mohammed10's Official "Ted's Wizards" Thread

[Donkey McDonkerton]

Any news on the Tedi front? The deadline is tonight, unless they decide to keep going forward in which the deadline tonight isnt really worth a damn.

SO there is a deadline, but its not a real deadline.

From the Teddy perspective there's no real threat implicit in this deadline. If they don't reach a deal today, then he has a number of failsafes that protect his ability to purchase the team at a fair market price:

If the two sides do not agree to extend the talks, each side selects an appraiser to estimate what the building and team are worth. If the two appraisers cannot agree on the value for the team, they together pick a third appraiser.

Leonsis can then agree to pay the amount set by the third appraiser, which would also bind the Pollin estate to sell at that price. If Leonsis passes on the third appraiser's price, the Pollin trustees can put the team up for sale on the open market. But Leonsis would still have the right to match any outside offer.

I suspect it wouldn't come to the last circuit breaker, since you never know what Chinese billionaire might want to step in and own a piece of the nation's capital, or capitol.

Right, that's why I said there is a deadline, but its not really a deadline.

[long suffrin' boulez fan]

Forgive my cynicism... but as long as the Pollin family has anything to do with this, it has the potential to implode.

Remember when JK Cooke's estate set about to sell the Skins? What a joke that was. Not only did the process get bogged down by other NFL owners looking to stall the sale for their max advantage, but Howard Millstein, who looked like a lock to buy the Skins ended up out in the cold.

Ultimately, his minority partner, a young Iago by the name of Daniel Snyder, ended up with the goods.

That has turned out well, hasn't it?

[Donkey McDonkerton]

I wonder if this will get done in 2-3 days, 2-3 weeks or 2-3 months.

[Ruzious]

I wonder if this will get done in 2-3 days, 2-3 weeks or 2-3 months.

I'll take Wizards delays for 400, Alex.

[Hoopalotta]

Appraisers to determine value of Wizards, Verizon Center

http://www.washingtonpost.com/wp-dyn/co ... 04108.html

Washington Capitals owner Ted Leonsis and the estate of sports entrepreneur Abe Pollin have failed to reach agreement on a price for the Washington Wizards and Verizon Center, automatically leading the two sides to start an appraisal process that could lead to a deal.

Under an agreement made with Pollin when Leonsis bought the Capitals a decade ago, each side will now hire an appraiser who will set separate prices for the Wizards and the arena.

[Donkey McDonkerton]

Appraisers to determine value of Wizards, Verizon Center

http://www.washingtonpost.com/wp-dyn/co ... 04108.html

Washington Capitals owner Ted Leonsis and the estate of sports entrepreneur Abe Pollin have failed to reach agreement on a price for the Washington Wizards and Verizon Center, automatically leading the two sides to start an appraisal process that could lead to a deal.

Under an agreement made with Pollin when Leonsis bought the Capitals a decade ago, each side will now hire an appraiser who will set separate prices for the Wizards and the arena.

Just what we need, something else dragging out for another 2-3 months

[verbal8]

Until the Arenas situation is closer to resolution, I can't see how a price can be reached. It is hard enough to reach a mutually acceptable price on a significant asset.

The best case financially is they can void the Arenas deal and the future liability is 0. However the franchise loses a once marketable star in that scenario. The worst case is Stern ends the suspension, but they "Tinsley" him and they end up being on the hook for the rest of his contract.

Forbes estimates the Wizards value at around $313 million. So if you use this as a starting point it could be anywhere between 313 and 233 million(a 26% decline). If more was known about the outcome, they may be able to have Leonsis put some money in escrow until the Arenas issue was resolved.

[montestewart]

Until the Arenas situation is closer to resolution, I can't see how a price can be reached. It is hard enough to reach a mutually acceptable price on a significant asset.

The best case financially is they can void the Arenas deal and the future liability is 0. However the franchise loses a once marketable star in that scenario. The worst case is Stern ends the suspension, but they "Tinsley" him and they end up being on the hook for the rest of his contract.

Forbes estimates the Wizards value at around $313 million. So if you use this as a starting point it could be anywhere between 313 and 233 million(a 26% decline). If more was known about the outcome, they may be able to have Leonsis put some money in escrow until the Arenas issue was resolved.

Was the Forbes estimate made since all this stuff happened? I doubt the full cost of Arenas' contract is the only negative consideration, as the Wizards may suffer other long term consequences of the last month or so.

[Hoopalotta]

Until the Arenas situation is closer to resolution, I can't see how a price can be reached. It is hard enough to reach a mutually acceptable price on a significant asset.

The best case financially is they can void the Arenas deal and the future liability is 0. However the franchise loses a once marketable star in that scenario. The worst case is Stern ends the suspension, but they "Tinsley" him and they end up being on the hook for the rest of his contract.

Forbes estimates the Wizards value at around $313 million. So if you use this as a starting point it could be anywhere between 313 and 233 million(a 26% decline). If more was known about the outcome, they may be able to have Leonsis put some money in escrow until the Arenas issue was resolved.

Well said and i think it illustrates why the Pollin's don't "Have Gil's back" here. He could potentially devalue the franchise and lose them a lot more money than he ever made them.

But it also shows that the franchise would have done well to cover the whole thing up too and opens up a lot of questions as to what was going on. The premise that they reported the whole thing to void Gil's deal seems flimsy as it would represent a WILDLY risky gamble based on the hope that they could void him. Not to mention he was averaging about 25-5-7 over the month before 'the incident' and was well on his way to being trade-able.

That's not a risk that rational business people take on. My view is the whole thing unfolded in a herky-jerky manner with confusion and anger being the prime motivators.

[fishercob]

Time is on Ted's side. Knowing that he can match any bid if the team goes on the open market, no one is going to spend the time and resources to put together a bid that he wouldn't reasonably match. It could even cost the Pollin family money (boo hoo). Ultimately, this is good news for Wiz fans.

[BanndNDC]

love his 12 step plan

To build a great team, you need to get on the 12 step program:

1. Talent - Drafted and developed.
2. Create “Magic” in the form of team chemistry.
3. Respect for the coach and staff.
4. A system and a philosophy and a team constructed to fit that system.
5. Infrastructure capable of capitalizing on success. Passion around everything we do.
6. Continuity. Dependability and consistency of message and approach. Fairness doctrine for all.
7. The highest paid player has to be the most coachable and respectful player. And the best player.
8. Great cap management to keep team’s core together. A selflessness by the team’s stars and a belief that winning is all that matters. That is “the secret.”
9. Health.
10. Luck.
11. Love and respect from the community and fan base. Focus on “Happiness” as we are in this together!
12. Determination and toughness. Singular focus on the higher calling from everyone in the organization. Winning a Championship!
http://www.tedstake.com/2010/01/19/as-i ... es-before/

not wanting to read too much into it until he actually takes over but it's a pretty strong implied indictment of the wizards and EG (especially 1,2,3 and 6) as well as arenas (7).

[sorry, didnt realize this was in the EG thread (downside of our (good) thread limiting policy).]

[closg00]

In the end this is going to be Ted's team, it's just a matter of time. The Pistons are going to be up for sale also, I wonder it they stay in DET?

[verbal8]

In the end this is going to be Ted's team, it's just a matter of time. The Pistons are going to be up for sale also, I wonder it they stay in DET?

Do you think Seattle or Las Vegas is the destination?

If it is Seattle it could be a lot like the Browns becoming the Ravens.

[nate33]

[i think it illustrates why the Pollin's don't "Have Gil's back" here. He could potentially devalue the franchise and lose them a lot more money than he ever made them.

Yup. The Pollins appear to be looking out for their own financial interests.

At first, the plan was to cover it up and hope it goes away. That's why they concocted the story about Arenas taking the guns from his house because of his young kids. That's why Arenas was permitted to keep playing. Once it looked like they'd no longer be able to keep a lid on it, Plan B was to void Arenas. That's why EG issued the extremely harsh and unnecessary condemnation of Gil after the "gun gesture" incident.

This is indeed good news. If Teddy takes over, he should be able to smooth over the relationship with Gil. Hopefully he can limit the damage to the reputation of the Wizards league-wide as well.

[Ruzious]

[i think it illustrates why the Pollin's don't "Have Gil's back" here. He could potentially devalue the franchise and lose them a lot more money than he ever made them.

Yup. The Pollins appear to be looking out for their own financial interests.

At first, the plan was to cover it up and hope it goes away. That's why they concocted the story about Arenas taking the guns from his house because of his young kids. That's why Arenas was permitted to keep playing. Once it looked like they'd no longer be able to keep a lid on it, Plan B was to void Arenas. That's why EG issued the extremely harsh and unnecessary condemnation of Gil after the "gun gesture" incident.

This is indeed good news. If Teddy takes over, he should be able to smooth over the relationship with Gil. Hopefully he can limit the damage to the reputation of the Wizards league-wide as well.

Correct me if I'm wrong, but it was my understanding that Arenas was the one who came up with the story about keeping the guns from his kids.

[LyricalRico]

^ I was thinking the same thing. I highly doubt that anything that came out of Gil's mouth was previously cleared with Wiz management. Gil basically went rogue IMO.

[nate33]

Didn't EG know about the incident on Day 1, but take several days before notifying the league office?

[Ruzious]

In the meantime, it's clear from Michael Lee's last article that the Wiz' goal is still to make the playoffs, as they're still just 4.5 games out of Chicago's 8 spot - so they can get embarrassed by Cleveland for the 57th time in the playoffs. What kind of a goal is that? It's amazing. And if Ted was owner, I find it very hard to believe he'd be on board with this. But out of respect to the Pollins, he's not going to say anything until he buys the estate's interest.

[LyricalRico]

Didn't EG know about the incident on Day 1, but take several days before notifying the league office?

Well, I don't know anything about that. What I'm saying is that the stuff that has come out of Gil's mouth through this whole ordeal was not put there by the Wiz organization.

[Ruzious]

Didn't EG know about the incident on Day 1, but take several days before notifying the league office?

Well, I don't know anything about that. What I'm saying is that the stuff that has come out of Gil's mouth through this whole ordeal was not put there by the Wiz organization.

Right - I assume that the story (Well, let's call it what it was - a flat out lie) about Gil's kids came from Gil - not the Wizards