Raj Bhathal’s group eyeing the ownership of New Orleans Hornets - NBA News
A group led by Raj Bhathal, a Los Angeles based businessman, has emerged as a strong candidate for New Orleans Hornets purchase from NBA and rumour has it that the sale will be concluded within a week.
Bhathal’s group is represented by former NBA coach Mike Dunleavy Sr. and it also includes Larry J. Benson, brother of Saints owner Tom Benson. The other group interested in purchase is headed by Gray Chouest, who was the former Hornets minority owner.
NBA Commissioner David Stern mentioned in an interview on NBA-TV, that there was one front runner in the search for a buyer and one in reserve; he didn’t identify an individual or group earlier.
NBA purchased the Hornets in 2010 from founding owner George Shinn for about $318 million after the franchise was bleeding money. NBA has since then invested additional capital into the franchise, so the asking price has to cover the initial investment and the later amount that was beefed in.
Bhatal and Benson both once owned franchises in now defunct world league of American football in Orlando and San Antonio respectively are not novice to this business, based on their financial standings and sound repute, David Stern envisaged things happening in their favour.
"We're optimistic that we will make a deal with group one, and we're a little bit behind here because we haven't concluded our deal with the state yet, but I think it's moving closer day by day. It's progressing well, but it's not finished. We expect to have it finished, I'm told, in the next week or ten days, and that's the period of time that we would like to hopefully have this deal for the sale of the club come into much sharper focus."
However there are other trivialities that will have to be addressed before proceeding towards the purchase, as mentioned above the new lease with the state would require rearticulating of the stature and that can be convened at the earnest by March 12.
One of the reasons behind NBA’s purchase of the league in 2010 was to assure that the club will play under the flag of New Orleans and will not be shifted or renamed.
Similarly, they have appointed Hornets Chairman Jac Sperling to broker a deal that will ensure Hornets stay at New Orleans till 2024.
Mike Dunleavy who had most recently coached Los Angeles Clippers from 2003-10 and his wife is also a native of New Orleans, because of his repute and connection around the world of NBA he was bestowed upon the lead role by the group
But the questions that looms large is about the financial perspective of the league, Hornets are not doing so well as a franchise and New Orleans has proven to be a cold place for entrepreneurs.
Only time will decide that if these two business tycoons succeed in turning this opportunity into a lucrative venture, as with the current pace they will be entitled the ownership of Hornets within a week.
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