Who are Galatioto Sports Partners and Why have them sell the Warriors

Galatioto Sports Partners must be the best in the business for helping professional sports business with financial services.  I’m surprised how plain and amateur looking their site is.  Makes Golden State Warrior Tickets look semi-pro.

GSP Logo

Green the color of Money

Here’s the best of the best that they quote on their home page:

Over the past decade, members of GSP have acted in the capacity of Financial Advisor, Arranger, Lead Agent, Co-Lead Agent or Participant in over 70 transactions in the four major North American sports leagues. GSP’s members have completed assignments for a variety of premier clubs (and their affiliates and owners) including the New York Yankees, Chicago Cubs, New York Mets, New York Giants, New York Jets, Washington Redskins, Palace Sports & Entertainment (Detroit Pistons) and Comcast-Spectacor (Philadelphia 76ers and Flyers). GSP has also undertaken a variety of non-public advisory engagements.

NBA Bobcats sale

BET Founder

Main Players:

Salvatore Galatioto

  • President
  • Formerly:  Managing Director and Head of the Lehman Brothers’ Sports Advisory & Finance Group
  • Overseen engagements for more than 70 transactions in the four major U.S. professional sports leagues as Financial Advisor, Arranger and Agent
  • Formerly:  Managing Director and Head of SG Cowen Securities Corporation’s Sports Advisory Group
  • Westpac Banking Corporation Corporate Finance Unit
  • Masters of Business Administration from the American Graduate School of International Management (Thunderbird)
  • Fletcher School of Law and Diplomacy
  • Hunter College
  • Advisory Board of the World Congress of Sports
  • Adjunct Associate Professor at the Columbia University Graduate School of Business

Russ Granik

  • Vice Chairman Galatioto Sports Partners
  • Chairman of the Board of the Naismith Memorial Basketball Hall of Fame
  • 1990 Deputy Commissioner and Chief Operating Officer of the National Basketball Association

    NBA Nets Sell

    Real Estate Mogul

  • 1984 Executive Vice President
  • 1980 General Counsel
  • 1978 Assistant General Counsel
  • 1976 Joined the NBA as a staff attorney
  • 1973 Harvard Law School
  • 1969 Dartmouth

NBA Suns Sell

Salvatore Galatioto obviously knows the ins and outs of professional sports but the addition of Russ Granik brings an inside perspective that is immensely valuable.  I’d go to them if I was selling a team AND if I was looking to buy a team then I would have contacted them at some point so they have the interested party list at hand.


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NBA Franchise Historical Sale Prices – Sorted by Year

The most recent sale in the NBA is Michael Jordan’s purchase of the Charlotte Bobcats setting a comp for the future buyer of the Warriors.  However, Clayton Bennett paid $325 million for the Oklahoma City Thunder so I’d set that as the most recent comp.

Try here for NBA Franchise Historical Prices sorted by purchase price

NBA TEAM BUYER MILLION YEAR
Charlotte Bobcats Michael Jordan $240 2010
New Orleans Hornets George Shinn and Gary Chouest $33 & $285 1987 & 2007
Oklahoma City Thunder Clayton Bennett $325 2006
Cleveland Cavaliers Daniel Gilbert $375 2005
Phoenix Suns Robert Sarver $404 2004
Atlanta Hawks Atlanta Spirit $306 2004
NJ Nets Bruce Ratner $300 2004
Charlotte Bobcats Robert Johnson $300 2003
Boston Celtics Wycliffe Grousbeck $360 2002
Dallas Mavericks Mark Cuban $280 2000
Denver Nuggets Stanley Kroenke $202 2000
Memphis Grizzlies Michael Helsley $160 2000
Los Angeles Lakers Jerry Buss and Philip Anschutz $20 & $268 1979 & 1998
Sacramento Kings Gavin and Joseph Maloof $156 1998
Toronto Raptors Ontario Teachers Pension Plan $125 1998
New York Knicks Cablevision Systems $300 1997
Philadelphia 76ers Comcast Spectacor $125 1996
San Antonio Spurs Peter Holt $76 1996
GoldenState Warriors Christopher Cohan $119 1995
Minnesota Timberwolves Glen Taylor $89 1995
Houston Rockets Leslie Alexander $85 1993
Orlando Magic Richard DeVos $85 1991
Portland Trail Blazers Paul Allen $70 1988
Miami Heat Micky Arison $33 1988
Utah Jazz Miller Family $24 1986
Milwaukee Bucks Herbert Kohl $19 1985
Chicago Bulls Jerry Reinsdorf $16 1985
Indiana Pacers Herbert Simon $11 1983
Los Angeles Clippers Donald Sterling $13 1981
Detroit Pistons Karen Davidson $8 1974
Washington Wizards Irene Pollin $1 1964

NBA Team Historical Sale Prices Highest Price First

Most recent sales of all NBA teams sorted highest buy price first.  Will the Warriors sell for more than the current record high set by Robert Sarver in 2004 when he paid $404 million for the Phoenix Suns?  Reference is Forbes and links provided below.

Visit here to see NBA Franchises sorted by Year.

NBA TEAM BUYER MILLION YEAR
Phoenix Suns Robert Sarver $404 2004
Cleveland Cavaliers Daniel Gilbert $375 2005
Boston Celtics Wycliffe Grousbeck $360 2002
Oklahoma City Thunder Clayton Bennett $325 2006
Atlanta Hawks Atlanta Spirit $306 2004
Charlotte Bobcats Robert Johnson $300 2003
NJ Nets Bruce Ratner $300 2004
New York Knicks Cablevision Systems $300 1997
New Orleans Hornets George Shinn and Gary Chouest $33 & $285 1987 & 2007
Dallas Mavericks Mark Cuban $280 2000
Los Angeles Lakers Jerry Buss and Philip Anschutz $20 & $268 1979 & 1998
Charlotte Bobcats Michael Jordan $240 2010
Denver Nuggets Stanley Kroenke $202 2000
Memphis Grizzlies Michael Helsley $160 2000
Sacramento Kings Gavin and Joseph Maloof $156 1998
Toronto Raptors Ontario Teachers Pension Plan $125 1998
Philadelphia 76ers Comcast Spectacor $125 1996
GoldenState Warriors Christopher Cohan $119 1995
Minnesota Timberwolves Glen Taylor $89 1995
Orlando Magic Richard DeVos $85 1991
Houston Rockets Leslie Alexander $85 1993
San Antonio Spurs Peter Holt $76 1996
Portland Trail Blazers Paul Allen $70 1988
Miami Heat Micky Arison $33 1988
Utah Jazz Miller Family $24 1986
Milwaukee Bucks Herbert Kohl $19 1985
Chicago Bulls Jerry Reinsdorf $16 1985
Los Angeles Clippers Donald Sterling $13 1981
Indiana Pacers Herbert Simon $11 1983
Detroit Pistons Karen Davidson $8 1974
Washington Wizards Irene Pollin $1 1964



Wall Street Journal Predicting Warriors Sale Price may set Record

Wall Street Journal is confirming that even though the Warriors owner, Chris Cohan, has been unable to build a winning organization that the sale price will still be high.  Many have speculated that past Warrior performance is hurting the valuation but my belief is that bidders aren’t discounting valuation because Chris Cohan couldn’t build a winner.  Instead they are looking at the potential and it is huge.  As I previously predicted, a new owner will pay what it is worth…worth to them.

Golden State Warriors — Chris Cohan — $119 million — 1995

Phoenix Suns — Robert Saver — $401 million — 2004

Charlotte Bobcast — Michael Jordan — $240 million — 2010

See historical NBA Team Franchise Sales sorted by purchase year.

See historical NBA Team Franchise Sales sorted by purchase price.

Why would anybody pay a premium for a NBA team that has had 14 loosing seasons with 12 in a row since Chris Cohan bought the team?

  1. Ego
  2. Current average ticket prices $37.50/game while Lakers are $93.25/game
  3. 21st largest payroll out of 30 NBA teams – not bloated with expenses
  4. Reported $5 – $10 million in profits for a HORRIBLE product
  5. $7.4 Billion in NBA TV revenue sharing
  6. 6th largest TV audience in US with 2.5 million
  7. Old Cable TV deal under valued
  8. 4th largest Radio market
  9. Regional history of Sports Championships
  10. Regional Venture Risk-taking attitudes aiming for the best not great.

Ellison still in the mix for buying Warriors – SF Gate

San Francisco Chronicle on SF Gate is reporting that Ellison is still in the mix.  Sounds like he did the prudent move to keep his hat in the ring which was to formally submit his standing $315 million offer to buy the Warriors.

Like other recent news stories from ESPN and NY Daily News, nobody has any solid sources.  Galatioto is doing a good job of controlling leaks.  Last thing he wants is a bad leak cause him to knock $100 million off the sale price.  He’ll control the sound bytes to maximize the money.

A surprise bidder is mentioned as the San Francisco Giants.  To date it seemed like the SF Giants were telling potential bidders that they would gladly participate or help, etc.  However, the SF Chronicle article is suggesting that the SF Giants placed a bid to buy the Warriors.

The only thing I’ll directly quote from the article is an NBA source saying:

“The fans aren’t going to be unhappy.”

ESPN says Bids due in all week

ESPN reporting what has been said all along which is that bids are due this week and the team is expecting 4 to 5 offers.  This differs from a rumored 10 and from Sunday night’s NY Daily News saying 13.

Hard to believe nobody at NBC has any inside info.  The only thing ESPN quotes as insider information is:

“The Golden State Warriors will begin accepting bids on the franchise starting Monday, and four or five groups are expected to make offers at some point, a league source told ESPN The Magazine’s Ric Bucher on Sunday.”

They discuss Larry Ellison and even show a photo of Larry looking sporty but NO substance to the article. It will be interesting to see who gets the real scoop.

The best part of the ESPN article was found in the comments.  Below is obviously a comment from a Warriors fan:

if Ellison becomes the new owner i believe he’ll go after Bosh, Wade or even LJ.
I believe LJ is a long shot but Bosh is a easy target.

Bosh, Curry, and we need to trade Ellis for one big. Maybe Bynum i’m sure LA will love to have point guard like Ellis.
Ellis is not a true point guard but you can also say that about Fisher.

With Bynum, Bosh, Auze, and Curry it’ll be very entertaining to watch this team.
With that said:
Center: Bynum
PF: Bosh
SF: Marrow
SG: Auze
PG: Curry

Chinese Businessmen interested in buying Warriors – Ellison a Stalking Horse

NY Daily News is reporting that Chinese Business men are bidding on the Warriors.  Magic Johnson also rumored to be bidding and is probably partnered with the 24 Hour Fitness founder.  A NFL owner also being mentioned.

This news broke just after the Warriors ticketing staff finished their seat selection day.  The ticket sales guys probably left the building after 7 pm and hours later NY post breaks this story.  Certainly well timed with a few seats left and with the draft ping pong balls being picked tomorrow May 18.

The same article says Ellison did not place a bid but he doesn’t have to in my opinion.  His offer is in and he’ll get word of the situation.  He has to be the stalking horse in buying the Warriors.  This NY Daily News must be a leak, if it is true, and thus the straight face talk of over $500mm while Ellison bid $315mm.  It’s worth what it’s worth and whoever pays that much is going to want to win.

Just Win and the new owner will make money.