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Thread: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

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    #Franking Heisenberg's Avatar
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    Default NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    http://espn.go.com/nba/story/_/id/99...ostly-aba-deal
    The NBA is engaged in settlement talks with Ozzie and Daniel Silna to end a contract that has long been described as "the greatest sports business deal of all time," according to sources close to the situation.

    No agreement has been reached, but talks are ongoing.

    The Silna brothers are the former owners of an old ABA franchise known as the Spirits of St. Louis. When the ABA merged with the NBA in 1976, the Silnas agreed to dissolve their team in exchange for a small percentage of the NBA's future broadcast revenue.

    At the time, it seemed like an irrelevant concession by the league. But it's become a financial windfall for the Silnas. They receive 1/7 of the television revenues of the four ABA teams that were absorbed: the Spurs, Nuggets, Nets and Pacers. The NBA currently has $7.4 billion in TV contracts with ABC/ESPN and TNT.

    The kicker in the Silnas' deal is that it goes on in perpetuity.

    Last season, the Silnas, who bought the Carolina Cougars for $1 million in 1973 before moving the club to St. Louis, received a reported $19 million from the NBA.

    Since the deal was reached in 1976, the league has paid the Silnas $300 million in TV royalties. Recently, a judge ruled that the brothers also have rights to Internet revenue.

    Because the Silnas' cut diminishes the dividends of the NBA's 30 team owners, the league has long sought to settle the contract.
    Good luck, not like it's the first time they've tried. But at least they're still trying I suppose.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Let Prokhorov and his people handle it. He likely has "comrades" who could be "persuasive" enough to "make the Silnas talk".

    Or, grant them 2 expansion franchises, one in St. Louis and one in either Virginia Beach or Seattle.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Brad8888 View Post
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    Or, grant them 2 expansion franchises, one in St. Louis and one in either Virginia Beach or Seattle.
    Granting them an expansion franchise seems like the only way to end it. I wonder what would happen if they tried to buy an existing franchise while still earning the money.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by HickeyS2000 View Post
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    Granting them an expansion franchise seems like the only way to end it. I wonder what would happen if they tried to buy an existing franchise while still earning the money.
    The league wouldn't allow them to be owners of an NBA franchise if they were receiving more than their cut. The NBA can't legally cut their cash flow off, but they can prevent them from owning an NBA franchise.
    My prediction: Solomon Hill is going to lead the team in Surprisingly Good Plays for the year. -10/29/2014

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    Formerly PacerFanInAZ Cactus Jax's Avatar
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by HickeyS2000 View Post
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    Granting them an expansion franchise seems like the only way to end it. I wonder what would happen if they tried to buy an existing franchise while still earning the money.
    The NBA would never approve it. I agree that they're going to have to make another franchise in St. Louis or wherever they would want is the only way out really.

    No set amount of money is going to get it done, basically they've won the lottery just getting annual payments until the end of time, giving them a lump sum won't work. I think the only other way it would end is for the 2 Silna's to die and their offspring be stupid enough to take a lump sum.
    "It's just unfortunate that we've been penalized so much this year and nothing has happened to the Pistons, the Palace or the city of Detroit," he said. "It's almost like it's always our fault. The league knows it. They should be ashamed of themselves to let the security be as lax as it is around here."

    ----------------- Reggie Miller

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    "Spirits of St.Louis" would make a nice name for a D-League team.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    The fact that there is no time limit to the deal says to me these guys are super stubborn and greedy, and as long as they are alive this deal won't end. You might be able to get a court to rule the deal is over once they die, depending on the wording of the contract. If it uses their specific names, ex-owners, or something along those lines that doesn't explicitly include allow for it to be passed on to other relatives I would think would be enough to get the deal voided upon death.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Why would they agree to anything other than a huge lump sum payment? Sounds like a really sweet deal to me.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Reggie4Three View Post
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    Why would they agree to anything other than a huge lump sum payment? Sounds like a really sweet deal to me.
    Cuz they're getting old and hopefully hate their kids?

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    I don't see why they'd ever settle. They're the only people I know of who essentially own a money tree. Just keep it.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Hicks View Post
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    I don't see why they'd ever settle. They're the only people I know of who essentially own a money tree. Just keep it.
    Money tree is right. What a sweet deal.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    I don't know why they'd ever settle. The NBA made their bed and now they have to lie in it.

    "Settle" means them taking them less money than what they are currently entitled to. Why would they do that?

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Sollozzo View Post
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    I don't know why they'd ever settle. The NBA made their bed and now they have to lie in it.

    "Settle" means them taking them less money than what they are currently entitled to. Why would they do that?
    Because everyone has something they really want.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    According to a poster on RealGM who's done extensive research on this, the NBA tried to buy out the Silnas family in the early '90s. The Silnas' waned $8M, but the NBA's best offer was $5M. Yeah... bad move, NBA.

    I'd love to see someone educated on this subject make a realistic estimate as to what the deal is worth in terms of a one-time, lump-sum buyout. $20M a year, with those rates growing as TV and Internet revenue continues to increase... wow.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    I'd tell the NBA 200 million or stop wasting my time. Seriously. That'a high enough to get what they would realistically need to consider ending the deal and low enough that the NBA would have to think about it. Even then 200 million is pretty low given the potential long term value of this deal.
    Last edited by travmil; 11-11-2013 at 08:29 PM.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    $200M seems way too low to me. They'd make that in a decade, and that's with no significant increase in the current TV/Internet revenue.

  18. #17

    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Yeah if I was the Silnas I wouldn't agree to any deal short of two expansion franchises at this point. One in Seattle the other in St Louis.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    I would laugh and hang up the phone every time the NBA called.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by idioteque View Post
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    I would laugh and hang up the phone every time the NBA called.
    Franchises actually get them more money. The only reason why the league would agree to it, is because unlike the current arrangements the teams would also bring in money.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    That is a sweeter deal than Steve Young still getting paid for playing in the USFL.

  22. #21

    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Have they given any indication that they would actually want a franchise in lieu of their current arrangement? If it were me, I'd just sit at home and cash the check every year.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Reggie4Three View Post
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    Have they given any indication that they would actually want a franchise in lieu of their current arrangement? If it were me, I'd just sit at home and cash the check every year.
    They can do that with a franchise as well, owners don't have to get that involved. Just hire somebody to run it for them.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Mad-Mad-Mario View Post
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    They can do that with a franchise as well, owners don't have to get that involved. Just hire somebody to run it for them.
    I'd have to know more details but currently they are in a no-risk situation. I've always been skeptical of when NBA franchises claim to lose money but if it were a possibility why would you even risk it?

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    The New Gold Swagger travmil's Avatar
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    A franchise in St. Louis though? The NBA would be 4th banana there after the Cards, Blues, and Rams. Yeah I think I'd just cash the check if it were me.

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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by travmil View Post
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    A franchise in St. Louis though? The NBA would be 4th banana there after the Cards, Blues, and Rams. Yeah I think I'd just cash the check if it were me.
    Or some other random place. Think about it like this.

    They got 20 million for doing nothing. With 2 franchises they would be entitled to 2 full shares. Which after some basic division would equal out to about 33+ Million PER. So they would go from 20 to 66 million. All for the cost of hiring somebody to run the team for them.

    Even if they could only get 1 team. They would still net an increase of almost 15 million, for doing a few days of interviews.

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