SEC Filing Requirements/NBA Properties

[BBallFan - Long Island]

I'm an old time ABA fan who witnessed the last game of the old ABA at Nassau Coliseum when the New York Nets came from some 20 down at the beginning of the fourth quarter to defeat the Denver Nuggest and win the ABA championship. As an irregular reader of these posts, I've tried to look at what is happening in the ABA with an open mind to its legendary past, and the current environment as a publicly owned company.

Those of you that remember the old ABA know of the fly by night ownership issues, bizzare stories of players (Marvin Barnes), teams (Baltimore Claws) and arenas (Teaneck Armory), and the overall showmanship/promotion orientation of the league. What is happening today (albeit more disorganization and teams now) is in many ways not really all that different that what was happening in the 1960s and early 1970s. The larger difference however is the responsibility of management of what is a publicly owned company. It appears that management is either getting bad advice from its SEC counsel or it hasn't a clue (beyond filing mandatory annual and quarterly reports) about operating within a public environment.

As an example, I read a thread about some recent telephone conference call that included management and owners. Was it a conference call open to the public? Were alternate strategies discussed? Was new capitalization discussed?In many conference calls by public companies, there is a standard SEC type disclaimer that the moderator reads before the call commences. Was that done in this case? If there was a discussion of new investors, new capital, etc. then there should, if material, should be disclosed in such a way that says that alternative financing strategies are being explored, but there can be no assurances that it will be successful.

It appears that the only thing of value that the ABA owns is the license it obtained from NBA Properties to use the name. For those of you who troll this board, you might want to explore whether current management is in default of their obligations to the NBA under the license. I saw that if there is a change of control, or there is some sort of change in management, ABA must pay NBA Properties $500,000. From the brief summary in last year's Form 10-K filed with the SEC, there may be some outs for the NBA to terminate the license, and thus terminate the right of the company to operate the league under the ABA name.

[whataleague]

Obviously you're new to this ABA. Don't waste your time worrying about capitalization and restructuring.
There's nothing worth saving. This "league" is a bunch of glorified rec league teams most of which play in High Schools, promising players $25 a game, and hoping they show up. The average attendance in the league is 10.
Head over to your local YMCA and check out some pickup games. You'll duplicate the "ABA Experience."

[Sam Hill]

Well, the larger issue is that it's 2007, not 1975, and you can't get away with that stuff today because the free market won't allow it. People expect better.

[TEN]

As "fly by night" as the ABA was at times in the sixties and seventies....there is a world of difference between the old ABA and the new ABA....

It's like comparing the current NBA to.....um.....your average rec team that plays down at the Y.

[meyes]

The first post in the thread IS accurate about the fact that there ARE many similarities between the old ABA and this league.
Many people don't know, don't remember, or don't want to remember a lot of the wacky, weird and bad things about the old league.
The mis-management of this league and poor overall control at the top is way beyond the old league.
I am pleased to see someone come on here who does know what he is talking about and writes a good post.

[Sam Hill]

The first post in the thread IS accurate about the fact that there ARE many similarities between the old ABA and this league.
Many people don't know, don't remember, or don't want to remember a lot of the wacky, weird and bad things about the old league.


Oh, we remember.

It's a shame not everybody can put it in context.

That was the 1970s. The market didn't know any better.

They do now. To say the old ABA moved franchises, had franchises fold, and did some crazy things is correct, but not applicable here.

This ABA has not even been run like a good minor league. And it starts with the guy at the top who keeps making the same tired-ass Home Depot/Lowes analogy that he loves.


I am pleased to see someone come on here who does know what he is talking about and writes a good post.

Thanks.

[BBallFan - Long Island]

The other point that I was trying to make was that as I've read numerous other posts, I see, as other see, strength in some of the franchises and general geographic area. There is plenty of room in the market for minor league basketball. If egos can be pushed aside, perhaps consolidation (it worked for the NBA and the NFL) with scheduling on a more regional basis, along with stronger due diligence for vetting franchise ownership can make it more of a success. Unfortunately, there will always be casulties on the minor league scene - look at minor league baseball. Hugely successful in the last 15 years, but you still see fallout.

Lastly, perhaps the NBA through its NBA Properties subsidiary should just step in, call a default on the licensing agreement and absorb some of the NE franchises. In looking at the balance sheet of the ABA, they most likely do NOT have the cash to hire a law firm to defend its rights under the licensing agreement.