Staying or going? Latest rumors, thoughts, etc.

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DocHolliday

DocHolliday

Starter
#61
#61
What I don't understand in all of this, which may be true, is the perception that the Maloofs WON'T sell to anyone trying to keep the team in Sacramento. Why? So, you want out, but why screw the fans of Sacramento just, because you don't like the Mayor? If you're willing to sell outright, and have no stake in the team why do you care where the team plays, as long as you get the best deal for yourself?

No out of town offer will be able to compete with a competitive in town offer. A local offer of $450 million nets the Maloofs the same, or more profit than a $525 million offer from an out of towner. The loan to the city would not have to be paid immediately, the new owners could assume it as the Maloofs did. That saves $77 million off the top. Also, if the team moves out of town from what I have heard, and I'm not clear on this, but the reportedly $125 million line of credit that the Maloofs have accrued with the NBA may need to be paid off upon relocation.

So with that math you're at $202 million in debt to pay off. That leaves $323 million to split amongst the owners. A local offer of $450 million, no $77 million off the top, and I'm not sure if the line of credit would work differently, or not. If it could be assumed since the team wasn't moving? Not sure about that part. Just accounting for the $77 Million city loan though makes the $450 million local offer exactly the same as the $525 million offer from out of towners, and no relocation fee. All local interested local investors are reportedly on board with signing off for the arena deal that KJ had put together.
 
Glenn

Glenn

Hall of Famer
#62
#62
xyrin said:
KJ seems to be really pushing the Mastrov group, even sitting courtside with him at the Heat game, so I believe that the "official" Sacramento bid will be focused around Mastrov (unless Burkle is still in the picture along with this group). Greg Van Dusen's plan is to renovate Arco/Sleep Train, which honestly doesn't make any sense. The NBA wants a NEW arena, not a renovated Arco.
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MVP would be happy with a minor ownership just to get his foot in the door in the NBA. He's just extra money if it is needed.

I think the Maloofs have wanted a deal where they paid little money yet had control over the team. Burkle was the main point of interest for awhile and he wouldn't have a part of being a partner of any size with the Maloofs. I think this Maloofs hate Sac is overblown and is a conclusion built upon a variety of mismatching pieces of info.




Edit: see VF21's note below.
 
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VF21

VF21

Super Moderator Emeritus
SME
#63
#63
DocHolliday said:
What I don't understand in all of this, which may be true, is the perception that the Maloofs WON'T sell to anyone trying to keep the team in Sacramento. Why? So, you want out, but why screw the fans of Sacramento just, because you don't like the Mayor? If you're willing to sell outright, and have no stake in the team why do you care where the team plays, as long as you get the best deal for yourself?

No out of town offer will be able to compete with a competitive in town offer. A local offer of $450 million nets the Maloofs the same, or more profit than a $525 million offer from an out of towner. The loan to the city would not have to be paid immediately, the new owners could assume it as the Maloofs did. That saves $77 million off the top. Also, if the team moves out of town from what I have heard, and I'm not clear on this, but the reportedly $125 million line of credit that the Maloofs have accrued with the NBA may need to be paid off upon relocation.

So with that math you're at $202 million in debt to pay off. That leaves $323 million to split amongst the owners. A local offer of $450 million, no $77 million off the top, and I'm not sure if the line of credit would work differently, or not. If it could be assumed since the team wasn't moving? Not sure about that part. Just accounting for the $77 Million city loan though makes the $450 million local offer exactly the same as the $525 million offer from out of towners, and no relocation fee. All local interested local investors are reportedly on board with signing off for the arena deal that KJ had put together.
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My personal guess is that this all stems from the comments the Maloofs made about Ron Burkle. Bottom line is bottom line. If the Maloofs can get more money at the end of the day from local owners, they'll sell to the local owners. And the NBA has made it abundantly clear that legitimate local offers should be considered.
 
xyrin

xyrin

Bench
#64
#64
DocHolliday said:
What I don't understand in all of this, which may be true, is the perception that the Maloofs WON'T sell to anyone trying to keep the team in Sacramento. Why? So, you want out, but why screw the fans of Sacramento just, because you don't like the Mayor? If you're willing to sell outright, and have no stake in the team why do you care where the team plays, as long as you get the best deal for yourself?

No out of town offer will be able to compete with a competitive in town offer. A local offer of $450 million nets the Maloofs the same, or more profit than a $525 million offer from an out of towner. The loan to the city would not have to be paid immediately, the new owners could assume it as the Maloofs did. That saves $77 million off the top. Also, if the team moves out of town from what I have heard, and I'm not clear on this, but the reportedly $125 million line of credit that the Maloofs have accrued with the NBA may need to be paid off upon relocation.

So with that math you're at $202 million in debt to pay off. That leaves $323 million to split amongst the owners. A local offer of $450 million, no $77 million off the top, and I'm not sure if the line of credit would work differently, or not. If it could be assumed since the team wasn't moving? Not sure about that part. Just accounting for the $77 Million city loan though makes the $450 million local offer exactly the same as the $525 million offer from out of towners, and no relocation fee. All local interested local investors are reportedly on board with signing off for the arena deal that KJ had put together.
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The NBA debt is not an issue, as the new owners can just assume the ~125M NBA loan. However, it IS true that the new ownership group will need to pay off the ~75M owed to Sacramento, which allows a local group to match/exceed the cash the Maloofs get for a smaller bid. If that happens, the Seattle group would most likely simply offer a bit more once again. This group is VERY committed to getting Seattle an NBA team.
 
xyrin

xyrin

Bench
#65
#65
Glenn said:
MVP would be happy with a minor ownership just to get his foot in the door in the NBA. He's just extra money if it is needed.
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Agreed, but at the moment it appears that the only stakes in the Kings being discussed are the 53% the Maloofs own and the 12% that Hernreich owns. The overall bid will be smaller and the "majority owner", whoever it ends up being, will most likely want to keep all of that ~65% for himself, or at least enough that will ensure him a majority stake in the company for putting up the most cash.

KJ will need to figure out the entire plan quickly, there isn't much time to prepare. Seattle has been considering this proposal for up to 2 years, some reports have claimed. KJ will have barely a fraction of that time to make a formal bid.
 
Warhawk

Warhawk

Give blood and save a life!
Staff member
#66
#66
UK_King said:
please correct me if I'm wrong. But the NBA can't force anything.

They could block/reject the sale to seattle.... meaning the Maloofs would still own the team Right?

The maloofs could then say, ok we'll sit on our hands for a few more years. They can't force them to sell to a local investor, i thought that was one of the things quashed after they nixed the latest arena deal.
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Unknown. The NBA has not been happy with the Maloofs for years. Not sure if they could "force" a sale or not. Perhaps indirectly by economic pressure (take away revenue sharing or some such?), and the Kings apparently are on track to lose another $6-7 million this year IIRC. MSE is just no longer an economically feasible ownership group and they are getting out one way or another. They couldn't last a few more years if they wanted to.

But yes, they can block a sale to Seattle if they want to and I think MSE would HAVE to sell to a local group, as they will have an empty arena next year if they apply for a sale and relocation and it gets shot down. The fans know what is going on. Additional economic pressure like this will push them over the edge, if done right.

But it appears that the economic pressure may already be past the tipping point since they are trying to sell now. Phase I (getting MSE to the point where they have to sell) is essentially complete. Phase II (keeping them in Sac) is the "hard" part right now.
 
Section 101

Section 101

All-Star
#67
#67
PurpleHaze said:
Can someone explain difference in the voting of full BofG vs. voting of seven member (headed by Clay Bennett) relocation Committee of the NBA? I heard that both are involved in approving or rejecting sale of a franchise, if relocation also involved. In other words, both will require majority votes if Maloofs sale is to party planning to relocate Kings - with Commish Stern in advisory role.
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The relocation committee makes a recommendation to the BoG from their studies. So yes there are 2 votes at hand approving a new owner and approving relocation.
 
Warhawk

Warhawk

Give blood and save a life!
Staff member
#68
#68
xyrin said:
KJ will need to figure out the entire plan quickly, there isn't much time to prepare. Seattle has been considering this proposal for up to 2 years, some reports have claimed. KJ will have barely a fraction of that time to make a formal bid.
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KJ has been preparing for this since who knows when. He has been in essentially constant contact with Stern for years now about the arena and team and he has been keeping potential "players" close to him for just this eventuality, knowing any sale is up to the league and not just the owners. He hasn't been wrong yet, so let's give him some faith, huh? These guys can assemble a competing bid. Some of them have bid on teams like the Warriors before and know what to do. And they have a pretty darn good idea (better than us, I bet) of exactly how much it will take to be "competitive" in the evaluation. And you KNOW they will either sign off on the already-negotiated arena deal in the railyards or will have an alternate plan to put before the BOG. If they don't, this is DOA I think. But that is why KJ keeps mentioning the railyards plan as still in play, so the NBA-negotiated deal is set to go as soon as we get new local owners.
 
xyrin

xyrin

Bench
#69
#69
The NBA is desperate to get the Maloofs out the league, so one thing that must be considered is that the NBA may think, "Look, if we just let this Seattle deal go through, we won't have to deal with blocking them, seeing them in court, or dealing with them ever again." It is a quick way for the NBA to 1) Get rid of the Maloofs forever easily, 2) Bring in VERY rich owners into the league, and 3) Recoup the #12 media market in the NBA (at the price of losing the #20th).

I believe that the NBA WILL allow a Sacramento group to match, and will suggest that the Maloofs consider it as well, but I don't think they'd force them to choose Sacramento over Seattle if the deals are about equal. Remember, Mastrov is only considering buying the Kings because the Warriors were sold under shady terms (Ellison and Mastrov weren't allowed to match or even know the top bid that ended up winning); the selling process is very political and the owners are allowed a lot of freedom to do what they choose.
 
Section 101

Section 101

All-Star
#70
#70
xyrin said:
The NBA is desperate to get the Maloofs out the league, so one thing that must be considered is that the NBA may think, "Look, if we just let this Seattle deal go through, we won't have to deal with blocking them, seeing them in court, or dealing with them ever again." It is a quick way for the NBA to 1) Get rid of the Maloofs forever easily, 2) Bring in VERY rich owners into the league, and 3) Recoup the #12 media market in the NBA (at the price of losing the #20th).

I believe that the NBA WILL allow a Sacramento group to match, and will suggest that the Maloofs consider it as well, but I don't think they'd force them to choose Sacramento over Seattle if the deals are about equal. Remember, Mastrov is only considering buying the Kings because the Warriors were sold under shady terms (Ellison and Mastrov weren't allowed to match or even know the top bid that ended up winning); the selling process is very political and the owners are allowed a lot of freedom to do what they choose.
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And they would be screwing with the big picture of a city having a plan for a new arena and turning their back on it. This doesn't help the small market teams and cities for future venues. It puts a very bad light not just on the NBA, but sports in general.
 
J

Jose

Bench
#71
#71
The one thing that I hate the most about all of this is that, no matter where the team ends, someone will overpay for it. So the Maloofs have screwed Sacramento for so many years, broken our hearts so many times, racked up the debt and ran the organization to the ground and are now going to be rewarded with a huge payday and get bailed out of their debt. Some people get rich by luck, others by working hard, and then there are the ones who get rich by screwing others...

Damn you, Hansen, for bailing out these clowns!
 
xyrin

xyrin

Bench
#72
#72
Section 101 said:
And they would be screwing with the big picture of a city having a plan for a new arena and turning their back on it. This doesn't help the small market teams and cities for future venues. It puts a very bad light not just on the NBA, but sports in general.
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This is very true, the NBA has a 3billion dollar matter going with the public funding for arenas. It could turn out to be VERY big in the whole situation. The owners though may not want to force fellow owners to sell locally though as well, since it could be their franchises facing the same issue down the road.

LOTS of precedents will be set by the end of this saga. Sacramento is really battling for its team though, I'm so proud of the city, fans and mayor. HereWeBuy is incredible and I hope that Grant (who seems to be coming out of his Maloof-laced-shell a TINY bit lately, though the douchebaggery still remains) will give us a bit of the scoop when his show starts.
 
PurpleHaze

PurpleHaze

All-Star
#73
#73
xyrin said:
This is very true, the NBA has a 3billion dollar matter going with the public funding for arenas. It could turn out to be VERY big in the whole situation. The owners though may not want to force fellow owners to sell locally though as well, since it could be their franchises facing the same issue down the road.

LOTS of precedents will be set by the end of this saga. Sacramento is really battling for its team though, I'm so proud of the city, fans and mayor. HereWeBuy is incredible and I hope that Grant (who seems to be coming out of his Maloof-laced-shell a TINY bit lately, though the douchebaggery still remains) will give us a bit of the scoop when his show starts.
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You mean reeking stench from his pinocchio brown nose has FINALLY woke Peaches up!?
 
Section 101

Section 101

All-Star
#75
#75
xyrin said:
This is very true, the NBA has a 3billion dollar matter going with the public funding for arenas. It could turn out to be VERY big in the whole situation. The owners though may not want to force fellow owners to sell locally though as well, since it could be their franchises facing the same issue down the road.

LOTS of precedents will be set by the end of this saga. Sacramento is really battling for its team though, I'm so proud of the city, fans and mayor. HereWeBuy is incredible and I hope that Grant (who seems to be coming out of his Maloof-laced-shell a TINY bit lately, though the douchebaggery still remains) will give us a bit of the scoop when his show starts.
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Best end result for everyone is Maloofs sell locally get a new arena. Seattle gets expansion team league gets expansion fees. No losers in this scenario except the Maloofs. Anyone going to feel sorry for them?
 
L

LWP777

Guest
#77
#77
The Grant Napear Show

I'm listening to Grant's show right now. I haven't listened in ages. Why are the callers so bad? It kind of makes our fans look like morons.....
 
Ryan

Ryan

I like turtles
#78
#78
LWP777 said:
I'm listening to Grant's show right now. I haven't listened in ages. Why are the callers so bad? It kind of makes our fans look like morons.....
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I'm just waiting for Aldridge to come on.

It's the same thing over and over. I'm tired of speculation.
 
PurpleHaze

PurpleHaze

All-Star
#79
#79
LWP777 said:
I'm listening to Grant's show right now. I haven't listened in ages. Why are the callers so bad? It kind of makes our fans look like morons.....
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Some of them are decent but most rather lame, uniformed. What I notice is when a caller calls Maloofs dishonest or can't be trusted, he lets them rant, and Peaches keeps quiet. In the past he would ridicule them, call them idiots, or just hang up on them - while endlessly praising the Maloofs.
 
Bballkingsrock

Bballkingsrock

All-Star
#80
#80
LWP777 said:
I'm listening to Grant's show right now. I haven't listened in ages. Why are the callers so bad? It kind of makes our fans look like morons.....
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Did Grant Napear seriously just say that Tim Donaghy DID NOT ref any of the western conference final games in 2002? Is he serious? Does he not remember game 6?

Unbelievable.
 
Bibbilicious

Bibbilicious

Bench
#84
#84
I'm listening to Grant's show and he has the reporter on who said the Maloofs wont sell to anyone else and this guy is making no sense. The team has not been up for sale up until now.
 
xyrin

xyrin

Bench
#86
#86
Aldridge sounds like an idiot. He just said: “If they wanted to sell it to someone in Sacramento, why haven’t they sold it to someone in Sacramento?” As if that is all the evidence he needs.
 
Bibbilicious

Bibbilicious

Bench
#88
#88
Kingsguy881 said:
That we know of....
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Well what I mean is he seems to be basing his facts on the failed ARENA deals over the past few years, not taking into account that a good part of those failing had to do with the Maloof's finances. Regarding somebody taking the team off the Maloof's hands, its an entirely different issue.
 
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