The sole distributor of Federal Express in the country, Airfreight 2001 Inc. submitted its company profile to the PBA Commissioner’s Office, and league officials were reportedly convinced of the company’s financial viability.
Thus, the board approval on the sale is no longer the question but the schemes on money matters the league is to impose on Airfreight, a firm under the umbrella of the Bert Lina group of companies.
PBA commissioner Jun Bernardino said earlier that if the sale is approved, the league will get 10 percent from the franchise cost worth P75 million.
In addition, the board is likely to require Airfreight to post a bond that would guarantee its long-term participation in the league. The board is also expected to impose limitation on the ballclub’s share in the league’s television earnings at least in its first two years in the league.
A PBA official said Airfreight will likely be allowed to get only 60 percent in the first year and 80 percent the next year. A regular PBA ballclub gets about P25 million a year from the league’s TV earnings.
For the record, Tanduay and Red Bull got less in their first two years as they bought new franchises, thus becoming expansion teams in the league. Airfreight’s case is different as it’s purchasing an existing ballclub.
Buying the Tanduay ballclub lock, stock and barrel, Airfreight will acquire the rights on all the Tanduay players, including Tanduay’s rights for the first pick in the coming PBA annual draft. A bumper crop of talents applied for the draft, led by MBA stars Romel Adducul, Chris Clay, Jeffrey Flowers, Christian Calaguio and Omanzie Rodriguez and PBL aces Yancy de Ocampo, Renren Ritualo and Mike Cortez.
Under the agreement, Airfreight is to buy Tanduay for P75 million, giving a down payment of P25 million and paying the balance on installment basis over the next four years. A provision in the contract stipulates that "pending full payment, Airfreight will not assign its right, title and interest in this transaction in the PBA or as a member of the PBA board without prior written consent of Basic Holdings Inc. and the PBA board of governors."
The contract, signed by Tanduay CEO Wilson Young and Airfreight top official Lito Alvarez, also gives Basic Holdings Inc. the option to "assign its right in the transaction."