A "big-money U.S. investor with ties to the NBA" has become
involved in the Raptors' "shotgun showdown" and might wind up
with control of the team, according to Craig Daniels of the
TORONTO SUN. Daniels notes while most people have thought either
John Bitove, Jr. or Allan Slaight, who each own 39.5% of the
team, would become the club's majority owner, "It doesn't appear
that way now." Daniels writes the "scenario now in play" is that
the U.S. investor, which reportedly is not Ogden Entertainment,
will provide Bitove with the about $50M U.S. to buy Slaight out.
In exchange, the investor will receive about 11.5% of Bitove's
shares in the team for about C$10M -- enough to give the investor
51% of the team. Bitove would be left with 28% of the team and
its catering contract. He would also likely keep a seat on the
team's Board of Directors and perhaps remain President. As part
of the deal, the investor would pledge to continue with
construction of the proposed Air Canada Centre, with a plan to
bring in an IHL team on a temporary basis, hoping that the Maple
Leafs will eventually come in as partners (TORONTO SUN, 10/24).
David Shoalts of the Toronto GLOBE & MAIL reports financing the
buyout of Slaight would cost about C$88M. Bitove, on speculation
he would become a minority owner in the Raptors: "They're just
rumors. ... We'll make an announcement when the time is right"
(Toronto GLOBE & MAIL, 10/24).
REAX: In Toronto, David Shoalts writes it will be a "bitter
pill" for Bitove if he has to step down as majority owner and
president. Shoalts: "The problem for the Bitove family is that
it cannot shoulder the sort of debt load that would be required
for a straight buyout of the Slaights. And anyone bringing money
to the table wants a lot of strings attached" (Toronto GLOBE &
MAIL). Craig Daniels of the SUN notes if both Bitove and Slaight
are "out of the picture," there will be "a lot of winners."
Daniels: "The average fan can say a Hail Mary. And GM Isiah
Thomas stays involved. The investors are sports savvy and like
what they see of him, and would give him all the room he needs to
operate" (TORONTO SUN, 10/24).
