Philippine PBA Trades, Releases, Sign-ups, Rumours (vol. III)

[Pugad-Pagod]

somehow i can't help but think that Air21 got a handsome sum from that vote

Hahaha ... well, they sure have a successful business model. Their transactions ALWAYS translate positively into their financial bottomline. According to the GAAP ... Debit ----> Goodwill, Credit ----> Receivables.

[digitalsuperman]

Even though the PBA Board of Governors could disapprove the sale of the Powerade PBA Franchise to the SMC Group and PBA Commissioner Chito Salud could disallow the Lassiter Trade to Petron however the PBA cannot dictate the Coca-cola Management to maintain its PBA Team if the MultiNational Corporation with one of the most recognizable brands in the world saying it has a different direction in mind with their Marketing Plans.

Please note the Coca-cola Company unlike the Photokina Franchise is not in dire straights financially. So its not that desperate to sell its PBA Franchise at a bargain price.

So I do see Powerade following the footsteps of Shell and just walk-away if ever the 100 million peso sale of the Powerade PBA Frachise to SMC is disapproved and if no other company could give the same kind of offer.

Just like Shell, Coke could very much withstand whatever loses it could incur by exiting the PBA and actually save some money by no longer paying the expensive salaries of the players plus the other high maintenance costs of a PBA team. That would mean one more less team in the league.

i could see this one coke selling the franchise to other buyers. but as stipulated in the contract when coke was sold by SMC. the coke franchise gave it a shot to SMC first before finding another buyer.

im not sure about this but im sure coke knows one corporation cannot own more than 3 franchises. but as what was stipulated in the contract, they offered it first to SMC.

at this point though, i would assume that the coke franchise carries a hefty price tag. it was stated that it was valued at 100 million. in which it would be really hard to sell and coke franchise being a business entity are bent on getting the franchise' value in return.

i would assume coke would devaluate the franchise market value by trading their assets(players) with cash which SMC is exercising. i would assume that coke franchise would be devaluated to at least 60 to 40 million before it will be offered to other buyers as well since that is the most saleable price.

[neo]

Oh yeah. I do remember that. Chua was practically on his knees, begging for the sale of his franchise to Phoenix so he could get some financial relief for his Photokina business (unpaid employee wages and whatnot). Unfortunately for him, the SMC block (+ Air21 of course) ... este ... the PBA board pala ... said no.

It does seem highly illogical to sell a franchise with "finality," and then later on having the entire "legally binding contract" rescinded by people outside the buyer and seller. It does seem like a PBA franchise owner has to first bring the matter of "intent-to-sell" before the board, who will then approve/disapprove by virtue of a vote.

i do not think so. pls see my post after this post and please refer to previous statements by salud. if my understanding is wrong, feel free to correct it for the understanding of all.

[neo]

i don't think so.but im not sure though.

case in point the photokina franchise - phoenix petroleum.

the chua's declared its intention first to the board of selling their franchise to phoenix petroleum. they voted. didn't get 2/3 of the votes. thus no sale.

i might be wrong though. im no insider

its me based on reading a lot of news articles and blogs.

Meralco makes power move, joins pro league
By Nelson Beltran (The Philippine Star) Updated August 11, 2010 12:00 AM Comments (0)

MANILA, Philippines - The PBA board of governors officially approved the sale of the Sta. Lucia Realty franchise to Meralco yesterday, paving the way for the return of the country’s biggest electric company to the basketball scene.

In a meeting yesterday, the board gave its approval on the Manila Electric Company’s purchase and takeover of the Sta. Lucia Realty franchise, officially making it the newest member of the league.
Meralco reportedly bought Sta. Lucia for P50 million.

PBA commissioner Sonny Barrios said the board welcomed Meralco with open arms.

“No vote was needed. Sta. Lucia first bade goodbye then the board passed a resolution thanking Sta. Lucia for 18 years of membership in the league in good standing. Sta. Lucia official Buddy Encarnado endorsed Meralco’s acceptance and it was approved,” said Barrios.

Meralco, however, will have to fulfill a franchise fee of P6 million and a performance bond guaranteeing minimum stint of five years in the league.

Meralco became a household name in the 1960s until the mid 70s while playing in the defunct MICAA. Among its players at the time were former senator and basketball icon Robert Jaworski, Alberto “Big Boy” Reynoso and Jimmy Mariano.

in my understanding, sale can be done before putting it into board approval. of course its not final as it is not offical yet without the board approval. sale will only be consummated with the approval. so there is nothing illegal if there was already agreement between coke and smc prior to presenting it to the board. in my understanding, its not just the "intention to sale" that is to be approved. but the sale itself. if its just the "intention', then even with approval, any one of the 2 parties can run away from that "intention" as it is not binding. but im no lawyer or businessman so mine is the understanding of a student.

[ariel_muhlach]

i could see this one coke selling the franchise to other buyers. but as stipulated in the contract when coke was sold by SMC. the coke franchise gave it a shot to SMC first before finding another buyer.

im not sure about this but im sure coke knows one corporation cannot own more than 3 franchises. but as what was stipulated in the contract, they offered it first to SMC.

at this point though, i would assume that the coke franchise carries a hefty price tag. it was stated that it was valued at 100 million. in which it would be really hard to sell and coke franchise being a business entity are bent on getting the franchise' value in return.

i would assume coke would devaluate the franchise market value by trading their assets(players) with cash which SMC is exercising. i would assume that coke franchise would be devaluated to at least 60 to 40 million before it will be offered to other buyers as well since that is the most saleable price.

I might be wrong as I am just speculating that maybe the reason SMC and Coke is keeping their negotiation silent is that because 1st the PBA disallows SMC or any other Group to own more than 3 Teams and 2nd because the Local Top Executives of Coca-cola are not in favor of letting go of the PBA Franchise, so the Coca-cola International Expats are actually letting SMC look for the 3rd party buyer while they are assured of a 100 million sale. SMC in return is going to secretly "trade" key Powerade Players to strengthen their teams. Its a devious scheme so its not impossible in this cat-eats-dog business community we have when unfriendly corporate takeovers is common in a very competitive environment that we have.

so if it can proven there is something fishy happening behind the scenes, this a big challenge to Commissioner Chito Salud and the rest of the PBA Board of Governors .... how would they penalize SMC Group and Powerade aside from disallowing both the powerade sale and the lassiter trade. This is an opportunity for them to prove the PBA is not a SMC league.

On the other side what if indeed there was an offer but there was no actual sale that happened .... will Salud still allow the Lassitter Trade to push thru or will he just make minor revisions lets say like trade Crisano or Allera in addition to Lassiter for Baclao, Guevarra and Al-Husseini.

[digitalsuperman]

in my understanding, sale can be done before putting it into board approval. of course its not final as it is not offical yet without the board approval. sale will only be consummated with the approval. so there is nothing illegal if there was already agreement between coke and smc prior to presenting it to the board. in my understanding, its not just the "intention to sale" that is to be approved. but the sale itself. if its just the "intention', then even with approval, any one of the 2 parties can run away from that "intention" as it is not binding. but im no lawyer or businessman so mine is the understanding of a student.

my understanding of the rule stays the same. approval of sale for me means the board has approved the existing franchise' intention to sell to the buyer. i don't think any buyer would commit of buying first when its still up in the air with the board.

in my understanding there has to be an MOU between the franchise seller and the buyer and thats it, there is no sale yet. that is as far as i know. then the seller will bring the sale up to the board where the board votes if the buyer is qualified enough(politically qualified i guess ) . if the vote is 2/3 favourable to the selling then the sale transaction begins.

anyway that is just my interpretation anyway. im not an expert.hehe.

we can agree to disagree though.

[killmebusy]

I might be wrong as I am just speculating that maybe the reason SMC and Coke is keeping their negotiation silent is that because 1st the PBA disallows SMC or any other Group to own more than 3 Teams and 2nd because the Local Top Executives of Coca-cola are not in favor of letting go of the PBA Franchise, so the Coca-cola International Expats are actually letting SMC look for the 3rd party buyer while they are assured of a 100 million sale. SMC in return is going to secretly "trade" key Powerade Players to strengthen their teams. Its a devious scheme so its not impossible in this cat-eats-dog business community we have when unfriendly corporate takeovers is common in a very competitive environment that we have.

so if it can proven there is something fishy happening behind the scenes, this a big challenge to Commissioner Chito Salud and the rest of the PBA Board of Governors .... how would they penalize SMC Group and Powerade aside from disallowing both the powerade sale and the lassiter trade. This is an opportunity for them to prove the PBA is not a SMC league.

On the other side what if indeed there was an offer but there was no actual sale that happened .... will Salud still allow the Lassitter Trade to push thru or will he just make minor revisions lets say like trade Crisano or Allera in addition to Lassiter for Baclao, Guevarra and Al-Husseini.

regardless of the findings on the sale and what not, the lassiter trade should be revised. besides, coke will be taking in much more salary cap space..do they still have room?

[ariel_muhlach]

regardless of the findings on the sale and what not, the lassiter trade should be revised. besides, coke will be taking in much more salary cap space..do they still have room?

Tweet from snow badua:

"Only 5 GOVERNORS attend PBA BOARD MEETING. ROS, ALASKA, TNT, MERALCO & AIR 21"

"No quorum in today's PBA BOARD MEETING. Atleast 6/10 is needed."

How can they resolve the matter if the 3 SMC Governors and that of Powerade is not there.

Its also rather odd that the Lina Group's Barako Bull Governor is absent while Air 21's Governor is there. Because if the Barako rep was there then there's a quorum and they could officially open the agenda on the Questions regarding the Powerade Sale and the Lassiter Trade.

[neo]

my understanding of the rule stays the same. approval of sale for me means the board has approved the existing franchise' intention to sell to the buyer. i don't think any buyer would commit of buying first when its still up in the air with the board.

in my understanding there has to be an MOU between the franchise seller and the buyer and thats it, there is no sale yet. that is as far as i know. then the seller will bring the sale up to the board where the board votes if the buyer is qualified enough(politically qualified i guess ) . if the vote is 2/3 favourable to the selling then the sale transaction begins.

anyway that is just my interpretation anyway. im not an expert.hehe.

we can agree to disagree though.

im not actually forwarding an argument but more of clarifying.my position is that sale or just "sale" (agreement, intent), smc did not do anything wrong as it is a practice to get into that agreement before putting it for approval of the board. i believe smc did not do anything illegal (whatever kind of deal they had with coke). the hotter issue, even among the other governors, is not really sale or impending sale of coke's franchise to smc but more of the possibilities of internal movement of players between 2 teams who are parties to a sale/impending sale.

[digitalsuperman]

Tweet from snow badua:

"Only 5 GOVERNORS attend PBA BOARD MEETING. ROS, ALASKA, TNT, MERALCO & AIR 21"

"No quorum in today's PBA BOARD MEETING. Atleast 6/10 is needed."

How can they resolve the matter if the 3 SMC Governors and that of Powerade is not there.

Its also rather odd that the Lina Group's Barako Bull Governor is absent while Air 21's Governor is there. Because if the Barako rep was there then there's a quorum and they could officially open the agenda on the Questions regarding the Powerade Sale and the Lassiter Trade.

the board meeting is not in quorom. im wondering if they'll continue though?

[neo]

Tweet from snow badua:

"Only 5 GOVERNORS attend PBA BOARD MEETING. ROS, ALASKA, TNT, MERALCO & AIR 21"

"No quorum in today's PBA BOARD MEETING. Atleast 6/10 is needed."

How can they resolve the matter if the 3 SMC Governors and that of Powerade is not there.

Its also rather odd that the Lina Group's Barako Bull Governor is absent while Air 21's Governor is there. Because if the Barako rep was there then there's a quorum and they could officially open the agenda on the Questions regarding the Powerade Sale and the Lassiter Trade.

even with quorum, it would not really move forward because smc and coke is not there.

if this info is accurate, then the two parties involved just gave their thumbs down to mondargon's effort to clarify the matters at hand.

[killmebusy]

even with quorum, it would not really move forward because smc and coke is not there.

if this info is accurate, then the two parties involved just gave their thumbs down to mondargon's effort to clarify the matters at hand.

well, the lassiter trade is on hold so unless the other board members show up marcio will not be wearing a petron jersey. still, point is bully trades have to stop...petron/smc has to learn how to build thru the draft and develop their players.

[Jordan Bruiseter]

[INDENT]Its also rather odd that the Lina Group's Barako Bull Governor is absent while Air 21's Governor is there. Because if the Barako rep was there then there's a quorum...

As of this moment, there is a separate meeting ongoing between the Chua group and Lina group of Barako Bull to discuss their stand on this issue, among others.

[nardy]

snow badua @snowbadua

SMC bosses told me that they will be present on the next BOARD MEETING. FEBRUARY 20, 11 AM. RE: reported sale of POWERADE FRANCHISE
7:40 PM - 10 Feb 12 via web

snow badua @snowbadua
SNOW to SALUD: Yung COKE ba nagexplain kung bakit wala silang representative sa BOARD MEETING ngayon? CS: No.




7:38 PM - 10 Feb 12 via web
snow badua (@snowbadua)

Posted Friday 10th February 2012 from Twitlonger




GINEBRA GOV ROBERT NON & BMEG GOV RENE PARDO already agreed to a prior commitment before RAIN OR SHINE GOV AND CHAIRMAN ATTY MERT MONDRAGON scheduled TODAY's BOARD MEETING.

PETRON GOV ELY CAPACIO had an urgent appointment this morning.

The three, and also POWERADE & BARAKO BULL's representatives, weren't at the 11 AM to 2:30 PM EMERGENCY BOARD MEETING at the PBA OFFICE today.

Present were ALASKA's JOAQUI TRILLO, AL VILLADOLID (Air 21), PATRICK GREGORIO (Talk N' Text), RAMON SEGISMUNDO (Meralco), CHAIRMAN MERT MONDRAGON (Rain or Shine).

COMMISSIONER CHITO SALUD, OPERATIONS HEAD RICKIE SANTOS, MEDIA BUREAU CHIEF WILLY MARCIAL and LEAGUE LEGAL COUNSEL ATTY MELVIN MENDOZA observed the said proceeding.

http://tl.gd/fr3g7b

[nardy]

PBA special meeting on Powerade reset; Lassiter trade still on hold

Reynaldo Belen, InterAKTV · Friday, February 10, 2012 · 9:04 pm


The PBA Board of Governors decided reset its scheduled special meeting Friday after failing to reach quorum. The meeting, which was rescheduled for February 20, was supposed to discuss reports of the sale of the Powerade franchise to the San Miguel Corporation. The board was also supposed to tackle the pending trade between the Tigers and the Petron Blaze Boosters, which is owned by SMC.

Present during the scheduled meeting were chairman Mamerto Mondragon of Rain or Shine, Pato Gregorio of Talk ‘N Text, Ramon Segismundo of Meralco, Joaqui Trillo of Alaska and Al Villadolid of Air 21.


Powerade Tigers going extinct?
PBA puts Lassiter trade on hold
Powerade franchise offered for sale to SMC last November
Lassiter deal reminds of Talk ‘N Text trade for Williams, Reyes
PBA receives Lassiter trade proposal
With Powerade sale reports abound, PBA officials question Lassiter trade
PBA convenes special meeting to discuss Powerade sale, trade reports
Amid sale rumors, Powerade plans to trade Lassiter to Petron for Baclao, Guevarra
David shrugs off Powerade sale reports
Coke denies Powerade Tigers sale to SMC, but PBA team officials alarmed



Board representatives of Barako Bull, Powerade and SMC-owned teams Petron, B-MEG, and Ginebra failed to show up for the meeting.


Barako Bull governor Manny Alvarez told InterAKTV on Thursday that he will send Atty. Ernie Dinopol to attend the meeting in his stead, but the alternate representative failed to attend.


“Miscommunication because he had to attend to problems in Dumaguete,” said Alvarez in defense of Dinopol’s failure to attend the meeting.


PBA commissioner Chito Salud said in a statement that the five board governors sent their excuses for being absent in the special meeting, but will continue communicating with Coca-Cola officials regarding the fate of its PBA franchise.


Salud said that with the special board meeting rescheduled, the trade that would send Powerade’s Marcio Lassiter to Petron Blaze in exchange for Noy Baclao and Rey Guevarra remains on hold.


“I am not inclined to take action on the trade until official word regarding media reports on the supposed sale is obtained,” said Salud. “Until I get a clear picture of what is happening here, and this for the sake of transparency and full disclosure, I will not take action on the trade.”


The Lassiter deal, which was submitted to Salud’s office on Tuesday, has raised howls of disapproval among officials of other PBA teams. Last week, the Philippine Daily Inquirer reported that Powerade has already been sold to SMC, which has been denied by Coca-Cola Bottlers Philippines, Inc., the company that owns the Tigers.


But a document obtained by InterAKTV reveals that the Powerade team was offered for sale to the conglomerate last November.