Peter_Gibbons
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If you read what I said, he would only be buying the majority share which can be as low as 51%. That means he would only pay $214.2 million for a team that has a $420 million value.
Bid too low and other latest news, rumors, etc.
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If you read what I said, he would only be buying the majority share which can be as low as 51%. That means he would only pay $214.2 million for a team that has a $420 million value.
Glenn
Hall of Famer
Burkle is an interesting character. He likes to stay in the background. He is the anti-Maloof. I can't remember where I read that. At the same time, he has been in the picture concerning the Kings for a couple years and is looked upon with awe by Stern. I am sure they have each other on speed dial. I don't know the exact reason for Stern's awe but it's a good thing that for us, isn't it? What on earth makes the Kings so fascinating for Burkle? He could have tried to buy the Warriors, ya know.
Anyway, his deal with AEG seems to have fallen through and we don't know why. Maybe he had some liquid cash and he saw he needed to spend it on the Kings (Glenn in optimism mode.) He may have withdrawn his interest. I doubt if we will ever know and frankly, I am happy and don't need to know. A Burkle with cash in his pocket ready to spend in a sports related area is a good Burkle.
Mastrov and Burkle seem to a good match. Mastrov seems to be outgoing and Burkle seems happy staying the background. This leaves less chance for conflict.
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I haven't read anywhere that the Warriors have minority owners.
jalfa
Starter
IIRC, back then the bid was for all of the Warriors, but even if it were for ~200 million, if his net worth were only 350 million, there is no way he'd be willing to spend that much money. it'd be 57% of his net worth and would mean economic suicide for him.
Peter_Gibbons
Starter
Burkle is an interesting character. He likes to stay in the background. He is the anti-Maloof. I can't remember where I read that. At the same time, he has been in the picture concerning the Kings for a couple years and is looked upon with awe by Stern. I am sure they have each other on speed dial. I don't know the exact reason for Stern's awe but it's a good thing that for us, isn't it? What on earth makes the Kings so fascinating for Burkle? He could have tried to buy the Warriors, ya know.
Anyway, his deal with AEG seems to have fallen through and we don't know why. Maybe he had some liquid cash and he saw he needed to spend it on the Kings (Glenn in optimism mode.) He may have withdrawn his interest. I doubt if we will ever know and frankly, I am happy and don't need to know. A Burkle with cash in his pocket ready to spend in a sports related area is a good Burkle.
Mastrov and Burkle seem to a good match. Mastrov seems to be outgoing and Burkle seems happy staying the background. This leaves less chance for conflict.
I hope you are right regarding Burkle's "hate" for the Maloofs. And perhaps thats why Gavin had such a big reaction when Burkle's name was mentioned a few years ago. Maybe somehow, there is some rich people's bad blood going on. Is it worth the $80 million gap that some are saying to Burkle to really stick it to the Maloofs? Who knows.
When Glenn says that Burkle is the "anti-Maloof" he means opposite in character in terms of not wanting publicity and celebrity, and not that Burkle hates the Maloof family. I doubt that he even knows them. The only animosity would be coming from the Maloofs who probably view KJ mentioning Burkle as part of the reason their move to Anaheim failed and why they now have to sell the team. I imagine in their minds that had they been granted the move to So Cal that they'd now be rolling in money again and be Orange County's favorite new celebrities. In any event, they have no resigned themselves to selling and the only thing left to be determined is whether the NBA grants the sale to Hansen/Ballmer and relocation to Seattle or sees a competitive offer and arena deal in a city that has bent over backwards to do what the NBA wants (not to mention a passionate fanbase) and keeps the franchise in Sacramento.
I don't think anyone's emotions are really going to factor in at this point.
Peter_Gibbons
Starter
Do you have a link to 100% of the shares being sold for the Warriors? I would be interested to read about whether he has other investors in his group. A lot of times, a person is just the front man, the face of the group but they are really spending some money from investors.
Though there are multiple owners and investors in an ownership group everywhere so not one person would own and pay for 100% even if the entire team was up for sale. The thing is, no one really uses their own money for big businesses like this. They may use some of their own assets to pay for part of it but they always borrow a good chunk of money.
Glenn
Hall of Famer
I didn't mean he hated them. I meant his personality was the direct opposite. There seems to be no question George dislikes Burkle and I don't know why that is so. George refused to negotiate with Burkle. Perhaps it is his link to KJ that has set off George. The fact (is it a fact?) that the Maloofs let their emotions dictate who they negotiate with and who they don't gives a clue to me why they are not successful. The absolute craziness of this whole deal is why George refused to try to sell the Kings to anyone from Sacramento.
Funky beat me to it.
Fear the Putin
Starter
Sold 24 hour fitness for $1.6 billion in 2005. 8 years ago. Re-invested it by founding New Evolution Ventures in 08, which is an international investing firm focusing on fitness and notably partnered with the UFC.
He's got plenty of capital. You don't bid $400mil+ on the Warriors because you had JUST enough money to bid nearly your entire net worth. Come on...
He's got plenty of capital. You don't bid $400mil+ on the Warriors because you had JUST enough money to bid nearly your entire net worth. Come on...
jalfa
Starter
well, all I could find was this, which indicates that, back then, 80% of the Warriors were sold. so, if Mastrov's bid was for the value of the whole team, he'd still have had to put up 280 million. however, I cannot find any reliable info about whether or not he had business partners supporting the bid. it's all a bit mysterious, quite frankly. again, though, have faith. it seems very unlikely that KJ would back the wrong guy or that Burkle would agree to work with someone over his head.
Gary
All-Star
I tend to agree with this. Mastrov is NOT only worth 350mil unless he's the worst business person in the world spending his entire net worth on a sports team.
rhythmless
Starter
Profit sharing is a lot bigger nowadays. The luxury tax is also a source of income to smaller markets that do not go over. Another thing is that if Mastrov/Burkle do end up with the Kings, Sacramento is looking to fast track any and all dealings with the NBA. It's like a pseudo honeymoon phase. The goodwill and satisfaction of keeping our team will help things move.
IIRC, the Kings can also renegotiate for a new TV deal soon, which should be larger due to increased viewership.
The franchise has been run into the ground, then slowly stripped for parts. It's basically like the Maloofs filed an insurance claim and then proceeded to gut the car and replace parts with crappier parts. Don't underestimate what a breath of fresh air can do to a team that can barely claim a front office.
Elektrik
Starter
I wonder what the magoofs were worth when they bought the team...
Section 101
All-Star
they may have hit 1 billion as a family at the peak.
This ^^^^^^^^^^^^^^^^^ Mastrov has been thoroughly vetted. No worries.
What is hard to imagine is that he as a single owner, has the only say. No Maloof family mayhem. It's a beautiful thing.
ParniValjak
All-Star
Does anyone else get the feeling that the wheels have slowed down in terms of the PR push?!
Last week Think Big Sacramento came out with a presentation how Sacramento is a better market than Seattle and Chris Lehane said that we should be expecting some PR push from the group every 5 or 6 days from then until the BOG meeting in mid April but this week there has been nothing from them.
I was expecting something and was looking forward to their PR response to the blatant copy of the #HereWeBuy efforts by the Hansen group but we got nothing.
It seems like once the commish said the bid was too low and would not be considered as is, the winds were taken out of the sails and there has been nothing else forthcoming. I might be impatient but I want us to win this darn thing so bad that I am expecting a constant PR machine to go into over-drive and crush Seattle's efforts.
Last week Think Big Sacramento came out with a presentation how Sacramento is a better market than Seattle and Chris Lehane said that we should be expecting some PR push from the group every 5 or 6 days from then until the BOG meeting in mid April but this week there has been nothing from them.
I was expecting something and was looking forward to their PR response to the blatant copy of the #HereWeBuy efforts by the Hansen group but we got nothing.
It seems like once the commish said the bid was too low and would not be considered as is, the winds were taken out of the sails and there has been nothing else forthcoming. I might be impatient but I want us to win this darn thing so bad that I am expecting a constant PR machine to go into over-drive and crush Seattle's efforts.
Glenn
Hall of Famer
I think the PR was to be focused on specific members of the BOG. Four of the owners are also part owners of hockey teams so know Burkle. They deserve some effort whether it is phone calls from KJ or Burkle himself. They only need 8 votes to block the sale. Theoretically, assuming the Burkle name is gold, that leaves 4 more votes.
Tetsujin
The Game Thread Dude
This week was the Monarchs event.
Yep, we (Crown Downtown) were there for that to show our support. Ashby was there and thanked us for "helping the cause" at all these events.
Padrino
All-Star
while i encourage the efforts of groups like crown downtown, at this point, no amount of PR from either side is going to make the slightest bit of difference. we've entered the stage of this saga where money talks the loudest, and the people closest to the process are the ones who will be getting it done from behind closed doors. mastrov and company will surely return with a restructured bid now that they are aware of the nba's position on their previous bid. the questions that remain are: will it be enough, and, if it is enough, will the BoG have the gall to uproot the team from it's current location in spite of everything sacramento has done to keep the team here? we know the key dates: april 3rd and april 18th, so we've got a little more than a month left to sit on ice and ponder the idiosyncrasies of these negotiations, impatiently waiting to find out the fate of our kings...
Not to worry. Next week is a big one.
HndsmCelt
Hall of Famer
I will respectfully disagree with you. In the end the efforts to save the Kings need 8 votes, and while for some the bottom line is money, in the end the final factor is that for the long run what is good for the NBA is good for each owner, and what is good for the NBA is fans. So continued efforts to display fan support and loyalty in Sacramento may very well tip the scales especially if the Sac bid is only comparable, not significantly larger. As I have pointed out before in the extreme the money talks argument fails if we consider an Alaskan billionaire making an obscenely silly offer of say 2 billion dollars for the Lakers or the Celtics. But no one would consider the NBA better off with either team in Anchorage. So it is up to the fans, citizens, and city of Sacramento to make the case that the NBA is better served with the Kings left in Sacramento. And that case needs to be made repeatedly in different forms and forums. When the BOG meets we should want every member to at least question if a move to Seattle is best for the league and we want at least 8 of them to know it is not.
Glenn
Hall of Famer
A sale of the team requires 75% approval of the BOG and a move of the team requires a 50% approval from the BOG. What if the BOG approves the move and not the sale? Then the Maloofs could move to Seattle and sell the team to Hansen/Ballmer after the move with a probable easier vote from the BOG. The move and the sale are before the board and I hope are seen as a package meaning the move would be axed if the sale is axed. Frankly the move makes far less sense than the sale so I am not all that concerned.
Isn't it the move that requires 75%?
Nope. Sale of the team is 75% approval. Relocation requires simple majority.
So there's essentially no way that the BOG would approve the move if they didn't approve the sale. It's basically being brought up as a package deal, which is why the committees have been combined.
There is, however, a vindictive part of me that would heartily laugh at the following circumstance (except for the fact it would lose us our team): The BOG rejects the sale to Hansen, but approves the move by the Maloofs. Thus, the Maloofs lose their buyer. Mastrov/Burkle pull the offer because the team is no longer in Sacramento where they want to build an arena. The BOG sticks a $75M relocation fee on the Maloofs, who intended to be rid of the team. Furthermore, the Sac bonds come due, with penalty ($77M), leaving the Maloofs with a team they were trying to sell, in a location where the new arena plan involves a huge subsidy from the team owners (thus no new arena) and a very sudden $152M in debt. Reality says 1) That would never, ever happen, and 2) I'd far rather keep the Kings, but I suppose that if we HAD to lose the Kings that bankrupting the Maloofs in the process would be very gratifying.
Thanks. I was arguing with myself, thought Glenn was right at first, and then thought I was right, etc. All these numbers fried my brain a long time ago, I'm afraid.
Elektrik
Starter
I too, have the feeling that something is amiss. Ive beenFollowing Carmichael Daves tweets, I am hearing some rumblings of Keriotis making a strong push and something big may happen with him soon. He WILL be using his rights of first refusal...and it wont be applied in any way to Mastrov-Burkle. This could throw a monkey wrench into the Mastrov-Burkle bid. Ultimatley I just want the Kings to stay but I really feel the Mastrov-Burkle deal is what is right for Sac. Carmichael Dave tweets like he has the inside dope and for tha most part he has been pretty much right on target throughout. Im surprised noone has been talking about this information on this forum. I also hear that next monday is a big day for CD (hes not going to be doing is podcasts until this ordeal is over). Expect alot of info to come out in the next week.
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