ABA Catch-22

[OneBetter]

I've been thinking more about the ABA SEC filing and Joe's "business model." He's really in a Catch-22 position right now. Until the league becomes established with well-run franchises that continue to flourish (and survive)year-after-year, it will be hard for the ABA to grab any big name sponsors and endorsements. Until that happens, Joe's only revenue stream is the $10,000 to $20,000 market reservations. So, from a financial standpoint, Joe stands to benefit much more in the short term if there is a high turnover rate from year to year to keep the number of market reservations high on a yearly basis. But, this discredits the league and keeps away any long-term, high-profile league-wide sponsorship deals.

Now, Joe has said he's ended expansion for the year. He's basically cut off his only revenue stream from this point forward. In the SEC filing it stated that the league only has enough funds to make it to this fall without additional investment. I think we may have finally seen the ABA pass the "tipping point." Things could spiral out of control for Joe very very soon.

[The Magician]

This is a little bit off subject, but I was thinking more about the ABA SEC filing and Joe's "business model." He's really in a Catch-22 position right now. Until the league becomes established with well-run franchises that continue to flourish year-after-year, it will be hard for the ABA to grab any big name sponsors and endorsements. Until that happens, Joe's only revenue stream is the $10,000 to $20,000 market reservations. So, from a financial standpoint, Joe stands to benefit much more in the short term if there is a high turnover rate from year to year to keep the number of market reservations high on a yearly basis. But, this discredits the league and keeps away any long-term, high-profile league-wide sponsorship deals.

Your assessment seems plausible!

Now, Joe has said he's ended expansion for the year. He's basically cut off his only revenue stream from this point forward. In the SEC filing it stated that the league only has enough funds to make it to this fall without additional investment. I think we may have finally seen the ABA pass the "tipping point." Things could spiral out of control for Joe very very soon.

It's funny ... an aquaintance of mine gave me something to ponder:

Count my words, the ABA will cease operations for 2007-08 under a guise of reorganizing to resume in 2008, but will lose the licensing rights of the ABA name from the NBA. Another entity will obtain rights to the ABA and operate in 2008 with the ABA name ...

Form 10-KSB filed 04/27/07
ABA Annual Report
http://www.sec.gov/Archives/edgar/data/1332044/000114420407020963/v072592_10ksb.htm

"The Company (ABA) expects that it will be able to meet its cash requirements until September 2007. If it is not able to raise additional funds at such point, it will be forced to curtail or cease its operations."

Hmmm ...

[Buy4moresell4less]

have you guys read anything I have said over the last week about the SEC, State Banking rules, The NBA properties License???? This the world that Joe has now place himself in as a public company. This is not going to be pretty.

[The Magician]

have you guys read anything I have said over the last week ...

ABA Stock - Something To Know
http://www.oursportscentral.com/boards/showthread.php?t=5738

[jamesaba]

Sources???

Or is this all just speculation??