# Hornets sold! Chouest and Shinn reach agreement



## girllovesthegame

> *New Orleans Hornets' sale agreement reached; Gary Chouest will be introduced Wednesday*
> 
> An agreement between minority owner Gary Chouest and long-time New Orleans Hornets' majority owner George Shinn has been reached, league sources said Monday morning, and an annoucement regarding transfer of the team's ownership to Chouest will take place Wednesday afternoon.
> 
> Chouest, a billionaire businessman who built Edison Chouest Offshore into a major player in the oilfield service industry, has been negotiating to increase his 25 percent stake in the Hornets since mid-April when it became evident Shinn was ready to sell his remaining 75 percent.
> 
> Shinn, who founded the Hornets in 1988 in Charlotte, N.C., this year underwent successful prostate cancer surgery and sources indicated last month Shinn wanted to move his life in another direction of speaking with, and encouraging cancer patients during their battle with the disease.
> 
> Talks have dragged on for three weeks or more while the two sides haggled over the value of the franchise. The latest estimation of its worth, by Forbes Magazine in December 2009, listed the value of the Hornets at $285 million. The Charlotte Bobcats, which the magazine estimated to be worth $284 million, recently sold to former star Michael Jordan for $275 million.
> 
> On April 23, Chouest and Shinn were reported to be at an impasse in their discussions because of a disagreement on the team's worth and Shinn reportedly was seeking other investors.
> 
> Early last week, however, it was obvious that there were no other individuals in contact with Shinn and talks with Chouest resumed.



http://www.nola.com/hornets/index.ssf/2010/05/new_orleans_hornets_sale_agree.html


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## girllovesthegame

> *New Orleans Hornets sale to billionaire Gary Chouest should get quick NBA approval*
> 
> The sale of the New Orleans Hornets to billionaire Louisiana businessman Gary Chouest is expected to receive quick approval from the NBA because Chouest's background and resources were vetted by the league before he became a minority owner in 2007 when he purchased 25 percent of the club from George Shinn.
> 
> Chouest's precise net worth is not known because his company, Edison Chouest Offshore, is not a publicly traded concern.
> 
> However, many sources in the New Orleans area have indicated that Chouest's financial resources are vast, easily in the 10-figure range, and that for the first time in the franchise's history, money concerns would not be the primary focus of coaching or player transactions.


http://www.nola.com/hornets/index.ssf/2010/05/new_orleans_hornets_sale_to_bi.html


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## girllovesthegame

> *Report: Shinn has deal to sell Hornets*
> 
> NEW ORLEANS -- New Orleans Hornets majority owner George Shinn has reached a deal to sell his shares of the team to minority owner Gary Chouest, according to a person familiar with the negotiations.
> 
> The club is planning an announcement on Wednesday afternoon, the person told The Associated Press on Monday, speaking on the condition of anonymity because no official announcement has been made by either party to the sale.
> 
> A call to Chouest was not immediately returned.
> 
> Chouest is a Louisiana native and owner of Edison Chouest Offshore, a company that builds and operates marine vessels for the offshore oil and gas industries.
> 
> In 2007, when the team returned from a two-year stay in Oklahoma City because of Hurricane Katrina, Chouest bought 25 percent of the club for $62 million, saying at the time his goal was to keep the Hornets in Louisiana.
> 
> Shinn, who was treated for prostate cancer in recent months, decided to sell his remaining shares during the season.
> 
> His goal all along was to sell to Chouest, but nearly two weeks ago, Shinn became frustrated with the pace of negotiations and started looking for other potential buyers.
> 
> Chouest remained the leading candidate to buy the club, however, and a deal was finally reached for an undisclosed amount.
> 
> In its regular survey of professional franchise values, Forbes Magazine estimated last December that the Hornets were worth $285 million.
> 
> However, the magazine also listed the Charlotte Bobcats at $284 million, a higher figure than the $275 million Michael Jordan recently paid for the club.
> 
> Because Chouest's primary source of wealth is a thriving business in the energy industry, his ownership of the Hornets is likely to stabilize a franchise which has had a tenuous stay in New Orleans since moving from Charlotte in 2002.


http://sports.espn.go.com/nba/news/story?id=5157613


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## girllovesthegame

Earliest official word of New Orleans Hornets' sale now tentatively on Thursday


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## girllovesthegame

> *Gary Chouest finalized deal to buy the New Orleans Hornets on Monday*
> 
> Minority owner Gary Chouest, a local billionaire businessman with an unbridled passion for basketball, has finalized his purchase of the New Orleans Hornets from team founder and majority owner George Shinn for an undisclosed sum, league sources confirmed Monday.
> 
> Official announcement of the transaction, which is expected to ensure the long-term future of the franchise in New Orleans as well as its financial stability, will come this week at a press conference, tentatively scheduled for no earlier than Thursday, according to sources close to the Hornets.
> 
> The timing of the official announcement is being complicated by the melding of schedules for all involved, a source said, but does not indicate a problem with completion of the sale.


http://www.nola.com/hornets/index.ssf/2010/05/gary_chouest_finalized_deal_to.html


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## girllovesthegame

Formal announcement on hold because they're busy looking for a head coach. I'm guessing all of this will be announced together. ????

http://sports.espn.go.com/nba/news/story?id=5165182


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## Geaux Tigers

This is a very important time in Hornets history. I'm very glad Shinn decided to bring the Hornets back to New Orleans. For all that can be said about Shinn I must say that when it came down to it whether he was unable to move the franchise, or unwilling, it is still here and now the future in New Orleans looks brighter with a local in charge.


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## girllovesthegame

> *New Orleans Hornets sale delay is because Gary Chouest is seeking outside investors*
> 
> 
> Though an agreement in principle between New Orleans Hornets minority owner Gary Chouest and majority owner George Shinn for Shinn’s sale of the team was reached three weeks ago, the consummation of the deal is now being slowed by Chouest’s desire to put together an out-of-state group of minority owners that would purchase a portion of the team, league sources said Monday.
> 
> While no definite percentage was quoted, a league source said Monday that Chouest is seeking to have a group of minority investors purchase “a significant chunk” of the 75 percent of the team that he’ll purchase from Shinn, though, the source said, Chouest would be the team’s majority owner when the deal is ultimately settled.
> 
> In the intervening days since an agreement was reported between the two current partners, rumors swirled that the delay in an official announcement of the sale to Chouest was because of either a disagreement over the final purchase price or even that Shinn had changed his mind.
> 
> “The problem lies with arrangements between Gary and his minority investors,” one source said. “Gary and George have come to an agreement they feel comfortable with. The hang-up has been the lack of ability of Gary to come to an agreement with the investors he’s trying to bring on board.”


http://www.nola.com/hornets/index.ssf/2010/05/new_orleans_hornets_sale_delay.html

Ok so, can he just finalize everything and bring minority owners on later? Would that be a bad thing? Or is it better/smarter to secure minority owners when you're first acquiring a team?


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## girllovesthegame

> *Ownership transfer in NBA is a time-consuming process*
> 
> Depending upon your personal outlook, this is either welcomed news or horrifying education.
> 
> But the most recent two sales of NBA teams took 10 months to officially consummate, from the time word emerged about the potential transfer of ownership until the NBA Board of Governors issued league-mandated approval.
> 
> Granted, no two sales of NBA teams are alike. No three sales, if you take into consideration the New Orleans Hornets’ current ownership situation, which has been fluid only since early April.
> 
> Yet the nearly yearlong sale dramas that surrounded the New Jersey Nets and Charlotte Bobcats could serve as a template, of sorts, for Hornets fans to follow while the process of ownership transferal from George Shinn to Gary Chouest and his still-to-be-determined minority partners heads toward the final details of a sale.
> 
> Last week’s revelation that Chouest, who reportedly has an agreement in principle with long-time majority Hornets owner Shinn, is seeking to put together a cadre of minority investors is one explanation why the pace of the expected sale of the team is dragging.
> 
> Yet aside from that, a transaction that will no doubt top out in the hundreds of millions of dollars isn’t as simple as a department store credit card purchase.
> 
> “You’re talking about a major investment and doing it right, ” Hornets President Hugh Weber said. “And this was the same type of process we did when Gary bought in in a minority share (in 2007). That was a little bit less complicated. But I think it’s important that everybody feel confident in how it’s going.
> 
> “I’ve been through this a few times and every one is a little different. Ultimately, the league still has to vote on whatever happens. But I think if you look at the makeup of Gary and his family and George and his family, and any other parties that might be involved in partnering with those parties, that’s what’s complicated. Everyone has to make sure everything is buttoned up. I think the good news is we’ve got a great partnership with Mr. Shinn and Mr. Chouest that hasn’t interrupted our operations at all. And we’ll work out the stuff.”
> 
> It was in May 2009 when Charlotte Bobcats owner Bob Johnson, who had lost millions over the course of his investment with that city’s NBA team, conceded for the first time that he’d sell the team.
> 
> Minority partner Michael Jordan had the right of first refusal, but a Feb. 28, 2010, deadline was imposed and Jordan waited until the last day to make up his mind, or Johnson would have turned to Houston businessman George Postolos.
> 
> The Board of Governors voted March 17 to approve Jordan as the Bobcats new owner.
> 
> In June 2009, New Jersey Nets owner Bruce Ratner announced his intention to seek a buyer for the Nets, an issue complicated by real estate holdings in the Brooklyn, N.Y., area that Ratner intended to use for a new Nets arena and entertainment complex.
> 
> On Sept. 23, 2009, Russian billionaire Mikhail Prokhorov agreed to purchase 80 percent of the Nets, along with the Brooklyn real estate.
> 
> The sale, which topped out at $200 million for 80 percent of the team and the real estate, didn’t get to a Board of Governors’ affirmative vote until May 12.
> 
> Marc Ganis, president of Chicago-based SportsCorp Ltd., a sports marketing consulting firm that closely monitors the business of professional sports, doesn’t believe, however, that the Hornets’ transaction will take quite that long.


http://www.nola.com/hornets/index.ssf/2010/05/ownership_transfer_in_nba_is_a.html


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## girllovesthegame

First thing we've heard about this in a while. Nothing will probably happen until the next BOG meeting anyways but it's nice to hear something either way on what's going on in regards to this sale. 




> *Will the ownership transfer take place?*
> 
> Since late last season, it appeared that the franchise’s founder, Shinn, was on the verge of selling his remaining 65 percent of the team to minority owner Chouest, who since 2007 has quietly increased his minority stake from 25 percent to 35 percent.
> 
> When news broke of the impending sale by the outgoing Shinn to the unassuming Louisiana billionaire, it was assumed that the Hornets’ long-term future in New Orleans would be ensured and the team’s long-time frugality regarding payroll would vanish.
> 
> Just days after the story first appeared, Chouest’s offshore oil drilling support company became consumed in the massive BP oil spill spawned by the explosion of the Deepwater Horizon rig and the subsequent containment, cleanup and capping operation.
> 
> That put the Hornets transaction on the back burner.
> 
> However, it appears things are once again moving toward the consummation of the deal that was agreed to in principle in May. Perhaps Chouest will assume compete control of the franchise in the coming months, erasing any doubts about the team’s future here, and, perhaps, the future of its superstar point guard.


http://www.nola.com/hornets/index.ssf/2010/09/five_questions_facing_rebuildi.html


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## Diable

CHouest has always been the only possibility. Trying to sell to anyone else would have been far too complicated. Of course Shinn doesn't do anything else so he has to get every penny he can and CHouest is under no pressure to overpay. Of course in the meanwhile it hasn't helped the team much.


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## girllovesthegame

> *Sale of the New Orleans Hornets to Gary Chouest seems to still be on track*
> 
> When the New Orleans Hornets open the 2010-11 season tonight at the New Orleans Arena against the Milwaukee Bucks, the state of the team's ownership will remain unsettled but, league sources indicate, still on track to be sold to billionaire minority owner Gary Chouest.
> 
> It's unlikely -- but a slim possibility -- that franchise founder and majority owner George Shinn could make an appearance for the game, although Shinn has not been around the team during preseason save for the Oct. 16 exhibition played in Johnson City, Tenn., near his new home.
> 
> Chouest, who has maintained a low profile since acquiring a stake in the team in 2007 that has swelled to 35 percent, seems to be accepting a more visible role in the team's operation.
> 
> At last week's tipoff luncheon, Chouest was front and center at the festivities, and his recent contributions to the franchise were repeatedly noted by various speakers.
> 
> It has become clear, therefore, that Chouest soon will be in complete control, although when that will happen remains uncertain.
> 
> League sources have indicated that both parties are attempting to work out final details of an agreement that was first reached in May after word leaked in early April that Shinn was ready to relinquish his controlling interest in the team.
> 
> Hornets President Hugh Weber declined to speak about the current state of the transaction.
> 
> Bill Sutton, the associate director and professor in the Devos Sport Business Management program at the University of Central Florida and a former consultant with the NBA, cautioned Tuesday that ownership transfers are a complicated and time-consuming undertaking.
> 
> "I know the deal has been in the works for a while, and it has gone back and forth," said Sutton, who was the team's NBA account manager when the Hornets relocated to New Orleans in 2002 and for several years after. "It has dragged on for a long time. There are a lot of details, and a lot of things that George is concerned about. But I'm excited that it's going to get done, because George would like to retire and move on to something else, and I think the new owner is excited.


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