Jon Krawczynski Verified account @JonKrawczynski
A buy-sell clause in the Grizzlies ownership agreement has been exercised, sources tell The Athletic. Owner Robert Pera now has a decision to make. Story posting soon.
So Kaplan has put in a bid, I assume. Means Pera now has to make a decision. Either buy out Kaplan's share at the bid price. Or Kaplan gets to buy the team at his bid price.
Never heard of anything like this in pro sports. Should be interesting.
And how come local media never breaks a Grizz story?
Not much in the actual story, which is mainly a recap of the 5 years Pera has owned the team:
"A buy-sell provision in the ownership agreement between Pera and minority owners Steve Kaplan and Daniel Straus was exercised last week, sources told The Athletic. Both minority owners had the right to invoke the clause starting in late October, which allows one or both of them to set a new valuation for the franchise that sold for $377 million in 2012.
Pera, who is being represented by CAA in the process, will have to decide whether to buy out Kaplan and/or Straus to keep control of the team or sell his shares at the set price and remove himself from the ownership group."
(11-30-2017 05:05 PM)Tigx Wrote: [ -> ]Jon Krawczynski Verified account @JonKrawczynski
A buy-sell clause in the Grizzlies ownership agreement has been exercised, sources tell The Athletic. Owner Robert Pera now has a decision to make. Story posting soon.
So Kaplan has put in a bid, I assume. Means Pera now has to make a decision. Either buy out Kaplan's share at the bid price. Or Kaplan gets to buy the team at his bid price.
Never heard of anything like this in pro sports. Should be interesting.
And how come local media never breaks a Grizz story?
Local media is tight with the local ownership.
There's bad blood between Pera and Kaplan. I imagine Kaplans people don't have strong ties with the local media.
(11-30-2017 10:17 PM)FlyingTiger2016 Wrote: [ -> ] (11-30-2017 05:05 PM)Tigx Wrote: [ -> ]Jon Krawczynski Verified account @JonKrawczynski
A buy-sell clause in the Grizzlies ownership agreement has been exercised, sources tell The Athletic. Owner Robert Pera now has a decision to make. Story posting soon.
So Kaplan has put in a bid, I assume. Means Pera now has to make a decision. Either buy out Kaplan's share at the bid price. Or Kaplan gets to buy the team at his bid price.
Never heard of anything like this in pro sports. Should be interesting.
And how come local media never breaks a Grizz story?
Local media is tight with the local ownership.
There's bad blood between Pera and Kaplan. I imagine Kaplans people don't have strong ties with the local media.
Kaplan wants out to buy twolves right?
(11-30-2017 10:27 PM)jgardne Wrote: [ -> ] (11-30-2017 10:17 PM)FlyingTiger2016 Wrote: [ -> ] (11-30-2017 05:05 PM)Tigx Wrote: [ -> ]Jon Krawczynski Verified account @JonKrawczynski
A buy-sell clause in the Grizzlies ownership agreement has been exercised, sources tell The Athletic. Owner Robert Pera now has a decision to make. Story posting soon.
So Kaplan has put in a bid, I assume. Means Pera now has to make a decision. Either buy out Kaplan's share at the bid price. Or Kaplan gets to buy the team at his bid price.
Never heard of anything like this in pro sports. Should be interesting.
And how come local media never breaks a Grizz story?
Local media is tight with the local ownership.
There's bad blood between Pera and Kaplan. I imagine Kaplans people don't have strong ties with the local media.
Kaplan wants out to buy twolves right?
He had a deal to buy 30% now, and the rest when the T'wolves owner died or decided to sell. But it fell through. And T'Wolves have brought in other minority owners. One was a rich Chinese guy.
Does it really matter? What's the worse that can happen? They leave in ten years? This whole thing is confusing. If I'm Pera and I bought the team for $300 and teams are selling for 2 billion, why not sell for 800? Teams worth 790, but is it that easy? Doesn't he have to sell to them at the original price or some BS?
I'm lost.
(12-01-2017 02:11 PM)fishman6581 Wrote: [ -> ]Does it really matter? What's the worse that can happen? They leave in ten years? This whole thing is confusing. If I'm Pera and I bought the team for $300 and teams are selling for 2 billion, why not sell for 800? Teams worth 790, but is it that easy? Doesn't he have to sell to them at the original price or some BS?
I'm lost.
Kaplan makes a bid, let's say for $800M. Pera then has to decide whether to sell the team to Kaplan at that price. Or, to buy out Kaplan's share.
Matters. If Kaplan wins, Chris Wallace will be gone. Probably the rest of the FO too. Since price of team has doubled, will ticket prices be raised to service the debt it would take to buy the team? Who knows?
(12-01-2017 02:11 PM)fishman6581 Wrote: [ -> ]Does it really matter? What's the worse that can happen? They leave in ten years? This whole thing is confusing. If I'm Pera and I bought the team for $300 and teams are selling for 2 billion, why not sell for 800? Teams worth 790, but is it that easy? Doesn't he have to sell to them at the original price or some BS?
I'm lost.
Well actually, Pera bought the team for $45 million. [1]
The whole situation is strange. This is the best article I have read on the subject. [2]
Quote:Pera can either sell to Kaplan and Straus or buy their shares at the price set by their given evaluation.
The worst scenario is that one of these owners load up on junk debt to buy the team, then stop investing in the franchise to stay competitive. Since, they no longer have the money to take the lost the franchise generates and service the junk debt.
Then wait for the lease to run out, and sell the team for a profit to a owner who wants to move it.
But that has only ever happened in professional soccer... Well, not exactly that. Those teams can't move, so they go bankrupted.
[1] -
https://www.memphisflyer.com/BeyondtheAr...-breakdown
[2] -
https://www.theringer.com/nba/2017/9/7/1...-ownership
(12-01-2017 02:42 PM)Tigx Wrote: [ -> ] (12-01-2017 02:11 PM)fishman6581 Wrote: [ -> ]Does it really matter? What's the worse that can happen? They leave in ten years? This whole thing is confusing. If I'm Pera and I bought the team for $300 and teams are selling for 2 billion, why not sell for 800? Teams worth 790, but is it that easy? Doesn't he have to sell to them at the original price or some BS?
I'm lost.
Kaplan makes a bid, let's say for $800M. Pera then has to decide whether to sell the team to Kaplan at that price. Or, to buy out Kaplan's share.
Matters. If Kaplan wins, Chris Wallace will be gone. Probably the rest of the FO too. Since price of team has doubled, will ticket prices be raised to service the debt it would take to buy the team? Who knows?
So, the Grizzlies base ticket prices on the amount of the debt on the team?
I did not know that, I thought they priced their tickets at markey value...
(12-01-2017 02:42 PM)Tigx Wrote: [ -> ] (12-01-2017 02:11 PM)fishman6581 Wrote: [ -> ]Does it really matter? What's the worse that can happen? They leave in ten years? This whole thing is confusing. If I'm Pera and I bought the team for $300 and teams are selling for 2 billion, why not sell for 800? Teams worth 790, but is it that easy? Doesn't he have to sell to them at the original price or some BS?
I'm lost.
Kaplan makes a bid, let's say for $800M. Pera then has to decide whether to sell the team to Kaplan at that price. Or, to buy out Kaplan's share.
Matters. If Kaplan wins, Chris Wallace will be gone. Probably the rest of the FO too. Since price of team has doubled, will ticket prices be raised to service the debt it would take to buy the team? Who knows?
So teams raise or lower prices based on their debt payments?
I did not know that...
I predict Pera will remain as the majority owner.
(12-02-2017 08:36 AM)oldmangrizz Wrote: [ -> ]I predict Pera will remain as the majority owner.
I agree. Ubiquiti stock price above $66 per share now, was under $10 when Pera
was short of cash 5 years ago.
Bet he is pissed that he agreed to the buy-sell clause.
I just want Wallace gone and for us to play for Bagley or Ayton,,,,
Why would anyone think the grizzlies would move?
(12-02-2017 04:42 PM)Bathtub Gin Wrote: [ -> ]Why would anyone think the grizzlies would move?
Several reasons. We have the lowest ticket revenue in the league. Owners don't live here. Biggest reason is an owner could move the team to a place like Seattle, and the team's value would immediately increase by hundreds of millions of dollars. And Seattle's city council is voting on approval for a new stadium on Monday, in hope of luring an NBA and an NHL team. Would be ready by 2020.
Is this just speculation or is there serious talk of them leaving? This has been for the most part a successful franchise with great fan/corporate support. If it that talk gets louder I can see the NBA, local corporations, city politicians step in and help keep the team here
(12-02-2017 09:22 PM)Bathtub Gin Wrote: [ -> ]Is this just speculation or is there serious talk of them leaving? This has been for the most part a successful franchise with great fan/corporate support. If it that talk gets louder I can see the NBA, local corporations, city politicians step in and help keep the team here
Speculation.
Until 2027, locals have to be given chance to buy team before it moves. Problem is no one stepped up when it sold for around $350M. Now it would cost double that.