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Dunc'd On Basketball NBA Podcast

First Month Awards, Grizzlies' Buy/Sell Clause

Dunc'd On Basketball NBA Podcast

Nate Duncan

Sports

4.52.9K Ratings

🗓️ 1 December 2017

⏱️ 67 minutes

🧾️ Download transcript

Summary

Click to subscribe via RSS feed or iTunes. Our first awards show of the season, with some big surprises in the All-NBA teams.  We roll through MVP, All-NBA, DPOY, ROY, Coach of the Year, dunk of the month, and much more.  Also, a look at the...

Transcript

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0:00.0

This is gonna be one of our most fun of the year. I always like doing the first edition of the awards because you get a lot of weird small sample things that your first chance really lock into on what you think is going on this season who's really playing well among the established players who might be a senate who might be on the decline and obviously this isn't how the year is going to end but day i put a bunch of time in to try and figure out who would win all of these awards if we had to vote on them right now.

0:28.8

We also got some news to get to including more out of the grizzlies the buy cell provision with Steve Kaplan and the minority owners has been activated we don't know how much it's for you yet with pair will try to break that down quite a bit as well.

0:42.6

And why don't we get started with that Danny John Krasinski had a piece on this that I actually on our dork g chat thread last night after we had we're done recording I went back and read Zach Lowe and Brian Windhorse piece explaining exactly how this worked and I was wondering hey whatever happened with that it was supposed to be October 2017 and what kind of effect would that be having on this whole fizzdale firing etc and now Krasinski reporting that in fact that buy cell clause has been

1:12.6

activated that gives the minority owners led by Steve Kaplan who attempted to buy the wolves but was unable to extricate himself from the grizzlies at that time he basically is able to set a valuation and either Robert parra has to buy him out at that valuation or he gets to buy parra out at that valuation so really just a great game of chicken here between these two guys now.

1:39.4

This is like economic nerd theory into the nth degree i'm really excited about it because yeah I mean the tactics of this are incredibly complicated because you want to set I be depending on what Kaplan wants to either want to set a you obviously it has to be within the fair range but we're in the fair range is really complicated because of whether you want to have the team and and this would be a way theoretically for Kaplan to extricate himself if he didn't want to have the grizzlies and wanted another team.

2:06.4

And something that is in depth in John's piece for the athletic is the idea of potentially moving moving the team out of there and the problem with that I think that was in his piece might have been Zach is that the least is strong it was in his piece that the least is very strong and there could even be a trigger in terms of trying to move the team to try to sell to local owners and things like that so yeah their leases iron clad through twenty twenty one and then I they do try to move after that I think through twenty seven t or twenty twenty seven.

2:35.9

Local owners would have some sort of an option to buy the team because some background here is important and I'm paraphrasing so apologies if I leave out exactly all this but when para tried to buy the team for Michael Heisley which had been on the market for several years he initially wanted to come in and buy a significant portion of it himself however in between that agreement and the time that he actually had to fund the deal his the stock price of his company which had gotten crazy

3:04.3

ubiquity really tanked down to like nine dollars a share in part two to the economy I guess and so he had to bring in all these other owners Justin Timberlake Peyton Manning Tennessee people and also of course Kaplan and Daniel Strauss is the other minority owner who is part of that by sell provision and so that was our background here now of course it's a stream because ubiquities stock price is sixty six dollars so seven times more than it was a back one

3:34.3

para was experiencing these issues and so does he want to just get rid of Kaplan and certainly the team his initial investment has probably even as much as triple as well I think they bought it for like you know three hundred fifty million or so valuation back in twenty twelve and you know I have to imagine the

3:50.6

worth you know at least seven or eight hundred billion or or a million at this point if not more than that given some of the recent sales so all of that is our background here to see you know Steve Kaplan would

4:02.8

apparently like to try and buy him out Kaplan and Strauss the question is or get bought out themselves because that would enable Kaplan to try and go

4:11.0

after another team which he hasn't been able to do since he couldn't extricate himself from this Memphis situation I mean the issue there by the way

4:17.5

why he couldn't extricate himself was I assume that when he tried to sell out para knowing that he really needed to get out wasn't willing to pay him

4:26.2

enough to where it was he was getting his fair share and so that's why he had felt like all right I'm just going to stick around and do it the buy

4:33.4

sell so it doesn't seem like there's been some antipathy between these guys to some degree and I mean we fascinated so fascinated to find out what the

4:41.9

number is going to be here and what I love about the prospect of you know you could worry about acrimony here is that the process eliminates the acrimony because you set the

4:51.0

valuation at what you're going to set it out and the other side makes a decision it's not wrestling for control it's just figuring out the value and making a

4:57.7

business decision so it's not that you know lawsuit for control or anything crazy like that they just you know you figure it out you

5:04.2

figure it out and in another way and so it should be clean in that way because one side sets the value one side

5:09.8

determines whether that's worth it or not yeah and as credency noted and many others have as well even Mark Gassol the franchise center

5:17.2

noting that they they wish that Robert Perry was a Ronald more he's kind of been a bit of an absentee owner and so does that mean that he's more inclined to

5:25.8

cash out now is that all a ruse to make Kaplan put a lower valuation to paracan then buy him out more easily you know and if you're

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