ABA Lawsuit

[LeRoy Muckunfuss]

From The Indianapolis Star, 11/15

A pair of New York investors have filed suit with the owners of the American Basketball Association, claiming they are owed a 50 percent share of the company.


The suit, filed in Marion County Circuit Court, alleges that Steven Jaloza and Salvatore Fradella were original investors in the ABA but lost their value following reorganizations made by Indianapolis-based Joseph Newman and Richard D. Tinkham Jr.
The suit suggests the value of the ABA is approximately $30 million.

[preeths]

From http://www.iowastatedaily.com/media/storage/paper818/news/2000/08/22/Sports/Nurse.Hoiberg.Selected.In.Aba.Draft-1060530.shtml?norewrite200611151449&sourcedomain=www.iowastatedaily.com

The efforts of Salvatore Fradella and Steven Jaloza had a big part in starting up the ABA 2000. Their former occupations were officers of a New York based investment banking firm. The co-founders are also part owners in the New York franchise.

[SignGuyDino]

If they win, does this mean they can buy what? 4% of the NIFL?

[Sam Hill]

The suit suggests the value of the ABA is approximately $30 million.


And I suggest they're smoking crack.

[Fells]

And I suggest they're smoking crack.

And not sharing with the rest of the class.

[nksports]

I don't think the entire league's entire valuation would be anywhere close to that. They'd better be careful. They could win and have to pay Uncle Joe because in a league where over half the teams go belly-up every year, the ABA could actually have a negative value and these two jokers could be found owing money.

[SignGuyDino]

Maybe they'll do us all a favor, win the lawsuit, fold the league and sell the rights to the D-League so they can do a name change.

Hey I got some of the crack early.

[holio]

It says they ran a New York Investment Banking firm?!?!? They ran Joseph Dillon And Co. The firm was shut down by the NASD and SEC. They ran a penny stock boiler room operation! Goto www.nasd.com and enter their CRD reports! Jaloza has basically no states left that will let him trade stocks or funds in .His CRD # is: 1320831. Do a Broker Search for both of those crooks. Also search Joseph Dillon and Co. from Great Neck NY. They took little old ladies funds and sold stock for companies that basically did not exsist. they ran prices up on IPO's then would not let anyone sell. They would then dump their stock and everyone else that still had the stock they purchased for a few dollars a share, now had stocks worth a pennies per share. They actually should be in prison for the type of operation they ran!

Here's one for you:

Steven Richard Jaloza (CRD #1320831, Registered Principal,Muttontown, New York) and Salvatore Anthony Fradella(CRD #1482494, Registered Principal, Manhasset, New York)were named as respondents in an NASD complaint alleging that they, directly or indirectly, by the use of any means orinstrumentalities of interstate commerce or of the mails, or anyfacility of any national securities exchange, employed artifices,devices, or schemes to defraud, made untrue statements ofmaterial fact or omitted to state a material fact necessary in orderto make the statements made, in light of the circumstancesunder which they were made, not misleading, or engaged inacts, practices, or courses of business that operated, or wouldoperate, as a fraud or deceit; and induced the purchase ofsecurities by means of manipulative, deceptive, or otherfraudulent devices or contrivances. The complaint also alleges that Jaloza and Fradellafailed to disclose to investors in a private placement offering that their member firm was making loan payments to an outsidebusiness entity and might provide funding to an outside businessin which they had a self-interest, and other supplementalmaterial information regarding the loan. The complaint furtheralleges that Jaloza and Fradella made material omissions of factconcerning the number of customer accounts their member firm maintained in discussing the creation of an online Internetdivision and the number of users to support the development ofits online division. The complaint further alleges that Jaloza andFradella failed to exercise reasonable care in connection withtheir decision, on behalf of their member firm, to invest in anoutside business entity and failed to engage in any meaningfulexamination of its business operations, breaching the duty ofcare they owed to their member firm’s shareholders. Moreover,the complaint alleges that Jaloza caused his member firm to failto make and preserve required books and records and failed toensure that his member firm filed its monthly FOCUS reports.(NASD Case #CLI030003)[/I]

There's so many complaints there's too many to mention here! Check it out for yourselves!

[BasketballUSA]

Well Well, some one did there homework. Every story has two sides. The approximate value of the ABA as of March 30, 2006 was 5.5 million, and not based on the teams, based on the market rights to the "ABA" logo., which is currently owned by the CEO of the ABA. The current investment group knows of the law suit, which would leave it in the hands of the old owners. Now my opinion is, if the new investors are buying out the current ABA, they must know the value, the access they have to cable rights and what the potential is in the right hands with the ABA, otherwise why would anyone bid such a large amount to buy the ABA. If you reserach the marketablility, the ABA has it if in the right hands, there are those out there that must know that. Notice that the investment group didnt approach the CBA, USBL or any other league.
So you take a product and see the market saturation geographically with television and you can make money. When speaking to an NBA official, they concurred that this COULD happen but didnt comment any further. The above poster is on track, you buy the ABA, you contact the NBA and say hey we have cities that could fit in the NBDL, especially the east and you cut a deal. A marketing company has stated already... "the name NBDL should be changed". Interesting? Possible? who knows?

[Sam Hill]

Well Well, some one did there homework. Every story has two sides. The approximate value of the ABA as of March 30, 2006 was 5.5 million, and not based on the teams, based on the market rights to the "ABA" logo., which is currently owned by the CEO of the ABA.

I thought the NBA leased it to them. I thought the NBA "owned" it and Joe Newman had to pay a licensing fee to the NBA.


So you take a product and see the market saturation geographically with television and you can make money.

Hard to make money anymore with niche sports on television. You're not going to get minor league basketball (even the NBADL) on anything approaching decent television (NBATV doesn't count). So how many teams and how big the footprint is of the ABA isn't really a big isse.

And you can't make money with minor league basketball (unless, of course, you take market reservation fees and don't use them for anything but your own purposes). If you could, people would do it. It doesn't happen. Which leads me to believe there's no magic formula out there to do it.

[ABA06er]

Basketball USA you keep posting these dates and nothing ever happens...........


nothing will happen................


No one can touch the ABA it will be around for 50 more years while te CBA will be gone in a few weeks..........

[Fells]

Basketball USA you keep posting these dates and nothing ever happens...........


nothing will happen................


No one can touch the ABA it will be around for 50 more years while te CBA will be gone in a few weeks..........


ABA, I think you got things just a little reversed up there. The CBA has been around for much longer and has a stronger fan base and more financing. The ABA has teams come and go as often as you put your foot in your mouth. Advantage: CBA.

[Sam Hill]

Basketball USA you keep posting these dates and nothing ever happens...........

Like when you say the CBA will be gone within two months?

No one can touch the ABA it will be around for 50 more years while te CBA will be gone in a few weeks..........

Or a few weeks. Make up your mind, dude.

You're funny.