ANGELES CITY – The Philippine Basketball Association has given its approval on the sale of the Alaska franchise to Converge ICT Solutions (Converge) owned by billionaire Dennis Uy of Pampanga.
Alaska has bowed out of the PBA after 36 years and 14 championships.
The sale would be made final when Converge settles various fees to the PBA. A document obtained by PNN show that the approval of the PBA Board came March 22, 2022.
In the document, the pure fiber internet provider has to settle a P100-million performance bond that will “guarantee the membership of Converge for the next five years.”
It also needs to pay P7 million as equity in the PBA while another P10 million will also be levied as transfer fees.
PNN reported Tuesday that the PBA Board is set to approve the sale of the franchise to Converge. A source said that the approval will come in the form of referendum on members of the PBA Board.
Commissioner Willie Marcial confirmed the buyout, saying Converge will start playing in the PBA’s 47th season this June.
The approval quashes speculations that Converge may face possible opposition due to corporate rivalry. Under existing policy of the PBA, a member team can exercise “lockout veto power” against a direct competitor and applicant team.
The objecting member team can raise objection to the sale of a franchise to a company coming from the same industry. The sale of a PBA franchise requires two thirds vote from 12 current ball club owners sitting in the PBA Board of Governors.
Converge is a competitor of PLDT whose TnT Tropang Giga has been in the league for several years and is now playing in the semifinals of the on-going season. However, Uy is known to be a partner of PLDT Chairman Manny V. Pangilinan in some joint business undertakings.
With this development, Dennis Uy is joining his namesake and Davao-based businessman who owns the Phoenix Fuel Masters in the roster of 12 teams in the PBA.
