Being that I spend 90% of my time neck deep in t-shirts and bullsheet, it’s not too often that I get to pay attention to a lot of things going on in the world (okay I could, but I kinda like sleep). Anyway, someone just sent me an article from ESPN.com on Chinese investors buying into the Cleveland Cavaliers. So far an agreement has been signed, and if approved by the NBA, the investors could acquire up to 15% of the Cavaliers Operating Company.
I’m always a little skeptical when I hear about weird business mergers from across the world. I’m not really one for ‘big business’, so I wouldn’t really see the point of an Asian company having stake in an Ohio sports team. But being that the other side of the world is just a click away, and this planet is becoming smaller and smaller, networking and merging have created a business ‘Six Degrees of Kevin Bacon
As more details come out, we’ll get a better idea of what this Chinese investment will mean for the Cavs, LeBron, and Cleveland. I’m sure it can only mean more good things are to come. Maybe if we’re lucky, we’ll get a little Chinese cuisine. After Matsui signed with the Yankees, you could get sushi along with your Nathan’s dog. Just a hope, I guess. Here’s the article from ESPN.com:
Updated: May 24, 2009, 8:18 PM ET
Chinese investors to buy into Cavs
ORLANDO, Fla. — The Cleveland Cavaliers have signed an agreement with an investment group from China to become minority owners of the NBA franchise and its arena, a partnership that could impact superstar LeBron James‘ future with the team.
The Asian conglomerate, which includes JianHua Huang, a Chinese businessman who has brokered sponsorship deals with the New York Yankees and other sports franchises in the U.S., could acquire up to 15 percent of Cavaliers Operating Company, the entity that owns the team and operates Quicken Loans Arena.
The deal, completed by the sides in recent days, must be approved by the league’s board of governors.
Team president Len Komoroski said Sunday the group approached Cavs principal owner Dan Gilbert about the partnership and called the business venture “an exciting new opportunity.”
Gilbert’s role in overseeing the organization and 20,000-seat arena will not be affected by the new partners.
Citing multiple unnamed sources, The Plain Dealer of Cleveland first reported the sides had a tentative deal in place. But in recent days, paperwork was completed between Gilbert and the consortium. It will now be sent to the league office for approval.
Huang and others in the group attended Games 1 and 2 of the Eastern Conference finals in Cleveland. On Friday, they sat courtside and watched James hit a game-winning 3-pointer in the final second to give the Cavaliers a 96-95 win and even the best-of-seven series which resumed Sunday night.
If approved, the deal would provide marketing opportunities for the Cavaliers and James, who is eligible to become a free agent in the summer of 2010. The 24-year-old MVP, who is already among the league’s most popular players in Asia, has stated he wants to become the first billionaire athlete. His brand overseas could be enhanced by playing for a team with Chinese business partners.
There has been ongoing speculation that James will leave Cleveland to play in a larger market like New York or Los Angeles because of the vast business opportunities. But James — and his corporate sponsors like Nike — have broader goals and may be able to attain them by tapping into China’s colossal consumer marketplace without him ever leaving Cleveland.
James has never given any indication he wants to leave the Cavaliers, who drafted the Akron, Ohio, native with the No. 1 overall pick in 2003. He won a gold medal with the U.S. team last summer at the Beijing Games and has made four trips to China, including one with the Cavs during the preseason two years ago.
“It’s a big market,” James said before Game 3. “They love the game of basketball. I’ve been over there the last four or five summers. It should be good. It should be fun.”
Gilbert has been approached by outside investors in the past, but his original business group has mostly remained intact since he bought the Cavaliers and the rights to operate their arena for $375 million from former majority owner Gordon Gund in 2004.
Gilbert purchased the team with several other investors, including longtime business partner David Katzman, R&B superstar Usher and others. Gund maintained partial ownership.
However, in the past two years, Katzman has decided to focus on other business interests and the Chinese group would essentially take over his percentage of the Cavs.
Copyright 2009 by The Associated Press
A few friends from New York have already asked me what the tone is in northeast Ohio, now that our best shot in the last 13 years to win a title has been crushed. My answer: somber, very somber. As fans of Cleveland sports teams, we are used to disappointment, but this might not be our only heartbreak of the year. Now, with no ring, and a contract that is up, will our beloved LeBron leave us? And for us, what are we going to do with all of these Cavs/LeBron shirts???
Tuesday night’s Game 5 was really, really depressing. I logged onto Facebook and everyone’s posts were of heartbreak, disappointment, and anger with the way the Cavs played. For LeBron to not score in the first half??? I would take a percentage of a fraction of what he was paid for that game & give the Cavs the same results. This isn’t the Browns- we’re supposed to look like we have a chance with the Cavs. If the Cavs lose Game 6, the future of sports in NEO looks very, very bleak. If he can’t win with the Cavs, is he off to New York? All of my friends in New York are waiting for LeBron with open arms. We need this win (and a few others till we’re the champs) to further convince LeBron that Cleveland/Akron/Ohio is the place to be. New York is great, but the Knicks suck- plus LeBron wouldn’t look right with a Patrick Ewing mustache. New York, you have the Yankees, great food, shopping, sites…let us keep LeBron.
I wanted to post something about this Tuesday, but a little break-in got me a bit distracted. Monday night I was down at Frank’s Place and WITNESSED (thanks to the big screens there) the Cavs SWEEP the Hawks. Next they’ll be onto the Eastern Conference Finals; after that THE FINALS and VICTORY! Remember, it started in Akron!
A belated congratulations is due to