Forbes: LeBron Can Purchase Part of Knicks

[Puertorique]

Lebron James is not part of MSG or the Knicks at the moment, however he can buy stock today because the company is openly traded.

Secondly, it doesn't even have to be in his name, he can create a company at this second called Brons investors inc, and that is who the stock would belong to on paper. The CBA has nothing to do with corporate world. There is a way around this stuff.

[dmespurs]

LOL at Knicks fans thinking this MSG stock stuff is going to get them Lebron. And LOL at people trying to argue for or against this stock thing like it is even remotely relevant and any type of factor. You guys have too much time on your hands.

[truth serum]

LOL at Knicks fans thinking this MSG stock stuff is going to get them Lebron. And LOL at people trying to argue for or against this stock thing like it is even remotely relevant and any type of factor. You guys have too much time on your hands.

Right. Keep telling yourself this.

[Puertorique]

LOL at Knicks fans thinking this MSG stock stuff is going to get them Lebron. And LOL at people trying to argue for or against this stock thing like it is even remotely relevant and any type of factor. You guys have too much time on your hands.

Remember when the 3 year opt was considered insane? Lebron was the first to do it, he then convinced Bosh, Wade and tried to get Melo to do it (Melo took the 4 year option instead) ? I wouldn't really say that Lebron is dumb when it comes to making money, because he found that the loophole would allow him to make more money long term by signing a shorter contract. When Lebron is either 29 or 30 he is a free agent again. That's one more max for him.

Stocks will rise in NY very fast for Bron. Now if Bron was to sell and then sign elsewhere and sell his stock immediately or prior than you have inside trading. If not he will be fine. NY always makes money, I don't see that changing 10 years from now. It's a smart plan and may pay off greater in the future.

[Ripp]

LOL at Knicks fans thinking this MSG stock stuff is going to get them Lebron. And LOL at people trying to argue for or against this stock thing like it is even remotely relevant and any type of factor. You guys have too much time on your hands.

Are you joking? If he borrows 100 million dollars, and buys a big block of MSG stock immediately before he signs with the Knicks, that stock will double in price. Making 100 million in profit in a week's time is fricking sweet, man. That would easily be enough to get him to pick the Knicks over any other team. How else is he going to be a billionare athlete if he doesn't invest wisely? You cannot become a billionaire just from salary and endorsements...you've got to invest in something which takes off.

If it were me, I'd pick the Knicks alone just for that. You invest that 100 mil in MSG, turn it to 200 mil within a week, bring a championship to NYC and it will be worth 300 million. That is a much faster track towards becoming a billionaire than going to Chicago or something.

[Puertorique]

One more thing, I'm just throwing this out, no links or sources or anything. Lebron James is a business, he is not a regular athlete, like Tiger Woods, David Becham, MJ, their name is a business. Now from a business standpoint I may look around and say, I'll sign for 15 mill a year, I may sacrifice on my salary however I now own stock, get a tv station, extra small deals, then look at another player who is globaly known, like let's say Yao Ming who is seeking a 6 year contract, now by me signing for less I freed up cap space, I own stock, I see a money maker on name alone, Offer Yao the biggest contract I can. You now have Lebron James and Yao Ming on the same team. Money makes money.

Remember making money means spending money, the more you spend and how smart you spend it, the more you make. Who would generate the Memphis Grizzlies more money? OJ Mayo (who is a great in the making by the way) and Mike Conley or Ricky Rubio and OJ Mayo?

[longfellow44]

The guy who pointed out that lebron isn't an insider is dead on. The simple fact is that lbron isn't part of the company that makes the decision to hire lebron so him buying stock and then signing has no bearing on the insider trading law. Simple fact is lebron has the luxury of knowing that the knicks will hire him if he wants them too allows him to capitalize on the situation. Now if lebron told Donnie walsh that he would sign with the knicks and then walsh buys stock that's insider trading on the part of Donnie walsh lebron falls In the grey area where he's doing something a little shady but no one can do anything about it.

Honestly with this it doesn't make any sense not to sign with the knicks.

[nyrangers08]

What if Company X buys MSG stock and offers Lebron a HUGE sponsorship deal only if he goes to the Knicks? (and they could even have a reason for that clause if they were a NY-based company)

If he doesn't go to the Knicks, he loses the enormous sponsorship deal and they sell the stock the next day for approximately the same price.

Is any of that illegal?

[Mykhyn]

The guy who pointed out that lebron isn't an insider is dead on. The simple fact is that lbron isn't part of the company that makes the decision to hire lebron so him buying stock and then signing has no bearing on the insider trading law. Simple fact is lebron has the luxury of knowing that the knicks will hire him if he wants them too allows him to capitalize on the situation. Now if lebron told Donnie walsh that he would sign with the knicks and then walsh buys stock that's insider trading on the part of Donnie walsh lebron falls In the grey area where he's doing something a little shady but no one can do anything about it.

Honestly with this it doesn't make any sense not to sign with the knicks.

If that were true why did Martha Stewart get in trouble.


Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information. However, the term is frequently used to refer to a practice in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise in breach of a fiduciary or other relationship of trust and confidence or where the non-public information was misappropriated from the company.

If he bought before signing he would be using non public information, and would be done

[667Club]

I hope that every knicks fan who believe this is currently on his way to the bank to put all his money in team shares because doubling you savings in 3 months is an opportuny that you don't get so often especially in this economy

[Ripp]

The guy who pointed out that lebron isn't an insider is dead on. The simple fact is that lbron isn't part of the company that makes the decision to hire lebron so him buying stock and then signing has no bearing on the insider trading law. Simple fact is lebron has the luxury of knowing that the knicks will hire him if he wants them too allows him to capitalize on the situation. Now if lebron told Donnie walsh that he would sign with the knicks and then walsh buys stock that's insider trading on the part of Donnie walsh lebron falls In the grey area where he's doing something a little shady but no one can do anything about it.

Honestly with this it doesn't make any sense not to sign with the knicks.

If that were true why did Martha Stewart get in trouble.


Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information. However, the term is frequently used to refer to a practice in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise in breach of a fiduciary or other relationship of trust and confidence or where the non-public information was misappropriated from the company.

If he bought before signing he would be using non public information, and would be done

No, "non public information" refers to someone within MSG. LeBron is not a part of MSG. Read the Wikipedia article:

http://en.wikipedia.org/wiki/Insider_trading

As well as the blurb on Martha Stewart:
http://en.wikipedia.org/wiki/Martha_Ste ... conviction

LeBron is not an insider! So he can totally do this.

[CoolD]

It would be funny if Bron does do this.
Ends up in jail like Martha.
the stock tanks with the Knicks.
Bron in jail, taking a huge hit on his stock that he bought.
Comes back out of shape, a year later, Nike and the other companies disassociate from LeBron.

[towelie]

If that were true why did Martha Stewart get in trouble.

Martha Stewart was given info about a particular stock from an insider within the corporation. Even when an insider himself doesn't capitalize on the information, if he tells someone else and that person in turn buys/sells his shares based on that non-public information, he'll get tagged for insider trading by the SEC.

A more applicable situation would be if say Donnie Walsh learns from LeBron that he plans on signing. Walsh then tells Spike Lee before any formal announcement, and Spike goes and buys shares of MSG. That's insider trading, imputed onto Spike Lee.

What LeBron is doing is pretty shady though, and my gut tells me that it may be illegal. Yet going by the blackletter law, he's neither an insider of MSG, nor does he owe any fiduciary duty to its shareholders. There's probably case law on whether an outsider, before joining a corporation, can buy its stock knowing that his addition to the company would increase the value of the stock (and in LeBron's case, pretty damn significantly -- we've already heard reports of season ticket sales booming just on the speculation of LeBron joining). I'm too tired to look it up though, and I'm sure there's an expert on securities law somewhere on RealGM.

[Ripp]

What LeBron is doing is pretty shady though, and my gut tells me that it may be illegal. Yet going by the blackletter law, he's neither an insider of MSG, nor does he owe any fiduciary duty to its shareholders. There's probably case law on whether an outsider, before joining a corporation, can buy its stock knowing that his addition to the company would increase the value of the stock (and in LeBron's case, pretty damn significantly -- we've already heard reports of season ticket sales booming just on the speculation of LeBron joining). I'm too tired to look it up though, and I'm sure there's an expert on securities law somewhere on RealGM.

If no such expert shows up, would you mind looking it up, when you have time?

[fudgie]

Could it be argued that LeBron being a member of the NBA makes him an "insider"?

[Dagameplaya PnG]

Lebron could buy half the team, he can be the player coach, the GM, and the team trainer all at the same time. Because it's Lebron and he's a GIFT FROM GOD.

[Darko Miliminutes]

I'm buying some effin MSG stock!

[DowJones]

I don't see how this gives the Knicks an advantage, as Lebron can also buy a portion of any other team he wants to go to.

the CBA prohibits a player from being an owner of their team at the same time. Since the Knicks are a publicly traded stock, LeBron could double his money in 1 day. He could purchase $100 million in Knick stock July 7th, sign July 8th and have made $200 million in 24 hours...legally.

Then get arrested for insider trading.

You clearly don't know how the market works.

[DowJones]

The guy who pointed out that lebron isn't an insider is dead on. The simple fact is that lbron isn't part of the company that makes the decision to hire lebron so him buying stock and then signing has no bearing on the insider trading law. Simple fact is lebron has the luxury of knowing that the knicks will hire him if he wants them too allows him to capitalize on the situation. Now if lebron told Donnie walsh that he would sign with the knicks and then walsh buys stock that's insider trading on the part of Donnie walsh lebron falls In the grey area where he's doing something a little shady but no one can do anything about it.

Honestly with this it doesn't make any sense not to sign with the knicks.

LoL.

So do you think Ben Bernanke, the head of the Fed, can just start buying a bunch of stock (or selling) when he has inside information on how the Fed will treat interest rates a week before they have a meeting? A few years ago when the market was crashing the Fed met to decide to lower interest rates. Ben KNEW the market would take off after he slashed interest rates. He could have used leverage and literally made hundreds of millions of dollars. Do you think that is legal? No way....even though Bernanke had no inside information on the company himself, he knew how the market would react and had he tried to capitalize on that information he would have been arrested and prosecuted to the fullest extent of the law.

The SEC doesn't mess around right now.

1. If you think LeBron would have a HUGE impact on the actual stock then

2. If you think LeBron wouldn't be heavily investigated by the SEC then

I think people VASTLY overrate LeBron's impact. Berkshire Hathaway is a financial/billion dollar titan that is directed by one of the greatest financial minds of all-time. Even if they HEAVILY invest in a company, that companies' stock doesn't blow-up....for if it did, Hathaway would be 1,000,000 times bigger than it is today. So if BH alone doesn't make a huge financial impact, what makes you think LeBron would?

[DowJones]

BTW....even the SPECULATION of insider trading would do more to damage the stock's value than any short-term gain that LeBron's addition might have made.

This is all just so absurd.