BanndNDC wrote:montestewart wrote:As usual, the mediated reporting makes it hard to know what is really going on,
indeed. i wish theyd give us more facts but they never do.
Depending on the language of the contract, he probably has all those rights and can enforce them, but I have yet to hear anyone explain why the family and/or the estate cannot "market" the team, in order to give notice to potential buyers that, at some point, it may be on the open market.
i guess it would depend on the contract but i can see a situation where the appraisal process was purposefully designed not to find the highest possible price but merely produce a number for "fair" compensation. in that situation the sale took place 10 years ago but abe had a sort of life tenancy and the only thing that needed to be determined post-death was a current fmv.
what i really dont get is WSE's role in all of this. why are they taking sides (seemingly)? that seems very odd and inappropriate. they have no interest in getting the highest price possible only the estate does. biche et al dont work for the pollins they work for WSE (which was/is partially owned by the pollins). if the agreement was more of a stock buy back (seemingly leonsis' position) then shouldnt their interests be more in line with leonsis than the estate?
I can see the agreement more toward a fair price (for a part owner that already has shown his commitment) rather than the highest price, but still, with the rarity of franchise transfers and the somewhat unique circumstances here, I can see the Pollin's thinking that other potential buyers could contribute to establishing a fair price, even if that price isn't as high as other buyers were willing to pay.
As far as WSE's role, I mentioned previously the possibility that some executive's bonus is tied to the sale price, but even absent that, it attaches to a larger, more complicated debate (likely more appropriate for the Black Hole thread); that being whether a corporation's primary obligation is to the majority of its shareholders, particularly in protecting, maintaining, and enhancing the value of their shares.
I hope Leonsis has protected himself from this in some way, because his prior purchases showed commitment and good faith. Should some other party purchase the 56%, his 44% would likely not fetch a comparable price; the 56% is worth more to him and he would likely pay a premium to obtain it. Maybe his offer is the highest they'll get, and that could result in a lower appraisal. The Pollins and the estate are likely just posturing; they don't appear to care about the future of the franchise beyond the sale price. Leonsis' press release seems more concerned with the franchise itself. I hope this doesn't end up in court, but if it does and the agreement says what Leonsis implies it does, I can see the Pollins losing big time.
BAD FORM MAN, BAD FORM