Owner Profiles: Southeast Division
With the lockout in full effect, we here at HOOPSWORLD continue our look at what comprises the “Owners” side of the debate with a look at the men behind the teams of the Central Division. Who are the owners, where did they come from, and what have they done?
While the NBA will debate the validity of these numbers, we will use the 2010 Forbes Magazine NBA valuations as a means of comparing the teams to each other. Forbes doesn’t claim these are 100% accurate – they are estimates – and they may not match an actual bottom line figure, but in the absence of having actual figures Forbes’ numbers are a starting point. Plus, the relative difference in the numbers between teams is still likely accurate.
Check out previous coverage: Northwest Division | Pacific Division | Southwest Division | Central Division
Atlanta Hawks – J. Michael Gearon, Jr. and Bruce Levenson, Managing Partners (Atlanta Spirit, LLC)
Ownership Group: Ed Peskowitz, J. Rutherford Seydel, Todd Foreman, J. Michael Gearon, Sr., Beau Turner. Steve Belkin was originally part of the group as well, but was forced out in 2010. Another co-founder, Bud Seretean, died in 2007.
Purchase Price (year): $250 million (1998)
2010 Forbes Valuation: $295 million
2010 Forbes Revenue: $105 million
Education: Gearon – Bachelor’s, Georgia State University; Levenson – Bachelor’s, Washington University; J.D., American University
Other Business Interests: The original deal also included the NHL’s Atlanta Thrashers, but they were sold in May 2011 and will be moved to Winnipeg. Atlanta Spirit retained the rights to the logos and name “Thrashers.” Gearon, Jr. started Gearon Communications in 1990 at the age of 25, building towers for cell phone companies, and sold the company to American Tower in 1998 for $32 million and 5.3 million shares of stock. Levenson founded United Communications group with Peskowitz, a private company specializing in business information companies. He is also on the board of directors for TechTarget, Inc, a company specializing in connecting technology producers with end users. Gearon, Sr. has worked for the Hawks for many years in various capacities and for Turner Sports.
Notable Team Achievements: The Hawks missed the playoffs for eight straight years after 1999, but have reached the second round the last three years after unexpectedly extending the Boston Celtics to seven games in 2008.
Ownership Philosophy: For a long time the Atlanta Hawks were considered cheap and that had a lot to do with a general lack of fan support – the Hawks empty stadium for years was held up as an example of management gone wrong. Recently things have tipped to the other end of spectrum with large extensions going to Al Horford and Josh Smith, plus the gigantic contract given to Joe Johnson. Ownership is very much involved in day-to-day operations.
Charlotte Bobcats – Michael Jordan
Ownership Group: The team is owned by MJ Basketball Holdings, but Jordan is the only investor. It’s assumed he will sell of small stakes at some point.
Purchase Price (year): $275 million (2010)
2010 Forbes Valuation: $281 million
2010 Forbes Revenue: $98 million
Education: Attended North Carolina
Other Business Interests: Jordan earned millions as a member of the Chicago Bulls but made more off the NBA floor as an endorser of Nike, Gatorade, McDonald’s, Hanes, Wheaties, and many others. He is now the face of Nike’s Jordan Brand and starred in the movie Space Jam – with Bugs Bunny. Even though Jordan hasn’t played in a NBA game since retiring from the Washington Wizards in 2003, he remains one of the most recognizable faces in the world. He originally bought a minority stake in the Bobcats from Robert Johnson, but bought the rest of the team outright last year.
Notable Team Achievements: The Bobcats have made the playoffs just once, in 2010.
Ownership Philosophy: It’s really yet to be determined. Jordan is involved in the major decisions, but will leave most lower level ones to the people he trusts to run the team, like GM Rich Cho. It seems Jordan is willing to take risks – such as drafting Bismack Biyombo – and could approve spending like the big extension given to Tyrus Thomas last summer, but it’s too early to say if there is a trend. The Cats seem to be pulling back from spending just a bit, as evidence by the dump of Gerald Wallace’s contract to Portland at the trade deadline in 2010.
Miami HEAT – Micky Arison
Ownership Group: None
Purchase Price (year): $65 million (1995)
2010 Forbes Valuation: $425 million
2010 Forbes Revenue: $124 million
Education: Attended University of Miami
Other Business Interests: Arison’s father, Ted, founded Carnival Corporation and Micky is now the Chief Executive Officer after his father’s death in 1999. His father also was the one who bought the HEAT as an expansion franchise. Forbes estimated Micky’s net worth at $5.9 billion in March of 2011.
Notable Team Achievements: The HEAT has reached the playoffs in 15 of 23 NBA seasons, winning the NBA title in 2006. They also reached the Finals in 2011 and the Eastern Conference Finals in 1997 and 2005.
{AUTHOR_BOX}Ownership Philosophy: Arison lets Pat Riley manage all the day-to-day of basketball operations, trusting completely Riley to make good decisions. He will spend the money it takes to have a winning franchise and as evidenced by last summer’s signings of Dwyane Wade, Lebron James and Chris Bosh is willing to do whatever it takes to make the HEAT successful year after year.
Orlando Magic – Rich DeVos, Chairman (RDV Sports)
Ownership Group: DeVos bought the Magic, but placed them under the RDV Sports holding company which has other investors. Bob Vander Weide is the CEO of RDV Sports.
Purchase Price (year): $85 million (1991)
2010 Forbes Valuation: $385 million
2010 Forbes Revenue: $108 million
Education: No college.
Other Business Interests: Started Amway in 1959 selling cleaning products door-to-door with childhood friend Jay Van Andel. The company was reorganized as Alticor in 2000. DeVos has authored multiple books, including one titled Compassionate Capitalism and another about his successful heart transplant. Forbes estimated his net worth at $4.2 billion in March of 2011.
Notable Team Achievements: The Magic have reached the playoffs 13 times while DeVos has owned the team, reaching the NBA Finals in 1995 and 2009. They lost in the Eastern Conference Finals two other times.
Ownership Philosophy: The Magic have not been afraid to spend money to keep a winner together. Their payroll hit $90.8 million in 2010-11, meaning a luxury tax bill of over $20 million. The Magic have handed out millions in free agent contracts when they can, and have shown a willingness to take on contracts from other teams, such as the contract of Gilbert Arenas.
Washington Wizards – Ted Leonsis
Ownership Group: Leonsis is the majority owner, chairman, and CEO of Monumental Sports & Entertainment, which bought the Wizards from the estate of Abe Pollin.
Purchase Price (year): $551 million (2010)
2010 Forbes Valuation: $322 million
2010 Forbes Revenue: $107 million
Education: Bachelor’s, Georgetown University
Other Business Interests: AOL bought his company, Redgate Communications, in 1993 and Leonsis led AOL to becoming a major player. Leonsis is chairman of Snagfilms and Clearspring Technologies. He also is on the board for American Express, NutriSystem, Groupon and Rosetta Stone. Monumental Sports & Entertainment also owns the Verizon Center, the Washington Mystics (WNBA) and the Washington Capitals (NHL). Forbes estimates his net worth at $1 billion.
Notable Team Achievements: The Wizards have failed to make the playoffs in 2010 and 2011.
Ownership Philosophy: Leonsis is very much a hands-on owner. He is willing to listen to fans, media, and advisors to come up new ideas about game experience and marketing, making himself available in person at games, via email, and via social networking sites like Twitter and Facebook. The Wizards haven’t been in a position to be free agent players until this next signing period, so it will be interesting to see how aggressive they will be.
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