ABA for sale

[progress77]

The following information was obtained from sources in California. The CEO of the ABA has placed the ABA for sale for 6 million dollars with continued salary for him and his partner. This information is second hand and has not been confirmed or verified. This will be my only post. Thank you.

[SignGuyDino]

To quote the guy from "Robocop":

"I'd buy that for a dollar!"

NOT!

[SignGuyDino]

This just in:

The American Basketball Association has made a successful trade with the Office of Scientific Intelligence. The OSI have acquired the rights to the ABA in exchange for the rights to Steve Austin in what is considered an even trade.

No word yet on whether or not Joe Newman will use Austin to fetch beer to his basement office.

[WHAFAN]

The ABA, every owner, every dollar every ABA player has, and their homes aren't worth $6,000,000. Oh, I forgot, this is the league famous for Dr. J, slam dunks and red/white and blue basketballs........40 years ago.

I wouldn't piss on the ABA if it was on fire.

[a1sports]

Oh, I shall check this out. BUT, in the mean time, lets say JoJo gets a million bucks for the ABA, then let me be the first to say thank you to all the owners that lost money so he can run away with a million dollars. LOL

whats the saying? "there are fools aplenty , you dont have to look hard to find them"

[TheStandard]

ok since I am a broker/associate at Goldman Sachs. I will leak this out. Yes the damn league is up for sale. at 6 million dollars. but the value is only worth 600k and plus the new owner has to take over all of the debts and those debts are reaching the 20 million dollar mark. Also the licensing of the name ABA would be a severe issue with the NBA who still owns but only allows the ABA to use the name for a price.

In all honesty. I would not pay 6 pennies for this pile of s----!

[a1sports]

How did it even get a value of 600k? the debt ratio puts it into a negative value. The asking price is 6 million but the league needs a minimum of $ 200,000- 250,000 to operate NOW based on current expenses.

Travel to Halifax? Travel to Hawaii? Internet production costs, salaries, etc etc etc etc etc

Will the ABA make it to Nov 1 ?.........stay tuned.

IMO, Joe will run before Nov 1 comes...

[barkley34]

$6 million???? All someone has to do is buy up 51% of the league at $1MM via stock acquisition and they own it. Why pay $6MM? It can LEGALLY be had for 1/6th or less that and Joe would have no say in the matter. Not sure how he feels he can get $6MM when a company is valued SOLEY based on its stock price. Is he that stupid?

[TheStandard]

the 600k is the price that its valued due to the fact that with 4 stable teams at a 150k value each thats all the ABA is really worth.

Worth is based on the fact of where they are located and how much revenue it can potentially create. Vermont, Jacksonville, Quebec, Strong Island.

[a1sports]

Based on the usual and customary formula that is used to value a sports franchise, NO ABA team has a value. not even the 10k or 20k they bought in with.

therfore the ABA is worth ZERO.

[TheStandard]

To me its worth zero. But, those four markets have the potential to create modest revenue so all you really have to do is buy those four teams and you still save money. But then a franchise fee to a league like the CBA, D LEAGUE, PBL then may hit u

[Pounder]

I know, we all laugh at Joe's asking price, and rightly.

He can ASK for anything.

There's no NEWS until there's a counteroffer. Excuse while I fail to hold my breath.

[MisterHappy]

Maybe I'm wrong, but the way I see it, the value of the league is different than the value ($0) of each franchise.

If you charge $25,000 per team entry fee, that is $100k per four teams. Using Joe's business model, a typical year has what, 40 new teams? That's a million - and if you're real aggressive, and just focus on adding teams with the theory that more is better, it wouldn't take long to get your money back. At least a million per year, then resell each franchise the next season, etc.

No one said the new owner has to be ethical, they just have to use Joe's business model.

[TheStandard]

i wouldn't keep the old fart in the payroll. i rather pay money into finding the easter bunny a real unicorn and jimmy hoffa

[tbayz1]

joe should just file bankruptcy lol

thats alot of debt, who would wana worry about that, "if" they bought this league

[MisterHappy]

and plus the new owner has to take over all of the debts and those debts are reaching the 20 million dollar mark.

How does a league operating out of a basement have debt? What expenses does the ABA have? How could it acquire debt? Is it a stock thing?

[tbayz1]

How does a league operating out of a basement have debt? What expenses does the ABA have? How could it acquire debt? Is it a stock thing?

I was wondering the same

My guess would be all the people that have lawsuits, bills not paid, people that got ripped off etc... But close to 20million, dam thats alot of $$ lol

[TheStandard]

they dont pay their bills. thats how. they don't have capital to run anything.

[MisterHappy]

I'm not defending, or trying to say they don't have debt, I'm asking what it could be? Debt isn't telling someone you'll give them compensation then don't. It HAS to be documented. What 'bills' would add up to 20million? AT&T?

"They don't have capital to run anything?" What COSTS are there?

[Paul S]

I don't know if Joe can sell it. I'm not a lawyer but I'm of the opinion that if you have a business that has a pending lawsuit about whom owns the business you cannot just sell the business days/weeks/months before the judgement. Especially if you have lost earlier rounds in a court.

I think Jalooza and Joe have negotiated something and have agreed to try and sell it and Jalooza will drop the suit. Nobody, NOBODY, buys an existing 6 million dollar business without due dilligence, a lawyer and/or a business resale broker. The lawyer and business resale broker would be wide open to a lawsuit if this wasn't found and/or disclosed.

If I was a betting man I'd say Jalooza gets 6 million and Joe gets his 250K a year job.

Also the valuation of this business is almost entirely the name value of the ABA moniker. I don't see how you can value the franchise based off of 4 franchisee's. Those four franchises' do not belong to the league, they are an independant business who has paid a one time 10K check. Throw in the fact that someone is going to have to investigate Canadian law to see if the Quebec legal system is in lockstep with US then this is simply a case of "seeing if anyone is interested"

What they must be hoping is a pre-existing league (ie USBL, IBL, NBDL or CBA) will want to assume the cream of the league

[psbf]

but I think I know the law pretty well and I think you are right, Paul S.. He can't sell it. Besides, anyone would be out of their minds to take on a league with all the troubles attatched.

[SignGuyDino]

Fine. Nobody will say it so I will. "This is will be my only post" and "The following information was obtained from sources in California" and "The CEO of the ABA has placed the ABA for sale for 6 million dollars with continued salary for him and his partner" from a one-time poster named "Progress77" who did NOT post the source.

Come on now, folks...connect the dots.


The ONLY people who I could think of buying it is the NBA itself. Only they'd pay to get the ABA name and trademark. Rename the D-League. And they wouldn't pay anything close to $6 million nor likely keep any of the teams or owners, and certainly not Joe Newman.

[Paul S]

Its an interesting theory SignGuy, I just don't think he'd be as non confrontational and beligerent.

Although on Planet ABA anything is possible............

To be fair California is where that fund company that did the IPO of the shares is located. Maybe they want their cash back.

[tops804]

The following information was obtained from sources in California. The CEO of the ABA has placed the ABA for sale for 6 million dollars with continued salary for him and his partner. This information is second hand and has not been confirmed or verified. This will be my only post. Thank you.

....The few good owners out there would have the sense to drop out
of the ABA and start their own league without Joe Newman. The ABA
without these teams would be worth the same as with them $0.00 -- and
they could start out without the baggage....

Why would anyone want to continue paying Newman if they bought the
league...

[tops804]

Come on now, folks...connect the dots.


The ONLY people who I could think of buying it is the NBA itself. Only they'd pay to get the ABA name and trademark. Rename the D-League. And they wouldn't pay anything close to $6 million nor likely keep any of the teams or owners, and certainly not Joe Newman.


With the 1976 merger agreement...How difficult would it be for the NBA
to get the ABA name back as their own??? It sounds more like someone in
the ABA is wishing someone would pay them for it...(and keep Newman
on the payroll).

[a1sports]

The ABA is a license that the NBA lets them use. The NBA owns it. The questions has been why doesnt the NBA pull it back? No one really knows why.
There is also the question of who has the right to use the license, as of the last court decision it seems Jaloza has the right to the license. Throw in the law suit by the company who got the ABA the money and there you have your product up for sale. Nice package of goods.

Why do the 4 "good" teams stay in the ABA, because they dont have the money to join another league.

[bomp]

It's Newman trying to get out of trouble with the SEC. He has to make an attempt since he has some trouble in that arena and he could really end up in jail thanks to disclosures that have already been made public. It's is not fun dying in jail, Joe. Even a white collar federal jail.

Why anyone is still involved with this mess I'll never understand. That guy on Long Giland has some problems too. He can say that Joe lied to him but it won't work.

[a1sports]

The CFO? Could he have problems? Oh yea, DID he sign reports that went to the SEC? OH yea........... soon Bye Bye CFO. Think Joe wont throw you under the bus to save himself?

and if there is a share holder law suit ? gee what will happen. It only takes one shareholder, lucky for you we have 2 !! Rochester and Maryland have shares in the ABA, you think they are not doing anything? think again.

was all this worth 105,000 a year and 550,000 shares of stock? Maybe play-on will be available in your jail cell.

[TheStandard]

honestly Joe wouldn't do time in a white collared jail. He will do time in a fed and trust me the more hes in deep trouble with them the more he will hear of these words. SUPERMAX

[ABARedWhiteBlue]

Well, he did spell conjugal wrong...

:cool:

[OneBetter]

Well, he did spell conjugal wrong...

:cool:

Thanks, English police.

[TheStandard]

Joe will flee to the Bahamas or the Cayman islands with his love interest of the pro show lol

[OneBetter]

Joe says the league is not for sale but that many interested parties have contacted him in the past wanting to purchase it.


Wow, what bull-sh*t

[TheStandard]

gee why send out feelers to companies for a 6 miilion dollar asking sale price??

Joe lies more than Jenna Jameson in a film

[Paul S]

Joes boxed in a corner.

THis is my opinion, I don't have any facts to support it.

But if this guy Jalooza is able to take the name ABA they may both want to sell it. Jalooza probably trusts Joe about as far as he can throw him. THey sell the name, the rights to the teams and the fax machine that has received so many 10K wire confirmations in Joes basement to another league. Any ohter league.

The "debt" isn't that high. The 20 million is already lost and gone, not recoverable debt.

Now Joe is one thing if he isn't a good pitchman. Someone with no money will be told that no the league isn't for sale, but if he thinks someone will (be crazy enough) to buy it for 6 million, employ him and his stepson Brad then he'll do it.

Again its all supposition on my behalf. But he certainly cannot sell this circus without

1/ Jalooza being involved
2/ disclosing to the new buyer that there are numerous court cases' that may make the sale moot.

If he was crazy enough to try and sell it without one or both the above conditions then he'd probably go to jail for fraud. Now true bankruptcy means he can usually protect the house (which apparantly is in Connies name or some trust) and his retirement assets. But fraud trumps that, if you are convicted of fraud those normal bankruptcy protection things don't count.

Newman is no dummy. THis thing isn't for sale, if it is, it involves Jalooza. Otherwise Joe will be moving to New Zealand or the Spratley Islands and have to change his name.

[nksports]

French Foreign Legion drill instructor: "Name!"
Recruit: "Jones!"
DI: "Jones?"
Recruit: (whispers) "Used to be Smith. I had to change it."

See, there are still places he could go, like the French Foreign Legion :)