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#thetakeover
« on: July 11, 2014, 09:14:12 AM »

Offline sofutomygaha

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$515M

The estimated value of the Cleveland Cavaliers franchise (http://www.forbes.com/teams/cleveland-cavaliers/)

-$121M

The change in valuation of the Cavs when Lebron James left in 2010.

$770M

The estimated value of the Miami Heat franchise (http://www.forbes.com/teams/cleveland-cavaliers/)

+$384M

The change in valuation of the Heat since Lebron James joined in 2010.

$452M

The estimated career earnings of Lebron James, including endorsements and equity holdings (http://www.forbes.com/sites/kurtbadenhausen/2014/07/09/how-lebron-james-earned-450-million-during-his-nba-career/)


and now a crazy conspiracy theory:

A group led by Lebron James or his business partners is attempting to acquire majority stake, or perhaps to buy outright, either the Heat franchise or the Cavaliers franchise. This will accomplish the following:

1. James can form a Wade-Bosh-Anthony-etc superteam with cap-friendly contracts, making up for any lost salary with huge operating income and equity gains when the value of the franchise goes through the roof.

2. James can return to Cleveland without "making up" with Dan Gilbert- instead he can attempt a hostile takeover, buying out Gilbert and easily making his money back with the value of the team skyrockets. The Heat will go from the 7th most valuable franchise to one of the least, and the Cavs will go from 19th to among the top 5. That's a windfall of hundreds of millions for those with a stake in the Cavs.

3. James makes the strongest possible move against the bizarre NBA labor practices that he is known to despise.

4. If James buys the Cavs, he not only returns to Cleveland as its savior, he becomes the most beloved Ohioan ever and positions himself to be governor or whatever else he might like.

completely circumstantial evidence

- James has been liquidating assets, including his mansion in Miami
- Chris Bosh is waffling on a deal that is far better than what Miami could offer him under normal circumstances.
- The hypothetical salary arrangement to bring the big 3 back to Miami is ludicrous in general.
- Carmelo is waffling even though his Lakers-Knicks-Bulls decision ought to have nothing to do with what Lebron James does.
- The Cavs are cleaning up their cap and Dan Gilbert is flying around, but they haven't even made an offer.
- The players involved have a well-established track record for conspiracy
- James is not being represented by an establishment agent. Instead, he set up a new agency with his buddy. He announced this with hashtag #THETAKEOVER

Re: #thetakeover
« Reply #1 on: July 11, 2014, 09:18:16 AM »

Offline D.o.s.

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Nice.
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Re: #thetakeover
« Reply #2 on: July 11, 2014, 09:21:36 AM »

Offline KGs Knee

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One huge problem.

NBA bylaws prevent an individual from being both an owner and a player.

Re: #thetakeover
« Reply #3 on: July 11, 2014, 09:26:04 AM »

Online Moranis

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One huge problem.

NBA bylaws prevent an individual from being both an owner and a player.
Another huge problem Arison and Gilbert aren't selling.

Another huge problem, James has no where near the capital required to purchase a franchise (though he might by the end of his career).
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Re: #thetakeover
« Reply #4 on: July 11, 2014, 09:37:06 AM »

Offline saltlover

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As stated, per NBA bylaws, this can't happen.  I do think, however, that James has a goal of being the first to win a title as a player and majority owner, and I expect him to pursue ownership of a team when his playing days are over.

Re: #thetakeover
« Reply #5 on: July 11, 2014, 09:47:01 AM »

Offline sofutomygaha

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One huge problem.

NBA bylaws prevent an individual from being both an owner and a player.
Another huge problem Arison and Gilbert aren't selling.

Another huge problem, James has no where near the capital required to purchase a franchise (though he might by the end of his career).


You guys are both basically, but not completely, correct, and I wrotethis with toungue firmly in cheek. If you're interested, however.... According to Article XXIX, Section 8, of the NBA's collective bargaining agreement, entitled "Limitation on Player Ownership":

During the term of this Agreement, no NBA player may acquire or hold a direct or indirect interest in the ownership of any NBA Team; provided, however, that any player may own shares of any publicly-traded company that directly or indirectly owns an NBA Team.

But the last bit is interesting, isn't it? It just says that the ownership group would have to be incorporated- i.e. James can't own a team, but James can own a publicly traded company that can own a team.

Moranis- I think I just made a pretty good case that James has somewhere near enough, but not enough capital, to buy a team outright. Wyc Grousbeck didn't have enough capital to buy the Celtics, but he did have enough capital to found Boston Basketball Partners, along with three partners, which then bought the Celtics.

Re: #thetakeover
« Reply #6 on: July 11, 2014, 09:54:18 AM »

Offline D.o.s.

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La Familia is secretly a shadow organization dedicated to founding a puppet governing body.

Which means, I guess, that they're going to try and takeover Miami. Since, you know, Cleveland's kind of unexciting in comparison.
At least a goldfish with a Lincoln Log on its back goin' across your floor to your sock drawer has a miraculous connotation to it.

Re: #thetakeover
« Reply #7 on: July 11, 2014, 10:06:13 AM »

Offline Fred Roberts

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Lovely conspiracy were it possible! The ultimate FU to the owners and NBA platform. It'd be great.

Maybe the next best option is to go to Charlotte with a wink wink under the table deal for 10% ownership once his playing days are complete?

Given the limitations on salary, I don't see why a player of this caliber couldn't negotiate an equity stake in writing that kicks in upon completion of his playing days, playing days w/ that team or in the event the franchise is sold. Something to contemplate anyways. Interesting.

Re: #thetakeover
« Reply #8 on: July 11, 2014, 10:07:01 AM »

Offline D.o.s.

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Lovely conspiracy were it possible! The ultimate FU to the owners and NBA platform. It'd be great.

Maybe the next best option is to go to Charlotte with a wink wink under the table deal for 10% ownership once his playing days are complete?

Given the limitations on salary, I don't see why a player of this caliber couldn't negotiate an equity stake in writing that kicks in upon completion of his playing days, playing days w/ that team or in the event the franchise is sold. Something to contemplate anyways. Interesting.

There have been rumors (never very good ones) that Kobe's got some sort of deal like this with the Lakers.
At least a goldfish with a Lincoln Log on its back goin' across your floor to your sock drawer has a miraculous connotation to it.

Re: #thetakeover
« Reply #9 on: July 11, 2014, 10:35:57 AM »

Online Moranis

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One huge problem.

NBA bylaws prevent an individual from being both an owner and a player.
Another huge problem Arison and Gilbert aren't selling.

Another huge problem, James has no where near the capital required to purchase a franchise (though he might by the end of his career).


You guys are both basically, but not completely, correct, and I wrotethis with toungue firmly in cheek. If you're interested, however.... According to Article XXIX, Section 8, of the NBA's collective bargaining agreement, entitled "Limitation on Player Ownership":

During the term of this Agreement, no NBA player may acquire or hold a direct or indirect interest in the ownership of any NBA Team; provided, however, that any player may own shares of any publicly-traded company that directly or indirectly owns an NBA Team.

But the last bit is interesting, isn't it? It just says that the ownership group would have to be incorporated- i.e. James can't own a team, but James can own a publicly traded company that can own a team.

Moranis- I think I just made a pretty good case that James has somewhere near enough, but not enough capital, to buy a team outright. Wyc Grousbeck didn't have enough capital to buy the Celtics, but he did have enough capital to found Boston Basketball Partners, along with three partners, which then bought the Celtics.
You are misreading the clause.  Incorporation does not equal publically traded company.  Basically it is an exception so a player can own stock in say G.E., Disney, Google, etc. if said company is also the owner of an NBA team. 

And what you earn is not your capital.  I mean basically half of James' earnings went to taxes, agents, lawyers, etc. not to mention all of the money he just spent to live, travel, etc.  James has no where near the capital to purchase a NBA team unless his investments (outside of his earnings) hit the jackpot (you know like he somehow invested in Facebook early on - or something like that).
2023 Historical Draft - Brooklyn Nets - 9th pick

Bigs - Pau, Amar'e, Issel, McGinnis, Roundfield
Wings - Dantley, Bowen, J. Jackson
Guards - Cheeks, Petrovic, Buse, Rip

Re: #thetakeover
« Reply #10 on: July 11, 2014, 11:31:15 AM »

Online bdm860

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Let me throw another conspiracy theory into the mix.

Part of Cleveland's problem with LeBron was they were too good too soon.  They weren't able to accumulate young players like OKC or even Portland with multiple lottery picks in consecutive years once they got LeBron (though what they were doing before they got LeBron is beyond me).

So they have a handshake agreement, LeBron takes a little vacation from Cleveland, Cleveland gets to stockpile assets, and then LeBron will come back once Cleveland has effectively refilled their coffers.


Not that I think this is what really happened, but it makes for an interesting narrative.  When I was younger, before I really understood the salary cap and didn't understand why players wouldn't be overly loyal to their current team, I always wondered why this didn't happen more often.  I mean I get it now, but back then I would have thought: "the Cavs should just talk to LeBron when he's about to be a free agent, they'll work out a plan where they trade him away for somebody under contract (like Chris Paul, Durant or Melo), but have a secret agreement that he'll return as a free agent next season, so then the Cavs would have Melo and LeBron!

Or why couldn't bad teams just loan out their players in bad years.  Like I would have thought maybe the 2006 Celtics could trade Pierce to a contender at the trade deadline to help their draft position with an agreement that once the playoffs are over, they'll trade Pierce back to the C's?

Lol, oh how young and naive I was, but hey things like that did appear to happen sometimes:

Like Denver trading Antonio McDyess away at the start of the '98 season, only to sign him as a free agent in '99.

Or the Cleveland Indians trading Kenny Lofton to Atlanta at the start of the '97 season, only to sign him again as a free agent once the season was over.

It's not like these guys were scrubs, these guys were considered franchise players, and major assets were traded away to get them.  All I know is 12 year old me would have been one sneaky GM.

After 18 months with their Bigs, the Littles were: 46% less likely to use illegal drugs, 27% less likely to use alcohol, 52% less likely to skip school, 37% less likely to skip a class

Re: #thetakeover
« Reply #11 on: July 11, 2014, 11:39:03 AM »

Offline saltlover

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One huge problem.

NBA bylaws prevent an individual from being both an owner and a player.
Another huge problem Arison and Gilbert aren't selling.

Another huge problem, James has no where near the capital required to purchase a franchise (though he might by the end of his career).


You guys are both basically, but not completely, correct, and I wrotethis with toungue firmly in cheek. If you're interested, however.... According to Article XXIX, Section 8, of the NBA's collective bargaining agreement, entitled "Limitation on Player Ownership":

During the term of this Agreement, no NBA player may acquire or hold a direct or indirect interest in the ownership of any NBA Team; provided, however, that any player may own shares of any publicly-traded company that directly or indirectly owns an NBA Team.

But the last bit is interesting, isn't it? It just says that the ownership group would have to be incorporated- i.e. James can't own a team, but James can own a publicly traded company that can own a team.

Moranis- I think I just made a pretty good case that James has somewhere near enough, but not enough capital, to buy a team outright. Wyc Grousbeck didn't have enough capital to buy the Celtics, but he did have enough capital to found Boston Basketball Partners, along with three partners, which then bought the Celtics.
You are misreading the clause.  Incorporation does not equal publically traded company.  Basically it is an exception so a player can own stock in say G.E., Disney, Google, etc. if said company is also the owner of an NBA team. 

And what you earn is not your capital.  I mean basically half of James' earnings went to taxes, agents, lawyers, etc. not to mention all of the money he just spent to live, travel, etc.  James has no where near the capital to purchase a NBA team unless his investments (outside of his earnings) hit the jackpot (you know like he somehow invested in Facebook early on - or something like that).

LeBron made a sizable chunk of money in from the Beats sale to Apple -- he was rumored to have a 1-2% stake in the company, which sold for $3 billion.  He's done well in a few off-court ventures.

Re: #thetakeover
« Reply #12 on: July 11, 2014, 12:07:53 PM »

Offline sofutomygaha

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That isn't a rumor, it's a matter of public record. Lebron owned 1% of Beats. When it was sold to Apple for $3B, he cashed out $30M. It's factored in to the $452M quoted above from Forbes. What isn't included in the Forbes estimate is other investment income.

For example, Lebron's other buddy runs LRMR, through which he owns 10% of the Liverpool FC soccer club (the majority stake owner is Fenway Sports Management! Small world, eh?!). Liverpool FC is presently valued at $691M.

Re: #thetakeover
« Reply #13 on: July 11, 2014, 12:16:55 PM »

Online bdm860

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That isn't a rumor, it's a matter of public record. Lebron owned 1% of Beats. When it was sold to Apple for $3B, he cashed out $30M. It's factored in to the $452M quoted above from Forbes. What isn't included in the Forbes estimate is other investment income.

For example, Lebron's other buddy runs LRMR, through which he owns 10% of the Liverpool FC soccer club (the majority stake owner is Fenway Sports Management! Small world, eh?!). Liverpool FC is presently valued at $691M.

Just to throw some numbers out there, according to celebritynetworth.com:

LeBron James is worth $270 million (LeBron got $30m from the Beats sale).
Jay-Z is worth $550 million
Magic Johnson is worth $500 million
Michael Jordan is worth $1 billion (though about $400m of that is from an increase in valuation of the Bobcats).

There's also an article on Celebrity Net Worth (prior to the Clippers sale which likely increased every owners net worth by several hundred million) which lists how every NBA owner made their money.  Interesting look.


Of course how liquid those net worths are is another question.

After 18 months with their Bigs, the Littles were: 46% less likely to use illegal drugs, 27% less likely to use alcohol, 52% less likely to skip school, 37% less likely to skip a class

Re: #thetakeover
« Reply #14 on: July 11, 2014, 09:26:53 PM »

Online Moranis

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That isn't a rumor, it's a matter of public record. Lebron owned 1% of Beats. When it was sold to Apple for $3B, he cashed out $30M. It's factored in to the $452M quoted above from Forbes. What isn't included in the Forbes estimate is other investment income.

For example, Lebron's other buddy runs LRMR, through which he owns 10% of the Liverpool FC soccer club (the majority stake owner is Fenway Sports Management! Small world, eh?!). Liverpool FC is presently valued at $691M.
But earnings are not net worth and certainly aren't liquid assets.
2023 Historical Draft - Brooklyn Nets - 9th pick

Bigs - Pau, Amar'e, Issel, McGinnis, Roundfield
Wings - Dantley, Bowen, J. Jackson
Guards - Cheeks, Petrovic, Buse, Rip