Dyip sale moves forward

MANILA, Philippines — It’s now one step closer to sealing PBA franchise Terrafirma’s sale to the Zamboanga Valientes after the prospective buyer submitted a Memorandum of Agreement (MOA) to follow the previous Letter of Intent (LOI) that established interest to purchase the Dyip.

PBA commissioner Willie Marcial confirmed the MOA with Terrafirma and said the process will next move to settling financial terms. Aside from buying Terrafirma’s franchise for an undisclosed amount, Zamboanga has to put up a P100 million cash bond with a tenure of five years. The bond, however, is not withdrawable unless the franchise reneges on its five-year commitment to stay in the PBA. Zamboanga is obligated to pay the premium for the bond.

PBA Terrafirma governor Bobby Rosales said there were initial talks with Starhorse Shipping to acquire the team but negotiations fell through. The purported deal collapsed but three other interested parties surfaced to pick up the ball. Zamboanga beat the others to the draw by formalizing a MOA. Marcial said during the recent Magnolia-Phoenix game in Zamboanga City, he met with Valientes principal Junnie Navarro to discuss the progress of negotiations. Navarro is currently running for councilor in Zamboanga City’s second district on the Team Performance ticket of congressman-candidate John Dalipe, mayor-candidate Mannix Dalipe and vice mayor-candidate Vino Guingona. Navarro said he’s busy with the campaign and will update media on the sale after the elections.

Zamboanga’s other option is to buy a new PBA franchise but it would be more expensive. “Still cheaper to buy an existing franchise for P100 million,” said Rosales. “PBA will require a bond whether an existing or expansion franchise. A new franchise will cost P150 million so it’s more expensive by P50 million.”

Rosales said buying an existing franchise will offer better protection to players, especially those with live contracts. “Otherwise, a dispersal draft will have to be conducted,” he continued. Rosales said, “at this point, it’s still fingers crossed until we receive payment.”