SHARKSPAGE

Oracle CEO Larry Ellison reportedly interested in buying league owned New Orleans franchise and moving to San Jose, Ellison downplays rumor

YOUNG BASKETBALL FAN AT SAN JOSE SKYROCKETS ABA GAME IN 2005

Rumors of new team acquisitions and potential new south bay arenas continued apace yesterday, this time with a new entrant. With potential San Francisco 49’er, Oakland Athletic, and San Jose Earthquake south bay stadiums in perpetual limbo, it was reported Wednesday that Oracle CEO Larry Ellison was interested in buying the NBA’s New Orleans Hornets and moving them to San Jose. According to Forbes Sports Business editor Mike Ozanian, Ellison was said to be in the market for the league owned New Orleans Hornets franchise.

Founded in 1988 as the Charlotte Hornets, the franchise moved to New Orleans in 2002 after low attendance numbers. The team briefly re-located to Oklahoma City in 05–06 and 06–07 after the devestation wrought by Hurricane Katrina. After a failed ownership bid by minority owner Gary Chouest, the league was forced to step in and buy the team for between $300-350 million in December. Mike Ozanian notes that Ellison may have to pay upwards of $100-150 million to move a franchise into the Golden State Warriors sphere of influence. Ellison attempted to purchase the Warriors in 2010, but he did not outbid the $450 million offered by Peter Guber and Joseph Lacob. He was also outbid by the NBA for the New Orleans Hornets after making an offer in December.

There are several caveats, first and foremost Ellison’s interest in buying the team and moving it to San Jose. Ellison walked that notion back today, but would not close the door on it. There are contractual obligations. The Hornets have a lease agreement with New Orleans until 2014. According to Nola, the NBA has an out clause with New Orleans if they do not reach an attendance benchmark of 14,735 by Jan. 31. New Orleans is rallying around the 6 remaining home games in January to reach that figure with pledges to buy tickets from area businesses and several local community groups. There is also the looming possibility of a labor impass facing the league. After the National Football League’s collective bargaining agreement expires on March 4th, the NBA needs to work out a new agreement with its players by July 1st. The NHL and NHLPA situation in 2012 will be influenced by both outcomes.

The final hurdle is the potential home for the Hornets in San Jose. HP Pavilion hosts on average about 190 events a year, the centerpiece being approximately 50 San Jose Sharks games. Twice in recent years the HP Pavilion has been reported in the top-3 and top-5 for the number of hosted events at a North American venue. According to San Jose mayor Chuck Reed, any negotiations between Ellison and San Jose would have to involve the Sharks and SVSE. “Ever since we entered into an agreement with the Sharks for management of the HP Pavilion, we have contemplated a basketball team,” Reed told Kron 4 reporter Rob Fladeboe on last night’s broadcast. “Most recently we revised our agreement to allow them to take the lead knowing that if a basketball team comes in, they are going to have to work very closely with the Sharks for them to succeed. The Sharks have the puck. The ball is in their court to take the lead on this.”

According to Fladboe, the Sharks and parent company SVSE are aware of Ellison’s interest in the Hornets and San Jose. SVSE said they are open to discussions, but that no formal negotiations have taken place. The Golden State Warriors played at the then San Jose Arena in 1996–97 while the Oakland Coliseum underwent a complete renovation. The one year NBA franchise registered a 30–52 record. The last professional basketball team to play downtown, the former ABA San Jose Skyrockets, registered a 29-5 record and lost in the playoff semifinals to Rochester. After playing one season in San Jose with the ABA, the minor league basketball franchise moved to North Dakota and played 3 seasons with the Continental Basketball Association before disbanding.

[Update] Ellison tried to buy New Orleans Hornets but dampens hopes of NBA team in San Jose – San Jose Mercury News.

Larry Ellison, the billionaire CEO of Oracle who’s had extraordinary success buying a string of tech companies, confirmed Wednesday that he recently failed in a second attempt to buy a professional basketball franchise, fewer than six months after his surprising loss in a bidding war for the Golden State Warriors.

“I did offer $350 million” for the New Orleans Hornets, Ellison told reporters, adding that he was “slightly outbid” by the National Basketball Association when the league bought the bankrupt team last month from owners George Shinn and Gary Chouest.

Ellison denied the report by Forbes sports business editor Mike Ozanian, but later told the Bay Area News Group that he had not made up his mind. Sharks EVP of Business Operations Malcolm Bordelon, the frontman for business operations after President and CEO Greg Jamison stepped down last year, told the Mercury News that the Sharks and SVSE would be interested in sharing the arena with a professional basketball team.