Last year

NBL looking to sell Bullets for $5-10m

NBL owner says Brisbane Bullets on market but won't be sold to the wrong buyer

NBL owner Larry Kestelman says the Brisbane Bullets are on the market for between $5 million and $10 million but will only sell the club if he can find buyers who are in it for the right reasons.
"Melbourne is a more evolved business. We’ve spent six years on Melbourne and Brisbane it has been two.

“I generally don’t think the NBL should own clubs longer term. I’ve got no problem with the league starting clubs up if that’s what’s needed.

“In a perfect world I would have the league in no way having controlling interests of any clubs.’’
Full story

I suspect these numbers are trying to frame the discussion as much as anything. Not sure how you'd get to $5m for Brisbane? I also wonder if now is the time to push this sale? Melbourne, sure. But with Brisbane, why wouldn't you wait until they're out of the cellar?

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Last year

Reply #683197 | Report this post

Last year

I'm willing to bet Larry needs the Bullets and Melbourne off his personal books before any of these AFL clubs are willing to talk. Didn’t Jeff Kennett make a mention of the NBL’s current governance problems?

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Last year

$5mil, bwahahahahahaha

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Last year

What do those on here think they should be evaluated at? The range quoted seems a bit high but I have no idea what their books look like or what a club of that nature would be valued at in the open market.

Reply #683218 | Report this post

Last year

Since it is making a loss you would give it away for free just to offload it. But LK is hyping valuations up with these media stories hoping for a jackpot.

Reply #683222 | Report this post

Last year

Free isn't a fair market evaluation just because it is making a loss. It seems that some here scoff at the suggested figure from LK without much awareness as to what an actual fair figure would be.

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Last year

"Nobody wanted to start a team in Brisbane, so we started it ourselves, and despite the fact they've been a mess on and off the court, we reckon five million dollars is a bargain" - LK in a fever state, apparently.

Reply #683239 | Report this post

Last year

I think you could enter AFL-club discussions on governance saying "I've sold down Melbourne but with Brisbane we think it's wise to give the fledgling club another year to build the fanbase and get off the bottom of the ladder before hitting the market."

Lemanis can then surely have a bit better luck next season around and put them in a nicer sales position.

Perhaps LK fears the increases of the last 12 months (NBL crowds, TV, etc) will be hard to replicate again this coming season.

Reply #683241 | Report this post

Last year

Brisbane is slightly different as it's NBL run, isn't it, not a personal stake of Larry's?

I agree that if you can get something for it, great, but I think any statements along the lines of bias and dodgy dealings should be waived easily away

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Last year

Bullets are NBL-run but isn't the whole NBL a personal stake of Larry's?

Reply #683244 | Report this post

Last year

AKA the $5mil is ridiculous based on previous sales. Licences have gone for max $1mil in the past, with sales of existing sides usually free with existing debt to be taken over etc.

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Last year

On the one hand you understand wanting to recover some of the money invested, but if your primary goal is the strength of the league and a lot that comes down to clubs having a sustainable wealth/investment, isn't a 5-10million transaction effectively $5-10mil less any consortium has to run Brisbane? And in that sense, might cut out a level of potential investors who simply don't have that figure + the cash needed to run the club.

That's a fair amount of dosh.

Reply #683259 | Report this post

Last year

Exactly KET.

Reply #683260 | Report this post

Last year

It's all about governance and the owner of the league not owning any teams, So the following season hopefully hawthorn and Hobart can com in.

Reply #683264 | Report this post

Last year

Unsure of the difference, but don't the AFL have controlling stakes in the two newer clubs ? (Gold Coast & GWS).
If the NBL/LK run the Bullets only, as LK will sell Melbourne, how is it different to the AFL running those 2 clubs ? Why would the new AFL/NBL teams be so concerned with that, when their current league is already doing it ?

Reply #683266 | Report this post

Last year

I'm going to be paraphrasing and messing up some exact questions/answers here as it was a few weeks ago, but for those who don't listen to Bill Simmons podcasts, in a recent one with Kevin Durant, early in the podcast when talking about summer or something (I think), Durant mentioned going to Australia. Later in the podcast they were talking about college (value of one and done, getting paid etc vs real need for development ahead of NBA) and Durant said "they should go to Australia". And then later still, Simmons asked him (via a listener question) if he could play for or own a team in any non-US city, where would it be? His first answer was Barcelona - which makes sense as a desirable destination; and he's been there with the US team - and then prompted by his manager, he said "no wait, Brisbane!"

No offence to the good people of Brisbane, but that's an extremely unlikely and random choice. The other thing was that he pronounced it correctly, not the usual US Bris-bain pronunciation. That was my first thought - oh, someone has approached him about buying/buying into the Bullets. So with this news, I guess you could fairly assume that is/was the case. Just I guess a question of whether or not there's a real interest or connection, or if it was something that came across his managers desk and he was sort of trolling, laughing at the suggestion.

Reply #683268 | Report this post

Last year

Good point anon re Durant making reference to Brisbane.

He was actually given this response by business partner/manager Rich though, which would lend more weight to the possibility of an ownership stake being offered.

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NBL Fan  
Last year

I heard that too it was so random I was shocked for a minute hahaha.

Reply #683275 | Report this post

Last year

The AFL having a stake in Gold Coast and GWS is not the same as LK owning 2 teams.

1. I think LK has majority or outright control of the 2 teams.
2. The AFL is not owned by 1 wealthy business operator. The AFL is somewhat owned by/ responsible to all clubs.
3. The AFL distributes funds to its clubs. From tv deal, Telstra, NAB and other big ticket sponsors. Don't think the NBL has the revenue to do this.

Until the NBL can get a first rate/ big spending sponsor and an income- generating tv deal, the clubs really have to rely on themselves for their financial viability.

If anything the NBL ownership situation is more like the NRL, in that the NRL want to divest themselves of/ ditch their Gold Coast team.

Reply #683277 | Report this post

Last year

The NBL needs to stay away from the AFL...

Reply #683280 | Report this post

Last year

It's not like selling a house.
In reality the NBL might accept comparatively little in actual cash, but at the same time they need to make sure that any potential buyer has deep pockets.

Reply #683281 | Report this post

Last year

LK has fingers in 4 NBL teams.
He's propping up the NBL to the detriment of his own cash flow which is poor.

Reply #683288 | Report this post


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