Suns expect to be sold next week
Craig Harris
The Arizona Republic
Apr. 15, 2004 02:25 PM
The Phoenix Suns, put on the market just one month ago, are expected to be sold next week, according to current team investors.
Jerry Colangelo still would operate the team, according to those familiar with negotiations. Colangelo, the team's chairman who owns 18 percent of the NBA franchise, said an investor meeting is slated for April 23.
"I will be presenting a state of the union and discuss some options with them. Above and beyond that, that is all I have," Colangelo said. "I don't want to go any further."
However, one investor who is close to Colangelo said he expects investors to approve the deal, which is in excess of $300 million and would keep Colangelo on board to run the team.
The buyers have not been identified, except that it includes some individuals with local ties.
When Colangelo announced the sale last month, he said he wanted to take on equity partner who would take complete control of the Suns in five to eight years.
"This is a very, very attractive offer," said Dale Jensen, a Valley resident and Suns investor. "But you are not going to see a lot of wholesale changes right off the bat."
Jensen, a multi-millionaire who also is the largest single investor in Colangelo's Arizona Diamondbacks, said he may join the new investment group with the Suns.
"I want to have a seat at the table. There are so many good things going on downtown. It's an important community asset," said Jensen, who made his fortune in creating banking software. "I want to stay involved in it."
One investor said the deal needs approval from the team's limited partners, who own nearly 64 percent of the franchise. The general partnership, of which Colangelo owns half, owns the rest and can recommend a deal.
The largest shareholder of the limited partnership is El Dorado Investment Co., an arm of Pinnacle West Capital Corp., which is the parent of Arizona Public Service Co. The next largest shareholder is the Phoenix Professional Basketball Club, which comprises Richard Bloch, Donald Pitt and Donald Diamond, the team's original owners.
Approval from those shareholders alone would seal any offer because those two groups own the majority of the team's shares.
"Whatever Jerry wants to do is OK with me," said Diamond, a Tucson businessman. "It's been 37 years with the guy."
Bill Post, chairman of Pinnacle West Capital Corp., could not be reached.
Colangelo has been with the team since its inception in 1968. He coordinated a group in 1987 to buy the franchise for $44.5 million from Bloch, Pitt and Diamond, who stayed on as investors.
Colangelo has said he expects the team to sell for in excess of $300 million, which would be a huge payoff to all investors. Those investors include Anaheim Angels owner Arte Moreno, who has a small stake in the team.
Colangelo, 64, has said he wanted to sell the franchise as part of his "exit strategy" for retirement.
Craig Harris
The Arizona Republic
Apr. 15, 2004 02:25 PM
The Phoenix Suns, put on the market just one month ago, are expected to be sold next week, according to current team investors.
Jerry Colangelo still would operate the team, according to those familiar with negotiations. Colangelo, the team's chairman who owns 18 percent of the NBA franchise, said an investor meeting is slated for April 23.
"I will be presenting a state of the union and discuss some options with them. Above and beyond that, that is all I have," Colangelo said. "I don't want to go any further."
However, one investor who is close to Colangelo said he expects investors to approve the deal, which is in excess of $300 million and would keep Colangelo on board to run the team.
The buyers have not been identified, except that it includes some individuals with local ties.
When Colangelo announced the sale last month, he said he wanted to take on equity partner who would take complete control of the Suns in five to eight years.
"This is a very, very attractive offer," said Dale Jensen, a Valley resident and Suns investor. "But you are not going to see a lot of wholesale changes right off the bat."
Jensen, a multi-millionaire who also is the largest single investor in Colangelo's Arizona Diamondbacks, said he may join the new investment group with the Suns.
"I want to have a seat at the table. There are so many good things going on downtown. It's an important community asset," said Jensen, who made his fortune in creating banking software. "I want to stay involved in it."
One investor said the deal needs approval from the team's limited partners, who own nearly 64 percent of the franchise. The general partnership, of which Colangelo owns half, owns the rest and can recommend a deal.
The largest shareholder of the limited partnership is El Dorado Investment Co., an arm of Pinnacle West Capital Corp., which is the parent of Arizona Public Service Co. The next largest shareholder is the Phoenix Professional Basketball Club, which comprises Richard Bloch, Donald Pitt and Donald Diamond, the team's original owners.
Approval from those shareholders alone would seal any offer because those two groups own the majority of the team's shares.
"Whatever Jerry wants to do is OK with me," said Diamond, a Tucson businessman. "It's been 37 years with the guy."
Bill Post, chairman of Pinnacle West Capital Corp., could not be reached.
Colangelo has been with the team since its inception in 1968. He coordinated a group in 1987 to buy the franchise for $44.5 million from Bloch, Pitt and Diamond, who stayed on as investors.
Colangelo has said he expects the team to sell for in excess of $300 million, which would be a huge payoff to all investors. Those investors include Anaheim Angels owner Arte Moreno, who has a small stake in the team.
Colangelo, 64, has said he wanted to sell the franchise as part of his "exit strategy" for retirement.
