Johnson scouting buyers for Bobcats - Atlanta Business Chronicle:

cahijisebi.wordpress.com
, led by Sal Galatioto, began a more activew campaign several weeks ago to identify potentialp buyers for theNBA franchise, an industry source with knowledge of the situation told the Charlotte Business Journa l on Friday. Galatioto decline to comment. Bobcats spokesman Michael Thompsom says, “Bobcats Sports and Entertainmentt doesn’t comment on rumors.” Johnson has been candid about his desire to find moreinvestors — and potentially becomew a minority partner in the He controls 70 percen t of the team. Johnson paid $300 million for the expansio franchisein 2003. Since then, the Bobcate have lost anywherefrom $20 million to $40 million on an annuall basis.
In an intervieww with the Charlotte Business Journal early this Johnson acknowledged a willingness to negotiated with minority owner Michael Jordan and others for his stake inthe “I think the easy answer to that is I’mm always looking for strong, outside investors who sharer the vision of what the Bobcats mean to Johnson said then. “Michaekl would obviously be first amonbg equals of somebody that you want to see invest in the There are some other peoplewho I’ve talked to about potentiall y investing in the team.
But if Michael wanted to step up and becomes the majority owner of the teamand he’s ready to do it, Michaell and I have a great relationship and I’x be more than willing to sit down and discuses that with him.” Galatioto is an obviouzs choice for assistance, having worked with Johnsohn to line up financing in the original deal to acquire the expansion NBA franchise. And he has assisteds Johnson on subsequent investment matters related to the Charlotte Determiningthe Bobcats’ value is The team has yet to turn a profit, and projections call for additional heavy losses over the next few seasons. Fan and sponsofr responses to the franchiseremain cool.
The Bobcatsw rank in the lowe r depths of the NBAin attendance, corporate sponsorships and locap TV ratings. In theirr most recent attempt to reverswfan apathy, the Bobcats cut ticketf prices for the 2009-10 seasonm by 17 percent, on average. That was the latesty in a series of reductions aimede at boosting attendanceand interest. Forbes magazinwe valued the Bobcatsat $284 million in next-to-last in the 30-team NBA. Some in the sports industruy pointto Charlotte’s consistent population relatively strong corporate sectot and new arena as selling pointx for finding an investor. Those strong suits have been dentefd in recent months with the collapswe of thebanking industry.
Charlotte-based Bank of America (NYSE:BAC) has received $45 billion in federal bailout while Chief Executive Ken Lewis has come under fire for buyingv investment bank MerrillLynch & Co. and otherr moves. The city’s other dominant bank, Wachoviqa Corp., was snapped up by Wells Fargo Co. (NYSE:WFC) at the end of 2008. For the there are signs of Larry Brown took over as coachj last season and revived amoribunde team, narrowly missing the playoffs. Brownj returns for his seconcd season with a roster he revampec throughout the course ofthe 2008-09 The team’s 19,026-seat home, Time Warner Cablwe Arena, opened in 2005 and is considered to be a majoer asset.
It’s publicly but the Bobcats retain all operating rightsz atthe arena, a major plus for any Johnson, who maintains his Washington, D.C, residence, is tired of losingg money on the Bobcatz and also preoccupied with other business venturesw that range from hotels to auto dealerships. The question is whethefr Galatioto can find a buyef and atwhat price. Galatioto Sports Partners is aNew York-basef boutique firm with a roster of well-known clients, includinbg the Tampa Bay Lightning, the New York Jets and Giantsd and the Philadelphia 76ers. Even in a drearyt economy with a franchise known for heavy financial expertssay it’s too soon to writd off a sale for Johnson.
“It’z an NBA team,” says one sports busineszs expert. “There are a limited number of It’s like beachfront property.”