The Billionaire's Game

Has Mr. Knight never gotten his way?

Especially after Nike became a global behemoth?

Uhhhh… I’m gonna guess, probably not? The man is a winner’s winner.

With that said, I know this whole thing is pissing him off…

Yep… I imagine behind closed doors it looks a little Logan’ish, respectfully.

Once again, we find ourselves circling back to the behemoth that is Nike, but this time, our focus is on co-founder Phil Knight and his pursuit of the Portland Trail Blazers after reading a recent article on WSJ.

It's a tale of sports, business, and a city's deep-rooted love for its team.

Phil Knight, the co-founder of Nike, and real estate investor Alan Smolinisky have been making waves in the sports world with their attempts to purchase the NBA's Portland Trail Blazers. The team currently belongs to Jody Allen, the executor of her late brother Paul Allen's estate. Paul Allen, the co-founder of Microsoft, left instructions to sell his assets, valued at over $20 billion, and donate most of the proceeds to charity. Despite Knight and Smolinisky's persistence and willingness to increase their initial $2 billion offer, Jody Allen has maintained that the Trail Blazers are not for sale.

Jody saw those P&L’s and was like, nah I’m good, fam lmao…

Seriously. Look at the numbers.

The value of professional sports teams has surged over the past year, with the NBA's Phoenix Suns recently selling in a transaction that valued the team at $4 billion. This trend is not lost on Jody Allen, who has sold other valuable assets from the estate, including two Manhattan apartments for a total of $101 million, a yacht, and a $1.5 billion collection of art.

The Allen estate is considered one of the most intricate in American history, and Jody Allen has stated that resolving it could take up to 20 years. This has raised eyebrows among some lawyers familiar with complex estates, who suggest that such a long timeframe would be highly unusual. However, Jody Allen is under no obligation to sell the estate property within a certain timeframe unless its beneficiaries are complaining.

The future of the Trail Blazers is uncertain. The team has missed the postseason for the past two years, and the lease for their arena, the Moda Center, expires in October 2025. Knight and Smolinisky's plan to buy the team is rooted in their desire to keep the team in Portland, a city that has recently been facing social problems. Knight, whose family is worth more than $40 billion, has a strong local support base and has donated hundreds of millions to local institutions.

Despite the NBA commissioner's preference for the team to remain in Portland, the NBA requires any team held by an estate to be transferred within a reasonable time period. Knight and Smolinisky have laid out their vision to keep the Blazers in Portland forever, invest in the team to make it a championship contender, and improve the area around the arena. However, their conversations with Bert Kolde, vice chair of the Trail Blazers and a longtime associate of Paul Allen, have hit a wall, with no explanation given as to why the Blazers aren't for sale.

One of the primary reasons Jody Allen may choose to hold onto the Portland Trail Blazers is the consistent and significant increase in the value of professional sports teams over time. The sports industry has proven to be a lucrative investment, with franchises often appreciating in value due to factors such as new television deals, increased ad revenue, and the growth of digital platforms.

In recent years, the value of sports franchises has skyrocketed, largely driven by media rights deals. Broadcasters are willing to pay large sums for the rights to air games, as live sports continue to be one of the few types of content that viewers prefer to watch in real-time, making it highly valuable for advertisers. As these deals are renegotiated every few years, they often result in increased revenue for the teams, thereby boosting their overall value.

Don't miss a beat in the world of basketball business! Join our Hoops & Hustle community and get the latest insights, analysis, and exclusive content delivered straight to your inbox every day. Whether you're a basketball fan, a business enthusiast, or both, our newsletter is designed to keep you informed and engaged. Click below to subscribe and become a part of our growing community. Let's explore the business of basketball together.

The advent of digital media and streaming platforms has transformed the business model of sports teams, providing them with numerous avenues to generate revenue and engage with fans. For a team like the Portland Trail Blazers, these digital opportunities could significantly enhance its value over time, making it a potentially lucrative asset for Jody Allen to hold onto.

While the immediate financial gain from selling the team could be substantial, the long-term financial prospects, combined with the cultural significance and influence that come with owning a sports team, provide compelling reasons for Jody Allen to retain ownership of the Portland Trail Blazers.

I’m interested in seeing how far Mr. Knight will push this…

As the sports industry continues to evolve in the digital age, the value of teams like the Trail Blazers is only set to increase, making them a potentially valuable investment for the future.