Larry Brooks: His greatness grows
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11-16-2004, 01:53 AM
...in the drink
Join Date: Aug 2002
Originally Posted by
First the arena is not owned by anyone but the city of Atlanta. Second the Thrasher were higher in the standings than the Hawks when the teams were bought, third the value of both teams was a combined 308 million, why did Time Warner keep a share in the team that was that bad off.
Oh and Kasten wrote a article and never mentions bankruptcy.
The operating rights to the arena were sold in the deal. That in itself is worth a fair amount of coin considering the new owners will be the ones reaping the profits of the arena (if any).
Already done this twice, hopefully third time's the charm. At or very near the time of the sale in March, Forbes valued the Hawks at $204M and the Thrashers at $134M (the numbers are from memory so they might be a tad off). Add in the operating rights to the arena, the deal should have been well over $350M according to Forbes. But in the end, the deal was for $250M. The Forbes numbers were quite a bit off. Like someone said before, they are just an educated guess.
AOL/TW had been looking to sell off the teams for a while. Getting rid of what they consider "non-core" assets to help with the debt they have. The prospective owners had to perform their due diligence which took five or six months, so a quick sale just to get the cash wouldn't have happened anyways. Both sides poured over the info and came up with a number they both could live with; the real value and not a guess based on sparce information.
Even if you want to add in the 15% non-voting share that AOL/TW still holds in the teams, the Forbes guess was still off by anywhere between $60-$80M. Time Warner did need an influx of cash, but not enough to let $60M+ walk out the door.
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