Comcast-Spectacor Chair Ed Snider would sell Apollo Global Management Senior Managing Dir Joshua Harris and his investment group "a 90 percent share" of the 76ers as part of a proposed deal, according to Fagan & Tamari of the PHILADELPHIA INQUIRER. No "exact number has been attached to the deal," but sources said that it is "in the range of" $270-290M. Snider "would relinquish majority control of the franchise, which he has had since 1996, but would maintain ownership and operation of the team's arena, the Wells Fargo Center." A source said that while the deal is "advanced, multiple hurdles remain to be cleared." Finalization of the deal could take "about a week, possibly 10 days." Comcast-Spectacor President & COO Peter Luukko said, "I can confirm that we are in discussions about the future of the team, but these discussions are confidential and we cannot talk about the details." Fagan & Tamari note Apollo "specializes in leveraged-buyout transactions, and is worth an estimated" $1.5B. Harris "leads an investor group that includes" Blackstone Private Equity Group Senior Managing Dir & co-Chair David Blitzer and former Kings Senior VP & Assistant GM Jason Levien. Talk of a sale of the 76ers "has arisen before -- most recently in 2006." But a source said that the talks with Harris are "more advanced than any in recent times." SportsCorp President Marc Ganis said that Comcast's $13B purchase of a majority stake in NBCUniversal and "impending NBA labor strife are factors than make a deal more likely now than before." Snider also owns the Flyers, but Ganis and the source said that a Flyers sale is "unlikely because of Snider's love of the hockey team" (PHILADELPHIA INQUIRER, 6/8).
WHAT BOTH SIDES HAVE TO GAIN: In Philadelphia, Ashley Fox writes the deal "seems like a win for Comcast-Spectacor." The company "would drop a team it hasn't exactly returned to prominence but would still make money off of it, assuming the new ownership group would keep the team in Philadelphia" (PHILADELPHIA INQUIRER, 6/8). Also in Philadelphia, Maria Panaritis wondered why Harris' group would "want to buy the Sixers." Philadelphia-based private-equity firm LLR Partners' Mitchell Hollin said that "any bid for a professional sports team ultimately has more to do with personal desire than financial returns." Hollin: "Hopefully, they make money. But at a minimum, they have fun managing that investment." Hollin added Apollo has "really made a very good track record of buying somewhat-underperforming assets and turning them around." Meanwhile, Wharton Sports Business Initiative Dir Kenneth Shropshire said that it was "entirely possible that, with NBA insiders worried about labor strife and a shutdown of the sport similar to the NFL lockout, that a weary owner would be looking to unload a team." Panaritis: "Knowing that, a bargain hunter might look to buy." Shropshire said, "Certainly, if you see labor strife in the future and you, for whatever reason, don't want to endure that with your team, here's an opportunity to sell" (PHILADELPHIA INQUIRER, 6/8).
MOMENTUM TO BUILD ON: In Philadelphia, Bob Cooney writes under the header, "Sixers' Ownership Change Could Further Energize Fan Interest." The 76ers are "struggling to fill seats, but are coming off a season marked by the enthusiasm brought by new coach Doug Collins, a 14-game improvement to 41-41, and a return to the playoffs." Former 76ers President Pat Croce: "This is a great time to be taking over that franchise, a perfect time. I think if you get bought by a passionate owner, who is into it 100 percent, I think it's great." Shropshire added, "I think new ownership can always be one of those positive moments. It can have the impact of new excitement, new spending and a new plan" (PHILADELPHIA DAILY NEWS, 6/8). Also in Philadelphia, Rich Hofmann writes, "It has been 10 years since this town was really, really excited about the Sixers." The 76ers are the "only team where the fans vote with their feet, for better or worse, seemingly every year." Hofmann: "The Flyers haven't won the Cup in forever, yet they have been essentially sold out forever. Eagles, same thing. The Phillies had some lean years back in the Veterans Stadium days, but that seems like a long time ago at this point" (PHILADELPHIA DAILY NEWS, 6/8).
TIME FOR A CHANGE: In Philadelphia, Phil Sheridan notes Comcast-Spectacor "had flirted with the idea of selling the basketball team five years ago," and the 76ers had "always been viewed (not always fairly) as the unloved stepchild in this cold-blooded marriage." Snider's "reputation for caring only about the Flyers is understandable, but it's overstated." The 76ers "have been given the resources needed to win in the NBA," but those resources "were invested in the wrong people too often." Snider writes getting a "new billionaire owner isn't necessarily a magic solution to a sports franchise's problems." But he adds, "What we do know for sure is that the current model -- a media company controlling franchises because of the programming hours they provide -- has not worked. At least not there" (PHILADELPHIA INQUIRER, 6/8)
