THE official demise of the NorthPort team in the PBA is expected to be finalized anytime now. The PBA board of governors is meeting in Las Vegas — the glitzy and dazzling American city known for gambling and extravagance, and also the scene of many of Manny Pacquiao’s greatest hits — to give final approval to Pureblends’ purchase of the NorthPort franchise.
Only minor details are reportedly being ironed out before Pureblends, a food solutions company, officially becomes the newest member of Asia’s first professional basketball league and the country’s longest-running and most successful sports organization.
The meeting is also the PBA’s annual planning session, a three-day affair usually held in various cities of the world. Last year it was in Osaka, the year before in Paris, but the present one in Las Vegas has on top of its agenda the application of Pureblends.
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There seems to be nothing in the PBA bylaws that would prevent Pureblends from getting in, although the company deals with the manufacture of custom foods and the marketing of daily food requirements like coffee, chocolate, juice drinks, powdered seasoning, baking premixes and condiments, which may compete with some San Miguel products.
But sources say San Miguel does not plan to oppose Pureblends’ entry, which is a bright sign because one negative vote from any of PBA’s 12 teams can result in rejection.
At this point, however, everything seems to be going the way of Pureblends. Its application comes at a time when the PBA is looking for new blood and new team ownership to help lift the league from its doldrums.
While it is true that the PBA is one of the country’s most exclusive clubs, at this juncture it cannot be choosy. The league is threatened by departures, and some teams, especially those outside the umbrella of Ramon Ang’s San Miguel and Manny Pangilinan’s Smart/PLDT, have to contend with the constant money challenges that come with keeping basketball teams afloat.
On average, operating a PBA team costs its owner between P85 million to P200 million per year, depending on the perks, allowances, and bonuses the team will choose to give its players.
San Miguel’s Ramon Ang once famously said that it is costing San Miguel P1 billion to operate or finance its three teams in the PBA – San Miguel Beer, Ginebra and Magnolia.
The same could be said of the MVP Group which also owns three teams, TNT, Meralco and NLEX.
NorthPort has bailed out of the PBA, no reason given; and Terrafirma, for sale ahead of NorthPort, is still in the market for a buyer. This begs the question: if the league is such a wise investment and an attractive addition to a businessman’s portfolio, why is it taking so long to find a buyer for this team?
Although two groups have opened negotiations to buy Terrafirma, the conversation did not go far, with both interested buyers unable to agree with Terrafirma on undisclosed points of the transaction.
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On the other hand, Pureblends and NorthPort quickly closed the deal, with listed NorthPort owner Mikee Romero sending all assets, lock, stock and barrel, to the new owners.
Reports said Pureblends, with headquarters at Grace Park, Caloocan City, had offered to buy the PBA franchise for P90 million, or about 10 percent below what NorthPort paid when it bought the Powerade franchise in 2012 at P100 million plus a P10 million application fee for a total of P110 million.
This is not a good omen for the league. It means the value of a PBA franchise is no longer what it used to be. Instead of rising like most sports leagues with a tradition and history, the PBA’s worth is apparently sliding.
Thankfully, there are still businesses who believe in the PBA. Pureblends — owned by businessman Bryann Calantoc, who played basketball out of Grace Christian High School and has a history of supporting teams in the MPBL and the Pilipinas Super Liga — is one such business.
Calantoc has shown an eagerness to jump into the PBA fray. He is beefing up the lineup, shoring its coaching staff, and is looking to infuse millions more to form a competitive team.
As long as the PBA governors and the commissioner do their part while meeting in Vegas, then perhaps game-changing ideas will emerge to make teams like Pureblends believe that the PBA’s future is worth investing in.
Anyway, why Las Vegas? Is it because we’ve heard it said that what happens in Vegas stays in Vegas?
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