Sale Announcement Conference on KTAR right now

[Yuma]

This is terrific news for us. There needed to be some kind of injection of new blood into the franchise--player-wise, our hands are really tied because of availability, and of course, money issues.

But it sounds like this new group will at least give the fans something different.

Just a question, and it might be a reach, but does anybody believe that it is possible that this was done so fast because it eliminates any kind of uncertainty about ownership when it comes time to court Kobe Bryant?

I mean, I know a lot of people on this board don't like him and don't want him, but come on. There has got to be a 90% chance that we're going to go after him (assuming he opts out). Gotta be.

That's interesting Chap, since Barkley has been out-spoken on TNT saying Kobe isn't worth the effort, that he will never win a championship outside LA, yada yada!! That would REAL interesting to see us sign Kobe, and then hear his comments after that!!

 

[F-Dog]

Just a question, and it might be a reach, but does anybody believe that it is possible that this was done so fast because it eliminates any kind of uncertainty about ownership when it comes time to court Kobe Bryant?

I mean, I know a lot of people on this board don't like him and don't want him, but come on. There has got to be a 90% chance that we're going to go after him (assuming he opts out). Gotta be.

So you're saying that, if it weren't for Kobe's free agency, JC would have held out for more money?



I don't know much yet about this new guy, although I've heard that there's somebody like him born every minute. I like the fact that he's from Tucson and apparently pals around with the U of A basketball people.

I can't expect him to be Mark Cuban rich, but I hope he isn't spending most of his fortune to buy the team. It would also be nice if he's diversified enough that he won't have to declare bankruptcy if the real estate market bursts.


I'm glad that BC is still running things--if they were switching management right now, they could easily lose much of the team's talent in the process of turning over the roster. Steve Kerr seems like a good addition--he's well-spoken and never seemed too full of himself. His TV career seems like it might be a distraction, of course.

I guess JC will still be available to conduct interviews from his house or whatever. Seriously, now that he's not signing the checks, I'm not sure he has much left in the way of influence or real authority. He'll probably never even have to learn Milos Vujanic's name, now.


From what I've heard so far, it's hard to imagine this turning out much better for the fans, although I guess if you'd told them back at the trade deadline that JC would sell the team for $400m this summer, there might have been a revolt. I just hope the good news RE: ownership keeps coming...

 

[Chaplin]

So you're saying that, if it weren't for Kobe's free agency, JC would have held out for more money?

Can you read? Your extreme ambivalence toward the possibility of us signing Kobe Bryant obviously has you confused.

It's about STABILITY. A team that is on the market to be sold is certainly less desirable than one that has some sort of stable future. Sure, there are still a lot of questions, but we are in a better position, IMO, to make the franchise look better now than we did yesterday--and that can only help when pursuing ANY free agent, not just Kobe.

 

[F-Dog]

Can you read? Your extreme ambivalence toward the possibility of us signing Kobe Bryant obviously has you confused.

It's about STABILITY. A team that is on the market to be sold is certainly less desirable than one that has some sort of stable future. Sure, there are still a lot of questions, but we are in a better position, IMO, to make the franchise look better now than we did yesterday--and that can only help when pursuing ANY free agent, not just Kobe.

I could certainly read when you wrote "Let's not make this personal". And my feelings towards the Suns signing Kobe could never be described as ambivalence.



Does this put the Suns in a better position to attract free agents? Probably.

Did JC sell the Suns quickly because it would be easier to attract free agents that way?



My guess is that the $400 million may have had something to do with the timing here.

 

[Chaplin]

Did JC sell the Suns quickly because it would be easier to attract free agents that way?

I'm confused. When did I ever say that?

 

[F-Dog]

I'm confused. When did I ever say that?

Umm...

Just a question, and it might be a reach, but does anybody believe that it is possible that this was done so fast because it eliminates any kind of uncertainty about ownership when it comes time to court Kobe Bryant?

 

[George O'Brien]

Ownership stability should help reassure free agents, make it easier to make trades, and help in other personnel issues. Even just talking to the current players is easier if there is no doubt about whether promises being made are being made people who can keep them.

The fact that there will continuity should be a huge plus in every conceivable way.

 

[Chaplin]

Umm...

...and?

Perhaps your grasp of English is lacking. I'm not sure why you feel you need to attack me because what I said is pretty much what I've explained.

 

[zett]

I think there is only 1 reason this was done as quickly as it was. And that is because the new ownership is a very intelligent and buisness savy man, and he wasn't going to beat around the bush. He needed to know what it takes to get the deal completed and said done deal. management can't argue when you give them everything they ask for! He new ahead of time what his limits were, This is the best possible situation the suns could had ever had hoped for. Sarver mentioned that if need be they would take on additional investers to get done what ever needs to be done too win. He is competitive, intelligent, and rich. If we didn't have our cards in order, I would still bet we will have a banner hanging with in the next 5 years. This is better then anyone could have hoped for. (Oh can you tell that I am happy about this deal)

 

[jw7]

*gasp* 401 M? I heard rumours about the sale but just read this. Insane - that is approaching pro-football franchise money where they have a healthy product and guaranteed income each season.

Let me dust off my old college finance books and for that to make sense from a risk/return proposition, they should have an expectation of clearing $40M a year to even make sense.

Obviously that ain't happening, so I wonder if it is just a rich basketball fan that likes the game and can use a loss-leader to offset income? Doensn't make sense either if the guy is only worth $20M and paying 20x his net worth for the club. His partners sound like they have a bit of money but nothing in the Warren Buffett range.

If the Suns can fetch $400M I would not be surprised if the Cardinals have a franchise value of $1.2B with the new stadium coming up. Nuts.

 

[thegrahamcrackr]

Doensn't make sense either if the guy is only worth $20M and paying 20x his net worth for the club.
QUOTE]


The guy is worth way more than 20 million I think. I think it was stated earlier that he owns like 20 million worth of shares in Meritage Co.

He was the co founder of the National Bank of Arizona. He is part of the company that owns most of down town san diego I think. Someone also mentioned he owns the 14th largest home biulder in the US or something like that.

All at age 43 no less.

He also said that if they ever wind up needing more money, they would add investors. I don't think money will be a problem though.

 

[zett]

it's more then just the suns, the mercury also and the rattlers and the company that handles some thing to do with the bank one ball park and america west arena's some thing to do with the special events for these places as well as the dodge theater, ( sorry not too clear on what it all intails) and my guess is that the cottons of the organization are not going to be sitting around collecting paychecks for being the vice president of absolutly nothing, this guy is a little more savy then to waste alot of money on old friends. he has worked for everything he has and I'm sure he will expect the same from all of his employees.

 

[Joe Mama]

It wouldn't surprise me if the Phoenix Mercury had minimal or no value.

Joe Mama

 

[fordronken]

It wouldn't surprise me if the Phoenix Mercury had minimal or no value.

Joe Mama

Actually, I'm pretty sure they lose money.

 

[cly2tw]

The assets within the enterprise named Phoenix Suns:

1. A great reputation that attracts FA here. Partially linked to the name of Colagello, which is the reason that he is to stay for 3 more years for the transition.

2. A young and potent core with Amare, JJ, Barbosa, etc. still on their rookie salaries.

3. Sufficient cap flexibility, plus picks, to rebuild the franchise together with pt. 1 and 2 above.

The only negatives are Marion's contract and Eisley's, but not really insurmountable problems.

 

[George O'Brien]

The valuation of "major" sports teams is impossible to analyze using conventional finance. There is no way these teams generate the cash flow to provide a viable internal rate of return or a payback within this century.

Why do they do it? The same can be said about why own a big house, a valuable work of art, or a private airplane. These are not investments, these are ego products. They buy them because they can.

In some cases there are business purposes served. Another executive is more likely to take the phone call of someone who owns a major sports team than just another suit. Being a sports team owner gives the guy an opportunity to hang out with people who have A LOT OF MONEY - and these contacts can prove priceless.

Still, it is mostly ego and knowing that you never have to wait for reservations in expensive restaurants.

 

[zett]

Have you ever seen the value of a franchise go down? the price will continue to go up in time and all the money you make during is just icing on the cake

 

[SweetD]

Have you ever seen the value of a franchise go down? the price will continue to go up in time and all the money you make during is just icing on the cake

Not to sure about that... I would see teams selling for that big of a jump anymore. The team was bought at a time when the NBA was not a sure fire hit. Now a days the owners don't even come close to making as much margin on the team as they use to.

 

[slinslin]

Some more investors were made public today.

Scottsdale's Steven J. Hilton, chief executive officer of home builder Meritage Corp.

Siblings Carol Hudson and Tom and Don Rogers, who run R&R Products Inc., a leading manufacturer of turf equipment replacement parts and golf course accessories in Tucson.

California businessman Richard J. Heckmann, chairman of K2 Inc., a manufacturer of sporting goods that include the brands Rawlings, Worth, Shakespeare and Brass Eagle.