McDavid and the Deal...

[Diesel]

McDavid kept abreast of deal

By TIM TUCKER

Atlanta Journal-Constitution Staff Writer

A representative of prospective Hawks owner David McDavid was consulted before the team completed the trade of forward Glenn Robinson Wednesday night.

Steve Dieb, McDavid's business partner and brother-in-law, spoke by phone several times Wednesday with Hawks president Stan Kasten and interim general manager Billy Knight about the trade.

AOL Time Warner is in the final stage of the protracted process of selling the Hawks, Thrashers and Philips Arena operating rights to McDavid, a Texas auto dealer. While decisions regarding the teams continue to be made by current management and ownership, McDavid's camp recently has been brought into the loop on possible major moves as they develop.

About the Robinson trade, which will clear approximately $11 million in salary cap room for the Hawks, the prospective new ownership shared the enthusiasm of current management. Robinson's mammoth contract had been considered difficult, if not impossible, to unload.

"For Billy and Stan to pull this off -- and I don't think anybody thought they could do it -- my hat's off to them," Dieb said from Dallas Wednesday night. "In the long run, it's going to be great for the team," which previously was hamstrung by its capped and top-heavy payroll.

Kasten and Knight called Dieb shortly before 10 p.m. to inform him that the trade was done. Dieb then informed McDavid.

As for the larger deal -- the sale of the teams and Philips rights -- lawyers and negotiators continued to work Wednesday on the final points of a definitive agreement.

The Hawks also continue to put off some major decisions, such as the hiring of a coach, while awaiting completion of the sale.

[Diesel]

McDavid is BROKE.

I mean [censored]... Did we just take Cash in a deal?? That hasn't been done since we got Dominique?

Seriously, I think McDavid plans to unload all large salaries except maybe Reefs... In order to make a profit. Actually, Reef's must be unload before the end of next year because there's no way we will resign him at 14+ Million.

I think JT might get 4 million dollars in Money and 2 million dollars in used cars....

[Playmaker0017]

Diesel,

You know, you say the guy is broke and the statement just sounds as ignorant as it is.

First off, any person that can enter legitimate coversations over buying a sports franchise is obviously NOT broke.

Second, there have been no indications that he is struggling financially to make this deal happen. Even if outside investors help or he is financed... it does not indicate that he is broke. Did you pay cash for you car, house, boat? I doubt it. A person like that doesn't just have moeny laying around. It is probably tied up in business deals.

As for trashing the team and gutting them... I would seriously doubt that this is his plan. It may be, but I would be suprised. He has never indicated this is his goal, nor has any moves or transactions he has done indicated that.

You sound like a broken freaking record... on and on and on... you say the same things over and over and over. Stop already. Unless you can provide bank statements that show he has no liquid assets and a balance sheet showing his A/L at this point in time... please stop with the nonsense.

As for you opinion about him gutting the team, if he cose to do that it wouldn't be because he is so flat broke. It would have to do with business decisions. One I would dislike, but he would not do it because he is broke. He would do it for a profit.

Play.

[Diesel]

McDavid came to a 400 million dollar deal with only 95 million dollars.

AOL still hold 15% of the franchises after the deal probably because McDavid's Portfolio won't pass the League owners.

In the Big Dog Deal, we took CASH.

McDavid has been said to have wanted to Finance the deal.

You can talk about Ignorance play, I mean you know so much about it. However, the truth is... WHy do you think the deal still isn't done? Why do you think everyday, McDavid and AOL camp reports that they are working out some small details? It's been since late march since the two sides started Negotiations.

McDavid is doing what any good used car dealer does...

Haggling.

[CHORO44]

I think the deal would be much easier if he was just purchasing one team. In this scenario he is tackling three seperate transactions. I don't think McD is broke or is looking to just turn a profit. If he wanted profits he could have stayed in the Auto Business. I see an astute business man that already knows how much money he'll make on this deal and is using financing to his benefit. Why put all your money in this deal when you don't have to. I'd much rather he put in 95 million, finance the rest, and use his other millions to make money in other deals. This scenario makes more sense instead of tying up all his resources in the Hawks and Trashers.

The more money McDavid can earn outside of this deal the better as it gives him more flexibility to spend on our underachieving franchise.

I find it funny that a few months ago most were saying how McDavid will be a great owner ala Cuban and now he's a broke chump looking to turn a profit at the fan's expense. I also don't think it's unusual for an NBA owner to have partners and I'd much rather have AOL at 15% with no decision making power.

[Playmaker0017]

Diesel,

Please do put it in simple terms for me, since I obviously failed finance and don't know what it is like to manage million dollar portfolios.

Obviously, you know what is being discussed because you are all-knowing. You know that he is haggling and that is the problem ... because you have a hidden camera? You know the hidden reasons why the deal isn't done, while the rest of us have opinions.

You don't know jack nor do you know his brother squat.

You have opinions... opinions that are innane. Calling someone broke when they walk into a building with 95 million in liquid assets (and that is just to buy a franchise... that doesn't count his monthly/yearly spending which I am sure covers your salary) POOR! That isn't even close to the case.

Does he have the money to complete the deal? Probably not. But by no means is he "poor". When his tax bills would pay for your house and cars, you can't, by definition, call a man poor. Because the man wants to finance the deal, this does not make him broke. It makes him non-liquid. If his assets could not back his finance, then AOL would have stopped the talks. It costs AOL thousands of dollars every minute this deal isn't done... do you think they are stupid enough to be in there with someone who can't pony up the dough at the cost of excluding those that can?

The reasons the deal isn't done are legal. Whether or not the legality issues deal with how to finance the deal is completely subjective and there is no concrete evidence to indicate that this is the case.

Do you know how long it takes to complete a merger or aquisition? Have you ever been with a company that buys-out another company? It takes years at times! YEARS! Not because of cash, the cash issue was gone when the offer was made... the issue is legal. Who can do this, who is retained, who is going to do this, is this legal, what is this loophole.

McDavid isn't doing anything! He sits around with his thumb up his butt as the lawyers haggle things out.

AOL/Time Warner is not going to just hand him an ice cream. They are going to push for them to get a good deal. McDavid's attorneys will push for the same. Both sides feel like they need to come out on top.

It isn't just a simple ... ok, here's some money and now we are set.

But, really, thanks for laying it down in simple enough terms so that a layman such as myself can understand. I am glad you are around to explain legal and finance things to me. Whew! Where were you when I needed you during my CPA and CFP exams?

Play.

[Playmaker0017]

Choro,

Congrats! You passed Financial Accounting 101! I am so proud of you.

No seriously, that is my point exactly. I appreciate you backing me up!

Gold star for you.

Play.

[Diesel]

All the facts together doesn't paint the rosey picture that you do.

AOL is in the midst of being 26 billion dollars in debt.

Do you really think they'd remain tied to this deal if they didn't have to. They are in this deal becuase of the TV Rights and the fact that McDavid is unable to get that. Secondly, THE League would not go for a guy who has to finance the deal.

Point in case.

What if People stopped buying cars. I mean that is his business right? If the economy takes a turn, he doesn't have the finances to keep up his deal for the Phil nor his deal for the Hawks.

I agree Financing works towards his benefit because if he can clean up the growing debt of the Hawks and the Thrashers... He can make a profit that would pay for the deal...

AH... There you have the truth.

McD won't be like Cuban or the Maloofs. These guys don't mind going over the salary cap to put a winner on the floor. Instead, McD will be the kind of owner that is like Sterling... "I have found a way to make a Serious profit and I don't need to have multimillionaires playing on my team. Last year, the Hawks and thrashers were 40 million dollars in the deficit after recieving the profits from the Phil. McD knows to right that wrong, he has to keep the Hawks out of the Luxury tax. And if he won't even more profit, he trade down to a team that's at the Salary Cap but not over. I mean, the Hawks don't win anyway. Why pay them big dollars when you can get any group that will lose.

[Diesel]

Welcome to Financial Accounting 611. In this course, we learn that Money makes the world go around.

Why pay big money for losers?

Look at what today's Miami Herald said about JT:

In reply to:

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Restricted free agent Jason Terry, who played in Atlanta last season, is not an upgrade at shooting guard from Jones and is not a true point guard.

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Is that worthy of 7 years 65 million?

With the way that the deal is situated and with the way that McDavid has already floundered in finishing this deal, I predict he will be closer to a Sterling than to a Cuban.

[Playmaker0017]

Diesel,

Again, it is subjective. You can say nothing concrete. All you can do is point to random facts and string them together. Basically, you may have a point, you may be right -- but there is nothing to back you up hard core.

Basically, what you are doing is this... Max A is on trial for the murder of Man B. Your proof that he did it is that Man A was in the general vicinity of Man B and has no alibi. Sorry, no conviction.

The problems with this deal are that it is complex in the legal sense of the term. It might be that he is financing it. It might be that there are more than one team. It might be that they don't like the terms. It could be anything, but there is nothing to indicate that it is purely financial.

Do you really believe that AOL can't make money with this team using the McDavid theory? Why couldn't they have had this idea? It takes a guru from Texas auto sales to scheme this one.

As for buying cars... right now the economy is in the dumps. Might even get worse, but auto dealerships are almost a guaranteed profit as long as we don't completely crash. If we do that, then it wouldn't matter if he had money or not in the first place. We certainly won't be wondering how the Hawks are doing.

Play.

[Playmaker0017]

Diesel,

I am glad your logic does not rule our criminal justice system and your theories don't govern the financial world.

Welcome to FA611, eh? Let me explain this to you... if he wanted a barn yard sale, he could have arranged that. So could AOL. Do you think their guys in their thinktanks couldn't come up with these thoughts?

Personally, I agree with your line of thought on "why pay money for losers". I wouldn't sign JT. I have said this a ton.

But, I would do it because I could upgrade. Not because I want to burn the house down for a profit... because I am so flat broke that I only have 95 million in liquid assets.

My take on McDavid is that he has a MAJOR ego. He won't want to lose. Most people don't.

So, what makes you think he won't overspend on GOOD talent? There is nothing in what you say that indicates this. It just shows he doesn't want second-tier scrubs... something Cuban doesn't like either.

Play.

[dj_me]

What if that 15% that AOL/whatever is part of is exclusively for the Phil? It was said that they have no authority in decision making for the franchises, so, maybe they're in it for the money that the Phil makes. It's the only thing making money, so why wouldn't they want to stay in it to help with the debt that they are in.

And just think, if McDavid can turn things around and make the Hawks and Thrashers into money makers, that adds to everyone's wallet. I'd say this is smart thinking on AOL/whatever's part and not a problem in McDavid's pocket.

Oh, and that whole legal stuff, I understand it, I just can't argue with it. I went to Art College. Woo!

[Diesel]

You know all those facts I have strung together... They tell a story.

http://www.ajc.com/sports/content/sports/0503/01mcdavid.html

This is the guy that traded Jason Kidd, Jamaal Mashburn, and Jim Jackson.....

http://money.cnn.com/2003/05/01/news/companies/aol_teams/

You see Play, the problem is that He wasn't the only bidder. However, midstream, he wants to finance the rest of the deal. That's a problem for any financial expert.

In reply to:

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http://www.andrewsstarspage.com/1-15mcdavid.htm

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Finally, he has formed an investment group in order to buy a franchise. He also tried to buy Charlotte, Denver, and some Hockey teams. He's not in it to win. He's in it to MAKE MONEY. He's going to gut this team.

Play, this is just an investment to him... That means that MONEY is the key.

[jeddelong]

I can't wait tell he proves you wrong. You have really shown your colors over the last few weeks. Now I see why you like to put together those trade rumors: They force you to put together vague pieces of information into a story (by story I mean false piece you try to believe as true). Time will tell! By the way what knowledge of purchasing teams and finance in general do you have that makes you an expert in this area?

[beav]

"McD won't be like Cuban or the Maloofs. These guys don't mind going over the salary cap to put a winner on the floor. Instead, McD will be the kind of owner that is like Sterling..."

This is a ridiculous statement. Just because he is likely not to be one of the huge spenders in the league (and there are only about 4-5 of those guys) you are comparing him to the cheapest and weirdest owner in the league?

[KB21]

AOL wants a piece of the deal because they know Philips Arena is a cash cow.

I've long supported the idea that AOL never new their sports teams existed. Now that they have gotten into it, they realize how much cash flow goes through Philips Arena, whether it is due to the Hawks, Thrashers, or any concert event that takes place there.

Philips Arena is the key to the deal. That's where the profit is going to be turned. Anything made off the Hawks will go into making the team better. The money that comes from Philips Arena will go to someone's pockets. Whatever McDavid has to finance, he will pay off very quickly from the profits that will go through Philips and the interest that he will accrue on his money in the bank.

[Guest]

McD's said that part of his disdain with his previous ownership of the Mavs was limited role in decision making...which was almost nil. He wasn't the one who traded those guys...