NBA Can Buy Back Bucks If No Arena Deal In Place By Nov. 2017

Post #1 » by **RealGM Wiretap** » Mon Apr 21, 2014 11:14 pm

If a deal to build a new arena is not in place by November 2017, the NBA has the right to buy back the Milwaukee Bucks from incoming owners Wesley Edens and Mark Lasry.

Sources told ESPN.com that the sale agreement announced last week to transfer the Bucks from longtime owner Herb Kohl to Edens and Lasry for a purchase price of $550 million includes a provision that allows the league to buy back the team for $575 million.

This provision ensures that the NBA would control the fate of the franchise from that point as opposed to Edens and Lasry.

Edens and Lasry agreed last week to pay a league-record $550 million to Kohl for the Bucks and promised to contribute an additional $100 million toward a new arena.

Via Brian Windhorst, Marc Stein/ESPN

CHAMPi0N · Post #2 » by **CHAMPi0N** » Tue Apr 22, 2014 1:21 am

Oh great, so another Pelicans situation could happen? More trades vetoed, i.e. more conflicts of interest for Adam Silver? Yeah this sounds awesome lol.

Sn0wman · Post #3 » by **Sn0wman** » Tue Apr 22, 2014 1:27 am

Well now we know who's getting the #1 pick if NBA owns the team

NBA Fan 1234 · Post #4 » by **NBA Fan 1234** » Tue Apr 22, 2014 1:50 am

Basketball reasons 2.0.

RIPskaterdude · Post #5 » by **RIPskaterdude** » Tue Apr 22, 2014 2:07 am

Only going to pay $100M towards the arena? Uh oh...

JazzMatt13 · Post #6 » by **JazzMatt13** » Tue Apr 22, 2014 2:51 am

The NBA will in turn, have to allow some new investors a chance at a new franchise, so the NBA can pay for the Bucks team and arena.

Maybe those investors in Seattle can pay the NBA for a new franchise, much like how NHL is letting Seattle buy a new Hockey team. That would cover a lot of the costs for buying back Bucks.

Matches Malone · Post #7 » by **Matches Malone** » Tue Apr 22, 2014 3:27 am

RIPskaterdude wrote:Only going to pay $100M towards the arena? Uh oh...

That's already on top of the 100 million the previous owner is contributing to an arena. 200 million is practically half way to a new arena.

Edit: There is also naming rights, minority investor contributions and Marquette/Admirals putting money in towards the arena efforts.

RIPskaterdude · Post #8 » by **RIPskaterdude** » Tue Apr 22, 2014 3:34 am

StikWitEM wrote:
RIPskaterdude wrote:Only going to pay $100M towards the arena? Uh oh...

That's already on top of the 100 million the previous owner is contributing to an arena. 200 million is practically half way to a new arena.

Edit: There is also naming rights, minority investor contributions and Marquette/Admirals putting money in towards the arena efforts.

I hope it's that simple, because after seeing what has happened for the last 15 years to the Kings, it's never that easy.

Matches Malone · Post #9 » by **Matches Malone** » Tue Apr 22, 2014 3:40 am

RIPskaterdude wrote:
StikWitEM wrote:
RIPskaterdude wrote:Only going to pay $100M towards the arena? Uh oh...

That's already on top of the 100 million the previous owner is contributing to an arena. 200 million is practically half way to a new arena.

Edit: There is also naming rights, minority investor contributions and Marquette/Admirals putting money in towards the arena efforts.

I hope it's that simple, because after seeing what has happened for the last 15 years to the Kings, it's never that easy.

Agreed. Its definitely going to have some challenges. But a 200 million donation is a great start. Just gotta get the public to agree on some sort of a tax whether it be a super TIF or some sort of sales tax.

chimchol · Post #10 » by **chimchol** » Tue Apr 22, 2014 8:04 am

So, if the do nothing at all, and do not invest anything - they still get 25 mil dollars? Interesting....

CHAMPi0N · Post #11 » by **CHAMPi0N** » Tue Apr 22, 2014 12:37 pm

chimchol wrote:So, if the do nothing at all, and do not invest anything - they still get 25 mil dollars? Interesting....

Yeah but I would assume all of the efforts they'll need to employ from now until then could easily surpass that value. In the end, this isn't a money-making opportunity lol. If you purchase a team nowadays for $550M+ you should expect to be in the hole for multiple years, unless if you're in an exceptional market like NY/BOS/LA - anything goes.

I guess he $25M was just to make the new owners comfortable enough to purchase the team, so that the NBA could snatch it back if any challenges arise... And right now the NBA is looking pretty evil/smart.

Sofia · Post #12 » by **Sofia** » Tue Apr 22, 2014 1:46 pm

Seattle 2018?

Matches Malone · Post #13 » by **Matches Malone** » Tue Apr 22, 2014 2:06 pm

chimchol wrote:So, if the do nothing at all, and do not invest anything - they still get 25 mil dollars? Interesting....

Yup. But do you think two BILLIONAIRES would invest $650 million and waste three years of their time just to make a measly 25 million? Sure that is a lot of money to the average Joe, but I just don't see a couple of billionaires caring that much about such a little amount of money to them. These guys are basketball fans first. They have been trying to get a team for awhile now. Makes no sense to own a team for 3 years and then have to give it up.