The LeBron Thread

[kosmovitelli]

Right, so he buys stocks, signs with the Knicks and instantly the value of the shares go up. Plus if he owns enough shares he could go on the board of directors (not sure if that's legal according to the CBA, but I don't see why not) and then he gets to really control the direction of the team.

No. Lebron or any other individual or company can't control MSG. Obviously the Dolan family took care of that. Even if it was possible, Lebron is rich but he isn't rich enough to buy all the public shares ! He would just own a small part of MSG public shares (class A shares). You need to acquire class B shares to control the team and Lebron can't do that because they're not available for trade on NYSE.

Cablevision Systems Corporation (NYSE: CVC) has approved the spin off of Madison Square Garden to Cablevision shareholders. Madison Square Garden is the home venue of the New York Knicks and Rangers, but is also home to concerts, boxing events, tennis, and other events. You have to be a holder of Cablevision to receive the shares, at least that is the case before the regular trading takes place. Cablevision said tonight that the share distribution will take place on February 9, 2010, and that distribution will be made to Cablevision’s shareholders of record as of the close of business on January 25, 2010 (i.e. settlement date on or before).

Terms of the spin-off will be 1 share of the new Madison Square Garden Class A stock for each four shares held of Cablevision Class A shares held as of the record date. The company is keeping the same Class A and Class B share structure, and the Class B ratio is the same as for Class A. Class B shares are not exchange-traded, and the control of MSG will remain under the Dolan family control via the Class B shares.

The company noted that fractional shares of MSG common stock will not be distributed to Cablevision stockholders, and those holders who would have received fractional shares will see those shares aggregated and sold in the public market. After that, the proceeds will be distributed pro rata in cash to the holders who would have otherwise received a fractional share. The company also noted that this has been designated as a tax-free spin-off and no action is required by holders to see this come to pass.

Cablevision Class A common stock will continue to trade “regular way” on the New York Stock Exchange under the symbol “CVC” before and after the spin-off. Those holders of Cablevision Class A common stock who sell Cablevision shares regular way on or before February 9, 2010, will also be selling their right to receive shares of MSG Class A common stock. Cablevision’s Class B common stock is not listed on a securities exchange.

[Manhattan Project]

Code: Select all

ARTICLE XII
I CIRCUMVENTION
Section 1. General Prohibitions.
(a) It is the intention of the parties that the provisions agreed to herein, including, without limitation, those relating to the Salary Cap, the Exceptions to the Salary Cap, the scope of Basketball Related Income, the Escrow System, the Rookie Scale, the Right of First Refusal, the Maximum Player Salary, and free agency, be interpreted so as to preserve the essential benefits achieved by both parties to this Agreement. Neither the Players Association, the NBA, nor any Team (or Team Affiliate) or player (or person or entity acting with authority on behalf of such player), shall enter into any agreement, including, without limitation, any Player Contract (including any Renegotiation, Extension, or amendment of a Player Contract), or undertake any action or transaction, including, without limitation, the assignment or termination of a Player Contract, which is, or which includes any term that is, designed to serve the purpose of defeating or circumventing the intention of the parties as reflected by all of the provisions of this Agreement.

(b) It shall constitute a violation of Section 1(a) above for a Team (or Team Affiliate) to enter into an agreement or understanding with any sponsor or business partner or third-party under which such sponsor, business partner or third-party pays or agrees to pay compensation for basketball services (even if such compensation is ostensibly designated as being for non-basketball services) to a player under Contract to the Team. Such an agreement with a sponsor or business partner or third-party may be inferred where: (i) such compensation from the sponsor or business partner or third-party is substantially in excess of the fair market value of any services to be rendered by the player for such sponsor or business partner or third-party; and (ii) the Compensation in the Player Contract between the player and the Team is substantially below the fair market value of such Contract.

(c) It shall constitute a violation of Section 1(a) above for a Team (or Team Affiliate) to have a financial arrangement with or offer a financial inducement to any player (not including retired players) not signed to a current Player Contract, except as permitted by this Agreement.

This doesn't affect us right?

[CoolKids]

Code: Select all

ARTICLE XII
I CIRCUMVENTION
Section 1. General Prohibitions.
(a) It is the intention of the parties that the provisions agreed to herein, including, without limitation, those relating to the Salary Cap, the Exceptions to the Salary Cap, the scope of Basketball Related Income, the Escrow System, the Rookie Scale, the Right of First Refusal, the Maximum Player Salary, and free agency, be interpreted so as to preserve the essential benefits achieved by both parties to this Agreement. Neither the Players Association, the NBA, nor any Team (or Team Affiliate) or player (or person or entity acting with authority on behalf of such player), shall enter into any agreement, including, without limitation, any Player Contract (including any Renegotiation, Extension, or amendment of a Player Contract), or undertake any action or transaction, including, without limitation, the assignment or termination of a Player Contract, which is, or which includes any term that is, designed to serve the purpose of defeating or circumventing the intention of the parties as reflected by all of the provisions of this Agreement.

(b) It shall constitute a violation of Section 1(a) above for a Team (or Team Affiliate) to enter into an agreement or understanding with any sponsor or business partner or third-party under which such sponsor, business partner or third-party pays or agrees to pay compensation for basketball services (even if such compensation is ostensibly designated as being for non-basketball services) to a player under Contract to the Team. Such an agreement with a sponsor or business partner or third-party may be inferred where: (i) such compensation from the sponsor or business partner or third-party is substantially in excess of the fair market value of any services to be rendered by the player for such sponsor or business partner or third-party; and (ii) the Compensation in the Player Contract between the player and the Team is substantially below the fair market value of such Contract.

(c) It shall constitute a violation of Section 1(a) above for a Team (or Team Affiliate) to have a financial arrangement with or offer a financial inducement to any player (not including retired players) not signed to a current Player Contract, except as permitted by this Agreement.

This doesn't affect us right?

I dont think so. We arent giving him shares in this scenario. Hes purchasing them. So no one is being paid for basketball services hed actually be losing money (at first that is)

[cavsfan_osiris]

This LeBron thing is becoming insane. Is there any precedence for this?

[TrolleyFingers]

are any of you listening when he and everyone else under the sun says he cares about winning over anything?

The billioinaire athlete quote was made in an offseason what 4 years ago when he was 21 years old? I'd hate to bring logic to the Knicks LeBron forum but my guess is that his desire to win a championship has made the desire to make even more money he can't count seem pretty irrelevant. Especially given the fact that he is now at the point in his career when it's no longer WHEN but IF he will ever win titles.
'
Now I'm not saying you guys can't build a championship caliber team to help your case to bring him here but stop with the "this is a no brainer stupidity" when you are basing it on his desire to earn a billion. You can make counter arguments about earning potential in almost every other city - (e.g. Miami with taxes, Cle with cost of living index, etc).

[kosmovitelli]

No. 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.

Wether you're named Lebron, Bosh or Kobe, all players can buy public shares of MSG. It's not Dolan doing a favor to Lebron or Bosh or any other free agent. It's an opportunity made available for everyone.

[Manhattan Project]

No. 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.

Wether you're named Lebron, Bosh or Kobe, all players can buy public shares of MSG. It's not Dolan doing a favor to Lebron or Bosh or any other free agent. It's an opportunity made available for everyone.

Yeah that's what I thought, but it's always good to check with someone who understands it more than me. Thanks for clearing that up.

[patagonia]

Lebron could also make a ton of money by hinting he was coming to the Knicks, shorting the stock, and then signing with another team.

[CoolKids]

are any of you listening when he and everyone else under the sun says he cares about winning over anything?

The billioinaire athlete quote was made in an offseason what 4 years ago when he was 21 years old? I'd hate to bring logic to the Knicks LeBron forum but my guess is that his desire to win a championship has made the desire to make even more money he can't count seem pretty irrelevant. Especially given the fact that he is now at the point in his career when it's no longer WHEN but IF he will ever win titles.
'
Now I'm not saying you guys can't build a championship caliber team to help your case to bring him here but stop with the "this is a no brainer stupidity" when you are basing it on his desire to earn a billion. You can make counter arguments about earning potential in almost every other city - (e.g. Miami with taxes, Cle with cost of living index, etc).

Im sure Marbury and Curry would say similar thigns as well. Anyone who has followed Lebron at all can tell you that winning is not all important for him. Its a factor yes but no bigger then the money aspect.

[johnnywishbone]

Right, so he buys stocks, signs with the Knicks and instantly the value of the shares go up. Plus if he owns enough shares he could go on the board of directors (not sure if that's legal according to the CBA, but I don't see why not) and then he gets to really control the direction of the team.

No. Lebron or any other individual or company can't control MSG. Obviously the Dolan family took care of that. Even if it was possible, Lebron is rich but he isn't rich enough to buy all the public shares ! He would just own a small part of MSG public shares (class A shares). You need to acquire class B shares to control the team and Lebron can't do that because they're not available for trade on NYSE.

Cablevision Systems Corporation (NYSE: CVC) has approved the spin off of Madison Square Garden to Cablevision shareholders. Madison Square Garden is the home venue of the New York Knicks and Rangers, but is also home to concerts, boxing events, tennis, and other events. You have to be a holder of Cablevision to receive the shares, at least that is the case before the regular trading takes place. Cablevision said tonight that the share distribution will take place on February 9, 2010, and that distribution will be made to Cablevision’s shareholders of record as of the close of business on January 25, 2010 (i.e. settlement date on or before).

Terms of the spin-off will be 1 share of the new Madison Square Garden Class A stock for each four shares held of Cablevision Class A shares held as of the record date. The company is keeping the same Class A and Class B share structure, and the Class B ratio is the same as for Class A. Class B shares are not exchange-traded, and the control of MSG will remain under the Dolan family control via the Class B shares.

The company noted that fractional shares of MSG common stock will not be distributed to Cablevision stockholders, and those holders who would have received fractional shares will see those shares aggregated and sold in the public market. After that, the proceeds will be distributed pro rata in cash to the holders who would have otherwise received a fractional share. The company also noted that this has been designated as a tax-free spin-off and no action is required by holders to see this come to pass.

Cablevision Class A common stock will continue to trade “regular way” on the New York Stock Exchange under the symbol “CVC” before and after the spin-off. Those holders of Cablevision Class A common stock who sell Cablevision shares regular way on or before February 9, 2010, will also be selling their right to receive shares of MSG Class A common stock. Cablevision’s Class B common stock is not listed on a securities exchange.

You don't need to have controlling interest in a company to be on the board of directors.

edit * I'm not saying he'd have the last say but he'd have the kind of input that no other player has.

[EnigmatiC]

Lebron could also make a ton of money by hinting he was coming to the Knicks, shorting the stock, and then signing with another team.

I think that also falls under insider trading

[BklynKING]

Damn....if this can really happen....then what a great/smart move by Dolan

LeBron surely must know about this economic opportunity if all this talk about him being business savvy is true.

[The Evidence]

Lebron needs a dynasty championship team for the possibility of the mkt value of MSG to go up significantly. Just owning a bunch of shares while playing on the same team isn't enough to become a Billionaire.

[ITGM]

We start with the second round of the NBA Playoffs, Boston Vs Cleveland. The King is complaining of severe elbow pain. O'really? If you rewind the tape, Lebron never grimaced or touched his elbow when he was racking up his stats. Lebron even stuck his own foot in his mouth in an interview; He explained to the reporter that his own children had no idea their daddy was even hurt because he was still picking them up and playing with them. O'REALLY?? The world didn't see someone with severe pain in his arm, the world saw someone who could drain treys, grab triple doubles but refused to take over the game when it was warranted. What the world saw was a man conflicted between being a professional basketball player and someone who seemed to have obligations elsewhere. Lebron James quit on his team because a loss in the second round would be the only way he could get a pass for leaving Cleveland.

We fast forward to Lebron's last game as a Cleveland Cavalier. It was the day after Game 6 when we first heard the rumblings of Lebron to Chicago. Every New Yorker's immediate reaction was "WTF" - "GTFO" - "BS". We were all baffled of how this crazy Chicago talk actually caught fire after years of Cleveland and New York only being in the discussion. All of a sudden every analyst and their mother had inside information on Lebron wanting to play for Chicago, this alone put up a huge flag for me. (but I admit I was discouraged by the news) But wait, after years of Lebron keeping things top secret, everyone was informed of Lebron's decision? Ladies and Gentlemen, this is what we call a smoke screen! It was reported that Lebron's "Team" met together in a closed meeting immediately after Cleveland lost game 6...REALLY? I can't see why Lebron's Team of Lawyers and financial overseers would conduct a closed meeting for the sole purpose to console the King in that moment. Your business associated should not receive carte blanche over your teammates family and loved ones. This entire situation has been nothing more than a well planned, thought out and executed performance. All of this talk about winning comes first is just showmanship, feeding the politically correct answer to the public. Lebron and his "Team" have been waiting for this moment ever since Lebron signed his three year deal with Cleveland. I ask you, what has Lebron been doing while playing for Cleveland and keeping hush hush on 2010: Well the real question should be what has his business endeavors been doing? I'll tell you, they've been saying buy the new Lebron's (New York) Big Apple editions and follow the Orange and Blue bird in our Nike Air Lebron Commercials. Correct me if I'm wrong, but I don't recall seeing any Nike Air Lebron Windy City Editions.

So this brings us back to the original question, whats up with all of this Lebron to Chicago talk and if its a smoke screen, why? I could not of answered this question until tonight. Tonight, news broke of Forbes Magazine predicting Lebron will sign with the Knicks to make a huge profit. This was the piece of the puzzle that eluded us all.

This quote from KnicksGod explains it all

I feel like this can not be legal under the CBA

I don't know if they can stop a guy from buying stock in a publicly traded company.

If not, it wouldn't surprise me if the Knicks went public for this reason alone.

I thought the re-organization a while back was very coincidental.

This was the big secret Donnie Walsh kept saying he had up his sleeve. All along Donnie kept saying we have something that we can use to our advantage. We all thought he was speaking of some sort of trade agreement, but Donnie was referring to something much more appealing. He knew this loop hole would be the biggest factor in enticing the King.

Lebron sent the Chicago smoke screen to divert attention from New York. This plan was conceived by him and his team so they could escape the media claiming how much of a tragedy this would be for the league. Can you imagine the hate ESPN will spew now that they will realize tomorrow morning New York has even more of a financial advantage to offer Lebron?

I have to admit Lebron James and World Wide Wes & Co are some deviously smart individuals, but ITGM has officially cracked the Lebron Code!




Ladies and Gentlemen Lebron James will Officially become a New York Knick on July 8th 2010!




Mods: Please let this Epic Thread Rock for a few hours before you possibly decide to merge this with another thread. Thank You

[eviL]

Interesting thoughts, maybe a bit of a reach, but interesting nonetheless.

[NYStateofMind]

Interesting thoughts, maybe a bit of a reach, but interesting nonetheless.

This.

[AyAsiB KNICKS]

Wow..nice find and nice analysis...

But kodus to Forbes! they gave us (NY Fans) to have some faith...


LBJ6 in NY!

[-Ducky-]

We need Dan Brown to author this when its all over.

[EnigmatiC]

IB4TFBF...in before the first bulls fan!!

[mrpoetryNmotion]

Frank Isola thanks you for your contribution to his blog. To view the finished version please check out Knicks Knation tomorrow morning. Thanks.