City of Sacramento directs Ahaheim to stop negotiations with Kings.

[JB_kings]

A Maloof can speak!


"It's not for the mayor or anybody (in the City of Sacramento) to interfere with our business. That's what I think they're doing, and it's not right," Maloof told The Orange County Register. "We would appreciate that they not interfere with our business."

Welcome to our world Joe, you've been messing around with our hearts and minds!

OC Register article: http://www.ocregister.com/sports/city-294022-letter-anaheim.html

 

[93 brings some D]

The Maloof's reply to the letter:

http://www.ocregister.com/sports/city-294022-letter-anaheim.html

 

[BradC79]

From: @GrantNapearShow
Sent: Mar 28, 2011 9:12p

Just finished talking to Maloofs. I will relay conversation tomorrow at 4pm. Needless to say they are extremely upset at today's city letter

From: @GrantNapearShow
Sent: Mar 28, 2011 9:31p

Maloofs told me cities letter was below the belt. Full story tomorrow at 4pm ok KHTK

 

[JB_kings]

Sounds like the letter had it's intended effect. Now they are on public record as saying they intend to pay off their debt. Sorry I don't agree with the unspoken notion that you were going to pay.

Oh and being silent isn't being classy, it just prevents you from saying something you might regret later.

 

[Section 101]

So Joe contradicts himself in the statement

"We've always paid our financial obligations in the past, we're going to do it in the present and we're going to do it in the future. They have nothing to worry about. They will be paid in full, whatever it takes."

This says it's a done deal. They are paying off the loan. Not if they decided to relocated.

Then he says were are still the Sacramento Kings.

 

[Glenn]

There are a couple of ways to interpret that legal letter. It could be as Maloof said, an attempt to disrupt their business. It also could simply be a way of protecting the city from losing a lot of money.

I want the city to protect me.

Now what's the truth?

Check the reaction and you will see how tenouous the negotiations must be with Anaheim. If everything was OK, just shut up and continue the silence. Everything was fine when they had the upperhand and they felt no need to communicate. Their silence now has me seriously angry as it wasn't necessary at all. They are ****ing over their fans.

The league can decide how important fans are.

Maybe they no longer have the upperhand. We have no obligation to keep a smile on his face. We need what is best for us. Who on earth defines what is best for the league? Maloof???

 

[ArcoKings]

Would it be far-fetched to believe that Samueli pays the $77 million to Sacramento in the nest few weeks? Obviously the previous terms negotiated with Samueli and the Maloofs would have to be adjusted. Samueli really wants the Kings to be in Anaheim.

 

[Section 101]

There are a couple of ways to interpret that legal letter. It could be as Maloof said, an attempt to disrupt their business. It also could simply be a way of protecting the city from losing a lot of money.

I want the city to protect me.

Now what's the truth?

Check the reaction and you will see how tenouous the negotiations must be with Anaheim. If everything was OK, just shut up and continue the silence. Everything was fine when they had the upperhand and they felt no need to communicate. Their silence now has me seriously angry as it wasn't necessary at all. They are ****ing over their fans.

The league can decide how important fans are.

Maybe they no longer have the upperhand. We have no obligation to keep a smile on his face. We need what is best for us. Who on earth defines what is best for the league? Maloof???

Well, the maloofs are leasing the arena from the city of sacramento, they have an obligation to pay back a loan/bonds to the city. I think they are already in business together so the city does have the right to interfere to guarantee payment due.

 

[Section 101]

Would it be far-fetched to believe that Samueli pays the $77 million to Sacramento in the nest few weeks? Obviously the previous terms negotiated with Samueli and the Maloofs would have to be adjusted. Samueli really wants the Kings to be in Anaheim.

He could be seen as an agent of the city of anaheim since he runs the arena. So if Sacramento wins in court he could be liable as well.

 

[Tetsujin]

Would it be far-fetched to believe that Samueli pays the $77 million to Sacramento in the nest few weeks? Obviously the previous terms negotiated with Samueli and the Maloofs would have to be adjusted. Samueli really wants the Kings to be in Anaheim.

Considering the fact that he is giving the Maloofs a loan for their move, I doubt that Samueli will simply pay off the Maloof's loan in Sacramento. If anything, he'll just make it so that they have to pay him rather than Sacramento.

 

[Section 101]

Considering the fact that he is giving the Maloofs a loan for their move, I doubt that Samueli will simply pay off the Maloof's loan in Sacramento. If anything, he'll just make it so that they have to pay him rather than Sacramento.

So they are going to owe him over $150 million with no colatteral !

 

[Fireplug]

I have pretty much given up hope on keeping the Kings barring some miracle, but now I am worried the Maloofs will stiff us as well, sticking us with the Arena nobody wants and bonds that need to be paid. These latest developments demonstrate that the city has the same very real fears, and nowhere yet have I seen anyone say that the Maloofs have to, in an iron clad fashion, pay that money back. Instead I am reading about what we get if they default. If the contract somehow says anything other than "the Kings can't leave unless they pay off the money" then we are doubly screwed and I am worried because it sure seems like if those words were indeed in the contract then the City wouldn't be futzing around with going after secondary players like the city of Anaheim. This is a scary development in my mind financially.

Related to all this, I was curious about the $25 mil penalty thing if they default. According to this site: http://www.forbes.com/lists/2010/32/basketball-valuations-11_Sacramento-Kings_327146.html Forbes decided in January that the team is worth around $293 mil. So $25 mil is around 8.5 percent of the team. An interesting coincidence is that the Maloofs bought 53% of the team back in 1998 (according to this page: http://www.reviewjournal.com/lvrj_home/2000/Oct-24-Tue-2000/business/14666446.html and the amount they bought it for, according to that Forbes link above, was $156 mil. So if 53% was $156 mil then the team's total worth was $294 million when they bought them, almost exactly the same as now. I don't know what the team's value was back when the original loan was made with Thomas, but I am sure that $25 mil was a much higher percentage of the team back then. Sure wish the framers of that original contract had made the collateral a percentage rather than a fixed amount. Huge difference.

The real question concerns that 8.5 percent. Will that come out of the then Thomas/ now Maloof portion of the value, or is it spread between all the owners? But even if it is spread between all the owners evenly, 53% of 8.5 is 4.5% so subtracting the Maloofs share of that $25 million value out would still drop the Maloofs down below the 50% majority ownership.

Interesting.

Unless the Maloofs now own more than 53%. Anyone know if they somehow gained a larger share over the years?

 

[JB_kings]

So they are going to owe him over $150 million with no colatteral !

Oh I'm sure that Sammy will have something in mind. Perhaps some team ownership options? Thus I'm sure the real reason they are upset.

 

[Fireplug]

Ha Ha. A lot can happen between the time one starts crafting a post and one hits "post"

Nice to see the Maloofs, if not necessarily legally bound, at least on the record now of saying they will pay off the loan. Perhaps they will have to because that $25 million stake in the team would bite them on the ***. If so, hurray to the contract lawyers back then.

 

[Spike]

Would it be far-fetched to believe that Samueli pays the $77 million to Sacramento in the nest few weeks? Obviously the previous terms negotiated with Samueli and the Maloofs would have to be adjusted. Samueli really wants anyone to be in Anaheim.

I adjusted your quote a little. I think Samueli is SO CLOSE to getting this team that he may be willing to front more money than logical. The fact that it's the Kings stings us as fans, but if it were the Hornets, or someone else, I think he'd be just as eager to get a team to Anaheim.

 

[Spike]

I feel like the Kings told Sacramento that they wanted to break up, and Sacramento told the Kings, "you can't leave me now, I'm pregnant!"

Tomorrow, the Kings doubt its their baby and call The Maury Show.

Today on Maury: Sacramento is SURE this time on who the father is - the Hornets say it isn't theirs. What will the tests show?

 

[The Hammer]

I feel like the Kings told Sacramento that they wanted to break up, and Sacramento told the Kings, "you can't leave me now, I'm pregnant!"

Tomorrow, the Kings doubt its their baby and call The Maury Show.

Not only is this hilarious, it's damn near true!!!

 

[fansinceday1]

This isn't about the kings staying anymore. It's about the city making sure the maloofs pay back the 77 million.
How bout this? The kings leave. KJ gets his state of the art arena. And Greg Lukenbill aquires the Bucks and brings them here. Boom. Problem solved.

 

[Krunker]

Samueli can afford it... his net worth in 2010 is 1.7 billion according to Forbes. Everyone needs those communications chips...

 

[ParniValjak]

Samueli can afford it... his net worth in 2010 is 1.7 billion according to Forbes. Everyone needs those communications chips...

Exactly!

Samuali really has nothing to lose here. Even if the Maloofs fault on loan and decide to sell, he is in a prime position to buy the team and when you think about it, from all the teams out there that are potentially for sale, Kings would be the best franchise to buy because the building blocks are in place even with the lowest payroll in the league. Its absolutely prime position to be in as a team and Samueli is well aware of this.

 

[Superman]

It's unreasonable to ensure that the Team lives up to it's agreed up contract? Not in my book. The are within their rights to warn Anaheim that if they should approve the bond sale, that amounts to enticing the Team to break a lease here. If the situation were reversed and they were about to skip your town and leave you holding the bag, you would want your city to employ whatever legal tactic they could to stall or disrupt the process.

They are just saying they want the team to do right by the city here. Sorry if that part about having to pay 77 million back when they point the trucks south on I-5 is most inconvienent, but too bad. Movin on up isn't cheap.

It is my understanding that the Anaheim deal would include paying the loan to Sacramento. Am I mistaken?

If not, then my point is that the Anaheim vote is partially intended to get approval for the funds to have Sacramento's loan paid off. And Sacramento is threatening legal action for endangering their ability to receive payment. Which seems backward, because the vote is going to get them their funds.

And then, there's the thought that if the Maloofs were to default on their loan, Sacramento would take ownership of PBP, which even in its current state is worth more than the $77 million they're owed. (EDIT: No, it's not, according to Forbes. $58 million. http://www.forbes.com/lists/2010/32/basketball-valuations-11_Sacramento-Kings_327146.html)

 

[Superman]

So they are going to owe him over $150 million with no colatteral !

PBP. I don't see why Samueli would be interested, but if they pay off Sacramento, they own PBP free and clear, and could use it as collateral on their loan with Samueli. Then as they make arrangements to sell it, the proceeds go back to him as payment. Forbes lists the arena as worth $58 million.

 

[Section 101]

It is my understanding that the Anaheim deal would include paying the loan to Sacramento. Am I mistaken?

If not, then my point is that the Anaheim vote is partially intended to get approval for the funds to have Sacramento's loan paid off. And Sacramento is threatening legal action for endangering their ability to receive payment. Which seems backward, because the vote is going to get them their funds.

And then, there's the thought that if the Maloofs were to default on their loan, Sacramento would take ownership of PBP, which even in its current state is worth more than the $77 million they're owed.

No it does not include paying the sacramento loan. $25 million to remodel Honda center, $50 million loan to the maloofs. They could use this money for anything, even to help the palms ! While stiffing Sacramento on the money owed.

What Sacramento is asking for is that Anaheim needs to put a condition on the deal that the pay off the sacramento bonds.

What Steinberg is saying is that one city should not use public funds to lure business away from another city. This is not a precident the state wants to set. Not just sports but any businesses.

 

[Section 101]

PBP. I don't see why Samueli would be interested, but if they pay off Sacramento, they own PBP free and clear, and could use it as collateral on their loan with Samueli. Then as they make arrangements to sell it, the proceeds go back to him as payment. Forbes lists the arena as worth $58 million.

The Maloofs are asking the tax board to set it's value at $30.5 million for tax purposes, it's currentlty assesed at $56 million.

so you were saying it's worth more than $77 million?

 

[Superman]

The Maloofs are asking the tax board to set it's value at $30.5 million for tax purposes, it's currentlty assesed at $56 million.

so you were saying it's worth more than $77 million?

I edited that while you were responding. Forbes lists it at $58 million.

 

[JB_kings]

It's pretty clear the 50 million to the team is to cover relocation fees to the NBA. And if there is any left over, change for the drive thru at Taco Bell for the moving vans. Notice how there is no question that the NBA gets paid first?

 

[Fireplug]

We already "own" the arena. We "bought" it with the bond money we gave the Maloofs kind of like the bank really "owns" your house when you take out a mortgage. There is apparently an ability for us to get out of that ownership if the team moves though. Basically giving it back to Maloofs at cost of remaining bonds owed. Apparently this is also at the city's option.

 

[Superman]

We already "own" the arena. We "bought" it with the bond money we gave the Maloofs kind of like the bank really "owns" your house when you take out a mortgage. There is apparently an ability for us to get out of that ownership if the team moves though. Basically giving it back to Maloofs at cost of remaining bonds owed. Apparently this is also at the city's option.

Sounds like it's totally different from a mortgage, actually. Sounds like it's a lease-option, where you make payments and then take ownership. A mortgage you're the owner, someone else has a lien on the property so that if you sell it, they get paid, or they can sell it if you default. A securitized loan against your property. This sounds different.

 

[Fireplug]

Sounds like it's totally different from a mortgage, actually. Sounds like it's a lease-option, where you make payments and then take ownership. A mortgage you're the owner, someone else has a lien on the property so that if you sell it, they get paid, or they can sell it if you default. A securitized loan against your property. This sounds different.

You are right. I was being too simplistic.

 

[VF21]

So they are going to owe him over $150 million with no colatteral !

The collateral would be what Samueli wants MOST! An NBA team.