Comcast-Spectacor reaches agreement to sell Sixers to Harris led group

by Derek Bodner on Jul 13, 2011 6:04 PM PDT in Philadelphia 76ers News

Comcast-Spectacor has sent out a press release announcing that it has reached an agreement to sell the Philadelphia 76ers to the investment group led by Joshua Harris. Despite the NBA being in a lockout preventing talks between teams and players, this will not delay the sale from going through.

Harris' ownership group includes David Blitzer, Art Wrubel, and Jason Levien. Blitzer is the Senior Managing Director of The Blackstone Group, and Levien is a former NBA player agent and former member of the Sacramento Kings organization.

The sale is to the participants as personal investors, not associated with either Apollo or Blackstone.

Comcast-Spectacor is selling 90% of the team for a reported $280 million, with Ed Snider retaining the remaining 10%, although he will have no oversight into the operations of the team. The deal does not include either the Wells Fargo Center or Comcast SportsNet, and the Sixers will remain long term tenants of the Wells Fargo Center, and will retain the contract with Comcast SportsNet to broadcast the games.

"We are honored to have the opportunity to be affiliated with this storied franchise," said Harris. "As a basketball fan who attended college in Philadelphia, and with family roots here, I have always felt a strong connection to this City and the 76ers," Harris said. "We look forward to helping the 76ers organization build on this past season's accomplishments in the years ahead. The ownership group also looks forward to a long and mutually beneficial relationship with Comcast-Spectacor."

"We are excited to become associated with this iconic team and to have the chance to serve the great City of Philadelphia and its loyal basketball fans," Blitzer said.

As previously stated, the sale is still pending league approval. It's unknown exactly how long that will take to be completed, but the new ownership group has already met with Rod Thorn.

Tweet Comment 27 comments | 0 recs |

Do you like this story?

Comments

Celebrate good times?

"They say that nobody is perfect. Then they tell you practice makes perfect. I wish they'd make up their minds." - Wilt Chamberlain

by soman319 on Jul 13, 2011 5:35 PM PDT reply actions

I am.

Derek Bodner

LibertyBallers || DraftExpress
@derekbodner || derek.bodner@draftexpress.com

by Derek Bodner on Jul 13, 2011 5:37 PM PDT up reply actions

"They say that nobody is perfect. Then they tell you practice makes perfect. I wish they'd make up their minds." - Wilt Chamberlain

by soman319 on Jul 13, 2011 5:38 PM PDT up reply actions 2 recs

So...

…Seattle, KC, or Vegas?

I'm good enough, I'm smart enough, and doggone it, there will be no trade for Monta!

by dweebowitz on Jul 13, 2011 5:39 PM PDT reply actions

Please don't joke like that.

by Naismithball on Jul 13, 2011 5:43 PM PDT up reply actions

I don't know that I'm kidding...

…I don’t know why a savvy investor like Harris would buy a mediocre team like the Sixers that is losing money hand over fist from basketball operations, in an indifferent pro basketball town, and not buy the revenue-generating assets, like TV rights and the stadium.

I'm good enough, I'm smart enough, and doggone it, there will be no trade for Monta!

by dweebowitz on Jul 13, 2011 5:51 PM PDT up reply actions 1 recs

He got a team in a top five market for about $50 million less than what it is worth. This is a steal.

If they can turn the team into a contender, this city has shown it will go mad for the Sixers.

It really wasn’t that long ago before the Phillies were an afterthought and this city was seen as indifferent to baseball.

Follow Bleeding Green Nation on Twitter & Facebook

by JasonB on Jul 13, 2011 6:37 PM PDT up reply actions

Philly. They’re not going anywhere.

Derek Bodner

LibertyBallers || DraftExpress
@derekbodner || derek.bodner@draftexpress.com

by Derek Bodner on Jul 13, 2011 5:51 PM PDT up reply actions

Why not? They’re getting crushed financially (I really believe that in terms of the Sixers), and they didn’t buy the stuff that makes money (the stadium and the TV rights). It would be ridiculous not to at least consider less-apathetic markets with access to revenue-generating assets.

I'm good enough, I'm smart enough, and doggone it, there will be no trade for Monta!

by dweebowitz on Jul 13, 2011 5:55 PM PDT up reply actions 1 recs

1) They’re locked into contracts with CSN and, more importantly, the Wells Fargo Center
2) Philly is the best market of those 4. Vegas be massively opposed by the league, OKC’s a relatively small media market, and Seattle wasn’t exactly filling the stadium when the Sonics left (28th in attendance their last year, haven’t been in the top 20 since 2000-2001, haven’t been in the top 10 since ‘83-’84).

None of them are sure bets, and far too much risk to take when the gain isn’t all that high.

They bought the team because they think the economic landscape in the NBA is going to improve, not because they think they’re going to improve based on geographical location.

Derek Bodner

LibertyBallers || DraftExpress
@derekbodner || derek.bodner@draftexpress.com

by Derek Bodner on Jul 13, 2011 6:10 PM PDT up reply actions

As far as the contracts with Comcast go, I can’t imagine that they signed something with no out clause for attendance. And Philly is the best market on paper, but I don’t know that that translates to concrete financial results. What has our attendance been lately in terms of ranking? When was the last time Philly was in the top 10? And bringing a team back to Seattle would be a huge goodwill image-boosting gesture at a time when Der Stern desperately needs some good press.

Obviously, I’m not privy to any of the contract language, but I can’t imagine that they locked themselves in a position where it would be almost impossible to make any money unless the team turns into the Lakers overnight.

I’m not a big fan of Wall St guys, but the last thing I would call any of them is stupid. Not examining every option would be stupid, and not putting oneself in the position to take advantage of the best one would also be stupid.

I'm good enough, I'm smart enough, and doggone it, there will be no trade for Monta!

by dweebowitz on Jul 13, 2011 6:18 PM PDT up reply actions 1 recs

If they put a good product out, more people we come.

It is hard to compete with the other pro teams in Philly but it’s especially harder when a poor product has been placed on the floor for so long. Casual fans flock to success.

"They say that nobody is perfect. Then they tell you practice makes perfect. I wish they'd make up their minds." - Wilt Chamberlain

by soman319 on Jul 13, 2011 6:27 PM PDT up reply actions

The Sixers were 25th in attendance this past season, drawing 604k. The Sixers were a top 10 attendance team as recently as 2004-2005, when they were in the top 10 6 years in a row,

Derek Bodner

LibertyBallers || DraftExpress
@derekbodner || derek.bodner@draftexpress.com

by Derek Bodner on Jul 13, 2011 6:29 PM PDT up reply actions

The top 5 most valuable franchises in the NBA are all top 5-6 metro markets. The only top five US TV market that is not in the top 10 in terms of franchise value is the 76ers.

That is an undervalued asset if there ever was one. And as you said, when the team is winning, they pack that place.

Follow Bleeding Green Nation on Twitter & Facebook

by JasonB on Jul 13, 2011 6:43 PM PDT up reply actions

All these reasons are exactly why Harris jumped on the team. It was undervalued with big potential and he got it cheap.

And you really can’t discount the coming CBA enough. Harris betting that the new CBA will be far better for the owners than the previous one and will make running an NBA team that much easier to do profitably.

Follow Bleeding Green Nation on Twitter & Facebook

by JasonB on Jul 13, 2011 6:39 PM PDT up reply actions 1 recs

You constantly come back to Seattle but you never mention the reality that if they sold their place out they would have kept the Sonics / Thunder. There is a reason why they got all those high picks for players like Durant, Westbrook, and Jeff Green…. they were a bad team and bad teams don’t sell it the NBA. You have this negative mentality like you want to punish Sixers fans for not going to games… its a bad economy and people aren’t gonna waste money on a losing team.

xEgan on Twitter

by xEgan on Jul 13, 2011 7:38 PM PDT up reply actions

Actually, I want to punish Comcast for not selling the TV or stadium revenue rights. Without those, it is really hard to make money owning a basketball team. They have to be pretty much perfect to make a profit without those revenue streams.

I'm good enough, I'm smart enough, and doggone it, there will be no trade for Monta!

by dweebowitz on Jul 13, 2011 8:24 PM PDT up reply actions 1 recs

The team is going to get paid from Comcast for the rights to their games and they’re still getting money from tickets…

Follow Bleeding Green Nation on Twitter & Facebook

by JasonB on Jul 13, 2011 9:42 PM PDT up reply actions

As a Kings fan

Levien is a great person to have in your front office. I personally always liked him, and was sad to see him go. He works hard and is meticulous about team building. I’m interested to see what moves this team makes (as soon as they are allowed to make moves, that is).

by Evan A on Jul 13, 2011 10:27 PM PDT up reply actions

London

by tk76 on Jul 14, 2011 5:47 AM PDT up reply actions

the Seattle Suuuuuuper Sixers

by Naismithball on Jul 14, 2011 8:48 PM PDT up reply actions 2 recs

Good one.

by tk76 on Jul 15, 2011 6:26 AM PDT up reply actions

I would be shocked if they were moved. This is a 4 sport city, period. The NBA knows that if sixers can get a superstar or an elite team in here, ppl will come back. I was a a Phillies season ticket holder at the Vet, I remember Sundays when we were lucky if there were actually 14,00 people in the stands. They now have selled out well over 150+ games now.

Philly born and raised with plenty of Orange in my blood!

by fantasybc88 on Jul 13, 2011 5:55 PM PDT reply actions

exactly!

"They say that nobody is perfect. Then they tell you practice makes perfect. I wish they'd make up their minds." - Wilt Chamberlain

by soman319 on Jul 13, 2011 6:28 PM PDT up reply actions

I don’t see them moving. Harris seems to be a Philly fan and is a fan of the team’s legacy, which you can’t really say of Ed Snider. Just hope they don’t make boneheaded personnel decisions.

by JKM-76- on Jul 13, 2011 6:03 PM PDT reply actions