NBA + LBJ? -- Time for a prime time player-owner?!?

Forbes Magazine has reported that MJ bought the controlling stake of the Charlotte Bobcats for an amount that values the team at $175 M.  Thus, for majority control of an NBA franchise in March 2010, all you'll need is $175M x .51 = $89,250,000.  That's right, to be calling the shots of an actual professional team, you'll need less than $90M!

This is fairly shocking news in my books, as we're not talking about the Columbus Blue Jackets or Phoenix Coyotes.  The NBA is a league on the rise, with significant national TV rights and countless young superstars.  If you're Lebron James' agent/business advisor right now, how can you not consider a bid for the Bobcats, or some other franchise in equally desperate financial straights (Memphis, New Orleans)?

The King could become a majority owner (perhaps with contribution from D Wade), sign himself to the team for a reasonable contract and INSTANTLY raise the value of the team from $200M to what... $300M?  $400M?  He would immediately recoup his investment capital before even playing a game!  Forbes estimated the Cavs as the 5th most valuable NBA franchise in December 2009, at $476M*.  What portion of this reflects Lebron's value to a franchise?  

*Please note that the same article valued the Bobcats at $275M, which two months later has been shown to be grossly overstated.  Perhaps an indication of over-valuing across the board?

There has been precedent established in the NHL, with Mario Lemieux playing for his own franchise, and signing himself to a below market salary for salary cap considerations.  Also, MJ himself suited up for the Wizards as a partial owner.  Both were past their primes, but precedent has been set and I cannot see how the league could refute the possible gains in rejuvenating a franchise such as the Grizzlies or Hornets.

While Lebron may not have the requisite capital to finance such a venture at an early stage in his career, I feel a saavy venture capitalist or sponsoring company (Nike anyone?) could bring some liquidity to the King in a partnership.

Lebron has little financial stake in whatever team he signs with.  He is paid a salary, limited by individual player contract ceilings and team salary caps.  I do not believe that he recoups anywhere CLOSE to the actual value of his services.   In basic economics this is considered the excess rent for his services.  Since the NBA is competing for the professional services of pro basketball players (especially stars) as a monopsonistic buyer (http://en.wikipedia.org/wiki/Monopsony), team owners capture the majority of the rents on their services.

My recommendation to Lebron would be to enter the NBA as a pseudo entrepreneur, to reclaim his true value as profit -- for himself.  Buy a team, sign, play and use whatever influence you have with other players as negotiation leverage.  Perhaps give D Wade a minority interest if he signs.  A team with these two players shouldn't have much trouble attracting free agents willing to sign at or possibly below their market value as we see often with the best teams.

This argument is in its infancy, as I discovered the details of the Bobcats purchase less than an hour ago, but I think over the coming weeks I will investigate further into the arena of player ownership.  I look forward to hearing responses and supporting or counter arguments regarding the discussion.

Until next time.

Orr

Lebron's switch

The best basketball player on earth has decided to switch numbers.  Since this is a slow news cycle post-Olympics, this has made headlines.  Somehow LBJ thought people would believe he was making a tribute to MJ by NOT wearing 23.  This is bizarre, and clearly he is switching so the L can sell more jerseys in a tough economic climate.

However, I find it curious why he chose 6 as his new number to switch to.  Certainly he wore the number in his team USA playing days, so to some this could be the reason.  However, is seems more than coincidental when you consider that after yours truly posted a strong half season of hard-nosed, defensive-minded ball in the Vancouver Metro League, all the time wearing... number 6.

The following link has an interesting little bit about LBJ and MJ's icy relationship, with a particularly informative quote from a Jordan brand employee near the end.

http://ca.sports.yahoo.com/nba/news;_ylt=AoBULJw4zJJhxrbM7pjFnyFShgM6?slug=aw-lebronjordan030210&prov=yhoo&type=lgns

orr

Earthquakes

Why is it that we don't name earthquakes like we do hurricanes?

They reap similar amounts of chaos and destruction, yet we continue to label 'quakes with generic titles based on region of occurrence.

Certainly the past month has been tragic, with devastation and death resulting from the incidents in Haiti and Chile, and I do not wish to make light.

Hurricane names give a personality to the storm, as well as giving us mortals some sense of control over the situation.  And earthquakes?  Nothing.  We remain in awe over their unpredictability and power.  

Yes, I understand that hurricanes brew for days in the far off coast before bringing wrath to their targeted coastlines.  It is a week long incident that people prepare for, and something that is analyzed at length in the media.  However, an earthquake is mirror of a hurricane.  While most energy goes into saving lives and possessions before a hurricane, it happens in precisely the opposite but equal manner after an earthquake.

By naming an earthquake, it would give an identifiable 'tag' in our instant media era for tweeters, bloggers and columnists to refer to in convenient shorthand.  It becomes more convenient and accessible to discuss the occurrence and thus raise awareness of fundraising needs.

Unorganized idea.  Its a blog after all...

-orr

Trial run

Feb 10/10

There are two camps in Van-City in regards to the Olympics: vehemently for or passionately against.  I always could spot the opposition.  Beard, second-hand shirts or buttons on their backpacks are often dead giveaways.  As is a meth addiction.

The supporters?  Tougher to spot.  Generally old people were shoe-ins, but given their increasingly crotchety nature since the ol’ RRSP was halved in ’09, even they couldn’t be counted on anymore.  Could the Olympics, the most bandwagon of all events, pass through Vancouver without anyone batting an eye?  Surely these laid-back west coasters couldn’t be that chilled.

My instincts were correct.  My guess is that the aqua-marine ski suits for volunteers were distributed sometime last week.  While they are specifically intended to be worn during their work at the Games, people around Van wear them like badges of honour.  To the gym.  On the ski hill.  To the strip club.  (Truthfully it does add a little suspense when Destiny leaves a little more to the imagination right out of the gate.)

 

Much more to follow, stronger than a Reggie Evan’s ligament.