The American Basketball Association Becomes a Publicly Traded Company
It wasn?t too long ago when basketball was a genuine sport, great players that projected positive images for children to look up to. Now with the enormous salaries and hand-to-hand combat on the court, the sport has taken a dark path but there is some light at the end of the tunnel. The National Basketball Association better known as the NBA is the largest and best known basketball association in the world, they have given opportunity to many young athletes to become multi-millionaires. Actually without the NBA the Kobe Bryant?s and Shaq?s of the world would not have been given the opportunity to reach the heights that they have.
Many years ago the NBA acquired another association by the name of the American Basketball Association, better known as the ABA, which existed from 1967-1976. Back in the 1970?s there was fierce competition in basketball but the players did not receive the paychecks that they do now, it was all about the game back then. Players gave their all in pursuit of the recognition of being the best team in basketball, but that was then and this is now.
During its time the ABA produced some of the greatest basketball talent of its time but once folded into the NBA only a few teams survived, they include the New York Nets now known as the New Jersey Nets, The Denver Nuggets, The San Antonio Spurs and the Indiana Pacers. The ABA itself disappeared for many years after it merged into the NBA until it resurged a few years ago, but its not the ABA that your daddy knew.
This new ABA has anywhere from 40 to 50 teams and continue to add more markets/franchises to its already bloated list of teams. They give the impression that they are in the same category of the NBA but many seem to disagree. Disgruntle former owners of ABA franchises have become vocal and that is not good publicity for the ABA that is trying to garner respect from basketball fans worldwide.
The organization from what I gather offers franchises to anyone able to pony up the $15 to $20,000 to the ABA. Former husband of Jessica Simpson, Nick Lachey has grabbed one of these markets in California to the ABA?s credit.
Now the concept is interesting enough as it gives those players that have been overlooked by the NBA the opportunity to showcase their talent and possibly bump up to the major league of basketball from the minor league being the ABA.
So the ABA is basically feeling their way through the jungle and trying to build a basketball empire but it could never gain the glory of the true ABA that folded some time ago but they could've come close until they made a move that makes no sense.
Here lies the problem and the reason that I am writing this article, I read a press release yesterday that stated that the American Basketball Association has reversed merged into an OTC Bulletin Board shell by the same of Souvall Page & Co (OTCBB: SVAP), why would an organization of this nature that is building up with much opposition along the way risk going public prematurely?
The revenue stream can not be much at this juncture, the asset base is the value of the franchises which an accountant that is recognized by the SEC may value much lower than the company marks it down as.
Just at first glance it seems as though the powers that be at the American Basketball Association rushed into this reverse merger without thinking ahead. Granted they may have reversed merged into the shell as a means to raise capital for growth but if teams are falling by the wayside mid season or even in some cases pre-season it stands to reason that going public is perhaps not the right move especially on the OTCBB market.
Perhaps in a year when the organization airs its games on television, has solid and stable franchises and marketable players, then it would have been ready to go public but at this juncture it could be a shut out for the new ABA.
We?ll have to wait and see where the chips fall on this one, and trust me I am an avid basketball fan so the ABA being successful is good for the sport but they have a hard act to follow with the NBA and even College Basketball.
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