Chapter 959
The Future Godfather of Luxury Goods: I wish it was Mr. Lin who wanted to see me!
The private room fell silent for a moment.
Even though the NBA commissioner was somewhat dizzy from Lin Haoran's 500 million loan, he was, after all, a seasoned veteran who had been navigating the political and business worlds for decades, and he quickly calmed down.
While $5 million is tempting, a 40-year business right is no small matter, and it's not something he can secure on his own.
After all, once that's agreed, the NBA's commercial rights will no longer be under the league's control; it's essentially outsourced to someone else.
His power as NBA commissioner will also be significantly reduced.
The league is made up of 23 teams. In essence, the league has 23 shareholders. Larry O'Brien is just a professional manager hired by the league. Although he is nominally the president, major decisions must be approved by the owners.
Separating commercial rights from the alliance is not just a matter of money, but also a matter of power.
A 40-year commercial rights license—this level of decision cannot be made by him alone.
He was thinking about the feasibility of this, and how the owners of those 23 teams would react if he told them about it.
Lin Haoran was not in a hurry and sat quietly in his chair to wait.
To be honest, he originally had even bigger ambitions. When he learned that a team was now only worth ten or twenty million dollars, he even considered buying all 23 teams in the NBA!
But the thought only flashed through his mind before he dismissed it.
Acquiring the entire NBA seems like a piece of cake for him, given his current net worth. Any problem that can be solved with money is no problem at all.
After all, he currently has tens of billions of dollars in cash at his disposal, and he can take out hundreds of millions of dollars as easily as playing around.
It's like having a few hundred dollars in your hand and buying something that costs a few dollars—there's absolutely no pressure.
But he knew very well that this was nothing but wishful thinking.
Leaving aside whether the owners of the 23 teams are willing to sell, even if they were, the US Congress and the Department of Justice would not stand idly by.
Antitrust laws are not just for show. One person monopolizing the NBA, one of the four major professional sports leagues in the United States, is such blatant monopolistic behavior that it will definitely attract investigation and prosecution from the federal government.
Moreover, the NBA is the American professional basketball league, representing the face of the United States. It is politically unacceptable for a Chinese-American who is not a U.S. citizen to control the entire league.
At that point, forget about making money; just the lawsuits alone will exhaust him.
Moreover, some team owners would rather have the league cut four teams and incur huge debts than sell the entire NBA to a Chinese person.
Some white bosses are inherently racist; no matter how much they lose money, they won't let a young person with yellow skin ride roughshod over them.
This is a truth that Lin Haoran understood in his previous life: in the United States, race is always an unavoidable hurdle.
He could buy one or two teams, and those white owners would accept that, because it's just normal business.
But buying the entire NBA wouldn't be a business transaction; that would be an "invasion," and they wouldn't tolerate it.
In the United States, some things cannot be bought with money.
So, after careful consideration, he chose another path: instead of buying the team, he acquired the commercial rights.
Team owners can continue to be owners, continue to enjoy the cheers of the crowd in the arena, and continue to be glamorous in front of the media.
But the league's money is in his hands.
This is the smartest, safest, and most sustainable way to maintain control.
By simply lending out $500 million, there is a high probability of acquiring the NBA's commercial rights. This $500 million is a loan, not a gift. It's like getting the NBA's commercial lifeline for free for decades. He doesn't actually need to put in any money. Isn't that great?
Of course, this is all predicated on Larry O'Brien being able to convince those 23 owners.
As for Lin Haoran's other plans, such as real estate, luxury goods, and Hollywood, he naturally wouldn't put them aside because of the NBA.
These plans are being implemented in parallel and do not conflict with each other.
The NBA commercial rights were just one piece in his impromptu business empire in the United States; important, but not the whole story.
If this president hadn't suddenly come to see him, he wouldn't even be sure if he would have invested in the NBA, given the sheer number of investment opportunities in the United States.
However, since the opportunity had come to him, he naturally wouldn't let it slip by.
With just a $500 million loan, one could potentially acquire 40 years of commercial rights—a deal that's a win-win situation no matter how you look at it.
Moreover, this money was lent out, not given away for free; the principal will be recovered sooner or later.
Perhaps a minute had passed, or perhaps five minutes, before Larry O'Brien finally broke his silence.
He began by saying, “Mr. Lin, your idea is theoretically feasible, but I’m really not confident that I can convince you bosses about a 40-year commercial rights license.”
Therefore, I first need to talk to the team owners and see their attitude. If most of the owners don't have strong objections, then we can move forward. Mr. Lin, what do you think?
Lin Haoran nodded and smiled, "Of course, Mr. O'Brien. There's no rush. You can take your time to communicate with the other bosses. I'll wait for your news."
Larry O'Brien breathed a sigh of relief.
He raised his glass and lightly clinked it against Lin Haoran's: "Mr. Lin, thank you for your understanding. I will get back to you as soon as possible."
Additionally, if possible, I hope Mr. Lin can acquire a team to send a positive signal to the NBA, which is currently in a difficult situation.
Imagine if you were just lending money to the alliance, other bosses would see you as just a creditor who might withdraw their investment at any time.
But if you also own a team, you're on the same side, and the other owners are "us" rather than "them," which greatly helps in persuading them to grant commercial rights.
Lin Haoran was slightly taken aback, then laughed.
That old fox, he's been going around in circles trying to get him to buy the team.
However, Larry O'Brien's point is not without merit.
If he were merely a creditor of the NBA, those owners would indeed be wary of him.
But if he is also the team owner, then he is "one of us," and his words carry completely different weight.
“Mr. O’Brien, you’re right. I’ll think about it carefully.” Lin Haoran picked up his wine glass, took a slow sip, and smiled.
"Okay, if Mr. Lin has decided which team he wants to acquire, I will contact the team owner for you immediately. Whether it's the New Jersey Nets, the Cleveland Cavaliers, the San Diego Clippers, the Utah Jazz, the Indiana Pacers, the Denver Nuggets, the Kansas City Kings, or the Golden State Warriors, it's all fine."
These teams are all in trouble right now, and Mr. Lin could acquire them at a very low price, especially the New Jersey Nets. Owner Taub has made it clear that the price is negotiable, $800 million or even lower, is possible if someone is willing to take them over,” Larry O’Brien said.
Lin Haoran smiled and said, "Okay, I will contact you, Mr. O'Brien, after I have thought it over."
Buying a team is as simple to him as buying a toy, so he doesn't care at all.
If he could really control the commercial rights of the NBA, why wouldn't he buy a team? Just consider it an admission fee.
After all, a team only costs a few million or tens of millions of dollars, which is not even pocket money for him.
Moreover, the team's value could appreciate hundreds of times in the future, making it a very good investment.
“Mr. Lin, I won’t bother you any longer. I will communicate your suggestions to the bosses as soon as possible.” Larry O’Brien stood up and bid farewell to Lin Haoran.
Lin Haoran also stood up and shook hands with him: "Mr. O'Brien, take care, I'll be waiting for your news."
The two walked out of the private room, where Liu Xiaoli, Li Guowei, Li Weidong, and Li Weiguo were waiting in the corridor.
Lin Haoran escorted Larry O'Brien to the restaurant entrance, watched him get into his car and leave, and then turned back to his own car.
On the way back to the hotel, Lin Haoran leaned back in his seat, closed his eyes, and reviewed the conversation from that evening in his mind.
Tonight's harvest exceeded his expectations.
He originally just wanted to meet the luxury goods tycoon Bernard Arnault, but unexpectedly, the NBA commissioner appeared out of nowhere, which gave him a good opportunity.
A 40-year commercial license, a $5 million low-interest loan, plus the acquisition of a team—this deal seems like a win-win situation no matter how you look at it, and judging from the NBA commissioner's final reaction, the probability of the deal succeeding is extremely high. Even if it doesn't go through, he won't suffer any loss.
The car stopped in front of the hotel, and Lin Haoran got out and walked into the lobby.
Back in their hotel suite, Lin Haoran and Liu Xiaoli, in good spirits, washed up and then enjoyed a passionate and intimate moment on the two-meter-wide bed, as a way of adding to the excitement of the unexpected arrangement that night.
After finishing, Lin Haoran checked the time and it was already past 11 p.m., so he gave up the idea of continuing to look at those real estate documents.
After all, these New York commercial buildings can't escape either; even if some are sold late, there are still plenty of properties to choose from.
Manhattan's commercial real estate market is currently in a recovery phase after a downturn, with many owners eager to sell and no shortage of good properties available.
So he held the naked Liu Xiaoli in his arms and fell into a deep sleep.
……
The night passed quickly, and New York welcomed a new day.
Bernard Arnault woke up early in a villa along Park Avenue on Manhattan's Upper East Side.
Bernard Arnault, 33, moved his entire family to the United States early last year to avoid the French Socialist government's nationalization and wealth tax policies.
François Mitterrand was elected as the new president of France at the time, becoming the first left-wing Socialist Party president since World War II.
Its policies have a direct impact on the business community and the wealthy.
One measure is large-scale nationalization, with the government planning to nationalize 36 banks and numerous industrial groups.
Secondly, Arnault's family mainly operates real estate companies and is extremely worried about their assets being confiscated.
Thirdly, a wealth tax will be levied, and a new property tax will be established targeting high levels of wealth, directly increasing the tax burden on the rich.
Fourthly, the deteriorating business environment in France, with the government strengthening labor protections and raising the minimum wage, makes France unfavorable for capital and corporate expansion, according to Arnault.
The situation is different in the United States.
Today, the United States is seen by many as a freer market.
During the Reagan era, the United States implemented tax cuts, deregulation, and pro-business policies, leading to a vibrant real estate and financial market. All of this made Arnault feel that moving to the United States would offer a better future.
Therefore, the family ultimately agreed to move to the United States.
And there are countless French businessmen like Arnault who have withdrawn from France and gone to the United States.
They flocked to New York with capital and connections, hoping to find new opportunities in this capitalist paradise.
But reality is often crueler than imagined. Arnault's real estate projects in New York and Florida did not go smoothly. Several apartment projects sold very poorly due to reasons such as high prices, poor locations and fierce market competition.
The funds he brought from France were mostly invested in real estate projects in New York and Florida. Now that sales of these projects have stalled and funds cannot be recovered, his cash flow is insufficient.
Without new funding, how can he possibly grow and expand his family business?
Therefore, their company now has no choice but to take out bank loans to have more opportunities.
However, because they had no connections or credit history in the United States, and the project itself did have problems, American banks avoided them.
Although Citibank provided a short-term loan, it was only because of the assets they had secured in France.
Now that the loan is about to expire, Citibank's attitude has become ambiguous.
Before coming to the United States, Arnault felt that everything in the future was so wonderful, and he also dreamed that his family company would become one of the real estate giants in New York and even the whole United States.
However, reality slapped him hard in the face.
His real estate business in the United States not only failed to take off, but was actually less successful and less anticipated than it had been in France.
The reasons are simple: incompatibility with local conditions, market mismatch, financial disadvantage, and strategic distraction!
It can be said that the family's investment in the United States was just a minor undertaking for the entire market, which made the ambitious Bernard Arnault feel dissatisfied.
The day before, he received a call from the head of customer relations at Citibank, asking him to come to Citibank headquarters at 10 a.m. that day. The head of Citibank said that Citibank wanted to reassess his loan application and would also like to introduce him to a friend from Hong Kong.
Arnault didn't know who this friend from Hong Kong was, but he had a feeling that this person's identity was definitely not simple.
But he also felt somewhat confused.
He is not a well-known figure in New York, and his company is only a mid-sized real estate company in the United States. So far, he has only invested in some luxury housing projects in New York and several high-end apartment building projects in Miami, Florida.
Such achievements are simply not among the top in the American real estate industry.
Why did Citibank specifically introduce him to a friend from Hong Kong?
This is illogical.
"Father, what are your thoughts?" In the lobby of the villa, Bernard Arnault and his father, Leon Arnault, sat on the sofa, each with a cup of coffee in front of them, but neither of them touched it.
Léon Arnault is over sixty years old this year. His hair is gray and his face is thin, but he is in good spirits and his eyes reveal the shrewdness and caution of a businessman.
He is the founder of a family business, having single-handedly transformed a small construction company into a sizable real estate group in France.
Although he has handed over most of the decision-making power to his son, Bernard still needs to listen to his father's opinion at crucial moments.
"Citibank is going to introduce us to a friend from Hong Kong?" Leon Arnault frowned, took a sip of his coffee, and then put it down. "Bernard, who do you think it could be?"
Bernard Arnault shook his head and said, "I don't know. I have no connections in Hong Kong, and I haven't heard of any Hong Kong tycoons being interested in our project. Father, do you think Citibank might be hinting at something?"
The project's failure led Bernard Arnault to constantly seek other development opportunities.
He also figured out why he failed in the United States. In France, he was good at French-style high-end vacation villas and French boutique residences, but in the United States, the demand was mainly for fast-selling apartments, standardized development, high turnover, and large-scale communities.
He directly transplanted the French-style house layout, aesthetics, building materials, and cost structure to the United States, but it was not adapted to American building codes, environmental protection, fire protection, and labor union requirements. The project was repeatedly suspended and exceeded the budget. American buyers did not recognize niche luxury in Europe, but only recognized location, size, cost performance, and community facilities.
The US real estate industry is capital-intensive and has extremely high local barriers. As an outsider, without local partners, banking relationships, or construction resources, he stumbled and struggled at every step.
They finally managed to persuade Citibank to lend them some money, but this amount was just a drop in the bucket for the US real estate market.
He needs more funding and bigger projects to truly establish himself in this market.
All of this requires deeper cooperation with Citibank.
Citibank's increasingly ambiguous attitude made him somewhat uneasy.
As a businessman who has been in the United States for less than two years, how easy is it for him to gain Citibank's complete trust?
After a long silence, Leon Arnault slowly said, "Bernard, we decided to come to America because the environment in France was becoming increasingly unfriendly to us."
But America is not France; the rules of the game are completely different here. Our failure was not due to a lack of ability, but because we played the game in America the way we did in France.
Now Citibank is going to introduce us to a friend from Hong Kong, which may be a turning point. Many Hong Kong businessmen have an international perspective, such as the famous world shipping magnate Mr. Bao Yugang, and Mr. Lin Haoran, who has risen rapidly to become Hong Kong's richest man in the past two years.
The person who requested to meet you is from Hong Kong; perhaps this person can bring us new ideas.
Bernard nodded and said with some emotion, "That's what I think too. No matter who it is, let's go and meet them first. Speaking of which, Mr. Lin's rise to power is truly amazing."
A few years ago, he was just an ordinary rich kid in Hong Kong. Now he is a world-class business tycoon and an Asian executive director of Citibank, wielding great influence on Wall Street.
"If I had the opportunity to work with someone like that, that would be a real opportunity. I wish it were Mr. Lin who wanted to meet me."
It's easy to see Bernard Arnault's admiration and longing for Lin Haoran from his tone.
Young people, especially those who take charge of a company at a young age, are often somewhat rebellious.
But Lin Haoran's rise to power far exceeded his expectations; his ability to manipulate events with ease forced this equally self-important young French entrepreneur to submit. (End of Chapter)