ducks
12-25-2006, 10:36 AM
• Bobcats co-owner can't donate his share?
Bobcats minority owner, Johnson disagree on shares donation
Bobcats minority owner, Johnson disagree on shares donation
December 24, 2006
CHARLOTTE, N.C. (AP) -- A minority owner of the Charlotte Bobcats wants to donate his share of the basketball team to a charity, but is being blocked by team managing partner Bob Johnson, The Charlotte Observer reported Sunday.
Felix Sabates wants to give his Bobcats stock, which he values at about $1.34 million, to the foundation that supports Carolinas HealthCare System. The Cuban-born Sabates, also a prominent NASCAR team owner, is a member of the system's board.
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"I was surprised Bob wouldn't approve this, considering it's a donation," Sabates told the newspaper in an interview Friday.
Sabates received a letter from Johnson's attorney, Van Sinclair, on Nov. 29 denying his request to transfer the shares, saying the NBA does not allow not-for-profit or charitable entities to own an interest in its franchises.
A subsequent letter from Sabates to the health care system quoted Johnson as saying the NBA had nothing to do with the decision, which was made because Johnson "does not wish to have any charitable organization in partnership with the Charlotte Bobcats."
"I am really surprised at his decision. I thought this would be a great opportunity for the Bobcats to become a real part of this community," Sabates wrote.
The newspaper obtained copies of the letters and other documents.
Johnson and Sinclair both refused to comment to the Observer.
NBA spokesman Tim Frank said Friday that nothing in the NBA's constitution specifically bars a not-for-profit or charitable organization from owning stock in a team.
But, he noted, the league's Board of Governors must approve any ownership change.
In a letter to Sinclair, Sabates said his proposed donation came as a result of discussions with his financial advisers over his estate planning, and was not meant as a reflection on the Bobcats organization.
Sabates' share of the Bobcats is less than 1 percent of the original $300 million franchise fee.
Updated on Sunday, Dec 24, 2006 6:26 pm EST
Bobcats minority owner, Johnson disagree on shares donation
Bobcats minority owner, Johnson disagree on shares donation
December 24, 2006
CHARLOTTE, N.C. (AP) -- A minority owner of the Charlotte Bobcats wants to donate his share of the basketball team to a charity, but is being blocked by team managing partner Bob Johnson, The Charlotte Observer reported Sunday.
Felix Sabates wants to give his Bobcats stock, which he values at about $1.34 million, to the foundation that supports Carolinas HealthCare System. The Cuban-born Sabates, also a prominent NASCAR team owner, is a member of the system's board.
ADVERTISEMENT
"I was surprised Bob wouldn't approve this, considering it's a donation," Sabates told the newspaper in an interview Friday.
Sabates received a letter from Johnson's attorney, Van Sinclair, on Nov. 29 denying his request to transfer the shares, saying the NBA does not allow not-for-profit or charitable entities to own an interest in its franchises.
A subsequent letter from Sabates to the health care system quoted Johnson as saying the NBA had nothing to do with the decision, which was made because Johnson "does not wish to have any charitable organization in partnership with the Charlotte Bobcats."
"I am really surprised at his decision. I thought this would be a great opportunity for the Bobcats to become a real part of this community," Sabates wrote.
The newspaper obtained copies of the letters and other documents.
Johnson and Sinclair both refused to comment to the Observer.
NBA spokesman Tim Frank said Friday that nothing in the NBA's constitution specifically bars a not-for-profit or charitable organization from owning stock in a team.
But, he noted, the league's Board of Governors must approve any ownership change.
In a letter to Sinclair, Sabates said his proposed donation came as a result of discussions with his financial advisers over his estate planning, and was not meant as a reflection on the Bobcats organization.
Sabates' share of the Bobcats is less than 1 percent of the original $300 million franchise fee.
Updated on Sunday, Dec 24, 2006 6:26 pm EST