35 years and counting? Maybe not...

[Chaplin]

Colangelo hires firm to explore sale of Suns

Bloomberg News
Mar. 8, 2004 12:00 AM


Phoenix Suns owner Jerry Colangelo, chairman of the National Basketball Association's Board of Governors, hired Lehman Brothers Holdings Inc. to explore selling the team.

Colangelo, 64, said his preference is to add an investor that would first take a minority stake and then assume full ownership in seven to 10 years.

"I would like to be involved as long as I can," Colangelo, who also owns Major League Baseball's Arizona Diamondbacks, said in a telephone interview. "But I'm realistic. My partner may not want to wait that long."

The Suns are worth $282 million, according to Forbes magazine. The New Jersey Nets, who Forbes says are worth $244 million, in January were sold for $300 million.

"I have my own opinions on valuation," Colangelo said. "It certainly exceeds that. I know I have a very valuable asset."

He wouldn't be specific.

Sal Galatioto, head of Lehman's sports finance unit, didn't respond to an e-mail seeking comment.

Colangelo said he hasn't had any discussions with five-time NBA Most Valuable Player Michael Jordan, who is seeking majority control of an NBA team.

Colangelo led the investment group that bought the Suns for $44.5 million in 1987.

"This has been my baby since day one," Colangelo said. "But, at 64, you need to have your ducks lined up relative to estate planning and how things transition."

The Suns (21-42) are last in the Pacific Division. Their payroll of about $65 million is seventh in the 29-team league. Phoenix reached the NBA Finals in 1993, losing to Jordan's Chicago Bulls.

Colangelo's son, Bryan, is the team's president and general manager.

 

[Joe Mama]

Is this article old or just the inaccurate? I know the Phoenix Suns payroll is not $65 million anymore.

Joe Mama

 

[Chaplin]

Originally posted by Joe Mama
Is this article old or just the inaccurate? I know the Phoenix Suns payroll is not $65 million anymore.

Joe Mama

I think right now, today, it IS 65 million, but this summer it reduces to 35, right? At least, that's what I thought. I guess with Googs gone it's reduced... hmmm...

But this apparently just came up on the azcentral website.

 

[George O'Brien]

Originally posted by Chaplin
I think right now, today, it IS 65 million, but this summer it reduces to 35, right? At least, that's what I thought. I guess with Googs gone it's reduced... hmmm...

But this apparently just came up on the azcentral website.

I though the Googs deal brought the amount to the low $50's to get under the Luxury tax limit (HoopsHype shows that Suns at $52 million for this season). I think the $65 million was out of date when the Marbury trade was made.

 

[Chaplin]

Originally posted by George O'Brien
I though the Googs deal brought the amount to the low $50's to get under the Luxury tax limit (HoopsHype shows that Suns at $52 million for this season). I think the $65 million was out of date when the Marbury trade was made.

That's right. Doh!

 

[Chaplin]

Could this have anything to do with the rumors from a few years ago that Jerry might be posturing to become the next commissioner of the league?

 

[elindholm]

Well, now we know why he's spent most of this season cutting costs at the expense of the franchise's future.

 

[slinslin]

Well lets hope he sells it to a good owner.

I think a combination of Bryan Colangelo and Michael Jordan would be nice.
Bryan president and MJ general manager or the other way around or something like that.

A Mark Cuban would be very nice. I hope it doesn't destroy our chances to get Kobe.

 

[elindholm]

I think a combination of Bryan Colangelo and Michael Jordan would be nice.

If Jerry Colangelo yields primary control to someone else, I can't imagine why Bryan would be kept around. It's not as though the younger Colangelo has demonstrated any ability to handle the job on his own, never mind do it well.

 

[Brian in Mesa]

Originally posted by Chaplin
Could this have anything to do with the rumors from a few years ago that Jerry might be posturing to become the next commissioner of the league?

If by league you mean MLB.

He's made it clear in recent years that baseball is his one true sports love. He said (in local interviews, radio shows, etc) it always has been, but he found it much easier to get into the basketball world than the baseball world. He used basketball to get into baseball.

 

[Chaplin]

Originally posted by Brian in Mesa
If by league you mean MLB.

No, I don't. I DO know that he has more loyalty to baseball, but that didn't stop those rumors that he would succeed Stern a couple years ago.

 

[slinslin]

Who are potential new owners?

-Michael Jordan and his group , MJ wants to control
-P.Diddy , Colangelo might stay and Diddy brings the flair
-Wal-Mart? Shaq mentioned something like that during allstar weekend that Wal-Mart wants to buy a team for some time already

 

[Joe Mama]

Originally posted by Chaplin
No, I don't. I DO know that he has more loyalty to baseball, but that didn't stop those rumors that he would succeed Stern a couple years ago.

Is Howard Stern finally giving up? I just don't see Jerry Colangelo wrestling naked midgets or transsexual donkey lovers on the radio.

Seriously though, it would be cool if they would find some reckless billionaire to take over things. Then in a few years the Phoenix Suns could have salary cap problems like the Portland Trail Blazers, Dallas Mavericks, or New York Knicks. Who cares as long as their competitive like all of those teams though.

Joe Mama

 

[SweetD]

What about the guy who just bought the Angles maybe he can get him to be the next Cubin in AZ.

 

[slinslin]

Bill Gates?

 

[Ryanwb]

What will Bryan Colangelo do? Who will give him a job?

 

[Ryanwb]

Another thing that was interesting is that Colangelo sold his shares of the D'backs, he no longer holds any interest financially in the team.

 

[George O'Brien]

Originally posted by Ryanwb
What will Bryan Colangelo do? Who will give him a job?

He has done a better job than many GM's. The way things are going, you'd have to think Boston will be looking.

 

[Cheesebeef]

it will be a sad day when Jerry no longer owns the Suns -then our longest standing owner in the valley will be (gulp) Bill Bidwill.

 

[thegrahamcrackr]

BC gets way to much flak. Judging by his drafts, and his personel moves from a long term perspective have ranked him in the top third of GMs easily.

 

[Ryanwb]

Originally posted by thegrahamcrackr
BC gets way to much flak. Judging by his drafts, and his personel moves from a long term perspective have ranked him in the top third of GMs easily.

Well, I don't like the guy because of the obvious case of nepotism. He started out in a lowly position (I think in ticket sales) and in a few years he is General Manager? Sha right

 

[Cheesebeef]

Originally posted by Ryanwb
Well, I don't like the guy because of the obvious case of nepotism. He started out in a lowly position (I think in ticket sales) and in a few years he is General Manager? Sha right

yeah but look at the job he's done since being there - he had us perfvectly set up to be mega-contenders then we got nailed by the strike - I still think that the JK tarde had to be made - he fleeced Boston in the JJ deal - his drafts have been pretty incredible - Steve Nash, Finley, Marion, Amare - and none of those were top three or even top five picks - not to mention the first Dice deal that Danny Ainge and the lockout managed to screw up - and I'm willing to bet this offseason will be no different - whatever draft position we have - you can bank on the fact that the kid will end up beign aplayer - possibly a great player considering how high oru pick should be and I have no doubt they will clear enough room to make a run at Kobe.

Has he made some bad moves? Hell yeah - Penny, Googs and Luc - but every GM has those and at least he has tried to recitify them and been successful in pawning some of those guys off. It's a monumental ummer for the franchise and it will be Bryan's biggest test yet - let's hope he passes with flying colors.

 

[Chaplin]

New article, this time by a local writer:

Colangelo hires firm to explore sale of Suns

Craig Harris
The Arizona Republic
Mar. 8, 2004 12:45 PM


After more than three decades of running Phoenix's oldest professional sports franchise, Suns chairman Jerry Colangelo is looking to sell the team.

Colangelo, the basketball team's chairman, said Monday that he has hired Lehman Brothers Holding Inc. to explore selling the Suns.

"The purpose in retaining them is to put the package together," Colangelo said in an interview. "My goal and objective is to put in place a transition ... I want to be comfortable with what happens to the future of the franchise when I am not involved."

"My interest is being chairman and CEO for a long time to come," he said on Monday. Colangelo, who owns about 20 percent of the team, said his goal would be to bring in an equity partner who would take over the franchise in five to eight years. But he also understands that a potential buyer may want to take control immediately.

"You can't ever say no. I can only tell you what my plan is," Colangelo said. "I will not respond to a proposition that may or may not be out there."

Colangelo, 64, said he hired Lehman Bros. a couple of months ago. Since then he has dropped hints that he was forming an "exit strategy," but he continually denied the Suns were on the market. He was the team's first general manager in 1968, and he led the investment group that bought the Suns for $44.5 million in 1987.

"It’s not just about money,” Colangelo said. "It’s about who do I feel comfortable with having this franchise after I’m gone. This is about legacy. This is about ownership that would share the same vision, commitment to community, charitable drive." Colangelo last week also sold his managing general partnership of the Arizona Diamondbacks, but will remain with the baseball team as chairman and chief executive officer.

Colangelo declined to disclose an asking price for the Suns, except he said the franchise was worth more than the $300 million that was paid in January for the New Jersey Nets.

The Suns package also includes the team's production company, Sports and Entertainment Services, the Phoenix Mercury women's basketball team and the Arizona Rattlers indoor football team.

Colangelo said he has had no discussions with NBA greats Michael Jordan and Magic Johnson, who have reportedly been interested in buying a NBA franchise. "I am completely focused on the same goal I had when I first came to Phoenix 36 years ago — winning an NBA championship," Colangelo said.

 

[Forrestham]

Lets get Artie Moreno on board as owner

 

[elindholm]

BC gets way to much flak. Judging by his drafts, and his personel moves from a long term perspective have ranked him in the top third of GMs easily.

I've always gotten the sense that Bryan is a puppet. Major signings or trades are almost always announced by Jerry. Why? On other teams, it's the GM or coach who makes those announcements, not the owner.

I think Bryan is the "day to day" general manager but that it's still Jerry's team -- for the time being. Yes, I know that there have been statements from both Colangelos to the contrary, suggesting that Bryan really is the one running the show. I don't buy it. I think that, once Jerry walks away, Bryan won't have a clue what he's doing -- which will be irrelevant, because the new owner will axe him anyway.