Bucks Sold For $550M To Edens, Lasry

[RealGM Wiretap]

Herb Kohl has reached a deal to sell the Milwaukee Bucks to Wesley Edens and Marc Lasry for $550 million.

Kohl made keeping the Bucks in Milwaukee a condition of the sale.

Edens and Lasry are hedge fund billionaires.

Via Marc Stein/ESPN

[texasholdem]

Hedge fund billionaires. Guess they are gonna change the logo from a deer to a dollar sign.
$550m for the worst team in the league?

[Knicks Universe]

Lol

[Bentley1225]

Why would he sell before the draft?. If Bucks land #1, wouldn't that increase equity by $10-15 million?

[Knicks Universe]

Herb Kohl has reached a deal to sell the Milwaukee Bucks to Wesley Edens and Marc Lasry for $550 million.
Kohl made keeping the Bucks in Milwaukee a condition of the sale.
Edens and Lasry are hedge fund billionaires.Via Marc Stein/ESPN

OVERPAID BY LIKE TEN TIMES HAHAA

[Sam195]

Why would he sell before the draft?. If Bucks land #1, wouldn't that increase equity by $10-15 million?

Its known, Bucks are guaranteed to pick no lower than #4 so they WILL get one of

1. Andrew Wiggins
2. Joel Embiid
3. Julius Randle
4. Dante Exum
5 Jabari Parker could declare

I'm pretty sure the pick's potential franchise player value was negotiated in the price. The hedge fund guys also probably took into consideration the bucks mandatory need for private out of pocket funding for a new arena as well as the balance of drew gooden's amnestied salary.

[blind prophet]

Herb Kohl has reached a deal to sell the Milwaukee Bucks to Wesley Edens and Marc Lasry for $550 million.
Kohl made keeping the Bucks in Milwaukee a condition of the sale.
Edens and Lasry are hedge fund billionaires.Via Marc Stein/ESPN

OVERPAID BY LIKE TEN TIMES HAHAA

Unless there is an identical asset you can not over pay for it, the price is whatever someone will pay for it.

[VC-INJURY]

Why would he sell before the draft?. If Bucks land #1, wouldn't that increase equity by $10-15 million?

And if you pick 4th? I would rather lose the 10-15 million and sell them on the hope of landing the #1 pick.

[Matches Malone]

Herb Kohl has reached a deal to sell the Milwaukee Bucks to Wesley Edens and Marc Lasry for $550 million.
Kohl made keeping the Bucks in Milwaukee a condition of the sale.
Edens and Lasry are hedge fund billionaires.Via Marc Stein/ESPN

OVERPAID BY LIKE TEN TIMES HAHAA

How can you say they overpaid? They are billionaires. With a B! That's pocket change to them.

[Sam195]

I'm pretty sure the bucks are relocating to another city within the next decade. These hedge fund guys are ruthless - they probably overpaid for the team and made a promise to kohl to keep the team in Milwaukee but with a very attainable out clause. The out clause probably involves the bucks being able to sustain a limit in operating losses after ownership transfer and a target figure for the amount of public funding that must be provided by city of milwaukee to build a mandatory new arena. If both don't happen - than the ownership group likely pays a huge relocation penalty to the city but can move the team to a bigger market say seattle or san diego. This is a mirror image of what happened to the sonics when howard shultz sold the team to clay bennet.

Huge financial losses + No new arena + Relocation Penalty = New Team, New City

The financial losses can be blown up with dirty investment tactics like absorbing bad contracts to raise payroll costs and raising ticket prices for a team already lacking fan engagement to dissuade fans from coming to games. This has been done before in the sports industry. It's dirty but it works.

[Knicks Universe]

Herb Kohl has reached a deal to sell the Milwaukee Bucks to Wesley Edens and Marc Lasry for $550 million.
Kohl made keeping the Bucks in Milwaukee a condition of the sale.
Edens and Lasry are hedge fund billionaires.Via Marc Stein/ESPN

OVERPAID BY LIKE TEN TIMES HAHAA

How can you say they overpaid? They are billionaires. With a B! That's pocket change to them.

How can you say it works like that idiot? As a comparison, if you and I are the average working class person, if we paid $5 for a pack of gum, yeah we overpaid, but it's okay because it means nothing to our overall wealth! Guess what dude, it's still an overpayment, doesn't matter what your overall wealth is!

[Knicks Universe]

I'm pretty sure the bucks are relocating to another city within the next decade. These hedge fund guys are ruthless - they probably overpaid for the team and made a promise to kohl to keep the team in Milwaukee but with a very attainable out clause. The out clause probably involves the bucks being able to sustain a limit in operating losses after ownership transfer and a target figure for the amount of public funding that must be provided by city of milwaukee to build a mandatory new arena. If both don't happen - than the ownership group likely pays a huge relocation penalty to the city but can move the team to a bigger market say seattle or san diego. This is a mirror image of what happened to the sonics when howard shultz sold the team to clay bennet.

Huge financial losses + No new arena + Relocation Penalty = New Team, New City

The financial losses can be blown up with dirty investment tactics like absorbing bad contracts to raise payroll costs and raising ticket prices for a team already lacking fan engagement to dissuade fans from coming to games. This has been done before in the sports industry. It's dirty but it works.

Agreed, and overall I think this is the right way to go as it doesn't look like the team can be sustainable in Milwaukee. There are many other markets that would make more $:

1) Seattle (funding and space for new arena ready to go)
2) New York City (3rd team) in New Jersey at Prudential or Izod Center
3) Kansas City (Sprint Center)

[Matches Malone]

OVERPAID BY LIKE TEN TIMES HAHAA

How can you say they overpaid? They are billionaires. With a B! That's pocket change to them.

How can you say it works like that idiot? As a comparison, if you and I are the average working class person, if we paid $5 for a pack of gum, yeah we overpaid, but it's okay because it means nothing to our overall wealth! Guess what dude, it's still an overpayment, doesn't matter what your overall wealth is!

You sound like an absolute prick and completely ignorant. The value of teams is going up no matter what team it is. Silver is not going to accept lower price tags on these franchises. There are only so many teams to go around. If you want in you're going to have to pay. Don't be a jerk calling random posters idiots when you sound like one yourself.

[Slim_Charles]

Milwaukee IS WINNING THE LOTTERY

Write that in stone.

[Knicks Universe]

How can you say they overpaid? They are billionaires. With a B! That's pocket change to them.

How can you say it works like that idiot? As a comparison, if you and I are the average working class person, if we paid $5 for a pack of gum, yeah we overpaid, but it's okay because it means nothing to our overall wealth! Guess what dude, it's still an overpayment, doesn't matter what your overall wealth is!

You sound like an absolute prick and completely ignorant. The value of teams is going up no matter what team it is. Silver is not going to accept lower price tags on these franchises. There are only so many teams to go around. If you want in you're going to have to pay. Don't be a jerk calling random posters idiots when you sound like one yourself.

Tell me something. If I offered you a business, would you pay $50,000 for it knowing it would perpetually lose $10,000 a year forever? That is the same as this deal.

[Sam195]

I'm pretty sure the bucks are relocating to another city within the next decade. These hedge fund guys are ruthless - they probably overpaid for the team and made a promise to kohl to keep the team in Milwaukee but with a very attainable out clause. The out clause probably involves the bucks being able to sustain a limit in operating losses after ownership transfer and a target figure for the amount of public funding that must be provided by city of milwaukee to build a mandatory new arena. If both don't happen - than the ownership group likely pays a huge relocation penalty to the city but can move the team to a bigger market say seattle or san diego. This is a mirror image of what happened to the sonics when howard shultz sold the team to clay bennet.

Huge financial losses + No new arena + Relocation Penalty = New Team, New City

The financial losses can be blown up with dirty investment tactics like absorbing bad contracts to raise payroll costs and raising ticket prices for a team already lacking fan engagement to dissuade fans from coming to games. This has been done before in the sports industry. It's dirty but it works.

Agreed, and overall I think this is the right way to go as it doesn't look like the team can be sustainable in Milwaukee. There are many other markets that would make more $:

1) Seattle (funding and space for new arena ready to go)
2) New York City (3rd team) in New Jersey at Prudential or Izod Center
3) Kansas City (Sprint Center)

Seattle and Kansas City are viable choices but no way new jersey is getting another nba team. Sports fans in New Jersey mostly support new york teams and teams in surrounding states. Nets moved caused it wasn't viable and devils will leave eventually as well. I could see Vancouver get an nba team down the road though especially if Steve Nash retires and is part of an ownership group or is in a prominent front office position. I don't know what the nba interest is in British Colombia is currently but people there worship steve nash like a god regardless of what sporting activity he's involved with be it Olympics, basket-ball, lacrosse, soccer, hockey or anything.

[agiaco]

I'm pretty sure the bucks are relocating to another city within the next decade. These hedge fund guys are ruthless - they probably overpaid for the team and made a promise to kohl to keep the team in Milwaukee but with a very attainable out clause. The out clause probably involves the bucks being able to sustain a limit in operating losses after ownership transfer and a target figure for the amount of public funding that must be provided by city of milwaukee to build a mandatory new arena. If both don't happen - than the ownership group likely pays a huge relocation penalty to the city but can move the team to a bigger market say seattle or san diego. This is a mirror image of what happened to the sonics when howard shultz sold the team to clay bennet.

Huge financial losses + No new arena + Relocation Penalty = New Team, New City

The financial losses can be blown up with dirty investment tactics like absorbing bad contracts to raise payroll costs and raising ticket prices for a team already lacking fan engagement to dissuade fans from coming to games. This has been done before in the sports industry. It's dirty but it works.

Agreed, and overall I think this is the right way to go as it doesn't look like the team can be sustainable in Milwaukee. There are many other markets that would make more $:

1) Seattle (funding and space for new arena ready to go)
2) New York City (3rd team) in New Jersey at Prudential or Izod Center
3) Kansas City (Sprint Center)

Third team in New York? You need to stop spamming all these news articles with your worthless posts.

[Matches Malone]

How can you say it works like that idiot? As a comparison, if you and I are the average working class person, if we paid $5 for a pack of gum, yeah we overpaid, but it's okay because it means nothing to our overall wealth! Guess what dude, it's still an overpayment, doesn't matter what your overall wealth is!

You sound like an absolute prick and completely ignorant. The value of teams is going up no matter what team it is. Silver is not going to accept lower price tags on these franchises. There are only so many teams to go around. If you want in you're going to have to pay. Don't be a jerk calling random posters idiots when you sound like one yourself.

Tell me something. If I offered you a business, would you pay $50,000 for it knowing it would perpetually lose $10,000 a year forever? That is the same as this deal.

Again, you are forgetting to take into consideration the new CBA and the shared revenue. The Bucks were terrible in every facet of the organization and still made 11m because of the revenue shares. These owners are going to make their money back.

[Knicks Universe]

I'm pretty sure the bucks are relocating to another city within the next decade. These hedge fund guys are ruthless - they probably overpaid for the team and made a promise to kohl to keep the team in Milwaukee but with a very attainable out clause. The out clause probably involves the bucks being able to sustain a limit in operating losses after ownership transfer and a target figure for the amount of public funding that must be provided by city of milwaukee to build a mandatory new arena. If both don't happen - than the ownership group likely pays a huge relocation penalty to the city but can move the team to a bigger market say seattle or san diego. This is a mirror image of what happened to the sonics when howard shultz sold the team to clay bennet.

Huge financial losses + No new arena + Relocation Penalty = New Team, New City

The financial losses can be blown up with dirty investment tactics like absorbing bad contracts to raise payroll costs and raising ticket prices for a team already lacking fan engagement to dissuade fans from coming to games. This has been done before in the sports industry. It's dirty but it works.

Agreed, and overall I think this is the right way to go as it doesn't look like the team can be sustainable in Milwaukee. There are many other markets that would make more $:

1) Seattle (funding and space for new arena ready to go)
2) New York City (3rd team) in New Jersey at Prudential or Izod Center
3) Kansas City (Sprint Center)

Seattle and Kansas City are viable choices but no way new jersey is getting another nba team. Sports fans in New Jersey mostly support new york teams and teams in surrounding states. Nets moved caused it wasn't viable and devils will leave eventually as well. I could see Vancouver get an nba team down the road though especially if Steve Nash retires and is part of an ownership group or is in a prominent front office position. I don't know what the nba interest is in British Colombia is currently but people there worship steve nash like a god regardless of what sporting activity he's involved with be it Olympics, basket-ball, lacrosse, soccer, hockey or anything.

Vancouver had already had a team and they moved because they had no support. Why would they put a team there again?

[RaptorRed]

How can you say it works like that idiot? As a comparison, if you and I are the average working class person, if we paid $5 for a pack of gum, yeah we overpaid, but it's okay because it means nothing to our overall wealth! Guess what dude, it's still an overpayment, doesn't matter what your overall wealth is!

You sound like an absolute prick and completely ignorant. The value of teams is going up no matter what team it is. Silver is not going to accept lower price tags on these franchises. There are only so many teams to go around. If you want in you're going to have to pay. Don't be a jerk calling random posters idiots when you sound like one yourself.

Tell me something. If I offered you a business, would you pay $50,000 for it knowing it would perpetually lose $10,000 a year forever? That is the same as this deal.

The bucks are not losing money.

http://www.forbes.com/pictures/mli45ehe ... e-bucks-5/