having Seattle open to use as the blackmail card.

[Treebeard]

I don't know how true, but I love the line:

Stars are more likely to gravitate toward great owners and great situations than great cities.

I'd say that it's relatively accurate. There is some severe small market self-hate that happens around here, but if you back up and look at the big picture there aren't that many special markets out there. New York and LA for sure. But who else? Boston's stature is seriously over stated. Miami drafted Wade and was better run than Cleveland and Toronto, which I think is a greater reason or that free agent trio staying/going there.

I think is more difficult for small market teams to compete - IF everything else is equal. Part of that is the sideline opportunity for local marketing. There's just a bigger pot of marketing money to pull from in a larger market. But situations seldom are equal. San Antonio is at least comparable as a media market to Milwaukee, but good lord, the franchise has been so much better run that their success partly sustains itself now - it's can't be as hard to sell a good player on coming to south Texas.

[White+Purple]

Buy an NBA franchise in 2014 and deep down, you’re thinking about stuff like, I wonder if fans from 250 countries will be paying for League Pass 20 years from now?

Where are the other 57 countries coming from?

[Bucksfan28]

"They made a shockingly lavish offer for the Kings (nearly $800 million if you added everything up)3 and the biggest offer for the Bucks (more than $600 million, from what I heard)."

So is the Seattle group the mysterious runner up BP mentioned? I haven't checked the sale thread for it.

[Thunder Muscle]

The OKC hijacking also created the league’s first extortion city — Seattle, the NBA’s version of L.A.’s Potemkin NFL franchise. These days, the mere threat of Sonics 2.0 can get a state-of-the-art arena built in other markets and bump up bidding wars by $100 million–$125 million.

This is why i'm not all that scared about the Bucks being moved to Seattle. The NBA loves having Seattle open to use as the blackmail card.

Exactly, they are the NBA's version of Los Angeles for the NFL.

[JoeHova]

This is why i'm not all that scared about the Bucks being moved to Seattle. The NBA loves having Seattle open to use as the blackmail card.

That's actually why I am scared. Any owner (including Lasry & Edens) could make themselves a couple hundred million tomorrow by selling to Ballmer and Hansen. All it would take is a little frustration (intransigent politicians? 4th overall pick?) or some other investment going bad (like why Tom Hicks had to sell all his teams) and that kind of cash-out might start to look very attractive.

Actually, from my understanding, this is pretty much exactly what high roller investment types do. Buy companies that are being sold for less than they're worth and then leveraging the company's assets for maximum value. The Bucks were just sold for at least $50 million (and possibly as much as $250 million) less than they're worth on the open market. That worries me quite a bit.

[JayMKE]

"They made a shockingly lavish offer for the Kings (nearly $800 million if you added everything up)3 and the biggest offer for the Bucks (more than $600 million, from what I heard)."

So is the Seattle group the mysterious runner up BP mentioned? I haven't checked the sale thread for it.

Doubt it, don't think they even bothered talking to Kohl given the assurances he wants. I think the Seattle group is pretty much going to have to wait until they get an expansion them, any team they're interested in means they want to move the team which will send the local fans into meltdown mode. They're not going to trick another team like Clay Bennett did them.

[Ayt]

This is why i'm not all that scared about the Bucks being moved to Seattle. The NBA loves having Seattle open to use as the blackmail card.

That's actually why I am scared. Any owner (including Lasry & Edens) could make themselves a couple hundred million tomorrow by selling to Ballmer and Hansen. All it would take is a little frustration (intransigent politicians? 4th overall pick?) or some other investment going bad (like why Tom Hicks had to sell all his teams) and that kind of cash-out might start to look very attractive.

Actually, from my understanding, this is pretty much exactly what high roller investment types do. Buy companies that are being sold for less than they're worth and then leveraging the company's assets for maximum value. The Bucks were just sold for at least $50 million (and possibly as much as $250 million) less than they're worth on the open market. That worries me quite a bit.

So what do you think is stopping Lasry and Edens from turning around and selling the franchise to the Seattle group immediately after their purchase is finalized? In your scenario, that looks like extremely easy money.

[thomchatt3rton]

Id love to believe that KD fans in LA and Howard leaving LAL for Hou meant that city/market doesnt matter any more, but i just dont know if i can buy it.
It is true that good ownership can overcome the small market, but a well run big market team will out-attract a well run small market team all day.
Also, its not just market size, but market "sexiness".

[DickCunningham]

This is why i'm not all that scared about the Bucks being moved to Seattle. The NBA loves having Seattle open to use as the blackmail card.

That's actually why I am scared. Any owner (including Lasry & Edens) could make themselves a couple hundred million tomorrow by selling to Ballmer and Hansen. All it would take is a little frustration (intransigent politicians? 4th overall pick?) or some other investment going bad (like why Tom Hicks had to sell all his teams) and that kind of cash-out might start to look very attractive.

Actually, from my understanding, this is pretty much exactly what high roller investment types do. Buy companies that are being sold for less than they're worth and then leveraging the company's assets for maximum value. The Bucks were just sold for at least $50 million (and possibly as much as $250 million) less than they're worth on the open market. That worries me quite a bit.

So what do you think is stopping Lasry and Edens from turning around and selling the franchise to the Seattle group immediately after their purchase is finalized? In your scenario, that looks like extremely easy money.

Some kind of contractual poison pill clause that creates a disincentive for moving the team. Hope Kohl's lawyers know what they're doing.

[old skool]

So what do you think is stopping Lasry and Edens from turning around and selling the franchise to the Seattle group immediately after their purchase is finalized? In your scenario, that looks like extremely easy money.

I think that the NBA Board of Governors would be reluctant to approve a quick sale made only for a quick profit. It hurts the NBA's image to have teams move around so much. The NBA would be more likely to force ownership to sit on a team rather than allow a quick sale.

Look at how determined the league was to avoid having the Hornets move to a third city in such a short time. They took the team over and ran it themselves - a huge headache for someone I am sure. They could have cited the catastrophic effects of Katrina. Instead, they rebuilt in New Orleans.

Franchise relocation hurts the NBA. It generates ill will. It upsets avid and casual fans. It is not good for business.

[El Duderino]

This is why i'm not all that scared about the Bucks being moved to Seattle. The NBA loves having Seattle open to use as the blackmail card.

That's actually why I am scared. Any owner (including Lasry & Edens) could make themselves a couple hundred million tomorrow by selling to Ballmer and Hansen. All it would take is a little frustration (intransigent politicians? 4th overall pick?) or some other investment going bad (like why Tom Hicks had to sell all his teams) and that kind of cash-out might start to look very attractive.

Actually, from my understanding, this is pretty much exactly what high roller investment types do. Buy companies that are being sold for less than they're worth and then leveraging the company's assets for maximum value. The Bucks were just sold for at least $50 million (and possibly as much as $250 million) less than they're worth on the open market. That worries me quite a bit.

I'm not naive, so sure if the city/state refuses to help at all in getting a new arena built, i could see our new owners eventually reaching a point to where they decide it's just not going to happen here in Milwaukee and thus look to move elsewhere. That i don't see as their main objective though.

Plus, the NBA won't abide by the Bucks playing in the old Bradley Center indefinitely either. So if a new arena plan gets put in place in a reasonable time frame, i think they'll keep the Bucks here long term. If not, then yea, their hands will be forced and basketball in Milwaukee could end. I don't think though that they bought the Bucks with the intention of finding any chance to bolt for Seattle to make extra cash.

[Serge28]

So what do you think is stopping Lasry and Edens from turning around and selling the franchise to the Seattle group immediately after their purchase is finalized? In your scenario, that looks like extremely easy money.

Do you really think Kohl has held back on selling the Bucks for all these years just to turn around and sell to someone based off of their "word" that they wouldn't move the team? Come on now! Kohl may have been a terrible owner from a basketball perspective, but he's a multiple term US Senator. He's not an idiot. There is no way it's not ironclad. I have 0 doubt about that.

[JoeHova]

So what do you think is stopping Lasry and Edens from turning around and selling the franchise to the Seattle group immediately after their purchase is finalized? In your scenario, that looks like extremely easy money.

I agree, it seems like too easy money for any billionaire to pass up. That's why I am a little worried, even though I know Herb would have done everything in his power to make sure they keep the team here. I mean, it's like selling somebody an ugly 24k gold ring that weighs an ounce for $700. Sure, whoever buys it might wear it as a ring, but more likely, they plan on cashing it in for maximum value.

[PkrsBcksGphsMqt]

I don't see Lasry and Edens buying the team purely for profit. Lasry is extremely competitive. I see him wanting to win an NBA Championship before the hometown Knicks and Nets do. I think he wants to prove he is a better owner and can build a winner faster than those two huge franchises. It's all about ego. He has no trouble making money, I don't see making a quick $100 million all that appealing to him in comparison to the allure of owning a championship franchise. Just like Simmons laid out in this piece.

Also, no way Silver lets someone buy a franchise and immediately sell it to someone else. That's not the way things work.