Bringing It Up Again: A Change In Ownership

[LUKE23]

Lets get these questions out of the way, since this is a topic that several know more than I on.

1. How close (in terms of years) realistically is Kohl away from selling this team?

2. Can Kohl put a no-move clause if he sells the team to a non-local owner?

3. What are the chances that the team does move if we do sell to a non-local owner?

4. Which happens first, Kohl sells or we get a new arena deal put in place?


These are all issues at hand. It's such a tough catch 22 situation when you have to weigh likelihood of the team moving (which in terms of being a Bucks fan is basically equal to death) vs. there being no light at the end of the tunnel of this absolute mediocrity.

I'd like to get some input on this situation from people in the know, both to the questions above and also what YOU THINK will end up happening. Where will this team be 5 years from now? 10 years from now?

I'm so frustrated it's amazing.

[Epicurus]

I am not a lawyer, but I believe Kohl could put into the sale a covenant that would not allow relocation of the franchise to another city or metro area. However, such a covenant would lower the purchase price enormously, if even a buyer could be found.

[Chuck Diesel]

Anyone familiar with the world of Milwaukee business tycoons? I know the Johnson and Johnson family is from Wisconsin, but I

[Tommy Udo 6]

Bucks are rated 29 out of 30 in Franchise Value - and #30 (Portland) is getting more valuable.

Why di you want a new owner?

"The Business of Basketball" from Forbes

http://www.forbes.com/home/business/200..._land.html

[NeedsMoreCheese]

Bucks are rated 29 out of 30 in Franchise Value - and #30 (Portland) is getting more valuable.

Why di you want a new owner?

"The Business of Basketball" from Forbes

http://www.forbes.com/home/business/200..._land.html

In short, Our current owner is a douche who has no idea what hes doing and wont give any GM the power to build a team.

[Chuck Diesel]

I

[Chuck Diesel]

On second thought, that might turn into a Michael Jackson situation way too quickly

[thakfu]

does he have a hot daughter??

[xTitan]

I

[MickeyDavis]

This was discussed a little bit in the game thread.

I appreciate that Kohl has kept the Bucks here but he has played that card for over 20 years now.

He has changed GM's, coaches and players and yet this franchise blows.

Time for a change.

[WEFFPIM]

In short, Our current owner is a douche who has no idea what hes doing and wont give any GM the power to build a team.

Bygones

[MickeyDavis]

Yup, an owner that will hire a BASKETBALL guy and let him make BASKETBALL decisions.

And I wouldn't mind an owner who would at least show a little bit of emotion, good or bad, during a game. I don't want a Cuban who craves TV time but I also don't want a guy who has been dead the last 5 years but you can't tell. and maybe an owner that wears more than one sports coat per season.

[beyond_the_arc]

Yup, an owner that will hire a BASKETBALL guy and let him make BASKETBALL decisions.

And I wouldn't mind an owner who would at least show a little bit of emotion, good or bad, during a game. I don't want a Cuban who craves TV time but I also don't want a guy who has been dead the last 5 years but you can't tell. and maybe an owner that wears more than one sports coat per Decade.

fixed

[LISTEN2JAZZ]

I obviously share the frustration over Kohl, but I don't understand why someone would buy the team if they didn't want to tinker with it. Buying an NBA franchise seems like a very poor financial decision to me, compared to many of the other available investments out there. You have to pay way more than the sum of its future cash flows in order to buy it, which means it's a purely speculative purchase, and the only way you can make money is to find a greater fool some day in the future.

There are some very profitable companies you could buy outright for the same price. Companies with some great business economics that would surely grow your wealth without requiring you to find some other hobbiest to sell to later. If you buy the Bucks, you suffer through negative cash flows - meaning after you buy the team, you have to keep pulling money from your pocket to keep it going. Instead you could buy most of Joseph Bank (currenty $450 million) which would earn you over 10% of your money back the first year. Or you could buy both Cybex International ($77 million), and Jamba Juice ($177 million) and get close to that same initial yield.

Since these options exist, why would you buy an NBA team? The only answer I can think of is because it's a one of a kind toy. It would be fun to put together a team and a coach and see how your vision unfolds. But to hire somebody else to run the thing, and stay out of the way... why would you do that? Why would that be better than owning a very profitable business and staying out of the way?

Edit: I'm reading through Jamba's 10Q, and it's not so profitable after a more in depth look - still doesn't change my point.

[KeyRabbit]

Yup, an owner that will hire a BASKETBALL guy and let him make BASKETBALL decisions.

Someone like Ernie Grunfeld would be nice. Oh. Wait.

[BrewersGM]

time is running out... he needs to consider it soon. No one will show up at the games if this keeps up...

[Tommy Udo 6]

Is it possible that he bought the team just to be sure it stayed in Milwaukee? Since he has wealth from other sources, he doesnt need for it to be profitable.

Bulls owner Jerry Reinsdorf knows little about basketball and admits to being a baseball fan first & foremost. However, Reinsdorf gets very involved in every financial move & his chief advisor in that regard is Irwin Mandel, who David Stern says knows more about the salary cap & the CBA than anyone else. (Mandel came up with the unique idea of declining contracts which 4 Bulls have signed - Wallace. Hinrich, Nocioni, Smith) As a result, the Bulls profits are in the stratosphere - even thought the Bulls are mainly composed of likeable roleplayers who have little chance of challenging for a championship.

[WEFFPIM]

Is it possible that he bought the team just to be sure it stayed in Milwaukee? Since he has wealth from other sources, he doesnt need for it to be profitable.

We know that's one of the main reasons. He's also said he won't sell it to someone who will take the team and bolt. The problem is, how any of those people exist?

[BucksRuleAll22]

Kohl is a bad owner, but I am glade he will not sell the team to anyone that will move them. If Kohl hired a good GM and sat back and let him do everything he would be fine.