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arkanian215
05-03-2010, 02:24 PM
NEW ORLEANS -- New Orleans Hornets majority owner George Shinn has reached a deal to sell his shares of the team to minority owner Gary Chouest, according to a person familiar with the negotiations.

The club is planning an announcement on Wednesday afternoon, the person told The Associated Press on Monday, speaking on the condition of anonymity because no official announcement has been made by either party to the sale.

A call to Chouest was not immediately returned.

Chouest is a Louisiana native and owner of Edison Chouest Offshore, a company that builds and operates marine vessels for the offshore oil and gas industries.

In 2007, when the team returned from a two-year stay in Oklahoma City because of Hurricane Katrina, Chouest bought 25 percent of the club for $62 million, saying at the time his goal was to keep the Hornets in Louisiana.

Shinn, who was treated for prostate cancer in recent months, decided to sell his remaining shares during the season.

His goal all along was to sell to Chouest, but nearly two weeks ago, Shinn became frustrated with the pace of negotiations and started looking for other potential buyers.

Chouest remained the leading candidate to buy the club, however, and a deal was finally reached for an undisclosed amount.

In its regular survey of professional franchise values, Forbes Magazine estimated last December that the Hornets were worth $285 million.

However, the magazine also listed the Charlotte Bobcats at $284 million, a higher figure than the $275 million Michael Jordan recently paid for the club.

Because Chouest's primary source of wealth is a thriving business in the energy industry, his ownership of the Hornets is likely to stabilize a franchise which has had a tenuous stay in New Orleans since moving from Charlotte in 2002.

By the time the club came to New Orleans, it was the primary source of income for Shinn, who divested of other business interests after founding the team in North Carolina in 1988.

This past season, the team traded one starter, Rasual Butler, and several veteran role players in order to reduce payroll enough to avoid paying the NBA's punitive luxury tax on teams that spent more than $69.9 million on player payroll this season. Depth then became a problem for the Hornets because of injuries to Chris Paul and Peja Stojakovic down the stretch, and New Orleans fell out of the playoff race after being has high as sixth place in the Western Conference in late January.

Shinn has said he expects now to turn his attention to charity work that will focus on cancer treatment and his faith.

Chouest's purchase of the club also is likely to alleviate concerns coaching candidates may have about joining a club with an uncertain ownership situation.

The Hornets announced after the season that general manager Jeff Bower, who stepped in as coach when Byron Scott was fired nine games into last season, was going back to the front office full time. The Hornets are looking at a number of candidates and are scheduled to interview former Dallas Mavericks coach and ESPN NBA analyst Avery Johnson on Tuesday in Texas.

Bower and Hornets president Hugh Weber also are interested in talking to former NBA head coaches Doug Collins, Jeff Van Gundy, Lawrence Frank and Larry Brown; assistant coaches Tom Thibodeau, Monty Williams, Dwane Casey and Mike Budenholzer; and former player and TV analyst Mark Jackson.http://sports.espn.go.com/nba/news/story?id=5157613

This might mean that despite Okafor's awful contract, New Orleans will be less likely to move him just for an expiring this offseason or next year at the trade deadline. Chouest is in a better position financially than Shinn to maintain a competitive New Orleans Hornets. The Hornets are set to clear about $24 million from its books in the summer of 2011 (Peja, Mo Pete and Darius Songaila). This sale also ensures that the Hornets will remain in New Orleans in the near future.

asandhu23
05-03-2010, 02:29 PM
Next up on the bidding table: Golden State Warriors

Toenail Clipper
05-03-2010, 02:32 PM
Next up on the bidding table: Golden State Warriors

I thought the 4th richest guy was gonna buy it

asandhu23
05-03-2010, 02:42 PM
I thought the 4th richest guy was gonna buy it

He is one of the top 4 bidders. Larry Ellison, Mark Mastrov ( owner of 24 hours fitness ), some unknown group working with magic johnson, lance armstrong and jerry west and a Silicon Valley CEO who is keeping himself anonymous ( Rumors are that he may be the Great Steve Jobs but no one knows )


Also, mark my words, Warriors are going to break record for the most money spent on buying a team

DerekRE_3
05-03-2010, 02:53 PM
He is one of the top 4 bidders. Larry Ellison, Mark Mastrov ( owner of 24 hours fitness ), some unknown group working with magic johnson, lance armstrong and jerry west and a Silicon Valley CEO who is keeping himself anonymous ( Rumors are that he may be the Great Steve Jobs but no one knows )


Also, mark my words, Warriors are going to break record for the most money spent on buying a team

I doubt that, in 2008 Forbes had the Warriors ranked 18th in the NBA at $315 mil and I highly doubt they improved their value during a recession. Then you add in NFL teams, where the lowest valued franchise is still worth over a $100 mil more than the Warriors, and that basically leaves no chance for that of happening.

tredigs
05-03-2010, 03:25 PM
I doubt that, in 2008 Forbes had the Warriors ranked 18th in the NBA at $315 mil and I highly doubt they improved their value during a recession. Then you add in NFL teams, where the lowest valued franchise is still worth over a $100 mil more than the Warriors, and that basically leaves no chance for that of happening.

Their actual value is a lot higher than what the Forbes writers thought it was at. Most of the early projections have it at at a sale of 450-500 million. Which makes me sick, because that means Cohan is turning a HUGE profit on a team that he did everything he possibly could do destroy. But 500 million still doesn't compare to teams like the Redskins who were sold for 800MM. Not sure what the top price for an NBA franchise was.

asandhu23
05-03-2010, 03:27 PM
I doubt that, in 2008 Forbes had the Warriors ranked 18th in the NBA at $315 mil and I highly doubt they improved their value during a recession. Then you add in NFL teams, where the lowest valued franchise is still worth over a $100 mil more than the Warriors, and that basically leaves no chance for that of happening.

I meant NBA team....

SteveNash
05-03-2010, 03:32 PM
Good. I wouldn't want an alleged rapist as my teams owner.

wileyisTOFU
05-03-2010, 03:42 PM
Good. I wouldn't want an alleged rapist as my teams owner.

whatever, thats the kinda competitive drive i like to see in my owner!

Vinny642
05-03-2010, 03:50 PM
Im glad Shinn is gone, now we don't need to worry about financial decisions.