It’s 2016, and the Cleveland Cavaliers and Golden State Warriors compete in the NBA Finals. Game 7 – Everything on the line. I remember the three of us, me, my roommate Ernesto and Jeff glued to the screen and doing all the play and breathing. They weren’t even a massive NBA fan, but that series? It was on the edge of our seat for all of us shots.
I didn’t know about it at the time, but this was the peak of the NBA story. Down 3-1 in the series, LeBron and the Cavs returned to defeat the 73-win warrior. They gave us blocks and shots – two of the biggest moments in NBA history. I was a genuine Hoofed and the NBA was my favorite sports league.
After a while, Jeff knows how much I was in the hoop – greeted me about this new alternative investment in Meridian Investment: Called Basketball League Startup Champions Basketball League (CBL). It will be the summer league to give former NBA players a place for the hoops for months after the finals ended in June. Some well-known Former NBA player Attached to CBL, including Al Harrington, Kenyon Martin, Corey Maggette, Cuttino Mobley and Steve Francis. He later retired from legends such as Julius Irving, Mark Aguirre, Earl Monroe. CBL signed a TV contract with ESPN to introduce the game.
I was intrigued, but persistent skepticism remained with me. As a sports fan who watched a lot 30 documentaries 30I knew there were deep cemeteries of failed startup sports leagues, including the XFL, CBA, USFL, AFL, NASL and more. The Big Four League has been so strangled by the industry that there is little bread crumb left for others. A new paradigm for the success of start-up sports leagues has been to coexist with key players as minor league farms or as supplemental viewing during the offseason.
Jeff heard my concerns and said I was looking at very favorable terms for my investment – I said I would sign up Senior Convertible Debtwith a maturity of 2 years, I pay 12% every six months. If the league takes off and the valuations spike, I have the option to convert my debt into team ownership, unlock it more upside down, and give it a solid, positive tail risk.
He then invited me to this flashy steak dinner with Clyde Frasier’s wine and meal, a few blocks from Madison Square Garden. Dinner included CBL CEO Carl George, CEO of Meridian Investments, accredited investors like me, and former NBA players who will become part of the league with some abilities.
I found myself sitting next to Syracuse basketball legend John Wallace. John Wallace was set to coach the Gotham Ballers, the CBL’s New York team. Naturally, I had to ask…
Pete: Kobe or LeBron?
John: I’ll take Kobe. He is the winner. LeBron isn’t all there is to it.
During that dinner I rubbed my shoulders. They really sold themselves as more than a basketball league. It was supposed to be a community-driven league. They lined up all these non-profit exhibit games, and had partnerships with golf outings, meet and greets, and major children’s charities like Boys & Girls Club of America and Make Wish. They told me that their strong connection with the NBRPA would create a 1-3 year durable pipeline that was removed from the NBA. They then eventually added WNBA players and senior retired NBA legends to the event. This investor dinner really sold me by trying this.
This was the biggest investment ever, and no one convinced me that they would become a permanent summer companion in the NBA, or that my investment would be multiples of my initial capital, etc. Money wasn’t the driving motivation. What we really got involved in this investment was The appeal of access and how it tickles my vanity.
By this point in my life, I was a New York 20s billionaire, hoping for more out of life than staring at the stock charts all day. So for the past year I have been exploring new paths and trying to reveal a more complete, complete version of myself. Non-profit mentorship program For high school students in the city centre, I invested some low-level angels. Small and medium-sized businesses, And I spent a lot of time on dating apps.
I felt that the idea of owning a sports team could intersect all three needs. I drew it very clearly – a courtside seat, a 14-year-old inner city mentee by my side, staring at the experience in alarm. “Pete, how do you know Carmelo? Then my date appears and see me waving with these giant NBA guys. Isn’t that Joachim Noah? He’s very tall! That’s the vision. Peter is not just scalping for pajama dirt bag day traders. He is a community-led man of people.
Yes, I know – vain, stupid, and totally self-serving.
Anyway. I spoke to a $25,000 investment. There’s nothing too crazy. I think all of these well-known NBA players are involved. Even if the business proposal itself was questionable, it had to be a legitimate venture. At worst, they ball for a few years and fold like most alternative leagues, but it’s a fun real life experience and you’ll be talking financially. I’m the first to line up to get my principal back. The best case, they are a success of excitement. They establish themselves as the perfect summer league niche when everyone wants more basketball.
They gave us a rough schedule. The league was scheduled to start in July and August next year (2017). They played a short 14-game schedule, similar to the tournament in Las Vegas. That’s good, I can’t wait.
And then the calendar changes…and slowly and surely, the red flag begins to pop up.
StartEngine – Is WTF that?
While searching Google for the company’s latest updates, we found out that CBL is raising crowdfunding funding through StartEngine.
No one told me they were going to do this on top of a private arrangement with the meridian. This was no longer a convertible senior debt, they were selling straight equity. Nevertheless, I thought that by raising it on a public crowdfunding platform, this investment looked rough and low. Legitimate companies usually don’t need to take this route. They should be able to market their vision and strategy to skilled investors with substantial capital.
On a more superficial level, being an owner no longer feels special. Anyone who currently invests $100 can call himself the owner. I threw cold water at the idea that a certified investor like me has exclusive access.
Big 3 ???? Is wtf that?
As my worries start to accumulate, I regularly start queries for CBL updates. Later in the same month, I came across this hardline.
Um… what the hell is this? There’s no CBL or Meridian, but I’ve never said anything I don’t mind about another basketball league where a former NBA player gets and steals the summer TV spotlight. And they run 3-on-3 like NBA jams. Honestly, does it sound much cooler? Is the ice cube behind it? And is their biggest name Allen Iverson? ! Yes…this is bad for CBL. I felt completely blind.
I looked into players who were committed to Big-3. Al Harrington. Kenyon Martin. Corey Maggette. Cuttino Mobley. Steve Francis. What a fuck, mate! ? They’re even stealing all of our players! They are It’s just announced It’s the same month when Kenyon Martin and Al Harrington play for the Gotham Ballers.
There is no way both of these leagues can coexist with the same player. It didn’t make sense. There must be some kind of contractual obligation. I started emailing CEO Carl George, asking him to know what his plan was and asking if he had any to remember my loan anyway.
Hello – Is anyone there? Whether we go to the hoop?
He never responded. I texted Jeff about it and he said that Carl also ducking their call and claiming he is busy finding more investors for the possibility of registering on OTCBB (?!). Perhaps Tom Brady and Jimmy Kimmel were involved.
Although the summer of 2017 was rolling, it never confirmed radio silence across all social media platforms either in its official schedule. I reached out to all the contacts, but no one came back to me. What we got was a financial renewal of how my debt coupon was paid.
Pete (email): Hey guys… when are you playing all the basketball games? ! ? !
There were no games and no press releases were made during this period.
I call Jeff and explain that WTF is in progress. He told me that the political battle in this background was underway. Meridian had enough of Carl’s incompetence and was about to replace him and reboot the league. He told me that the new CEO was Byron Scott.
Byron Scott? *Um* Byron Scott???
Now, let’s give here some context that only Lakers fans understand. ByronScott coached the Lakers from 2014 to 2016, and frankly, he was a disaster. His entire strategy was stuck in basketball in 2001, completely forgetting that the league would move into an era of pace and space. On top of that, he had zero ability to communicate, develop or motivate young players.
Well, in a strange way, it actually worked for us. Because let’s be real. Because we wanted to lose so we could get a higher draft pick. Lakers fans called him “tank commander.” But are you investing in a company led by Byron Scott? Hell no. It was never part of the plan!
Carl George finally responds
And in that way, 2017 is coming to an end. Big 3 pulled away from their first season without a hitch. All the games were played on schedule, highlight reel dunks, fans loved the experience, and champions crowned the crown. Total wins for the first season. And kicker? It all happened with players who appear to have committed to the CBL.
Meanwhile, the only press that came out for CBL was This negative article From Ringer. Now, instead of focusing their energy on keeping the game, they are trying to sue the Big-3 to bring all the players together. I also learned that a great deal with ESPN is streaming games online on ESPN3.
wonderful. It’s just wonderful.
At this point I was 99% sure I would never collect my $25,000.
Then there was nowhere in the summer of 2018. I’ll copy and paste it to you, but the name of the Meridian Investment executive was blocked.
What a shit show. Carl was here and now airing all his dirty laundry in some proxy battles with Meridian executives, fighting for company control. At this point, I didn’t care anymore.
My next move was to email my accountant:
Pete (email): Hey Phil, how do you amortize private investments to zero on your tax return?
Pete, humble, stupid investor
So you’re going there – my stupid investment so far. Looking back, I can’t help but think of how naive I am. I would have absolutely known better than being scammed like this. I really hate myself for the following three things:
a) I’m sucked into my own grand delusions
b) choose not to worry about the business viability of investments despite being fully qualified to know the historic failure rates of alternative sports leagues as informed sports fans;
c) Have little research on people who run the company
Lessons learned.
As for the Champions Basketball League and its aftermath, what happened here:
Their $250 million lawsuit against BIG-3 Droped in 2018 and 2020, the judge ruled in favor of Big 3’s honor loss countersuit to praise the $21 million ruling against CBL. I don’t think Carl had the money to pay it.
They also submitted letters to the court that included a declaration from Tom Brady.
The renewal led by Byron Scott was never materialized by the tank commander. The league is effectively discontinued without having to play one game.
In the meantime, Big3 continued to grow and solidified its position as the NBA’s best professional basketball league. Last year, they sold the LA team to a private owner for $10 million. I wish Meridian would call him a real business tycoon like the Ice Cube.
I still keep private placement notes to remind me of my hub arrogance.
