Coke to bare what's up tomorrow
Written By admin on Sunday, February 12, 2012 | 7:48 AM
SPORTING CHANCE
Joaquin Henson (The Philippine Star)
PBA commissioner Chito Salud and Coca-Cola Bottlers Philippines chairman/CEO William Schultz are meeting 2 p.m. tomorrow at the PBA office in Libis to discuss the status of the Tigers franchise in the pro league. Salud deferred action on the proposed trade of Powerade’s Marcio Lassiter to Petron for Rey Guevarra and Noy Baclao until he finds out what’s up with the Coca-Cola franchise, reacting to still unconfirmed media reports that it’s been sold.
A letter signed by Schultz has surfaced in the internet, indicating Coca-Cola wants out of
the PBA. The Nov. 11, 2011 letter was highlighted “Strictly Privileged and Confidential.” In the letter, Schultz said Coca-Cola was giving San Miguel Corp. 60 days from receipt to exercise right of first refusal on buying back the PBA franchise for a price of P100 Million. The right of first refusal was negotiated in February 2007 with Coca-Cola’s purchase of the franchise from San Miguel. Schultz said if San Miguel doesn’t exercise the right, Coca-Cola would offer the franchise to other parties at the same price.
There are many issues to be clarified by Salud in his meeting with Schultz. First, is the franchise still for sale or has it been sold? The letter was dated Nov. 11, 2011 – way before Powerade mesmerized PBA fans by surviving two do-or-die games to eliminate No. 1 seed B-Meg and later advancing to the Philippine Cup finals. Surely, the Tigers’ performance had a measurable positive effect on Powerade sales – that kind of marketing mileage is worth much more than what you would pay for a slew of advertisements. Second, was the letter actually sent and subsequently received by San Miguel? And if so, what was the cut-off for the 60-day deadline? Third, has Powerade governor and PBA vice chairman J. B. Baylon been relieved of his duties in the PBA Board? Even assuming the right of first refusal was exercised, surely Coca-Cola would still be represented in the Board during the transition period. Fourth, is Coca-Cola aware that it will require a 2/3 confirmation from the Board or seven votes to welcome the new owner assuming the sale? Fifth, if the franchise has been sold, was the Lassiter deal proposed before or after the sale?
PBA operations and technical director Rickie Santos said yesterday a 3/4 vote is required from the Board for a party to enter the league by buying a new franchise. That means eight of 10 votes. A 2/3 vote is required for a party to buy an existing franchise or seven votes. Santos said he checked with PBA lawyer Melvin Mendoza who confirmed that the Board had amended a provision in the Constitution limiting a common owner to two teams.
“In the past, a common owner could own only up to two teams but the provision was amended to allow more than two teams but without voting rights for a team or teams beyond two,” explained Santos. “Later, that, too, was amended to allow voting rights for a team or teams over the limit of two but not on game-related issues, meaning voting rights for only league or policy issues. In this particular issue of sale, all 10 members will be allowed to vote.”
The Board would’ve been convened in a special meeting last Friday but only five members showed up. The meeting was postponed due to lack of quorum. Powerade had sent word the night before that Coca-Cola group director for commercial operations Manny Dizon would attend. But in the morning of the meeting, Dizon phoned to say he would not come.
A governor who couldn’t attend said he had previously asked for a postponement. “We requested for a postponement until Tuesday (Feb. 14) but the Chairman (Mamerto Mondragon) texted to say he would go on with the meeting because anyway, he was assured of a quorum,” he said. “Now, the meeting has been reset to Feb. 20. We had requested if the meeting could be set Feb. 14. We understand the nature of a special meeting but we should’ve at least been given formal notice, not by text, and an agenda. In the interest of fairness, maybe the Chairman should’ve also refrained from issuing statements to media that he found the developments to be disturbing.”
Salud said to this day, there has been no formal communication from Coca-Cola to the PBA regarding an intention to sell its franchise.
“Any kind of transfer of ownership particularly of an existing franchise has to have the approval of 2/3 of our Board before it becomes effective,” said Salud. “No formal communication has been sent by Coca-Cola to my office regarding any intention on their part to sell. It just so happens that in the last two weeks, to the detriment of the league, media reports have been persistently coming out saying that Coca-Cola has already sold its franchise, so in the spirit of transparency, in the spirit of full disclosure and in the spirit of serving our fans interest, I am writing Coca-Cola to seek clarification on these media reports. It is hard to comment on what I consider at the moment, at this time to be mere speculations and reports that may not have any basis. Now after getting official clarification or certification from the party involved, then I can make my own comment.”
Salud said the public interest generated by the reported sale is a positive sign. “The special interest that our fans are taking especially in this reported sale of Powerade, a team that has suddenly catapulted itself to the top and has garnered many many fans during one conference alone is a tell-tale sign that the PBA is on the right track,” he went on. “Time and again, there are always entities that send their inquiries as to how to join the PBA but nothing has really fanned out but it will be welcome because it’s a sign that this league is indeed healthy, that this league is on the right track, that this league is in the consciousness of our fans.”
Salud said his role is to get to the bottom of this issue. “To find out what is the truth,” he said. “And in the spirit of full disclosure and transparency, in the higher interest of our fans, we will find out the truth. Because of these reports on print and on TV and in social networks, I can imagine these (Powerade) players are feeling pins and needles so the more urgent this matter is for Coca-Cola to make a clear and an equivocal statement as to their intention with respect to the franchise and their stay in the PBA before Feb. 20.”