Mark Cuban Mouths Off Again

Mark Cuban Fined $100K (via FanIQ)

  Commissioner David Stern fined Mark Cuban $100,000 for approaching referees with inappropriate language after the Mavs blew a 17-point lead to the Clippers this past Wednesday with a loss of 129-127.   After Cuban was slapped with the fine,…

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Billionaire Baller Goes Negative on Bracelets

Has Mark Cuban Hedged His Facebook Position?

Has Mark Cuban Hedged His Facebook Position?


There are five (correct) answers to this question. They are (in no particular order):

a. who knows?
b. he'd be stupid if he wasn't
c. Broadcast.com
d. Yep, he's gotta to be
e. Yes, his silence (no posts or tweets) on this means only one thing

First, let's take a look at Mark Cuban's current (disclosed) Facebook position---

(Long) 150,000 shares; average cost per share $32.49; total cost $4,873,500

Based on a 6/1/12 FB close at $27.72, Cuban looks like he is sitting on a net (paper) loss of $715,500.

Do we begin to worry and feel sorry for Mark Cuban and his Facebook trade? No, because we only can see his paper loss. No, because he already told us this is a trade, not a long term investment. No, because with an original FB position of nearly $5 million, he has a vested interest in monitoring trade. No, because Mark Cuban doesn't like to lose money. No, because Mark Cuban isn't stupid.

Back in 1995 Mark Cuban and partner created Broadcast.com, a multimedia company. Years later they sold the company to Yahoo! for $5.7 billion in 1999. But, Cuban then owned restricted Yahoo! stock that was locked up. Cuban was at risk owning (temporarily) illiquid Yahoo stock. Cuban was at substantial risk. Cuban didn't want to accept that risk. Mark Cuban wanted to transfer that risk to the options market. So, Cuban says he "hedged my stock with synthetic indexes, in case the market cratered in the six months before I could hedge my actual Yahoo shares. It cost me $20 million, but I protected what I had." (Fast Company, September 30, 2002).

In January 2000, Cuban bought the Dallas Mavericks, NBA franchise.

In May 2012, Cuban bought a little under $5 million of Facebook stock.

Mark Cuban is hedged.

Magic Johnson Overpays for the Dodgers by $1 billion

Magic Johnson, NBA MVP, NBA Champion, businessman, entrepreneur, venture capitalist, philanthropist and all-around great guy.

Now, part-owner of the Los Angeles Dodgers MLB baseball team.

Magic Johnson as NBA MVP, NBA Champion, etc., is a very successful individual. He will be far less successful as baseball tycoon. (But, ESPN won't tell you that part).

Let us count the ways.

There is a big difference between venture capital deal-making and owning and operating a business. Especially a money-pit of a baseball team that requires a continuous financing model.

• First, this is a highly leveraged business deal. Razor thin margins force you into making decisions you don't want to make and decisions you can't make. This happens to be just the kind of deal that Bud Selig doesn't want MLB to make, but was forced to anyway. (An e-Bay like auction of a baseball team no-less) This is exactly the kind of deal that knocked Jeff Moorad out of contention with the San Diego Padres and his ownership attempt there.
• Second, little or no available operating capital will be available for product development - namely baseball players. Albert Pujols is already taken and plays and lives nearby Disneyland. Other superstars will not be coming soon. There will be no budget for them.
• Lastly, the TV deal. Read up on this one. This deal will have to go exactly right or else the financial and baseball future at Chavez Ravine looks more like another smog-filled day in the Southland.

So, who are the winners and the losers in this Dodgers Deal?

Losers: Magic Johnson, Dodger fans, MLB, Bud Selig

Winners: Frank McCourt, other teams in the National League West

Showtime comes to the Los Angeles Dodgers and Chavez Ravine.

Instead Showtime, with this Dodgers Deal, is like buying Los Angeles Real Estate at the top of the property bubble.

Have a couple of Dodger Dogs on us, Magic.

Winning with Mark Cuban

Long-time readers of Think Billion$ will find it funny that we actually would like and would promote a book by Mark Cuban.

Even though we’ve been an occasional Cuban Critic over the years, we did find it in our hearts to congratulate the Dallas Mavericks on their NBA championship last year.

Mark Cuban has indeed done some crazy things over the years. However, he does provide us with some good business recommendations from time to time. And "How to Win" does provide us with solid suggestions and ideas. Plus, where can you find good quality business ideas and commentary these days for just $2.00+? Yes, two bucks! Amazing. Enjoy reading Mark Cuban.


How to Win at the Sport of Business: If I Can Do It, You Can Do It

Mikhail Prokhorov: Democracy Now in Russia

"What worked before does not work now. Look in the streets. People are not happy."


"Stability at any price is no longer acceptable for Russians." 


"I am against any revolution, because I know the history of Russia. Every time we have revolution, it was a very bloody period." 

"We now have all the pieces in place to move very fast to being a real democracy." 

Mikhail Prokhorov, age 46

Russia's third-richest person, $18 billion net worth

owner, New Jersey Nets basketball team

Game On In Russia: Billionaire to take on Putin

It is JUMP BALL ball in Russia for the 2012 presidential election.


It looks like Nets basketball team owner Mikhail Prokhorov vs. Vladmir Putin.


The Russian billionaire tycoon and world sports fan said he will run against Vladimir Putin in next year's presidential election. 

"These past two-and-a-half months, my colleagues and I have been quietly and calmly working to build an infrastructure that will allow us to gather two million signatures."

Orlando Magic basketball star Dwight Howard could not be reached for comment by your Think Billion$ blog.

Yahoo! Sports wages class warfare against NBA owners

Yahoo! Sports, trying to give its NBA reporters something to do and stay somewhat relevant, begins the political charged discussion with:

Think NBA owners are sweating out each day of the lockout? Maybe you should check the number of league bosses on the latest Forbes 400 list. A dozen NBA owners made the rankings of the richest people in America. With 30 teams in the conference, that means 42.8 percent of the owners are sitting pretty.

Joshua Harris has an impressive resume that includes a bachelor's degree from Penn’s Wharton School of Business and an MBA from the Harvard Business School. The 46-year-old is one of the youngest on our list and worth $1.45 billion.


http://www.thepostgame.com/blog/list/201109/nbas-richest-owners

Congratulations Dallas Mavericks!

Congratulations Dallas Mavericks on winning the 2011 NBA World Championship!


As readers of the Think Billions blog know, we have been frequent critics over the years of Dallas owner Mark Cuban. But because we feel that he did a great job of keeping this team together and keeping them focused, we can easily say.......


Congratulations Dallas Mavericks!!!

Mark Cuban: Anybody would be interested in Lebron James

NBA: FINE $100,000




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Mark Cuban: I'm not so against steroids

Dallas Mavericks billionaire owner Mark Cuban on the NBA's steroid policy:

"I'm not so against steroids," Cuban said, pausing to a roomful of laughter, "if it's administered under the proper supervision."


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Russian billionaire Prokhorov brings his game to the NBA

Mikhail Prokhorov may help fund the construction of an arena for the New Jersey Nets, a spokesman for the billionaire’s holding company said Thursday.

Prokhorov, Russia’s wealthiest man and an avid basketball fan, is considering funding the stadium after being approached by someone involved in building Barclays Center, which is planned to go up in Brooklyn, Onexim spokesman Igor Petrov told The Moscow Times.

“The possibility exists” that Prokhorov will participate in the project, Petrov said, declining to say how much he would contribute.

Though Barclays has never disclosed the cost of the project, reports have said the stadium’s construction will cost around $800 million.

Prokhorov was rumored to have been in talks with Nets management in July to acquire a piece of the franchise.

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Billionaires and sports

Well, we have written about billionaires and sports from time to time here at Think Billion$.

So just today, we bumped into an interesting article about mostly NFL and NBA billionaires and how they got to where they are today. For instance, the NFL's Malcolm Glazer got started as an owner of Florida trailer parks.


read>>> How to be a billionaire sports team owner

LeBron James: A Future Brooklyn Billionaire?

This is a story that has it all and will continue to have it all in the years ahead.

It is about current billionaires (Cleveland Cavaliers owner Dan Gilbert, investor Warren Buffett) and future billionaires (Jay-Z and LeBron James).

It is about big money, the NBA, marketing, future trades and possible movement from the small town to the big city.

Will it happen? Will he do it? We will have to wait and see. It is not going to occur during the next couple of weeks to be sure.

Enjoy the drama that is LeBron James. When LeBron lets us know, you'll know.

Related -

Yahoo! Sports: Jay-Z, James relationship should worry Cavs

ThinkBillion$: LeBron James: Witness a (future) Billionaire

Billionaires have holiday wish lists, too

The Wall Street Journal reported yesterday ("Seven Yachts A-Sailing, Six..., p. W2) that yes, billionaires have holiday wish lists and needs like the rest of us.

For instance, Mark Cuban wants: an NBA trophy, a 32-gigabyte flash drive and new dancing shoes.

Sam Wyly wants books, such as: "Flying Tigers: Claire Chennault and His American Volunteers, 1941-1942."

Please let us know if you know of an billionaires that have updated wish lists.

Merry Christmas to all billionaires and non-billionaires alike!!!

The 100 Most "Influential" People in Sports: Mark Cuban (#5)

Billionaire Mark Cuban at Dirk Nowitzki's MVP presser





A Price Above Bip Roberts

LeBron James: Witness a (future) Billionaire

In the next 15 or 20 years, I hope I'll be the richest man in the world. That's one of my goals. I want to be a billionaire. I want to get to a position where generation on generation don't have to worry about nothing. I don't want family members from my kids to my son's kids to never have to worry. And I can't do that now just playing basketball.

LeBron James, Seattle Post-Intelligencer, Dec. 10, 2005





Yeah, we love basketball. But this article is about LeBron James Economics 101.

Welcome to class.

Four years ago, before his selection as the number 1 pick by the Cavaliers, LeBron signed an unprecedented $90 million contract with Nike at the age of 18.

Today, Nike’s $90 million investment never looked better. Never. Recently, Brian Fairben, Nike's business manager for James is quoted as saying: "The world changed for a lot of us at Nike in that Game 5 (vs. Detroit).” We are sure it has.

Berkshire Hathaway Billionaire Warren Buffett has watched him play in person during several games this season. They’ve enjoyed each other’s company.

This week, Michael Jordan has not hesitated with praise for LeBron for leading the Cleveland Cavaliers to victory over the Detroit Pistons in the Eastern Conference finals.

Everyone wants to praise and hang with LeBron.

Right now, the top athletes in the world for their endorsement value are Michael Jordan and Tiger Woods.

Currently, LeBron James is well down that list at #62. James has a number of endorsement contracts with Nike, Sprite, Powerade, and Upper Deck. Yet, his endorsements are considered relatively limited and modest---given the potential. However, that will change quickly. Very quickly.

According to a Bloomberg article, LeBron "might increase his $25 million in annual endorsement contracts by 40 percent with a National Basketball Association championship."

LeBron: portfolio manager.

Lebron James Nike Pool Commercial





Maverick Carter, James's manager and former high school b-ball teammate at St.Vincent-St. Mary High School in Akron, Ohio, says that LeBron is open to new endorsements. Carter’s phone is most certainly ringing 24/7.

LeBron is serious about taking his business enterprises global. LeBron is serious about the NBA title. LeBron is serious about many things.

What LeBron is serious about is what LeBron eventually achieves.

Go Cavs!

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Awards:

NBA first overall draft pick: 2003 NBA Draft

NBA Rookie of the Year: 2004

NBA All-Star Game Most Valuable Player: 2006



The LeBron James Official Site

Nike Basketball

NBA: LeBron James page