Golden State Warriors To Be Sold For $450 Million

Friday, 16 July 2010 11:00

The Golden State Warriors have been one of the NBA’s worst teams in recent years, but they did set an off the court record this week. On Thursday, an agreement was reached to sell the team to Boston Celtics’ minority partner Joe Lacob and Mandalay Entertainment CEO Peter Guber for $450 million (US). That is the highest price ever paid for an NBA team, eclipsing the $401 million that Robert Sarver paid for the Phoenix Suns in 2005. The sale must now be approved three-quarters of the NBA Board of Governors, and Lacob must unload his interest in the Celtics.

Lacob and Guber beat out several other competing bids, most significantly that of Oracle CEO Larry Ellison. Ellison has a personal fortune of $28 billion, making him one of the ten richest men in the world. Ellison was quick to issue a statement suggesting that previous Warriors’ owner Chris Cowan had shafted him:

"Although I was the highest bidder, Chris Cohan decided to sell to someone else. In my experience this is a bit unusual. Nonetheless, I wish the Warriors and their fans nothing but success under their new ownership."

While Ellison’s point about being the highest bidder may be technically correct, it does need to be put in context. His original offer for the team was well beneath the Lacob/Guber $450 million offer. Ellison responded with an 11th hour counteroffer for slightly more just as terms of the sale were being finalized, but by that point Cohan either decided to stick with the deal he had on the table or concluded that the process was too far along to consider the new bid. Sal Galatioto, the president of Galatioto Sports Partners advised Cohan on the sale and used a basketball metaphor to explain why Ellison’s bid was rejected:

"He was way past the deadline. There was no way I was going to recommend that bid to Chris. ... Once the shot clock expires, are you allowed to get back on the court and have it count? I don't think so."

With approval by the NBA almost certain, Lacob is excited about getting to work:

"I am incredibly excited to have the opportunity to be the next steward of this storied NBA franchise. This is my dream come true. Peter and I intend to do what we do best -- innovating and building. It is our passion to return the Warriors to greatness and build nothing short of a championship organization that will make all of us in the Bay Area proud."

Cohan bought the Warriors in January 1995 for about $119 million, so he’s clearly getting a nice return on his investment. On the other hand, the team made the playoffs just once in his ownership tenure. The Warriors have made at least one very impressive pickup in the offseason, obtaining power forward David Lee in a sign and trade deal with the New York Knicks so there may be light at the end of the tunnel in terms of their own court success.

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Golden State Warriors To Be Sold For $450 Million

Golden State Warriors To Be Sold For $450 Million

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