Raptors President John Bitove Jr. must decide by midnight
tonight whether he will buy out partner Allan Slaight's 39.5%
interest in the club or have his 39.5% stake in the team bought
out by Slaight. In Toronto, Neil Campbell writes Bitove is
"widely expected" to buy out Slaight, but that details of the
deal will be "sketchy" because the financing would not be due for
another 60 days. Campbell speculates that Bitove has convinced
his father, John Bitove Sr., and siblings to invest in the team,
perhaps on a "temporary basis," while new equity partners sought
(Toronto GLOBE & MAIL, 11/14). Craig Daniels of the TORONTO SUN
writes "people close to Bitove" believe he "has found the money"
to buy out Slaight and that the buyout is closer to $42M, not the
$50M previously reported. Slaight, meanwhile, said last night
there is "no truth to the rumor" that if he does get bought out
by Bitove that he will then use the money to invest in a
consortium, that includes Blue Jays President Paul Beeston, to
buy the Jays (TORONTO SUN, 11/14). Dave Perkins of the TORONTO
STAR also predicts Bitove will exercise the option to buy out
Slaight and then use the reported 60-day grace period to arrange
the necessary financing (TORONTO STAR, 11/14).
SPONSORS HOLDING BREATH: Businesses involved in the
sponsorship of both the Raptors and Maple Leafs are "watching
anxiously on the sidelines" before deciding where to invest their
marketing dollars, according to James Walker of the FINANCIAL
POST. Walker notes that for sponsors, the "key issue" is not who
will own the Raptors, but where the team will play -- either by
itself at the new Air Canada Centre or in a shared new arena with
the Leafs. Rick Janes, President of Raptors marketing agency
MacLaren Momentum: "Once the dust settles and the decisions are
made, there is going to be a flurry of sponsorship activity in
the market place. ... If the Raptors and Maple Leafs get
together, it makes a much easier decision for a lot of people."
Janes added that agreements with Raptors current sponsors Air
Canada, Nike Canada Ltd. and Sears Canada Inc. will not be
affected by an ownership change (FINANCIAL POST, 11/14).
