mohammed10's Official "Ted's Wizards" Thread

[mohammed10]

New from WaPo (mods, feel free to merge this if necessary)

http://www.washingtonpost.com/wp-dyn/co ... 03405.html

Washington Capitals owner Ted Leonsis is negotiating against a Wednesday deadline to buy the Washington Wizards and Verizon Center from the estate of sports entrepreneur Abe Pollin, a deal that could put him as lead owner of the region's biggest sports and entertainment empire.

Let's just hope this goes through and Ted will be in charge of the Wizards...

[montestewart]

^
What I liked most about the article was the emphasis on why it's in Leonsis' best interest to own the Wizards and Verizon center, as he already owns 44% of both, yet still pays rent as owner of the Capitols. Further, there seems to be mechanisms for continuing to establish a purchase price beyond that deadline.

[closg00]

Please let the sale go-through and let the Pollin's ride off into the sunset with their $$$$ and let the Grunfeld-Unseld era of the Washington Wizards come to a close.

[Hoopalotta]

One thing that comes clear in reading that article is that you can, uh, kind of see how this might not have been the absolute best time for the franchise player to instigate a wild and rambling ruckus that incites the wrath of millions. Not that there's really a good time for that exactly, but this was the absolute worst time to pick. Ever.

There've been two separate appraisers at work figuring what the selling price is while this is going on:

"Oh hey, guys, one more thing before you get cracking. We have an $80 million dollar guaranteed contract on the books that might be toxic now. And let me think, yeah, that guy was also the sword edge of our entire marketing strategy. He's sort of a pariah now. There is some good news though: we still have Blatche's shoe in the cupboard. So, you know, you'll have to work all that out. So, off to the evaluation then?"

It's not unlikely that the timing of this could cost the Pollin's $50-100 Million.

Of course one could argue that the best thing to do in that case would have been a cover-up of the agent's escapades. Did Ernie jump the, er, gun and tie their hands? Did Ernie really have a choice? Did he actually hear the news and pull a TMZ "Dude, we're like, totally voidin' you! Beers in the quad!" I don't know what to say about that with the info I have now or what the real situation was as far as "culpable accessorizing in criminal cover-uppering" or whatever exactly it is that the kids call it these days.

Oh well. I'm like er'ybody else in that I want Teddy Bear to buy us up and slap us like a puck.

It would be particularly fortuitous if this whole thing were effectively completed before the trade deadline. A thermo-Ted-ucular explosion of the roster with a goal towards getting draft picks?

I'm still a bit hopeful that Ted can sort out the Arenas situation and, gulp, maybe he can even play here with a revamped team next year. When you wish upon a star.....you've got a long way to fall in your disappointment,

[verbal8]

It think the Arenas situation and the current economy will make it less likely that someone outbids Leonsis for the Wizards. All the unknowns may make the situation take longer, but I think the chances are at least 95% that Leonsis ends up owning the Wizards. However the only other scenario I can imagine is a very bad worse case. If there is some group from Seattle who is dying to bring the NBA back, they could end up offering a crazy amount for the Wizards.

[Hoopalotta]

However the only other scenario I can imagine is a very bad worse case. If there is some group from Seattle who is dying to bring the NBA back, they could end up offering a crazy amount for the Wizards.

You, you, you.....you mean man, you!

[verbal8]

However the only other scenario I can imagine is a very bad worse case. If there is some group from Seattle who is dying to bring the NBA back, they could end up offering a crazy amount for the Wizards.

You, you, you.....you mean man, you!

Fortunately I think it is a very small chance. However I think the Seattle NBA situation is a lot like the LA football situation. Any time there is an ownership transition for a struggling team, it is a possibility. I would say Charlotte is the most likely team to move to Seattle. I also think one of the small market teams like Memphis may be a possibility. One thing that does work in Washington's favor is the team owns the Verizon Center, so that is an incentive not to move the team.

[nate33]

There's no chance the Wizards are moved.

According to Forbes, the Wizards were the 10th and 17th most profitable teams in the last two years respectively (both without Arenas). They ranked 15th and 19th in the past two years in total valuation. The Wizards may not be the Lakers or Knicks when it comes to making money, but they're doing just fine. Just because the team sucks, doesn't mean the business model sucks.

2008 NBA Team Values
2009 Team Values

[queridiculo]

If there's one guy that will probably appreciate the amount of star power Arenas had, in particular because of his blog presence, it has to be Leonsis.

The way I see the only way Gilbert Arenas stays with the team is if Leonsis takes over and changes the message Washington has been sending in respect to its franchise player.

I also wouldn't be surprised to see Jamison being sent out of town for expirings as his first order of business. In fact I'd expect things to move along fairly quickly once the ownership situation is sorted.

[Lucrazi28]

relocation would be a nightmare in this area...

[eltacoman]

i can see Teddy squeezing the team for as many DRAFT picks as he can get in trades if he can take over b4 the trade deadline The man knows how valuable the Draft is in for a team to be successful when rebuilding

[verbal8]

I also wouldn't be surprised to see Jamison being sent out of town for expirings as his first order of business. In fact I'd expect things to move along fairly quickly once the ownership situation is sorted.

While Jamison is playing very well. I think this has to be done. It gives flexibility down the road to make other moves.

[mohammed10]

* bump for deadline purposes....

[Hoopalotta]

Chris Broussard twitter, for what it's worth....

Yeah, [Ted] may keep the building but sell the [Wizards], at least that's the speculation

Leonsis more into Capitols. may not want to deal with Wiz. Not definite, but may be looking to sell Wiz.

Just rumors. Here's hoping for decisive wrongness though.

[montestewart]

Chris Broussard twitter, for what it's worth....

Yeah, [Ted] may keep the building but sell the [Wizards], at least that's the speculation

Leonsis more into Capitols. may not want to deal with Wiz. Not definite, but may be looking to sell Wiz.

Just rumors. Here's hoping for decisive wrongness though.

Sure he's more into the Caps; he's been the owner for years, calling all the shots. He owns 44% of the Wizards. Whoever buys them will be buying a devalued team and will have to pay rent for Verizon center. If sold at a discount, Leonsis would be on the receiving end of 44% of that discounted price. Seems it would be shrewder to buy it and bolster the value of his investment. But who knows. Maybe he's not all that into basketball.

[BanndNDC]

this has to just be smart posturing for a business negotiation right? please. i mean the original reports from back in the day were that he wasnt that big a hockey fan and bought the caps in order to get the option on the wizards werent they? didnt he even take the mystics of abe's hand? my impression was always that abe was kinda taking him for a ride by always delaying the wizards sale and making leonsis take responsibility for the largest expenses of the verizon center portfolio (teams and arena).

hope this is wrong. would have serious profitability issues if the wizards had to pay rent and became the secondary tenant. would be a kinda interesting switcheroo from the usual basketball/hockey arenas. if he does sell than please please no lerners, snyders or angeloses. i really couldnt put up with another owner of that ilk. hmm... maybe that's his secret plan for getting the caps super powerful. keep us so disillusioned and disgusted with all their potential competitors that we voluntarily boycott the others.

[lupin]

I don't think any of it matters. That article in the Post the other day made it pretty clear that Leonsis' team has about 3 or 4 options to acquire the team. In fact, I think he ultimately gets a chance to match the best offer in his worst-case-scenario, so basically I think it will all be up to him about walking away from a deal at the end of it all if he's really changed his mind, not the Pollins.

[ZonkertheBrainless]

Yeah, it would be stupid to agree on a price before Gil is sentenced, so he has to push the deadline back anyway.

[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.

[doclinkin]

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.