Initial Warriors bids due next week.

Some great news for Warriors fans next week. This. The draft lottery. Got my fingers crossed. Go Larry! Go Warrior ping pong balls!

Initial Warriors bids due next week–the $400M+ offer might not be out there

Posted by Tim Kawakami on May 12th, 2010 at 9:52 pm

Even with the first wave of bids due next week, things are quiet on the Warriors sale front, and multiple sources say that there’s a logical reason for it:

Unless somebody provides a surprisingly huge number out of the blue, there’s very little ownership-level buzz about a mega-offer for the Warriors right now.

And several financial sources said recently that you can probably forget the prospect of multiple titans going head to head to push the price crazy high.

“There doesn’t seem to be a lot of real money out there,” said one source.

Why aren’t sources inside the sale process bubbling any more about a guaranteed $400M+ pricetag? (I’ve checked. Silence.)

Because that magic $402M offer (which would top Phoenix’s $401M record price tag) doesn’t look so certain–or maybe even likely–any more.

There’s interest in the Warriors, no doubt about that. A dozen or so groups are milling around, reading through the offer book, checking to see if they can put together a substantial package.

24-Hour Fitness founder Mark Mastrov is certainly making calls, trying to put together a strong offer.

And you never know what Larry Ellison might do. Obviously.

But at this point, the Chris Cohan/David Stern dream of a record-setting $402M to $500M bid seems in deep doubt, at least in the early rounds of the process.

We’ll get to the end of the first stage by next week, when the initial bids are due.

Good guess: There will be at least 5 solid bids, but probably not the 10 or 12 that Cohan and auctioneer Sal Galatioto were hoping for.

After that, it’s Galatioto’s job to winnow down the best bids and try to leverage the price up as high as possible. The timetable on the next few stages could be anywhere from 4 to 12 weeks.

But if the pricetag isn’t what Cohan really wanted–and remember, he initially told people he wanted $500M–this could drag for a while.

Maybe not until the start of the season, but close. We know how stubborn Cohan can be.

Ol’ CC already turned down Larry Ellison’s offer of $315M for the whole team (not just Cohan’s 80% stake).

A few more points:

* It’s unclear if Ellison’s $315M bid/valuing remains on the table.

* It’s unclear if Ellison will do anything before the end of next week to either re-assert or increase his $315M valuing.

Of course, it’s guaranteed that Galatioto will keep checking in with Ellison, even if Ellison ignores next week’s deadline.

* It’s obvious that Ellison controls this process and presumably is the only one who can write a check for whatever price he names, basically at any point in the process.

One source said that Ellison might be the only serious bidder who can meet or come close to a $400M pricetag.

But of course, if Cohan and Galatioto know that, Ellison definitely knows that, too. And why would he bid against himself?

* I haven’t heard much about the San Francisco arena prospects lately. I’m sure there’s still interest, but it’ll depend on which groups remain serious through next week.

* One NBA source indicated that mover-shaker Jerry Colangelo’s name is still being mentioned, but mostly by Galatioto in an effort to add a league statesman to any group and possibly add value to the offer.

Depending on the bidder involved, Colangelo is probably interested, and would provide a huge boost of credibility and NBA wisdom (and Stern friendship).

But if you’re sinking more than $300M into an NBA franchise, wouldn’t you want to pick the chief executive yourself?

If he’s trying to sell Colangelo as a chief executive in order to push up the price, that does not sound like Galatioto is feeling entirely comfortable with the current franchise-value situation.

* All this could be moot if somebody steps up and throws up $415M and basically wins the auction right then and there.

But I think that scenario is looking very, very unlikely.

http://blogs.mercurynews.com/kawaka...he-400m-bid-might-not-be-out-there/#more-8019

 

If this goes through before the season starts, then it doesn't matter what happens on the 18th...We've all won the lottery.

 

I am going to celebrate as soon as any deal is final! No more Chris Cohan as majority owner! I don't care if the new owners give him a small stake in the franchise, just as long as this guy isn't making decisions or putting incompetent/poor-decision-making guys in charge.

 

$315M for Cohan sounds about right although Cohan deserves much less.

From NY Daily News:
STATE OF DISAGREEMENT

On the block, the Warriors have attracted 13 bidders, including an unidentified NFL owner; a group of Chinese businessmen and a group including Magic Johnson. The top three to four will be selected this week, and move on to the next phase, when they will be allowed access to the Warriors' financial records. Oracle founder and Warrior fan Larry Ellison did not submit a bid, but he has been sending out signals that the team should go for around $315 million. League officials vehemently disagree, noting that Michael Jordan recently purchased Charlotte for $275 million, and, despite constant losing, the Warriors could fetch close to double what Jordan paid.

Financial experts say that owner Chris Cohan could get $525 million, which seems like an outrageous sum and would top the previous NBA record of $401 million (Phoenix in 2004). Why league officials are thinking at least $500 million is possible: The Bay Area has the highest per-capita income in the nation, the San Francisco market is considered among the best and the Warriors have a history of making money, despite their years of failure on the court. ... Atlanta and Detroit also have put up "For Sale" signs, but those could be up for a long time. Ted Leonsis' deal to take over the Wizards has not closed, but team officials say he's already running a tighter ship than Abe Pollin ever did. ... If James leaves the Cavs, the value of the franchise is projected to drop as much as $150 million, according to league execs. The Cavs are valued at $450 million-475 million. ...

Read more:
http://www.nydailynews.com/sports/b...a_regularseason_mvp.html?page=1#ixzz0o2L2bc5i

 

More on that:

http://www.insidebayarea.com/oaklandtribune/localnews/ci_15182646?source=rss

Source: Larry Ellison, Mark Mastrov among four finalists to become new Golden State Warriors owner
By Marcus Thompson II
Oakland Tribune
Posted: 05/28/2010 01:40:37 PM PDT
Updated: 05/28/2010 01:58:00 PM PDT


The Warriors have narrowed the field of potential buyers to four, according to sources with knowledge of the negotiations.

The four will be told on Tuesday that they've reached the second round of the process, and one source said the quartet includes Oracle billionaire Larry Ellison. Another said a group headed by Mark Mastrov, founder of 24-Hour Fitness, is a finalist.

Those in the loop still believe the Warriors will sell the franchise for a record price, one that will eclipse the Suns' purchase price of $401 million, paid by Robert Sarver.

Warriors owner Chris Cohan and Galatioto Sports Partners, the firm hired to execute the sale of the franchise, have been vetting potential buyers since they accepted bids about two weeks ago. The four finalists, selected from 11 bidders, were chosen based on "approvability" and "ability to close quickly."

According to one source, all the finalists have plenty of money and will have no problems getting approved. Cohan didn't want to have someone get to the point of signing a deal and not being able to secure financing, or having problems getting league approval.

The four groups will now get unfettered access to the Warriors. They will get to review some 10,000 pages of financial data (salaries, income, naming rights contracts and the like), get to interview current management for the various departments, and tour the facilities.

In three to four weeks, after their due diligence is completed, the four groups will submit
Advertisement
Click here to find out more!
binding bids and a deposit. At that point, if one of the groups has separated itself from the pack, it will sign a purchase agreement. That best-case scenario would land the Warriors with an agreement by July 1, the official start of the 2010-11 season.

If the top bidders are close, they will be invited for another round of bidding, one of the sources said, which would push the sale into the free-agency period.

It figures the pending sale would prohibit the Warriors from making moves involving large contracts, as the new owner would want to make the changes.

Sal Galatioto, president of Galatioto Sports Partners declined to comment for this story.

 

I've been waiting too long for this moment.

"Get it done, Larry." ™

The 50 Richest People in the World. Mikhail Prokhorov who?
http://www.forbes.com/2009/03/10/50...aires-wealth_slide_2.html?thisSpeed=undefined

 

Someone(s) outbid Larry.

The presumption is that Larry Ellison is such a heavy favorite to win his next competition that he can start popping corks and lighting up stogies.

That the Oracle Corp. chief will get the Warriors because, well, he has the most money, has pursued them for years, has made connections with NBA commissioner David Stern and is too ruthlessly competitive to lose — at anything.

So the other bidders, as they are, have no chance.

If this were true, though, the bidding process that's starting to feel like an auction might already have concluded. Ellison and his partner, Steven Fink, would have offered $450 million, dared somebody to match and, in the unlikely event someone did, they'd have bumped it to $475 mil or $500 mil. They'd yawn each time, reminding everyone Ellison excels at many things, none more than getting what he wants.

The other bidders eventually would have shut up, curled up and left the room. Ellison would own the Warriors, at a league-record price (the previous high is $401 million for the Phoenix Suns in 2004) and the franchise immediately would have become the most intriguing in the NBA.

But as the sale process moves into Phase Three this week, with the potential buyers trimmed to no more than four finalists, with each now having access to the entire operation, it remains very competitive. Partly because the offer from Ellison and Fink, according to two sources, was not among the higher initial bids submitted to current majority owner Chris Cohan and Galatioto Sports Partners, who will facilitate the sale.

"It's my understanding that at least one and maybe more bids were higher," one informed source said.

"I know Mr. Ellison and his people have done a lot of networking with the league, with the commissioner," said the other knowledgeable source. "But in the end, it's in the best interest of the commissioner and the league to get as much as they can for any franchise. Should that bid come from someone other than Ellison, and that person can get approved, then that person will get the team."

One of Stern's proudest moments as commissioner came in March, with the approval of Michael Jordan's $275 million bid for majority interest in the Charlotte Hornets. Stern became commish in February 1984, with Jordan being drafted that June. Despite some contentious moments, their relationship has been mutually beneficial. Each is a giant owing some of his status to the presence of the other. Insofar as Stern fully understands the value of branding, marketing and promotions, he most assuredly would welcome more legends becoming active members of an NBA ownership group.

Like, say, Magic Johnson.

Magic is a member of the finalist group led by Mark Mastrov, an East Bay native who acquired his wealth by founding the 24-Hour Fitness empire, overseeing two decades of national and international expansion before selling it for $1.68 billion in 2005.

Mastrov and Johnson have collaborated on numerous ventures, including fitness clubs, three of which are in the East Bay (Oakland, San Leandro, Richmond). Though the names of Mastrov's other partners have not been revealed, having Magic on board means the group has too much credibility to be dismissed.

Johnson is a Hall of Fame player who has been exceedingly successful in business; Forbes magazine, which specializes in these matters, estimates his net worth at $500 million. Mastrov's net worth is tougher to calculate, but he and partner Jim Rowley wouldn't be finalists if money were an issue.

Then, too, Mastrov has been interested in the Warriors for a number of years, has networked with Stern and made it clear he's more willing to buy the team than to engage in a bidding war with Ellison.

Mastrov knows he can't win, not if Ellison, the sixth-richest man in the world according to Forbes, is bound and determined to buy the team. Ellison can outspend all the other groups combined.

"If Larry wanted to buy the team, he could have done it by now," Mastrov said two months ago, when Ellison had a standing $315 million offer.

The same could be said today. Though that offer has been increased, according to sources, Ellison has shown no sign of crushing the competition. Though his ego surely is involved, he's no less shrewd. That he can afford to overspend doesn't mean he will.

While others are still in the game, everything points to this becoming a showdown: The willingness of Ellison and Co. to spend vs. the resiliency of Mastrov and Co.

Given where the Warriors are today, a slumbering beast badly neglected, either group would seem to be a dramatic upgrade.

http://www.contracostatimes.com/sports/ci_15206470?nclick_check=1

 

Re: Someone(s) outbid Larry.

This is the part of the article I would have put in bold:

"Though his ego surely is involved, he's no less shrewd. That he can afford to overspend doesn't mean he will.

Given where the Warriors are today, a slumbering beast badly neglected, either group would seem to be a dramatic upgrade."

While it would be really cool and make a lot of sense for it to be Ellison (Oracle), just the fact that it won't be Cohan anymore is good enough for me

 

It didn't take long to outsmart Cohan .

 

Nice! Looks like we may know who our new owner is.

 

Re: Someone(s) outbid Larry.

Hey WC! I think the fact that it's Ellison and that he's putting his name on the team, he won't let the Warriors fail to make the post season. Ellison is a smart man. Super ego, but I'll take somebody that doesn't suck like Cohan does.

 

Chris Cohan actually lives a couple blocks from where I work and he still owes our company around $2,000 dollars!