It looks like the sale agreement between Joshua Harris & his sidekicks and Comcast-Spectacor is completed. From Dei Lynam:
According to a league source, an agreement of sale of the Sixers has been reached between the group led by billionaire Joshua Harris and Comcast-Spectacor.
Now the deal must be approved by the league’s board of governors. The NBA needs to approve the sale and they will be thorough in their investigation. It is difficult to say exactly how long that will take but according to Adam Silver, the NBA’s deputy commissioner, the process can be lengthy.
It looks like the price will fall around $280 million, which was reported before. Also, this:
Terms of the deal were not disclosed, but the sale is believed to be for $280 million. The buying price will look low compared to the last NBA team sold; the Golden State Warriors were sold last summer to Joe Lacob and Peter Guber for, according to Bloomberg, a record $450 million.
The difference is the new ownership group will not have access to two major revenue sources. Comcast-Spectacor will continue to own the Sixers’ arena, the Wells Fargo Center, and Comcast SportsNet has the television rights through 2029. The team will remain a tenant of the Wells Fargo Center.
Discussions of the deal began in May, and in the middle of June Comcast-Spectacor COO Peter Luukko released a statement confirming the “discussions about the future of the team” but wouldn’t provide any details.
So the price is low, but considering what’s coming back, it’s understandable. According to Kate Fagan, the deal is for 90% of the team, which would put the value of the team itself at $308 million without the rights to renegotiate what looks to be a low-priced TV contract with Comcast. Which is higher than I thought the franchise would be valued at.
I’ll also add that, as I mentioned before on Twitter, that I know for a fact the negotiations started back in March, though it’s irrelevant when looking at the final outcome.
The league still has to approve the sale, but I can’t imagine it won’t. David Stern likes and needs billionaire owners, though for sure he doesn’t want another Mark Cuban. I’ll have more on this tomorrow.