Bid too low and other latest news, rumors, etc.

[ParniValjak]

I'm still doubtful as to why Mastrov wants to be a part of a group that buys the Kings at a higher valuation than he declined to buy his hometown Warriors for.. I'm just going to listen to the redhead on this one, that we will see a competitive bid set forth

Wasn't Mastrov disappointed that he did not have a chance to put forward a counter offer for the Warriors?! That indicates to me that he was prepared to go higher but was not given the opportunity. Might be part of the reason why Stern has given him a chance to increase the offer this time.

If he wants a team in Northern California, this is his one and only chance remaining. He missed out on the GSW so he is not getting that chance any time soon again. He misses out on the Kings, he is unlikely to ever get a chance to own a team in his region.

The GSW sale was back in 2010, that is 3 years ago and he only now gets the chance again. In those 3 years the price of the franchises has risen so he will have to step up to the stage on this one or he won't own a team in the foreseeable future. Not in Northern California anyway.

Hopefully he can pull this one out of the bag because there is no doubt that we are behind the 8 ball as we speak. We need to get a move on.

 

[Kingsfan23]

Wasn't Mastrov disappointed that he did not have a chance to put forward a counter offer for the Warriors?! .

I guess I didn't read that from the 1-2 articles I looked up, I hope that is the case.

 

[PurpleHaze]

I guess I didn't read that from the 1-2 articles I looked up, I hope that is the case.

I know that Larry Ellison was disappointed that he did not have his offer for GSW accepted. In the end, Ellison issued press release that noted he was highest bidder but that the owners decided to sell to someone else. Behind the scenes it was rumored that NBA didn't like Ellison very much. I don't recall Mastrov being upset in the same manner, as in effect 3rd highest bidder for W's. In fact, I think he might have simply known as it came to a close he was going to be out bid by quite a bit.

 

[Mike0476]

 

[Kingsfan23]

^^^ Do Ruthie and Ticha still live here? I would have thought Ticha would have been back in Portugal. I loved the Monarchs and found their championship runs very exhilirating and Ticha is probably one of my top 5 basketball players this decade. I'll try to be there

 

[kennadog]

Ruthie lives here and I think Ticha still has a home here. Ticha was just sworn in as a US citizen at a downtown ceremony not long ago and Ruthie and Ticha were at a recent Kings game (HWB1, I think it was.)

 

[Section 101]

Ruthie lives here and I think Ticha still has a home here. Ticha was just sworn in as a US citizen at a downtown ceremony not long ago and Ruthie and Ticha were at a recent Kings game (HWB1, I think it was.)

Ticha still lives here.

 

[whozit]

It's not a black eye for average fans the NBA would worry about. It's the precedent it sets in the publicly-subsidized arena game in the eyes of city governments with small market teams. Moving the Kings from a city that put forth a "Herculean effort" to keep them would weaken the NBA's position in future negotiations when demanding a handout.

http://probasketballtalk.nbcsports....ould-be-key-issue-in-sacramento-kings-future/

Fair enough. On the public subsidy part I agree, the fans might not be watching but anti-arena opponents/forces are and so are other cities leaders. I took Carolija's post as one coming from the perspective from the fans.

 

[rainmaker]

Bryan May ‏@BMayNews10
Sacramento City Manager John Shirey tells News10 the NBA is now working with Sacramento to make sure the city delivers on arena proposal.

 

[kennadog]

Ticha still lives here.

That's what I thought. Love Ticha and Ruthie!

 

[Capt. Factorial]

Bryan May ‏@BMayNews10
Sacramento City Manager John Shirey tells News10 the NBA is now working with Sacramento to make sure the city delivers on arena proposal.

I'm not clear what that means. Does it mean the NBA is looking over Sac's shoulder to make sure we do everything right? Does it mean that the NBA is contributing to our efforts - perhaps even making a financial commitment? That can be read a lot of ways, it's very ambiguous.

 

[HndsmCelt]

I'm not clear what that means. Does it mean the NBA is looking over Sac's shoulder to make sure we do everything right? Does it mean that the NBA is contributing to our efforts - perhaps even making a financial commitment? That can be read a lot of ways, it's very ambiguous.

My read on it is that the NBA is essentially walking the Sacramento buyers and the city through the EXACT things they (the NBA) need to see to keep the team in Sac.

 

[Warhawk]

My read on it is that the NBA is essentially walking the Sacramento buyers and the city through the EXACT things they (the NBA) need to see to keep the team in Sac.

Could be this?

In yet another sign that the NBA isn't counting Sacramento out, Sacramento City Manager told council members Tuesday night that the league has hired a local firm to review the city's offer.

The city's offer is a counter-offer to the one the Maloofs have signed with Chris Hansen and Steve Ballmer in Seattle. If that deal is approved by the NBA Board of Governors, the Sacramento Kings will move to Seattle for the next NBA season.

Sacramento is trying to stop that sale and move, by submitting a counter offer lead by millionaires Mark Mastrov and Ron Burkle.

Shirey did not say which local firm the league had hired, but did say the league is doing its homework. It wants to analyze Sacramento's offer before presentations will be made to the relocation and finance committees in New York City on April 3.

"It is a good thing; it means that they take us seriously," Shirey said. "It means they feel that we have a legitimate offer and that we're a contender to keep the team here."

http://www.news10.net/news/article/235356/2/NBA-hires-local-firm-to-review-Sacramentos-counter-offer

Seems to be backed up by STR, saying the NBA is vetting the plan being put together similar to what they did in Seattle recently.

 

[whozit]

Could be this?




http://www.news10.net/news/article/235356/2/NBA-hires-local-firm-to-review-Sacramentos-counter-offer

Seems to be backed up by STR, saying the NBA is vetting the plan being put together similar to what they did in Seattle recently.

This is an advantage neither way. The NBA just doing it's own due diligence. At least Sacramento is still in the game.

 

[Darth Divac]

I'm going to try and start an unofficial HWB night on our game vs. the Lakers on the 30th.

 

[Gary]

This is an advantage neither way. The NBA just doing it's own due diligence. At least Sacramento is still in the game.

Exactly.. For us "Half Empty" folks it could just mean that the NBA is covering their butts so that if the team moves then they can say that they have done everything possible.

 

[kennadog]

This is an advantage neither way. The NBA just doing it's own due diligence. At least Sacramento is still in the game.

That's basically it.

 

[Schmoe]

Wish I didn't live so far away!

You are invited to attend an open house on the Entertainment and Sports Center Project

Get a project overview, talk to key project staff¬, and provide feedback on the opportunities this project presents to Sacramento.

Open house details

March 21, 2013
5:30 - 7:30 p.m.

New City Hall Foyer
915 I Street, Sacramento, CA
6 p.m. welcome by the City Manager

 

[Peter_Gibbons]

When it comes down to it, Mastrov cannot afford to overpay. He is worth about $350 million which means the Maloof family may actually be richer than him. Just like Hansen cannot afford it on his own, Mastrov is going to need someone behind him who has the resources and desire to overpay. Burkle is a billionaire but when you are talking hundreds of millions, it is still not chump change. The question is why would he overpay.

We really need to hope there is someone out there that has a formula to make this work where they can actually profit from paying $525 million team evaluation for the shares. The only guy that has the ability to drop an extra $100-$200 mil and not feel it is Ellison but rich smart guys like that usually don't like to overpay. Lets hope he has a way to make it work and is interested.

 

[Darth Divac]

When it comes down to it, Mastrov cannot afford to overpay. He is worth about $350 million which means the Maloof family may actually be richer than him. Just like Hansen cannot afford it on his own, Mastrov is going to need someone behind him who has the resources and desire to overpay. Burkle is a billionaire but when you are talking hundreds of millions, it is still not chump change. The question is why would he overpay.

We really need to hope there is someone out there that has a formula to make this work where they can actually profit from paying $525 million team evaluation for the shares. The only guy that has the ability to drop an extra $100-$200 mil and not feel it is Ellison but rich smart guys like that usually don't like to overpay. Lets hope he has a way to make it work and is interested.

Actually, Mastrov is worth about 1.8 Billion.

 

[Peter_Gibbons]

Actually, Mastrov is worth about 1.8 Billion.

Really? where did you see that, I hope you are right on this.

 

[funkykingston]

When it comes down to it, Mastrov cannot afford to overpay. He is worth about $350 million which means the Maloof family may actually be richer than him. Just like Hansen cannot afford it on his own, Mastrov is going to need someone behind him who has the resources and desire to overpay. Burkle is a billionaire but when you are talking hundreds of millions, it is still not chump change. The question is why would he overpay.

We really need to hope there is someone out there that has a formula to make this work where they can actually profit from paying $525 million team evaluation for the shares. The only guy that has the ability to drop an extra $100-$200 mil and not feel it is Ellison but rich smart guys like that usually don't like to overpay. Lets hope he has a way to make it work and is interested.

I'm curious as to what Mastrov's actual net worth is. He reportedly sold 24 Fitness for $1.68 billion but the figure $350 million keeps getting thrown around online. As best I can figure people are getting it from "celebrity net worth" websites who it seems are gleaning it from his initial bid to buy the Warriors for $350 million. Considering his second bid for the Warriors was reported to be $400 million or more I highly doubt his net worth is $350 million.

That said, I also never bought the notion that Mastrov was buying the team and Burkle just involved in the arena. They are equity partners for both and I imagine the new bid for the Kings (assuming there is one) will come out of both of their pockets.
wner and
But I do agree that if it doesn't make business sense for them they likely won't make a competitive and aggressive bid. Mastrov clearly wants to be an owner and Burkle clearly sees development potential but neither is going to meet the price of an NBA franchise if it doesn't make sense financially.

 

[Peter_Gibbons]

Actually, Mastrov is worth about 1.8 Billion.

I see $350 million everywhere man.

 

[Glenn]

I see $350 million everywhere man.

He sold 24 Hour Fitness for $1.6 billion. Perhaps he had a huge party and blew the $1.25 billion. I don't know where the number $350 million came from except it seems most websites are using that number without checking into it.

 

[Peter_Gibbons]

I'm curious as to what Mastrov's actual net worth is. He reportedly sold 24 Fitness for $1.68 billion but the figure $350 million keeps getting thrown around online. As best I can figure people are getting it from "celebrity net worth" websites who it seems are gleaning it from his initial bid to buy the Warriors for $350 million. Considering his second bid for the Warriors was reported to be $400 million or more I highly doubt his net worth is $350 million.

That said, I also never bought the notion that Mastrov was buying the team and Burkle just involved in the arena. They are equity partners for both and I imagine the new bid for the Kings (assuming there is one) will come out of both of their pockets.
wner and
But I do agree that if it doesn't make business sense for them they likely won't make a competitive and aggressive bid. Mastrov clearly wants to be an owner and Burkle clearly sees development potential but neither is going to meet the price of an NBA franchise if it doesn't make sense financially.

The thing is even if he did bid the rumored $420 mil for Warriors, that is the evaluation for the entire team's worth. They usually just buy enough for the majority control which can be 51% of that total value. Also, these rich businessmen always borrows money so he doesn't need to have all the money himself.

 

[Glenn]

I'm curious as to what Mastrov's actual net worth is. He reportedly sold 24 Fitness for $1.68 billion but the figure $350 million keeps getting thrown around online. As best I can figure people are getting it from "celebrity net worth" websites who it seems are gleaning it from his initial bid to buy the Warriors for $350 million. Considering his second bid for the Warriors was reported to be $400 million or more I highly doubt his net worth is $350 million.

That said, I also never bought the notion that Mastrov was buying the team and Burkle just involved in the arena. They are equity partners for both and I imagine the new bid for the Kings (assuming there is one) will come out of both of their pockets.
wner and
But I do agree that if it doesn't make business sense for them they likely won't make a competitive and aggressive bid. Mastrov clearly wants to be an owner and Burkle clearly sees development potential but neither is going to meet the price of an NBA franchise if it doesn't make sense financially.

Nobody should buy the Kings with the expectation of making a profit except in equity. To run the Kings means to lose money on a yearly basis or keep the team in a non-competitive mode. The Maloofs lost money in the Webber/Divac era. I hope that anyone who buys a sports team can swallow a little money loss for the fun of running a high profile venture. I can't speak for Mastrov or Burkle but if they want to make money, they would be better off buying CDs.

 

[Peter_Gibbons]

He sold 24 Hour Fitness for $1.6 billion. Perhaps he had a huge party and blew the $1.25 billion. I don't know where the number $350 million came from except it seems most websites are using that number without checking into it.

What was the percentage of the company that he owned at the time of sale?

 

[Glenn]

What was the percentage of the company that he owned at the time of sale?

I don't have a clue.

 

[jalfa]

The thing is even if he did bid the rumored $420 mil for Warriors, that is the evaluation for the entire team's worth. They usually just buy enough for the majority control which can be 51% of that total value. Also, these rich businessmen always borrows money so he doesn't need to have all the money himself.

borrowing money to buy an asset that exceeds your own net worth and is very likely to cost you even more money in the short term would be the most insane thing any businessman could do. everything I've read about Mastrov tells me that he's a very smart man who knows what he's doing. have a little faith.

 

[Peter_Gibbons]

Nobody should buy the Kings with the expectation of making a profit except in equity. To run the Kings means to lose money on a yearly basis or keep the team in a non-competitive mode. The Maloofs lost money in the Webber/Divac era. I hope that anyone who buys a sports team can swallow a little money loss for the fun of running a high profile venture. I can't speak for Mastrov or Burkle but if they want to make money, they would be better off buying CDs.

Yeah I hear you. That is the harsh truth. When it comes down to it, WHY would Burkle overpay? As much as some may hate to hear it, I really doubt he would overpay by a lot just to help Sac. There has to be something in it for these guys to do it.

The only guy thats can afford to overpay a lot for the team and lose money every year on the team is Ellison and he is only remotely rumored to be in the loop.