Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

I don't understand how anyone that just heard of this guy two days ago can decide what kind of owner he will be. If he's a paper billionaire, as you say, what difference does it make that his company is only worth half what it was a few months ago? His public worth is known. I haven't seen anything yet about what his private worth may be. You can't even tell us where the reference to Cuban originated, yet you have decide he's another Schlenker. Let it play out and see what happens. Quite a few people were convinced that Heisley was a cheap owner. When you consider the entirety of his ownership, it turns out that he was pretty good for the community. If they ever ask you to serve on a jury, try to get out of it. It's not fair to rush to judgement until you get all the facts. You could be right. It's just too soon to know. Davis and Laetner were exposed. Pera may be, but he might not.

He isn't a paper billionaire anymore. He is "only" worth about $700mil--in stock. So how is he going to pay $300MM for the Grizz? Is going to liquidate 1/3 of his ownership of his own company?

Hmmmm. The vetting process will be interesting.

From Yahoo! finance:
Just when you thought a bizarre story couldn't get any more bizarre: Ubiquiti Networks CEO Robert Pera has agreed to buy the Memphis Grizzlies basketball team for $350 million.

Why bizarre?

Because about the last thing you would think Pera, 34, needs to add to his title right now is basketball owner.

Little-known (certainly from a buzz standpoint) Ubiquiti (UBNT) has been one of Silicon Valley's fastest growing companies, with a model so unusual (a hardware company with software company-like net margins) that it recently attracted high-profile and widely respected venture capitalist Bill Gurley of Benchmark Capital as a personal investor and director.

But as I pointed out in a piece last week headlined, "Why Ubiquiti Networks Is So Controversial," the company is also one of Wall Street's hottest battleground stocks. As of May 15, 54 percent of its float were sold short, with the bears raising red flags over a myriad of issues, including earnings quality. (See clarification)

Pera founded Ubiquiti in 2003, but it wasn't really actively operating until 2005 selling wireless internet products, mostly to emerging markets.

Last year revenue topped $197 million, more than tripled two years earlier, based on a stripped down model of selling online through distributors, mostly in emerging markets, with only 18 percent of the sales in the U.S.

But like all high-flyers, Ubiquiti's growth has been slowing, while its stock has plunged.

After going public at $15 in October, Ubiquiti's shares had more than doubled to peak at $35.99 by May, giving Pera's stake a $2 billion value in the company, which at the time had a market value of more than $3 billion.

Forbes dubbed Pera one of the world's "youngest billionaires," and even included him on a list of the "world's 12 most eligible bachelors."


While he still may be a good catch on the dating market, he is no longer a billionaire.

In the easy come, easy go world of paper stock market profits, Pera's net worth based on Ubiquiti's stock price has tumbled to $683 million as its stock has crashed through its IPO price to yesterday's close of around $12. The stock fell on concerns of slowing growth and the swirling controversies.

Which raises a couple of questions...


http://finance.yahoo.com/news/yet-anothe...46430.html

The guy put down a $10 million deposit that is not refundable. Heisley probably hopes the deal falls through. Worked for him before. Probably the easiest money he has ever made. I think Laettner (sp?) put up $7 mil. Heisley laughed in a radio interview when asked if he gave it back. "That's not how you run a business."

Sidney Schlenker never had big money. He and David Hersh of the Memphis Chicks were cut from the same cloth.

Robert Pera is the majority owner of a company sitting on $94 million cash that has made $70 million profit over the last fiscal year. In addition, the revenues of the company have increase by a third from the previous fiscal year.

Pera has money.

The problem is that is stock has wildly fluctuated and that he has not built his wealth over long enough time to think he has the liquid assets to be able to sustain the expense of running a small market major league franchise.

If his wealth is based on his stock price, things don't look to good now. Especially since as of now, it doesn't look like he has filed to sell any of his company shares when the stock price was at its highest a month ago.

With the bad press his company has gotten in the last couple weeks, I fear it may be some time before the stock recovers, and his company isn't at a point where anyone would expect it to pay a dividend.

In all likelihood, he has investors buying Grizz with him. Even Mark Cuban doesn't own 100% of the Mavs.

Well, I guess if you want a 34 year old guy whose company is in turmoil and whose actual net worth is all tied to a stock that is very shakey in a company that he is supposed to be running (how is he going to have any time to actually do anything with the Grizzlies?) then he's your man.

(06-13-2012 11:42 AM)cmt Wrote:  Well, I guess if you want a 34 year old guy whose company is in turmoil and whose actual net worth is all tied to a stock that is very shakey in a company that he is supposed to be running (how is he going to have any time to actually do anything with the Grizzlies?) then he's your man.

Sound like Memphis, huh?

I'm getting to the point where I'll be surprised if the sale goes through. I have serious doubts that the NBA is going to approve a sale of a franchise to a guy whose paper wealth has been halved recently, and who's company has allegedly illegally done business with Iran, and who's company allegedly has ties to Chinese organized crime. Sounds rife for all sorts of problems Stern wouldn't want touching the league.

(06-13-2012 09:10 AM)Latilleon Wrote:  In all likelihood, he has investors buying Grizz with him. Even Mark Cuban doesn't own 100% of the Mavs.

Bingo.....Larry Ellison, who most certainly has the money to buy the Grizz AND to pay the relocation fines/fees.

(06-13-2012 11:49 AM)salukiblue Wrote:  

(06-13-2012 11:42 AM)cmt Wrote:  Well, I guess if you want a 34 year old guy whose company is in turmoil and whose actual net worth is all tied to a stock that is very shakey in a company that he is supposed to be running (how is he going to have any time to actually do anything with the Grizzlies?) then he's your man.

Sound like Memphis, huh?

What sounds like Memphis is associating the negativity of a decision that Memphis had nothing to do with with Memphis.

With the question marks about his business and worth, the nba will check him out thoroughly.

I really don't much about this guy, but it already sounds like there are issues that create a slight chance that the nba will disapprove the sale.

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

When I first heard of the sale, I immediately researched Pera and the company and put his chances at league approval at 20%. That number has quickly gone down to about 3%.

(06-14-2012 01:36 AM)ncrdbl1 Wrote:  

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

And we'd still need the Forum today. There are NO 20+ year old NBA quality arenas. If this version of MSG wasn't in NYC and didn't have all the history behind it, it would be Arco Arena or the Bradley Center. Heck, there are very few 20+ year old NBA arenas in general.

(06-14-2012 06:51 AM)RationalRebel Wrote:  

(06-14-2012 01:36 AM)ncrdbl1 Wrote:  

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

And we'd still need the Forum today. There are NO 20+ year old NBA quality arenas. If this version of MSG wasn't in NYC and didn't have all the history behind it, it would be Arco Arena or the Bradley Center. Heck, there are very few 20+ year old NBA arenas in general.

MSG has gone through two or three renovations over the last twenty years, and each renovation has put over $200 million into the building.

(06-14-2012 09:04 AM)Latilleon Wrote:  

(06-14-2012 06:51 AM)RationalRebel Wrote:  

(06-14-2012 01:36 AM)ncrdbl1 Wrote:  

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

And we'd still need the Forum today. There are NO 20+ year old NBA quality arenas. If this version of MSG wasn't in NYC and didn't have all the history behind it, it would be Arco Arena or the Bradley Center. Heck, there are very few 20+ year old NBA arenas in general.

MSG has gone through two or three renovations over the last twenty years, and each renovation has put over $200 million into the building.

It is still polishing a turd.

It is like spending $100,000 on keeping your Fiero in tip top shape.

(06-14-2012 01:36 AM)ncrdbl1 Wrote:  

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

I wonder if the city of Memphis was as aggressive pursuing the NBA as it was the NFL in the 80s if Memphis might have gotten an NBA expansion franchise over Charlotte. Especially with FedEx and Holiday Inn backing the pursuit.

(06-14-2012 09:06 AM)Latilleon Wrote:  

(06-14-2012 01:36 AM)ncrdbl1 Wrote:  

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

I wonder if the city of Memphis was as aggressive pursuing the NBA as it was the NFL in the 80s if Memphis might have gotten an NBA expansion franchise over Charlotte. Especially with FedEx and Holiday Inn backing the pursuit.

Would have been nice to see Grandmama playing here.

(06-14-2012 09:06 AM)salukiblue Wrote:  

(06-14-2012 09:04 AM)Latilleon Wrote:  

(06-14-2012 06:51 AM)RationalRebel Wrote:  

(06-14-2012 01:36 AM)ncrdbl1 Wrote:  

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

And we'd still need the Forum today. There are NO 20+ year old NBA quality arenas. If this version of MSG wasn't in NYC and didn't have all the history behind it, it would be Arco Arena or the Bradley Center. Heck, there are very few 20+ year old NBA arenas in general.

MSG has gone through two or three renovations over the last twenty years, and each renovation has put over $200 million into the building.

It is still polishing a turd.

It is like spending $100,000 on keeping your Fiero in tip top shape.

On Wolken's last trip to MSG as a CA writer he called the place a dump.

(06-14-2012 09:07 AM)salukiblue Wrote:  

(06-14-2012 09:06 AM)Latilleon Wrote:  

(06-14-2012 01:36 AM)ncrdbl1 Wrote:  

(06-13-2012 06:43 AM)cmt Wrote:  Pera sounds like the worst possible kind of owner. Just heard an interview on 56. Guy is a paper billionaire, he's ridiculously young, he has his hands full with a company that is worth half what it was a few months ago and there are all kinds of allegations swirling about his business dealings. The guy from either CNBC or MSNBC? says there is only one Mark Cuban (Cuban walked away with 6 billion cash) and this guy can't walk away.

A LOT of companies these days are worth less than they were last year. As for Schlenker, if the power brokers in Memphis had left him alone and not back stab him and force him out of the project. We would have never needed to build the forum because the Pyramid would have been a 16,000 seats NBA quality arena.

I wonder if the city of Memphis was as aggressive pursuing the NBA as it was the NFL in the 80s if Memphis might have gotten an NBA expansion franchise over Charlotte. Especially with FedEx and Holiday Inn backing the pursuit.

Would have been nice to see Grandmama playing here.

I think in the 80s Memphis was bigger than both Charlotte and Orlando, and it's a murderer's row of big companies headquartered here in the 80s.