Forbes: LeBron Can Purchase Part of Knicks

Post #41 » by **alucryts** » Wed May 19, 2010 4:38 am

Sebastian wrote:While it may be legal for a player to own stock in a company that owns an NBA team, a player can not legally buy shares in said company, then shortly thereafter sign with the team that the company owns, causing the stock to skyrocket.

Not unless that player wants to go to LeJail.

ya that would be insider trading

Childs2Dudley · Post #42 » by **Childs2Dudley** » Wed May 19, 2010 4:39 am

Sebastian wrote:While it may be legal for a player to own stock in a company that owns an NBA team, a player can not legally buy shares in said company, then shortly thereafter sign with the team that the company owns, causing the stock to skyrocket.

Not unless that player wants to go to LeJail.

Where exactly does it say this in the fine print?

Clangus · Post #43 » by **Clangus** » Wed May 19, 2010 4:45 am

Lebrons Mom, best friend or Dog could buy a billion Knick shares and there is nothing the NBA could do about it.

Post #44 » by **alucryts** » Wed May 19, 2010 4:47 am

Childs2Dudley wrote:
Sebastian wrote:While it may be legal for a player to own stock in a company that owns an NBA team, a player can not legally buy shares in said company, then shortly thereafter sign with the team that the company owns, causing the stock to skyrocket.

Not unless that player wants to go to LeJail.

Where exactly does it say this in the fine print?

its insider trading, again lol.

he is purchasing stocks with insider info (he signing) and then signs to blow up the price. that is jail time lol

Nutty Nats Fan · Post #45 » by **Nutty Nats Fan** » Wed May 19, 2010 4:48 am

Clangus wrote:Lebrons Mom, best friend or Dog could buy a billion Knick shares and there is nothing the NBA could do about it.

Lebron could too, and there would be nothing the NBA could do about it. But the SEC would and they'd be in jail.

Childs2Dudley · Post #46 » by **Childs2Dudley** » Wed May 19, 2010 4:49 am

alucryts wrote:
Childs2Dudley wrote:
Sebastian wrote:While it may be legal for a player to own stock in a company that owns an NBA team, a player can not legally buy shares in said company, then shortly thereafter sign with the team that the company owns, causing the stock to skyrocket.

Not unless that player wants to go to LeJail.

Where exactly does it say this in the fine print?

its insider trading, again lol.

he is purchasing stocks with insider info (he signing) and then signs to blow up the price. that is jail time lol

So what if he signs first, then buys stock?

BTW, LeBron signing will not cause the stock to skyrocket. Like I said, the Knicks account for a very, very small percentage of MSG profits.

Post #47 » by **alucryts** » Wed May 19, 2010 4:53 am

Clangus wrote:Lebrons Mom, best friend or Dog could buy a billion Knick shares and there is nothing the NBA could do about it.

yes, he could but a little organization called the United States government would imply their gift tax....after 1,000,000 the gift is taxed HEAVILY like 35-45% from what i read. (if someone could provide a more accurate number that would be great....i got 35-45% from a lil research)

so lebron to mom...taxed

mom to lebron.....taxed AGAIN

Post #48 » by **alucryts** » Wed May 19, 2010 4:55 am

Childs2Dudley wrote:So what if he signs first, then buys stock?

BTW, LeBron signing will not cause the stock to skyrocket. Like I said, the Knicks account for a very, very small percentage of MSG profits.

he could do that as long as the information is public before he buys them. goin ok signed GIMME STOCKS is still insider trading.

basically you and i would have to have the same chance to buy the stocks as lebron would.

The Evidence · Post #49 » by **The Evidence** » Wed May 19, 2010 5:02 am

How the hell would MSG skyrocket to $50 just with Lebron?

Pharmcat · Post #50 » by **Pharmcat** » Wed May 19, 2010 5:12 am

Nutty Nats Fan wrote:
Clangus wrote:Lebrons Mom, best friend or Dog could buy a billion Knick shares and there is nothing the NBA could do about it.

Lebron could too, and there would be nothing the NBA could do about it. But the SEC would and they'd be in jail.

the SEC is the biggest joke around, they are worse than the nba refs...they couldnt catch madoff, despite getting complaints on him OVER A 9 YEAR SPAN

Dantares · Post #51 » by **Dantares** » Wed May 19, 2010 5:13 am

Lebron will make alot of money only if the Knicks win multiple championships and he becomes a global icon bigger than Tiger and Jordan. But damn forget about the stock apreciation, most of the money will be made in dividend yields from ridiculous profits.

#1 pick · Post #52 » by **#1 pick** » Wed May 19, 2010 5:17 am

alucryts wrote:
Clangus wrote:Lebrons Mom, best friend or Dog could buy a billion Knick shares and there is nothing the NBA could do about it.

yes, he could but a little organization called the United States government would imply their gift tax....after 1,000,000 the gift is taxed HEAVILY like 35-45% from what i read. (if someone could provide a more accurate number that would be great....i got 35-45% from a lil research)

so lebron to mom...taxed

mom to lebron.....taxed AGAIN

There are ways around this. But not for James, he's marked and since he's not in that industry, he will not have the blind eye support of the industry.

Post #53 » by **Manhattan Project** » Wed May 19, 2010 5:22 am

Circumvention is something different. There would be circumvention only if the Knicks offered private stocks not available for trade. Then it would be treated as an additional monetary payment to exceed the max salary and it would be illegal.

the_warden · Post #54 » by **the_warden** » Wed May 19, 2010 5:43 am

Pharmcat wrote:
Nutty Nats Fan wrote:
Clangus wrote:Lebrons Mom, best friend or Dog could buy a billion Knick shares and there is nothing the NBA could do about it.

Lebron could too, and there would be nothing the NBA could do about it. But the SEC would and they'd be in jail.

the SEC is the biggest joke around, they are worse than the nba refs...they couldnt catch madoff, despite getting complaints on him OVER A 9 YEAR SPAN

they got Martha Stewart though, which is enough to get Lebron

Nutty Nats Fan · Post #55 » by **Nutty Nats Fan** » Wed May 19, 2010 5:58 am

Pharmcat wrote:
Nutty Nats Fan wrote:
Clangus wrote:Lebrons Mom, best friend or Dog could buy a billion Knick shares and there is nothing the NBA could do about it.

Lebron could too, and there would be nothing the NBA could do about it. But the SEC would and they'd be in jail.

the SEC is the biggest joke around, they are worse than the nba refs...they couldnt catch madoff, despite getting complaints on him OVER A 9 YEAR SPAN

Bit of a difference here. Everyone knows who the King is. That's a nice fish to bag.

Ripp · Post #56 » by **Ripp** » Wed May 19, 2010 6:19 am

So is it still "insider information" if it is a decision he is making as a private individual? It isn't as if he is a 3rd part privy to the internal workings of MSG....he is a 2nd party who will sign a contract in July. I still don't get why it is illegal to profit from that.

Hrm, so would the business analogy be Company A looking to subcontract work out to Company B, C, or D. Company A comes to the decision that it will choose Company B, and at the same time buys a big chunk of B.

Would the above scenario be illegal too? Because it happens all the time in the software world...Microsoft will have some other company develop a computer game, ends up liking it, and then buys the company outright.

Thanks in advance for any insight you can shed...

CoolD · Post #57 » by **CoolD** » Wed May 19, 2010 6:45 am

I don't really know much about this stock stuff, but reading some comments.
Am sure the NY politicians would be bought off, so LeBron could get away with it.
Considering Bloomberg wants him to go NY, a lot of people would go according to plan, even if what LeBron did might be questionable or unethical, or illegal.
They would probably look the other way.
Though if Cavs owner knows some connections, he will try to find a way to ruin LeBron.
Probably call up some high connect buddies Washington.
All I know whoever doesn't get LeBron, their is going to be a lot of sour grapes.
Whole Cavs franchise value drops more than 50 percent(just a guess though, but the losses will be off the charts huge though.

Dr Aki · Post #58 » by **Dr Aki** » Wed May 19, 2010 6:52 am

gg cleveland and any other suitors for lebron

richboy · Post #59 » by **richboy** » Wed May 19, 2010 7:12 am

I'm not sure its insider trading because Lebron James is not an insider. Usually insider trading has to deal with people inside the company. Officers, large shareholders, key employees are usually the ones who have to worry about insider trading. An example of insider trading would be like your a top shareholder in a company and you find out that an officer in a company was about to retire. Someone important that would effect the value of the stocks. Therefore you dump your stocks prior to the news getting public. Since all this was inside information within the company that is illegal.

I'm not sure how you can claim insider trading against someone who doesn't work inside the company. Plus its not like the public would not be aware that Lebron could sign with the Knicks. Really anyone could by MSG stock right now thinking Lebron may be going to the Knicks. Might be a good investment because it probably would go up should he sign.

towelie · Post #60 » by **towelie** » Wed May 19, 2010 7:18 am

Yeah, I'm no expert on securities law, but from what I recall, that was the gist of it. Insider trading is aimed towards corporate officers who are privy to material non-public info, not outsiders. But what happens when that outsider can directly affect the stock upon "joining" the corporation? Can he purchase stocks in advance? I'm sure there's case law on it.

Also, I thought it'd be circumvention of the CBA too, but upon reading the rules that people posted in this thread, it's pretty clear it isn't. Circumvention seems to be limited to an agreement between the team (or affiliates) to pay a player outside of his contract (ie. if the team offered to give LeBron stock if he joined, that'd be circumvention). It doesn't restrict the player from buying publicly traded stock w/ his own dough, and Rule 8 even specifies as much.