Johnny_Blaze_47
01-03-2005, 09:43 AM
http://sports.espn.go.com/nba/news/story?id=1957931
Gund to keep minority stake
Associated Press
CLEVELAND -- Detroit mortgage magnate Dan Gilbert has reached agreement with owner Gordon Gund to buy the Cleveland Cavaliers, who have risen from the NBA's depths to unprecedented popularity since the arrival of star LeBron James.
Gilbert, founder of Quicken Loans, the nation's largest online mortgage company, will assume ownership of the Cavs and 20,000-seat Gund Arena once the deal is finalized by the league's board of governors.
Although financial terms of the purchase were not immediately known, Gilbert heads an ownership group that reportedly offered Gund $375 million. The price could be significantly lower since Gund, who along with his brother, George, bought the franchise from Ted Stepien in 1983 for $20 million, plans to keep a minority stake of the team.
However, Gilbert will be responsible for the club's day-to-day operations.
The Cavaliers are the fourth NBA team to be sold in the past year. The Phoenix Suns were bought by San Diego banking executive Robert Sarver in June for $401 million.
Gilbert said he has no plans to relocate the Cavaliers, a thought that had made Cleveland fans nervous when they heard Gund was selling the team.
"We will not be moving the Cleveland Cavaliers," Gilbert said. "They will be staying put in downtown Cleveland -- right where they belong. A professional sports team has the responsibility to serve the community in which it resides. We will be committed to the fans of Cleveland sports to be as passionate and energized as they are about finally bringing a title home. This will be our focus and goal and will remain so as long as we own this team."
Gund released a statement confirming his agreement with Gilbert and his intent to remain a minority shareholder.
"I am pleased that I will still be involved in this way because I have great confidence in him and also because I have great confidence in the future of both the Cleveland Cavaliers and Gund Arena," Gund said.
The 42-year-old Gilbert, who failed in an attempt to buy the Milwaukee Brewers last year, is getting the Cavaliers with their value and visibility higher than at any other time in the team's 35-year history.
James, the club's second-year star and the league's reigning rookie of the year, has put Cleveland back on the pro hoops map. The Cavaliers' once-sagging season-ticket base continues to grow and could see another substantial jump if the team -- currently leading the Central Division -- gets back to the playoffs for the first time since 1998.
In buying the Cavaliers, Gilbert has finally satisfied a sports addiction that dates back to his first job out of college as a TV sports broadcaster.
A father of four, Gilbert was at one time believed to be the frontrunner to land the Brewers. He was eventually outbid, but that didn't sour his taste for ownership or drive him away from the sports scene. Rock Financial, a subsidiary of Quicken Loans, serves as one of the Detroit Pistons' major sponsors.
After graduating from Michigan State in 1984, Gilbert was in his first year of law school at Wayne State when he invested $5,000 -- his life savings -- to launch Rock Financial, which was at the cutting edge in the online mortgage business.
In 1998, he sold the company for $370 million only to buy it back four years later. According to Forbes, Rock Financial closed mortgages totaling more than $12 billion last year.
Gilbert is known for being both a fair and generous employer. His 2,500 workers enjoy free daily meals at the company's offices and Gilbert has thrown lavish holiday parties in the past.
Rock Financial was named America's 13th-best company to work for by Fortune magazine in 2003.
Gund to keep minority stake
Associated Press
CLEVELAND -- Detroit mortgage magnate Dan Gilbert has reached agreement with owner Gordon Gund to buy the Cleveland Cavaliers, who have risen from the NBA's depths to unprecedented popularity since the arrival of star LeBron James.
Gilbert, founder of Quicken Loans, the nation's largest online mortgage company, will assume ownership of the Cavs and 20,000-seat Gund Arena once the deal is finalized by the league's board of governors.
Although financial terms of the purchase were not immediately known, Gilbert heads an ownership group that reportedly offered Gund $375 million. The price could be significantly lower since Gund, who along with his brother, George, bought the franchise from Ted Stepien in 1983 for $20 million, plans to keep a minority stake of the team.
However, Gilbert will be responsible for the club's day-to-day operations.
The Cavaliers are the fourth NBA team to be sold in the past year. The Phoenix Suns were bought by San Diego banking executive Robert Sarver in June for $401 million.
Gilbert said he has no plans to relocate the Cavaliers, a thought that had made Cleveland fans nervous when they heard Gund was selling the team.
"We will not be moving the Cleveland Cavaliers," Gilbert said. "They will be staying put in downtown Cleveland -- right where they belong. A professional sports team has the responsibility to serve the community in which it resides. We will be committed to the fans of Cleveland sports to be as passionate and energized as they are about finally bringing a title home. This will be our focus and goal and will remain so as long as we own this team."
Gund released a statement confirming his agreement with Gilbert and his intent to remain a minority shareholder.
"I am pleased that I will still be involved in this way because I have great confidence in him and also because I have great confidence in the future of both the Cleveland Cavaliers and Gund Arena," Gund said.
The 42-year-old Gilbert, who failed in an attempt to buy the Milwaukee Brewers last year, is getting the Cavaliers with their value and visibility higher than at any other time in the team's 35-year history.
James, the club's second-year star and the league's reigning rookie of the year, has put Cleveland back on the pro hoops map. The Cavaliers' once-sagging season-ticket base continues to grow and could see another substantial jump if the team -- currently leading the Central Division -- gets back to the playoffs for the first time since 1998.
In buying the Cavaliers, Gilbert has finally satisfied a sports addiction that dates back to his first job out of college as a TV sports broadcaster.
A father of four, Gilbert was at one time believed to be the frontrunner to land the Brewers. He was eventually outbid, but that didn't sour his taste for ownership or drive him away from the sports scene. Rock Financial, a subsidiary of Quicken Loans, serves as one of the Detroit Pistons' major sponsors.
After graduating from Michigan State in 1984, Gilbert was in his first year of law school at Wayne State when he invested $5,000 -- his life savings -- to launch Rock Financial, which was at the cutting edge in the online mortgage business.
In 1998, he sold the company for $370 million only to buy it back four years later. According to Forbes, Rock Financial closed mortgages totaling more than $12 billion last year.
Gilbert is known for being both a fair and generous employer. His 2,500 workers enjoy free daily meals at the company's offices and Gilbert has thrown lavish holiday parties in the past.
Rock Financial was named America's 13th-best company to work for by Fortune magazine in 2003.