Ellison has submitted bid for Warriors, source says
Oracle Corp. CEO Larry Ellison is among "more than a dozen" suitors who
have submitted non-binding bids for the Warriors, a source close to the
negotiations said Tuesday.
"He is a part of it," the source said.
According to another source, so are the San Francisco Giants, 24 Hour
Fitness owner Mark Mastrov, an NFL owner, a former Lakers star and a
group of prominent Chinese businesspeople, among others. Galatioto
Sports Partners and Warriors owner Chris Cohan will choose the best
prospects in the next week.
The top three or four will have access to the Warriors’ financial records over the following month before the next phase of the sale begins.
Some people familiar with the bidding believe the offers are between $275 million and $350 million. Michael Jordan recently paid $275 million for the Charlotte franchise. Sources say Ellison hasn’t moved from his original $315 million price tag.
Others who are part of the process say Cohan could get double what Jordan paid because the Bay Area’s financial demographics and media market make it more valuable than Phoenix. The Suns were sold for $401 million in 2004 in a package with the franchise’s WNBA and arena football teams.
Two factors that could hold down bids are the team’s poor performance on the court and Cohan’s financial problems. The Warriors have made the playoffs once in the past 16 seasons, and in March the team dropped prices for all returning season-ticket holders. The Internal Revenue Service said in 2007 that Cohan owed more than $160 million in back income taxes and penalties from the 1998 sale of a cable TV company.