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

  1. #26

    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.

  2. #27

    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?

  3. #28

    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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    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.
    Uh. What about paying all the players?

  4. #29

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

    If I understand this correctly, this is just money from National Television rights. They still would have their local tv rights, tickets, ETC ETC ETC to sell.

    And also this might be why they take 2 teams. To help offset the risk.

  5. #30
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Eleazar View Post
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    I don't know how that deal doesn't make them greedy when no other ABA team has such a deal. At least those other rich people would be doing something to actually earn that money.
    I guess I just don't see what's so greedy about keeping the money that rightfully belongs to you. There was no swindling involved, it was a legitimate business deal. Both sides agreed, both sides put pen to paper. They lost their team, and years later the deal is paying off huge 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 aamcguy View Post
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    I guess I just don't see what's so greedy about keeping the money that rightfully belongs to you. There was no swindling involved, it was a legitimate business deal. Both sides agreed, both sides put pen to paper. They lost their team, and years later the deal is paying off huge for them.
    I understand all of that, still doesn't mean it wasn't greedy. The NBA is greedy too, but at least they are trying to earn their money through providing something to people. Those two are just sitting pretty on their couches making more in a decade than everyone on this board will likely make in their lifetimes combined. The only way that isn't greed is if they are giving away the vast majority of it away to the needy.

  7. #32

    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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    If I understand this correctly, this is just money from National Television rights. They still would have their local tv rights, tickets, ETC ETC ETC to sell.

    And also this might be why they take 2 teams. To help offset the risk.
    Correct. They would also get revenue from other sources but when you have some franchises that claim to lose money you'd have to assume that there is some risk involved. It's not like they are going to be handed the Lakers or Knicks. An expansion franchise might struggle for quite some time and certainly won't have much of a following outside of their city.

    Finally, if it is a good deal for the new owners then it is probably a bad deal for most of the other current owners to be dividing the pie more ways. It obviously works for the teams giving up part of their revenue each year but probably not the rest unless the new franchises increases everyone's slice of the pie.

  8. #33
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    If Adam Silver can make this happen, he immediately is in the discussion for greatest commish of all time. Before he officially takes over.
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  9. #34
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    The angle to settle would be if the NBA and teams involved have finally put together a realistic challenge to a contract that has a chance in court. Having the money tree die versus a lump sum might entice them.

    I cannot believe this contract can be so airtight when it's blatantly one-sided and (apparently) goes into perpetuity. In fact, maybe that's the angle... maybe the second the Silna's kick the bucket the perpetuity angle of the contract rolling over to the next generation is challengeable. At which point, settling now might make some sense to the Silnas.
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Do the Silna's HAVE kids?
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    I remember a Donnie Walsh quote on this where he stated he could barely speak of the deal without getting upset. Dagger to his heart I recall him saying. Based on my understanding of the deal, you realize that everytime they get a check, 25% of that is directly off the Pacers bottom line? That's like $5-7M per year, which is huge for a small market.

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

    Quote Originally Posted by Sandman21 View Post
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    Do the Silna's HAVE kids?
    seven between the two of them

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

    Assuming a basic perpetuity of 20 mill a year and a standard 8% yield. The cost of a buy out would be $250 million.
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  15. #39
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Richard_Skull View Post
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    Assuming a basic perpetuity of 20 mill a year and a standard 8% yield. The cost of a buy out would be $250 million.
    Seems kind of low. I know I threw out the 200 mil number above but that was before doing some basic math. The next 10 years of this deal by itself is worth that $200 mil. Lets say that tv rights get renegotiated every 10 years or so, and when that happens their payment goes up by 5 million. Under this scenario, the next 40 years of this deal is worth $1.1 billion. That's billion with a B. Maybe my assumption is way off with the 5 million increase I don't know.
    Last edited by travmil; 11-11-2013 at 11:17 PM.

  16. #40

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

    Quote Originally Posted by purdue101 View Post
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    I remember a Donnie Walsh quote on this where he stated he could barely speak of the deal without getting upset. Dagger to his heart I recall him saying. Based on my understanding of the deal, you realize that everytime they get a check, 25% of that is directly off the Pacers bottom line? That's like $5-7M per year, which is huge for a small market.
    What, damn I thought it was just the equivalent of 1/7 of a share. Not 1/7 of the Pacers actual share. Damn ABA screwed them over.

    Quote Originally Posted by Richard_Skull View Post
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    Assuming a basic perpetuity of 20 mill a year and a standard 8% yield. The cost of a buy out would be $250 million.
    What? No. Only a fool would take that. Just wait 13 years and they will get more money than that.

  17. #41

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

    Some people need a lesson in time value of money here.

  18. #42
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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.

  19. #43

    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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    Some people need a lesson in time value of money here.
    Business major from IU. In order for a lump sum payout to be the better alternative the team would have to be able to invest it and reliably be able to get close to or more than they were getting annually. While 250 is able to do that invested at 8% annually. But I would be skeptical on anything guaranteed to offer 8% return in perpetuity. Plus considering the NBA is going to almost certainly increase the size of their deal in a few years then the deal is no good.
    Last edited by Mad-Mad-Mario; 11-11-2013 at 11:40 PM.

  20. #44

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

    Just a note: the expansion fee payed by the Charlotte Bobcats to join the league in 2004 was $300 million.

  21. #45
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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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    Business major from IU. In order for a lump sum payout to be the better alternative the team would have to be able to invest it and reliably be able to get close to or more than they were getting annually. While 250 is able to do that invested at 8% annually. But I would be skeptical on anything guaranteed to offer 8% return in perpetuity. Plus considering the NBA is going to almost certainly increase the size of their deal in a few years then the deal is no good.
    I took econ my freshman year 10 years ago. There's no lump sum deal that they should ever take. My knowledge on the subject is clearly impeccable. Also, my style is impetuous, my defense impregnable, I am ferocious.

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  23. #46

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

    Just did a little math:

    If it's true that the Silna's got $19M last year for a 4/7 share than that means:

    A full share was $33.25M.

    The 4 ABA teams (Pacers, Nets, Nuggets and Spurs) each received a 6/7 share or $28.5M.

    The cost of the Silna deal to each of the 4 ABA teams last year was $4.75M.

  24. #47
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    If I'm the NBA, I offer them $500 million dollars and a franchise fully paid for over a period of time by the league (no idea how long it would be really). The idea of them owning a team in St. Louis or Seattle or somewhere reasonable could work out decently in the end for the NBA as well as settling their debt.
    "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."

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

    Send Dino & Fingers to take care of them.



    EDIT: It would make for a hilarious movie plot if nothing else.
    Last edited by RamBo_Lamar; 11-14-2013 at 12:24 AM.
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  26. #49
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    You guys talking about giving them an expansion team seriously make no sense to me. In what world would you turn down a free 20+ million dollars a year when you're in your 70s? And with a new rights deal coming up that might send it into at least the 30s?

    Not to mention that they'd never be approved. Yeah, the ABA teams would say yes, but it doesn't matter to the rest when it comes to a vote. They'd lose more money on expansion than the small amount those 4 teams pay into the pool.

  27. #50
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    Default Re: NBA negotiating with the Silnas to end the Spirits of St. Louis deal

    Quote Originally Posted by Heisenberg View Post
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    You guys talking about giving them an expansion team seriously make no sense to me. In what world would you turn down a free 20+ million dollars a year when you're in your 70s? And with a new rights deal coming up that might send it into at least the 30s?

    Not to mention that they'd never be approved. Yeah, the ABA teams would say yes, but it doesn't matter to the rest when it comes to a vote. They'd lose more money on expansion than the small amount those 4 teams pay into the pool.
    I agree from their point of view, I would have the NBA blocked on my phone and computer and never speak to them again. The NBA is going to have to do more than a lump sum to get these guys to budge, if they're serious.
    "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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