diskusbooks Chapter 527 Investing in the Nets, the "Wang Xiucheng Agreement"!
Chapter 527 Investing in the Nets, the "Wang Xiucheng Agreement"!
Time passes slowly.
One day after the Nets held their championship parade.
The Nets suddenly released a message.
"The Nets have gone through a series of procedures, including a vote by the league office and the league board of directors."
"Effective immediately, Ms. Julia Koch, Mr. Wang Xiucheng, and Ms. Ma Xiaoxuan will become minority shareholders of the Nets."
Aside from those two sentences, the Nets offered no further explanation.
Half an hour later, the NBA's official website also released an official statement.
However, the NBA's official website uses the same template as the Nets' official website, without changing a single letter.
It seems like this is a very small matter.
However, when this news reached China, it was like a bomb, causing the already bustling basketball community to be thrown into turmoil several times over.
"Wang Xiucheng has actually become a minority shareholder of the Nets?"
“Cai Congxin told everyone that he firmly believed Wang Xiucheng would return 100%.”
"Wang Xiucheng is deeply associated with the Nets."
In a short time, various articles with Wang Xiucheng in the title appeared on the internet.
However, the article is full of speculation from self-media and lacks detailed information.
An hour later, the Nets' New York Times beat reporter published a statement in the New York Times that clarified the matter.
"After Wang Xiushen was injured and before undergoing surgery, Cai Congxin sold 15% of his shares in BSE Global, the parent company of the Nets."
"When I heard the news, my first reaction was that Cai Congxin was going to cash out and run away."
"He probably saw that Wang Xiucheng's injury might make it difficult for him to return to his peak, so he cashed out while the Nets had just won the championship and their valuation had increased."
"But soon I realized I was wrong."
"Because Wang Xiucheng also acquired 4% of the shares, this means that Cai Congxin is very optimistic about Wang Xiucheng's future and has tied the Nets' depth to Wang Xiucheng."
"With this 4% stake, it will be very difficult for Wang Xiucheng to leave the Nets and join another team."
"In addition, Julia Koch of the Koch family also acquired 8% of the shares, becoming the Nets' second-largest shareholder."
"Wang Xiucheng's 4% stake makes him the Nets' third-largest shareholder."
"There is another person, Ma Xiaoxuan. This person is actually Wang Xiucheng's agent and also a member of Wang Xiucheng's host family when he was studying in the United States. So it can be considered that she holds 3% of the shares on behalf of Wang Xiucheng."
"Therefore, Wang Xiucheng actually holds 7% of the Nets' shares."
"The league's board of directors approved this nominee shareholding plan for a simple reason: the Nets' valuation of the shares being sold this time is $60 billion, which is much higher than the market valuation."
"The Nets' price is now an anchor price. No matter who sells an NBA team in the future, they will definitely refer to the Nets' $60 billion valuation."
"Therefore, making money is the reason why these bosses agreed to this nominee shareholding plan."
"Of course, it's also possible that no one wants to offend the Koch family."
Less than half an hour after the New York Times article appeared, Shams released another video exposé.
"Although the league's board of directors approved the plan for Wang Xiucheng to hold the shares on behalf of others, there were still some disagreements within the board at the time."
In Shams' video, Shams showed his phone, which displayed a densely packed message sent to him by an unknown sender.
"Some members of the league's board of directors believe that Wang Xiucheng, after becoming the owner of the Nets, is still taking on the role of a player. Although the collective bargaining agreement passed this plan, no one expected that a player would become an owner so quickly."
"In fact, this player nominee ownership scheme in the collective bargaining agreement was prepared for James, but unexpectedly Wang Xiucheng used it first."
"So this plan actually has many loopholes."
"At the time, someone suggested that if Wang Xiucheng used his status as the owner to give himself a very small contract, the Nets' salary cap would be significantly reduced, and the Nets could use that cap to bring in superstars or other role players."
"This was indeed a loophole, so after discussion on site, a new regulation was introduced and immediately written into the labor agreement."
"Let's call this agreement the Wang Xiucheng Agreement for now."
"The content of Wang Xiucheng's agreement is roughly that when a player plays for a team and holds shares in that team, the size of that player's contract needs to be discussed and decided by the league's board of directors."
"This will prevent people from giving themselves a minimum salary in order to reduce the team's salary."
"In any case, Wang Xiucheng and Cai Congxin both agreed to the new agreement, and everyone else also agreed to Wang Xiucheng's nominee shareholding plan."
"Currently, Wang Xiucheng is the only person in the league who is both a player and an owner, so although this agreement has been in effect, it has not yet truly taken effect."
"Because Wang Xiucheng is currently under contract, the new agreement will only take effect after that contract is completed."
"Wang Xiucheng's 4-year, 8000 million yuan contract has only been in effect for one year, with 3 years remaining."
"It's easy to imagine how competitive the Nets will be over the next three years."
"There is Wang Xiucheng, Durant, or even a third star, and there is still huge salary cap space."
"Don't forget, John Wall's $40 million contract with the Nets expires on July 1st."
As soon as Shams' video was released, it was immediately reposted to major Chinese forums.
Commentators like Yang Yiyu and Jia Suqun, as well as ordinary self-media authors, have all started releasing videos to talk about this matter in detail.
Wang Xiucheng had already been trending on social media for several days due to his injury.
The buzz hadn't died down when Wang Xiucheng became a minority shareholder of the Nets, keeping him trending on social media.
What's even more interesting is the emergence of the "Wang Xiucheng Agreement," which has led many to believe that Wang Xiucheng is the one who changed the NBA.
Historically, there have indeed been players who forced the league to introduce relevant rules or clauses, and these rules have been named after these players by fans.
Examples include the Larry Bird Clause and the Arenas Clause.
Unexpectedly, one day, a Chinese player would have his name written into the collective bargaining agreement.
As a result, many people, even those who are not interested in basketball, gradually learned about the "Wang Xiucheng Clause".
This incident caused many fans who initially believed that Wang Xiu's injury warranted the return of veterans like Guo Ailun to the team to fall silent, and some even sided with the other side.
How could a player who is remembered by the NBA be just a flash in the pan!
Even Cai Congxin firmly believes that Wang Xiucheng will make a full comeback, so how could they not believe it?
Cai Congxin, what kind of vision does he have!
The 30 owners of the NBA are all as shrewd as monkeys.
They all believed that Wang Xiucheng would definitely come back 100%, so they were certain!
It was in this atmosphere that the men's basketball team finally began its training camp.
Meanwhile, the NBA draft is getting closer and closer to its 23 annual meeting.