Bucks to be relocated from Milwaukee?

Milwaukee is in danger of losing its basketball franchise. When the Bucks were officially bought by New York-based billionaires Wesley Edens, and Marc Lasry for $550 million, the NBA inserted a clause in the contract that would enable the NBA to buy the franchise back for $575 million if a new arena would not be constructed in time for the 2017/18 season. This gives a time frame of a little over 2 years from today.

In order to meet the deadline, the ground needs to be broken for the new stadium’s construction in October or November this year. This leaves the Bucks with a few months to resolve the issue.

The Bucks currently use the Bradley Centre, an indoor arena in Milwaukee. The lease for Bradley Centre expires in 2017. According to Bucks president, Peter Feigin the Bucks have not received the approval they need to raise $250 million in public funding. The current owners and previous owner Herb Kohl are combining the other $250 million.

With at least $93 million needed to be raised through debt on the citizens through the issue of bonds which are payable only after 13 years, many feel that the local politicians are not in support of imposing additional taxes to raise the necessary funds, as they might lose the support of the voters. On the other hand, if the NBA buys and relocates the team, the city loses its basketball team as the NBA looks to have its presence in active markets that will generate its revenues.

According to Peter Feigin, “The NBA does not want the Bucks to extend the lease in an inadequate facility”.

The reports indicate that Los Angeles or Seattle would get the franchise if the NBA were to buy and relocate the Bucks. Likelihood of happening in LA? No, there are already 2 well-established teams in the Lakers and Clippers. Seattle will be the most likely decision. The city lost its franchise when it settled in Oklahoma to form the Oklahoma City Thunder.

Seattle is a proven market and is eager to have an active NBA team back again. The team would have a bigger fan base and better quality stadium.

According to Bill Simmons, there are 2 likely outcomes should the stadium not be built.

1. For $575 million, The NBA would buy the Bucks from Edens and Lasry (who would still get a profit of $25 million). They would then sell the franchise to interested bidders in Seattle or LA for a good sum in the excess of $1.6 Billion (forbes have evaluated each NBA franchise being worth $1.1 Billion on Average) and the 29 other Owners will enjoy the profits.
2. For a relocation fee in the hundreds of millions of figure, the current owners in Edens and Lasry can keep the Bucks but it will relocate to one of the interested cities in a new arena. The other owners? A smaller but still a decent pay day.

Either way, Bucks might leave Milwaukee. Unless the public funds are raised and the stadium preparation starts on time, the Bucks will be leaving their first and only home till date as a franchise.