By: Tyler Ward
On Thursday, Golden State Warriors owner Chris Cohan reached an agreement to sell the team for $450 million. Mandalay Entertainment CEO Peter Guber and Boston Celtics minority partner Joe Lacob bought the team and outbid Oracle CEO Larry Ellison in the process.
Along with Ellison, Guber and Lacob beat out two other finalists to seal the deal. Ellison is currently the sixth richest man in the world and has a personal fortune of $28 billion, according to Forbes Magazine.
Ellison was surprised that he didn't get the team, saying "Although I was the highest bidder, Chris Cohan decided to sell to someone else. In my experience this is a bit unusual. Nonetheless, I wish the Warriors and their fans nothing but success under their new ownership."
Galatioto Sports Partners president, Sal Galatioto, advised Cohan to sell the team to Guber and Lacob. At the time of the deadline, Cohan announced that they had four offers on the table, all above $400 million. Although it had been publically announced, Cohan said that a deal had been in place for the last two weeks and he wasn't going to change his mind.
Apparently, Larry Ellison's bid was not accepted because he was past the deadline. Galatioto said that Ellison's offer was higher, but since it was past the deadline, he couldn't recommend it to Cohan. "He was way past the deadline. There was no way I was going to recommend that bid to Chris," Galatioto said. "Once the shot clock expires, are you allowed to get back on the court and have it count? I don't think so."
With the new ownership in place, they will have to make some serious decisions in the following weeks. Coach Don Nelson has one year left on his deal, totaling $6 million. General Manager Larry Riley and President Robert Powell could also be dismissed. Nelson will more than likely coach the Warriors this season, as there are not many good coaches to fill their vacancy.
The Warriors sale breaks the record for largest sale in NBA history - Current Suns owner Robert Sarver bought the team in 2004 for a then-record $401 million.
Cohan originally bought the Warriors for $119 million in 1995. Golden State has made one playoff appearance since that season and they made the best of it, upsetting the #1 seed Dallas Mavericks in the first round of the playoffs in the 2006-07 season. He has recently had a fair share of financial problems, owing the IRS $160 million in 2007, which could have possibly led to the sale of the team. The new owners are hoping they can turn the franchise around, as Lacob owned part of the Celtics when they won the championship two years ago. Perhaps the most dysfunctional team in the league, they have struggled on the court, but still have a loyal fan base. They ranked 11th last year in attendance, despite a 26-56 record (18-23 at home).
Golden State is slowly entering back into the playoff contention picture, as they have a young core of Stephen Curry, Monta Ellis, and David Lee. They recently acquired Lee in a trade with the Knicks, getting rid of promising forward Anthony Randolph, Ronny Turiaf, and Kelenna Azubuike. In June, the Warriors used the 6th overall pick on Baylor center, Ekpe Udoh - it was reported today that Udoh will miss 6 months to repair a torn ligament in his left wrist.
