- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Looks like carmakers are well into DEI
Posted on 2/19/24 at 9:49 am
Posted on 2/19/24 at 9:49 am
And looks like a couple of very rich locals are about to lose some expansion plans.
Why?
So the carmakers can't mess with the terms of the sale, but they can choose who gets to pay the terms of the sale. This is no uncommon in franchise deals.
But...
So seems like several carmakers would rather have a minoirty own some of these dealerships, instead of lily white Gayle Benson and Troy Duhon.
Also, there is this nugget...
quote:
Gayle Benson and Troy Duhon have been edged out of some of the Ray Brandt car dealerships they had agreed to buy as part of a deal to settle the late auto mogul's estate.
The deal to split Brandt's 14 dealerships and five collision centers between Saints and Pelicans owner Benson and local auto magnate Duhon was agreed in principle last summer but has been undergoing a lengthy approval process from the nine different carmakers involved.
Why?
quote:
In recent months, some of the carmakers have exercised their "right of first refusal" to bring in other buyers, according to four sources familiar with the proposed deals.
Now, the transactions set to dissolve Brandt's dealership network across Louisiana and Mississippi — worth some $280 million — are expected to include Damian Mills, a regional auto "megadealer."
Mills controls Mills Auto Group, an empire of three dozen dealerships in eight states, making the Garyville native one of the country's largest Black-owned car dealer group, according to the National Association of Minority Automobile Dealers, or NAMAD, an organization which Mills chairs.
So the carmakers can't mess with the terms of the sale, but they can choose who gets to pay the terms of the sale. This is no uncommon in franchise deals.
But...
quote:
Alan Haig, an auto industry analyst, said there are benefits from the practice, for example to curb poor performers and to advance minority ownership.
"In a lot of cases where there is a sale of a dealership, the carmaker will say, 'What do I get out of this?" Haig said. They might seek an upgrade to a facility or they might be looking to open up a new opportunity for a minority owner, he said.
So seems like several carmakers would rather have a minoirty own some of these dealerships, instead of lily white Gayle Benson and Troy Duhon.
Also, there is this nugget...
quote:
The Louisiana native's ambitions apparently extend far beyond his auto empire. Last month, amid the ongoing dealership transactions, Mills asked to meet with senior Benson Group executives and put forward a proposition to buy the Saints, according to two sources familiar with the meeting.
Posted on 2/19/24 at 9:52 am to LSUFanHouston
quote:
they might be looking to open up a new opportunity for a minority owner
Lol nobody really gives a frick about this when money is talking
Posted on 2/19/24 at 9:53 am to LSUFanHouston
quote:
The Louisiana native's ambitions apparently extend far beyond his auto empire. Last month, amid the ongoing dealership transactions, Mills asked to meet with senior Benson Group executives and put forward a proposition to buy the Saints, according to two sources familiar with the meeting.
Yeah that's not gonna happen.
Posted on 2/19/24 at 9:54 am to LSUFanHouston
If the white owners are shoved aside for a minority owner solely on the basis of race, they should, but likely won't, sue for race discrimination.
42 USC 1981 prohibits contract discrimination on account of race.
42 USC 1981 prohibits contract discrimination on account of race.
Posted on 2/19/24 at 9:58 am to JetsetNuggs
quote:
Lol nobody really gives a frick about this when money is talking
Seems like the money is the same either way, no?
Posted on 2/19/24 at 10:08 am to LSUFanHouston
Can you imagine the outcry if the races were reversed?
Posted on 2/19/24 at 10:29 am to chinhoyang
quote:They better have data on their side backing up that the minority buyer's existing dealerships are performing better than the white buyer who got shoved aside.
If the white owners are shoved aside for a minority owner solely on the basis of race, they should, but likely won't, sue for race discrimination.
42 USC 1981 prohibits contract discrimination on account of race.
Posted on 2/19/24 at 10:29 am to SloaneRanger
quote:
Can you imagine the outcry if the races were reversed?
That’s one of my main issues. Treat everything the same and people would have less issue with the racial BS currently going on.
Posted on 2/19/24 at 10:40 am to cubsfan5150
Think back thirty some years ago when a melanin VP of Pepsi got lots of publicity for buying a bunch of stores in a franchise in the NOLA area that had been owned by the corporation. IIRC it was a chain of pizza stores.
Lots and lots of publicity about the sale to a black man.
Some bank might have financed the buy out. The shops weren't doing that well when sold.
The subsequent bankruptcy several years later didn't get much publicity. But Pepsi got rid of some bad investments as I recall. And the bank ...got a writeoff whether they needed it or not.
Lots and lots of publicity about the sale to a black man.
Some bank might have financed the buy out. The shops weren't doing that well when sold.
The subsequent bankruptcy several years later didn't get much publicity. But Pepsi got rid of some bad investments as I recall. And the bank ...got a writeoff whether they needed it or not.
Posted on 2/19/24 at 10:43 am to jcaz
quote:quote:
The Louisiana native's ambitions apparently extend far beyond his auto empire. Last month, amid the ongoing dealership transactions, Mills asked to meet with senior Benson Group executives and put forward a proposition to buy the Saints, according to two sources familiar with the meeting.
Yeah that's not gonna happen.
Correct, Mills is worth 6 million dollars, he ain't touching the Saints under the current ownership rules which require the primary owner to have a 30% stake in the team. The Saints were valued by Forbes at $4.075B, 30% is $1.223B
Now the NFL is considering changing the rules to allow for institutional investor ownership and maybe changing debt and equity requirements so who knows what that will bring?
https://www.sportspromedia.com/news/nfl-ownership-rules-private-equity-institutional-investment-committee/?zephr_sso_ott=NAPDDE
quote:
Following the Denver and Washington transactions, the finance committee agreed that it would be appropriate to look at the full range of ownership policies, including permitted debt levels, minimum equity requirements and holding periods, eligible categories of investors, and expanding opportunities for more diverse ownership,’ Goodell (pictured above) wrote in a memo seen by SBJ.
Posted on 2/19/24 at 11:29 am to mdomingue
quote:
Following the Denver and Washington transactions, the finance committee agreed that it would be appropriate to look at the full range of ownership policies, including permitted debt levels, minimum equity requirements and holding periods, eligible categories of investors, and expanding opportunities for more diverse ownership,’ Goodell (pictured above) wrote in a memo seen by SBJ.
Wait until a DEI focused NFL ownership deal causes a team to go into bankruptcy. You will have some players really kneeling when they don't get their paychecks.
They can posture all they want but let's see how DEI focused they are when its their money that is at stake.
Posted on 2/19/24 at 11:39 am to mdomingue
quote:
Correct, Mills is worth 6 million dollars,
6 million but owns 36 dealerships? Where are you getting that he is worth $6 million? My friends family owns about 20 stores in Atlanta and just their weekend house in Highlands is worth $6mm LOL.
Posted on 2/19/24 at 11:47 am to mdomingue
Maybe Jeff Bezos can buy the Saints.
Maybe then we can get painted end zones
Maybe then we can get painted end zones
Posted on 2/19/24 at 11:48 am to achenator
One way would be that the banks own the dealerships and he's paying interest on the loans but not yet getting any of the principal. (Same way individual home ownership works: 30 year mortgage, first ten years you're paying interest but barely touching the principal.)
Posted on 2/19/24 at 11:48 am to achenator
Yeah, that doesn’t really sound right. Of course there are lots of examples out there of people who “own” a lot of stuff and handle a lot of money who are also drowning in debt.
Posted on 2/19/24 at 12:10 pm to achenator
Do they outright own the house on highland or have their names on a mortgage on the house?
Posted on 2/19/24 at 12:29 pm to LSUFanHouston
quote:
Mills controls Mills Auto Group, an empire of three dozen dealerships in eight states, making the Garyville native one of the country's largest Black-owned car dealer group, according to the National Association of Minority Automobile Dealers, or NAMAD, an organization which Mills chairs.
I mean, it doesn’t really sound like he needs any help…
Posted on 2/19/24 at 5:22 pm to achenator
quote:
6 million but owns 36 dealerships? Where are you getting that he is worth $6 million? My friends family owns about 20 stores in Atlanta and just their weekend house in Highlands is worth $6mm LOL.
I grabbed the first thing I found online. Looking around a bit more I have found all sorts of numbers. Based on everything I would say 6 Mil is low. I've seen anywhere from 12-20plus Mil. He also appears to be a minority stakeholder in the Hornets.
I can't really find anything definitive on him. I am also not sure how much he is leveraged on any of this stuff.
This post was edited on 2/19/24 at 5:24 pm
Posted on 2/19/24 at 6:57 pm to LSUFanHouston
Those are car sellers, not car makers. Bit I'm sure, they are as well.
Popular
Back to top
Follow TigerDroppings for LSU Football News