Chapter 583: Worth Investing

At night, in the room at Mar-a-Lago Estate.

Charles sighed with relief, then asked, "When do you want to go to Lake Tahoe for a vacation?"

"Well, at least next month. I need to sort out the matters at Doral Golf Resort first!" Ivanka hadn't forgotten the important things.

As the World Cup began, it attracted countless football fans' attention, but in the football-averse USA, it wasn't too hot.

The NBA Finals of the 2009-2010 season between the Los Angeles Lakers and the Boston Celtics drove many Americans crazy during the summer!

On June 14, American time, after the Lakers lost the pivotal Game 5 in Boston, they faced a do-or-die Game 6 at home at Staples Center.

Charles, returning to LA, witnessed the Lakers winning both Game 6 and Game 7 against the Boston Celtics at Staples Center, thus defending their NBA championship for the 2009-2010 season!

...

Los Angeles, Hollywood, Universal City.

In an office, Evelyn sat on a couch chatting with her son about the NBA clubs, "This year's first half already saw the Washington Wizards and the Charlotte Bobcats change hands, and now Chris Cohan, the owner of the Golden State Warriors, is discussing a potential sale with buyers. One of the buyers is someone you competed against for the Nets earlier, the Russian billionaire Mikhail Prokhorov!"

Charles shook his head with a smile, "I'm not really familiar with Mikhail Prokhorov," but he was a bit surprised that Mikhail Prokhorov was looking to buy the Golden State Warriors.

Thinking about it, it made sense. The majority shareholder of the Washington Wizards, Abe Pollin, held over 50% of the club's shares but passed away at the end of last year.

This year, Ted Leonsis, who was already the second-largest shareholder of the Wizards with over 40% of the shares, spent billions of dollars to purchase Abe Pollin's shares, thereby gaining complete control over the Wizards.

On the other hand, Michael Jordan, famously known as the Basketball God, spent billions this year to purchase the Charlotte Bobcats.

After buying a part of the Bobcats' shares in 2006, Jordan became one of the team's shareholders, second only to the major owner Bob Johnson!

"It's tough for others to compete with Mikhail Prokhorov for the Warriors," Evelyn had a clear perspective.

Charles nodded. Whether it was the Wizards or Bobcats, smaller shareholders bought out the larger ones. Chris Cohan, the major shareholder of the Warriors, must be facing financial difficulties and will likely sell to the highest bidder.

"Larry Ellison isn't interested? The Warriors' home court is named Oracle, after all," Charles casually inquired.

"There is interest but the offer is low," Evelyn didn't hold back, as assisting acquisitions was part of their business as the largest entertainment agency.

"Larry Ellison's bid isn't even higher than the private equity fund formed by venture capital expert Joe Lacob and Hollywood producer Peter Guber!"

Charles hearing Joe Lacob and Peter Guber seemed to get the idea. Alright, Mikhail Prokhorov's chances looked stronger.

Charles wasn't familiar with Joe Lacob but knew Peter Guber well, a notorious Hollywood producer.

In 1989, after Sony acquired Columbia Tristar, Warner Bros. lured Peter Guber and Jon Peters with significant costs to manage Columbia Pictures. By 1994, Sony's five-year stint resulted in Columbia Pictures accumulating $3.2 billion in debt...

"I heard that Magic Johnson, part-owner of the Lakers, had always wanted to buy more Lakers shares but couldn't," Charles chuckled. "Now even Jordan has become the owner of an NBA team, the Bobcats, so surely Johnson wants to as well!"

The Buss family, to buy out Magic Johnson's long-term contract when he was diagnosed with HIV, sold him 5% of the team for $10 million.

Magic Johnson, after his brief comeback, sold the shares back to the Buss family only to repurchase the 5% shares for the same price after officially retiring a summer later!

Compared to the commercial cooperation between the Wizards and Jordan, it was much more direct. Abe Pollin, the owner of the Wizards, sold Jordan 5% of the shares to boost the team's commercial value during Jordan's comeback.

NBA rules prohibited players from holding team shares, so Jordan resold his 5% Wizards shares to Abe Pollin during his comeback, but Jordan's comeback significantly increased the Wizards' commercial value after two years.

When Jordan wanted to repurchase those 5% shares post-retirement, Abe Pollin demanded a market price, infuriating Jordan and straining their relationship!

"The Buss family won't sell the Lakers. Johnson's commercial value can't match Jordan's, and he has far fewer assets," Evelyn shook her head.

"What I mean is, Johnson surely wants to be the owner of an NBA team, learning from Jordan, financing to acquire a club," Charles said, looking at his mother.

"The NBA won't allow one person to hold shares in two teams, so Johnson would have to sell his Lakers shares first!"

"Do you want me to buy them? The NBA's development is mediocre, many teams aren't profitable. Besides, this mere 5% share would be pure investment," Evelyn seemed uninterested.

"In a few years, the NBA's market value will soar. The Lakers are a worthwhile investment. The 5% Lakers shares wouldn't even exceed $30 million. The Lakers are, after all, the hometown team," Charles explained.

Evelyn smiled, "Seems you still like LA teams. Knowing neither the Lakers nor the Clippers had intentions to sell, you chose the Nets, who were moving to New York. Alright, if Johnson sells his Lakers shares, I'll bid for them. Many of my artists love showing up at Staples Center. Buss would certainly be happy if Johnson's shares sold to me!"

"So, you're not going to the premiere of Sherlock Holmes?" Evelyn asked.

Charles shook his head, "Forget it. I'll show up at the party after the premiere. The NBA draft is in a few days; I need to keep an eye on that, and also Arsenal's player transfers!"

*****

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