NBA purchases the Hornets

I don’t believe the deal has gone through yet.  

Can you explain this?

I think this pretty much means: Chris Paul better get used to hearing Seattle Supersonics rather then New Orleans Hornets

does it mean that cp3 will be in newwark haha

I would like to know how much a team makes and loses because something is not adding up. 

Here is what Stern said today:

"George Shinn has been an exceptional owner for New Orleans and Gary Chouest has been extraordinarily supportive as a minority owner," said Stern. "However, in light of the uncertain economic situation in New Orleans and Louisiana, Gary has decided not to move forward with the purchase of George’s majority interest although he was prepared to remain an investor in the team. In the absence of any viable purchaser seeking to own the Hornets in New Orleans, I recommended to the NBA Board of Governors that the best way to assure stability and the adequate funding of the franchise would be for the league to step in, and complete the transaction and assume control. The Hornets have a strong management team in Hugh Weber, Dell Demps, and Monty Williams and we have recruited Jac Sperling, a seasoned sports executive and New Orleans native, to be the team’s chairman and governor, with Hugh serving as president and alternate governor. I have notified Governor Jindal and Mayor Landrieu about this transaction and will continue our dialogue with them about ways to strengthen the franchise for new ownership in New Orleans."

from: http://www.hoopsdaily.com/the-daily/archive/20101206#node-13488

Here is some of the financial information on the proposed transaction via Hoopsdaily.com from CNBC:

NBA commissioner David Stern said Monday afternoon that the league bought the team for the price that was previously negotiated by minority partner Gary Chouest, which was around $300 million before it fell through.

Chouest bought his 25 percent share in 2007 for $62 million, which means the team was valued at $248 million. Since I can’t imagine the team increased in value since then, given the state of the economy and the losses endured by the Hornets, the team would be valued at around $260 million in today’s dollars based on the price Chouest paid for his share three years ago. If Shinn and Chouest sold for more than $300 million, they got out like bandits and should run to the bank to as soon as the checks arrive.

http://www.hoopsdaily.com/the-daily/archive/20101206#node-13489

So it sounds like there will be a vote next week on the sale but it seems like a formality because I doubt owners will vote against David Stern.  It also sounds like the former owners made some cheese on this.  Lastly it appears that Stern will "attempt" to keep franchise in NO, but after what happened in Seattle I could easily see them moving after the lockout with most media focusing on the end of the lockout and not the move of the franchise.

Chris Paul will be traded soon. They will start to cut cost so Paul, Okafor and Ariza should be out the door soon then they’ll move the team to Seattle and re build from there. Stern will give thema #1 pick then a top 4 the next year and a top 5 the next year like he did wit OKC when they got Durant-Westbrook-Harden in back to back to back years. Too bad though New Orleans is a great city

I believe the NBA made this move so they can keep the Hornets in New Orleans, instead of some out of state person buying & moving them. After the temporary relocation & all of the support and money put into New Orleans after Hurricane Katrina they want to keep the team there as long as possible especially since the city of New Orleans is still rebuilding.

I saw somewhere that if average attendances fall below 14,750 then the team can exercise an exit clause maybe on their current arena and thus move locations. Attendances this year for NOH home games are nearer 13,500 apparently. Indiana were getting low attendances last year and have always lost money in recent years even in the JO/Reggie Miller contending days but I believe that they did a new deal to remain in the city and with their Arena owners.

The front office has to be allowed to run the team within their existing budget because if the NBA board interfered then it could cause conflict of interests etc,. Imagine trade options for CP3 came in then one team may argue their trade is better value than another’s but it may not be good for a competitive NBA as a whole. Also new contracts for the likes of David West could be an issue with CBA coming up, how can the NBA look to get salaries down and then offer market value for a player?