Multiple outlets this morning are reporting that Phoenix Petroleum is in talks to acquire the Barako Bull franchise. If and when the transaction pushes through, it will finally put an end to one of the most pathetic episodes in PBA history, which saw the once-proud Red Bull franchise crippled by financial problems and forced to sell its key players to barely make payroll from month to month. Finally, the nightmare is over.

But while talk of Phoenix’s entry over the next few months will revolve around basketball-related matters – Will they be able to become competitive? How will they rehabilitate a team whose lineup has been ransacked? – let’s take a look at the most important part of this transaction: Will they be able to afford supporting a PBA team?

Here’s a look at the financials, and how Phoenix compares to other teams in the PBA:





As we can see from the graphs above, Phoenix is still smaller compared to other teams in the PBA, but it’s not that far behind some squads. In fact, its 2010 annual revenue is already bigger than Alaska’s 2009 figure.

But perhaps even more importantly, Phoenix is still a growing business, as shown by a quick look at the company’s financial highlights:





Even more expansion is in the offing for the company, which disclosed that it had earmarked P1.5 billion for expansion this year. Last September, Phoenix raised some P500 million from the issuance of preferred stocks for investors. By all indications, it’s a company that wants to go big time.

If I were PBA commissioner Chito Salud, I’d roll out the red carpet for Phoenix. If it does end up joining the PBA, then it will be an affirmation for the league both as a marketing vehicle and as a prestige membership club for companies. It sends the message that punching a PBA ticket is a sure signal that a company is now playing in the big leagues. It’s also a sign that there are still companies apart from those controlled by Manny Pangilinan and Ramon Ang willing to invest in the league, which bodes well for the future of Philippine basketball. For the PBA, a diverse, competitive league is a healthy league.

In the short term, the entry of a new team would form a four-vote bloc in the PBA board (Alaska, Powerade, Rain or Shine, Phoenix) which isn’t beholden to SMC or MVP – and it might pave the way for meaningful change in the way things are run for the PBA. It’ll be the first step to making a fairer PBA, where the salary cap is followed, and trades are made only for basketball reasons. If that ends up becoming Chito Salud’s legacy – a big IF – then he’ll end up being remembered as the man who fixed the PBA.