Teachers’ looking to buy TD’s stake in MLSE

[EaseMyPain]

Do not Fear the Teacher's

They spend to make their assets better. They just do not know what they are doing in terms of running a franchise. That is why they hired Burke and Colangelo - they finally understand that they do not understand.
They need to get a GM in place before the draft, though. Even if they don't, someone will have to pick someone off the board. The success of that is probably no worse than any other method.
Besides, the balls are pre-determined and Stern is not concerned with the Raps these days.

[Joey]

Couple of questions regarding this latest move by the OTPP

1. How does this affect Colangelo's status?
2. Does anyone get the impression that Tannebaum may just be sitting back and eventually emerge as the owner? Would that be good for the Raptors and Leafs?

If it means that this will help speed up the process, then yes, it will affect Colangelo's status.

And IF Tannenbaum comes out on top, I for one, wouldn't necessarily be against that.
He seems to be a pretty Hands-off type Owner, who trusts the Brains that he's hired.

[RapthoseLeafs]

Show me the money

....... If there is any manouvering I detect it is that Teachers is increasing it's stake to possibly make it more difficult for LT to get the funds because of a larger amount now in play.

The more difficult it is for Tannybum to secure financing, the more likely a bidding partner (or two), will enter the fray. A means to an end - better price.

[Apollo]

Even if they don't, someone will have to pick someone off the board. The success of that is probably no worse than any other method.

I want Colangelo making that draft selection. He's has a great track record and as such I would argue with this point. Getting somebody else to make the pick leads to Hoffa selections.

Besides, the balls are pre-determined and Stern is not concerned with the Raps these days.

The Raptors represent an entire country and Stern is trying to expand the game globally. You theory doesn't makes sense.

[jeff_hostetler]

This is nothing but a business decision, and will have little - if any - effect on the Raptors organization (at least insofar as this single transaction is concerned). Taking one less shareholder out of the equation = one less obstacle to eventual sale.

But...if the OTPP does, in the end, take long-term control of MLSE and not sell off as they are trying to at the moment, then an even bigger portion of revenue for the Teachers becomes directly linked to the success of Toronto's sports franchises.

They would take a long term interest in the financial health and profit generating capacity of the teams. Which, any good business guy should be able to tell you, is linked to the ability of those teams to consistently appear and be successful in the playoffs. Playoffs equal more home games, more ticket sales and better marketing. One and dones need not apply.

Therefore, if such a long term stakeholder such as the OTPP does in the end not sell and maintains an 80% ownership stake in MLSE, then I for one see this as a good thing as far as it relates to them needing success for their sports franchises. This though is contingent upon their business guys focusing on the correct business model for the long term, which happens to fall nicely in line with the correct way to build a sports franchise: sustained success in the playoffs and championship contention, all built around marketable players. This requires a team to avoid the band-aid solution - that is, NoMoreTurks-O'Neils (tm).

This is where Colangelo's situation may come under the most duress, as he is definitely a guy who I see as being likely to pull the trigger on a trade that may sacrifice the long term for a chance at the playoffs - even if that playoff seed happens to be quite low. I do think though that pressure has been placed on him specifically not to do this anymore. That's just my opinion from what I've heard, read and understood. I could be wrong of course.

Long story short: so long as Colangelo is ammenable to the proper rebuild - and signs are good now that he is - I think ownership will have him back. As far as the OTPP is concerned I think they are already on board with such a plan as described above for the team. Personally then I would prefer, as far as the Raps are concerned, for them to not sell, and maintain their 80% stake. Due to what I said, but also having no idea who may be next in line for that 80% stake and what they might want out of their investment.

[mcHAPPY]

Besides, the balls are pre-determined and Stern is not concerned with the Raps these days.

Stern has said one of his biggest regrets in his days of commissioner (nearly 30 years) is the situation in Vancouver. I think he would be very concerned about the state of the Raptors in Toronto.

[slaw]

I am sorry I am not following. I did not see where LT is restricted to only 20% of a sale of mlse (right of first refusal).

No, L.T. only has the right to buy up a proportional share of the TD stake. The G&M article referenced it. Whatever, in any case, anything that expedites the departure of OTPP is a good thing.