MoonKnight Posted July 29, 2003 Report Share Posted July 29, 2003 today (the local ATL sports talk station). Longtime media member Beau Bock publicily asks Kasten to kill the sale b/c he believes McDavid does not have the financial clout to run both teams. He believes the delay is causing the club serious harm. Host Ryan Stewart (former GT football player) said if JT is not in a Hawks uni he will not attend a Hawks game next season (he attended 20 games last year). Personally I cannot envision the Hawks letting JT sign with another team. He is too valuable on the Court and the only popular figure off the court locally. Link to comment Share on other sites More sharing options...
Premium Member Diesel Posted July 29, 2003 Premium Member Report Share Posted July 29, 2003 Wow could it be that McDavid cannot afford the deal?? Who would have thought...... Oh Yeah, that's right... I said something to that effect 2 weeks ago. Now, listen to the Prophecy. McDavid's group are looking profit.... That means that they have to let the Phil make them money and They have to get more money from the NBA. I suspect.... He will probably gut the team for ending contracts and 3rd year/2nd year players so that he can get a major profit next season. Link to comment Share on other sites More sharing options...
MoonKnight Posted July 29, 2003 Author Report Share Posted July 29, 2003 Many people here have questioned his financial clout for weeks (including myself), but this is the first public media figure that I recall questioning the situation. I wonder if any other media figures have done this. Link to comment Share on other sites More sharing options...
jeddelong Posted July 29, 2003 Report Share Posted July 29, 2003 Diesel you are a regular notradamus.....all this is speculation. He won't be Mark Cuban, but you can't say he doesn't love basketball and want to put together a good team. No one really knows the finances, but of course I have said that before.... Link to comment Share on other sites More sharing options...
cyman3 Posted July 29, 2003 Report Share Posted July 29, 2003 this season, so he might as well finish it and get the job done (seal the deal). I dont want this to happen again next season or the season after that, and since we started it... might as well finish it Link to comment Share on other sites More sharing options...
jeddelong Posted July 29, 2003 Report Share Posted July 29, 2003 How did his situation [censored] us? Do you really think we would have signed Terry earlier? [censored], we made a major trade without the deal being done. The only argument I can think of is that not having a coach hurt us, that is debateable though (at least in the free agent area it is). I think are natural reaction is to look for a scape goat, which is completely unfair. Link to comment Share on other sites More sharing options...
Guest Posted July 29, 2003 Report Share Posted July 29, 2003 The money thing is a big problem.He shouldn't sign a check that he doesn't have the funds to cover. Link to comment Share on other sites More sharing options...
jeddelong Posted July 29, 2003 Report Share Posted July 29, 2003 WHy do you say that, do you liken this to you going to the store to buy the new Playstation game but find you don't have enough money? This is a business deal, it requires financing. He isn't a billionare, but I believe he will care about the team and want to win. That is more than can be said for current ownership. Link to comment Share on other sites More sharing options...
Guest Posted July 29, 2003 Report Share Posted July 29, 2003 Obviousally the lux tax is such a big deal so he doesn't want to win bad enough. Link to comment Share on other sites More sharing options...
Watchman Posted July 29, 2003 Report Share Posted July 29, 2003 What is the source of Beau's "knowledge"? In response to another post in this thread, why would McDavid invest $95 million (if published reports are correct) of his own funds and get himself in another $250 - $300 million of debt, to take the team and gut it? People that buy teams are largely to some extent people of some level of ego. No one wants to own a sports franchise and have it be known as a loser. He cannot make money if fans do not come to the games. Pure and simple. He obviously will not have as deep pockets as Allen or Cuban. He doesn't have to. With regard to Phillips, I doubt that it is that great of a revenue source, as someone has insinuated on several occasions. That poster indicated that the revenue generated would be around $40 million per year. How much is the debt service on the bonds that financed the arena? I would be willing to bet, if the amount financed is $140 million, as some have suggested, that the annual debt service is probably $20 to $25 million. The staffing and other operational costs would be significant, so I doubt that the net profit from the arena is all that impressive. If you think it is a light matter to raise $95 million in liquid assets, try it and see. I doubt that any of the billionaire owners have that much money available in readily available funds. Any suggestion that the delay is a result of McDavid's lack of funds is purely speculation. It may turn out to be the case, but I doubt that Beau Bock's "hunch" is any more educated of a guess than anyone on this forum. Link to comment Share on other sites More sharing options...
Premium Member Diesel Posted July 29, 2003 Premium Member Report Share Posted July 29, 2003 First off... Get your facts straight.. I said and it's true that The Phil generates 40 Million dollars from the CITY of ATLANTA... That's aside from the revenue if generates from different venues. The City set up a contract so that there will always be a basketball Sports team in Atlanta. Now. when you look at the deal as a whole, 40 Million dollars per year before you have venues like Concerts/rodeos/circus/etc... Is A LOT of MONEY. It's enough money to be a sizable profit to whoever owns the team. Moreover, the BILL per year for the Phil is about 9 million per. So we're talking about everything after that and general maintanence is PROFIT.... If McDavid can manage the teams. Secondly, Most NBA owners make an average of 60 million in profit. And if they're frugal like Sterling was, they can make 200-230 million in profit from the league... TV contracts and Rebates and things.... PURE Profit. The only way you don't profit as an owner is if you go too far over the luxury tax... at which point, you still break even. I think NY is probably the only team in debt every year... and they don't care because they make so much from season ticket holders that they have to try to put a good product on the floor. As far as other owners... Mark Cuban bought the Dallas Mavericks for 280 million dollars in Jan 2000. NO FINANCING. Paul Allen didn't finance the buying of The trailblazers. The only deal that's remotely close is the new Charlotte team. The City and the NBA helped to finance the arena. However, when Johnson bought the team and Arena, he paid 300 Million to own both and to cut the messy financing deal that the league had with the city. As far as Beau.... That's a funny title... but how many more sources will it take. You guys don't accept word out of Dallas. Don't accept word from beau Bock... What do you need... McDavid coming out and saying... "I don't have all the funding.. but in a few years with a stripped down team, I should be rich enough to afford this deal?"... Link to comment Share on other sites More sharing options...
jeddelong Posted July 29, 2003 Report Share Posted July 29, 2003 I am not denying that he is financing the deal. What I am appalled by is your magical ability to take some vague articles and surmise that McDavid will gut the team in order to make a profit. That is completely fictious and a strange twisting of the facts. It is nothing more than that. Yes, McDavid is not Paul Allen or Mark Cuban (note: you quote the two guys that are known to be obscene rich spending freaks). but that doesn't mean that McDavid will gut the team. It doesn't make sense to exceed the luxury tax with our current team, it was that simple. You exceed it for max players, why would you kill yourself financially to have a team that won't win that many games. He has to build a solid base and then be willing to exceed for the right talent.... Link to comment Share on other sites More sharing options...
Watchman Posted July 29, 2003 Report Share Posted July 29, 2003 substantial losses? The Hawks have lost money for years, or so the claim goes. With most teams having salaries in excess of $40 - $50 million, it wouldn't be far fetched that many teams show losses. Maybe I'm a little naive, but why would the City of Atlanta pay $40 million for an arena that is financed with City of Atlanta bonds? Why would they pay anything for it at all? Does the city use the facility for its own purposes? I'm not necessarily saying you're wrong, I just can't quite figure out why the City would be paying $40 million to what is effectively the franchise holder? Enlighten me. Link to comment Share on other sites More sharing options...
Premium Member Diesel Posted July 29, 2003 Premium Member Report Share Posted July 29, 2003 Actually, I surmized that he will gut the team based on what I read about McDavid's previous dealings. He gutted the Dallas team that had Jamaal Mashburn, Jason Kidd, and Jimmy Jackson. He can't really blame anybody else... He was the majority owner (13%) http://www.ajc.com/sports/content/sports/0503/01mcdavid.html In reply to:McDavid, who is negotiating to buy the Hawks and the Thrashers, paid $20 million in May 1996 for a 13 percent stake in the NBA's Dallas Mavericks. When the deal occurred, McDavid told the Dallas Morning News that he would hold the top executive position in the Mavericks organization. Days later, McDavid represented the Mavericks at the NBA draft lottery. But before the year was out, the Mavericks traded Jason Kidd to Phoenix, a move McDavid called a mistake. "I think there was a certain amount of arrogance that we knew what the [censored] we were doing," McDavid told the Dallas Morning News in 1997. "We just made errors." The McDavid group was an INVESTMENT group that was put together specifically to buy a sports franchise. He already tried to buy the Nuggets and the Charlotte team. You can call the articles vague... blah blah blah. I know that History repeats itself. McDavid made his greatest profit buy buying the Mavs, Gutting it and then saleing it at a profit. I see the same thing here. Especially considering that AOL has 15% of the team after the deal. That screams that his finances are not right. Link to comment Share on other sites More sharing options...
Guest Posted July 29, 2003 Report Share Posted July 29, 2003 yeah, but being significantly over the tax and not making the playoffs or having revenues from any nationally televised games is a major detriment. It's one thing to go over to win, it's anohter to go over to lose... Link to comment Share on other sites More sharing options...
Guest Posted July 29, 2003 Report Share Posted July 29, 2003 D, we've discussed this before. He wasn't in charge of personnell on that Dallas team, so how you can blame him for "gutting" that team is beyond me. He's repeatedly stated that the reason he wanted out is that he had no say in anything... Link to comment Share on other sites More sharing options...
KB21 Posted July 29, 2003 Report Share Posted July 29, 2003 He didn't gut the team in Dallas. He wasn't the owner. He was a minority owner that had no say. He was against breaking up that team. It was owner Ross Perot Jr. and GM Ed Zacanali that wanted to break up that team. As long as you keep making up crap like this, it's going to be difficult for anyone to buy into what you say. Link to comment Share on other sites More sharing options...
Premium Member Diesel Posted July 29, 2003 Premium Member Report Share Posted July 29, 2003 http://www.bayarea.com/mld/mercurynews/sports/6090803.htm The mechanism by which teams earn profits has changed. Avoid paying the luxury tax and your team will be profitable, no matter how bad you are. Take a read... The 14 lowest spending teams still make 122 million in PROFIT.... Link to comment Share on other sites More sharing options...
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