Burkle to focus on development, not Kings ownership

[Purple Reign]

Will only focus on the arena project according to Dale Kassler of Sac Bee

Billionaire Ron Burkle, part of the group trying to keep the Sacramento Kings in town, won't take an ownership stake in the team but instead will focus exclusively on building a new arena at Downtown Plaza, a source said today.

Burkle had been expected to take a small ownership stake in the team if the group's bid for the Kings was successful...

Read more here: http://www.sacbee.com/2013/04/08/5325689/burkle-to-focus-on-building-arena.html#storylink=cpy


I do not know what this means. Press Conference at 2pm.

 

[funkykingston]

Unless this changes the financials presented to the BOG committee (for the sale offer, the arena costs or how money is divided) then I'm not sure it changes anything but a slightly odd development at this stage of the game.

 

[VF21]

I don't think this is a surprise OR a stumbling block. It still keeps the arena deal on track.

Note: I revised the title of thread as the OP made it appear as though Burkle had withdrawn.

 

[Jose]

Unless this changes the financials presented to the BOG committee (for the sale offer, the arena costs or how money is divided) then I'm not sure it changes anything but a slightly odd development at this stage of the game.

I'm not sure I like this.... Burkle is a big name and Stern seemed to like having him on board. Even though he is still part of the "Sacramento Investment Group", removing him from the "ownership" group makes us a bit weaker IMO...

But I guess the devil is in the details... we'll know at 2...

 

[whozit]

Unless this changes the financials presented to the BOG committee (for the sale offer, the arena costs or how money is divided) then I'm not sure it changes anything but a slightly odd development at this stage of the game.

According to the article, there was concern at the meeting last week that there may be a conflict of interest. Better to step aside than let it derail the process.

 

[Purple Reign]

Why would they need a press conference to talk about this? I am a little disappointed. Just the name Ron Burkle attached to the Sacramento Kings was very, very cool.

 

[whozit]

Why would they need a press conference to talk about this? I am a little disappointed. Just the name Ron Burkle attached to the Sacramento Kings was very, very cool.

To keep control and more importantly show control. If the article is correct, then it's a small move to appease concerns of other owners.

 

[VF21]

Since the article says that "some NBA executives last week expressed concern that Burkle faced a potential conflict of interest," this is just another indication that KJ and his group are doing everything it takes to make sure there are no bumps in the road to keeping the Kings right where they belong.

Step away from the ledge and take a deep breath, fellow Kings fans. This is NOT bad news.

 

[VF21]

Why would they need a press conference to talk about this? I am a little disappointed. Just the name Ron Burkle attached to the Sacramento Kings was very, very cool.

The press conference was scheduled before this news came out. I have it on good authority that there is something else - good but not earth-shattering - that is going to be announced.

 

[Purple Reign]

Step away from the ledge and take a deep breath, fellow Kings fans. This is NOT bad news.

No jumping off the ledge. Just like the sound of Burkle being a part of the Operations of the team, that's all.

 

[VF21]

No jumping off the ledge. Just like the sound of Burkle being a part of the Operations of the team, that's all.

He's still a part of KJ's team. It was never said that he was going to be a major part of the ownership group. He likes to build arenas. He wants to build the downtown arena. That's his forte and that's why David Stern was impressed when he found out KJ got him. That still holds true.

 

[Warhawk]

While I agree that having Burkle as a minority owner sounded good, this development is actually good news. Division of labor. He is a part owner of a company that manages atheletes, so he had a potential conflict of interest. His main focus was always the arena side in this deal.

 

[Warhawk]

The press conference was scheduled before this news came out. I have it on good authority that there is something else - good but not earth-shattering - that is going to be announced.

100% correct. Today's event has NOTHING to do with Burkle, etc.

 

[Purple Reign]

The Seattle spin has already begun

http://www.sonicsrising.com/2013/4/8/4202360/was-burkle-important-or-not

 

[VF21]

The Seattle spin has already begun

http://www.sonicsrising.com/2013/4/8/4202360/was-burkle-important-or-not

Not a surprise. This was bungled by the Bee - what a surprise - and Dale Kessler. Their initial wording has caused a minor panic in the streets. Callers to KHTK are in total panic mode. I'm sure sonicsrising will try and spin this to their advantage, but if they think about it, it really removes one more obstacle to the Kings staying in Sacramento. If they weren't such pompous jerks, I might even feel sorry for them - emphasis on MIGHT.

 

[AL/kfan]

Maybe, one of the reasons is to remove the objection of the Maloof family to refuse to sell all or part of the Kings to Ron Burkle. This may be a positive move so that Burkle can put all of his attention to the downtown Plaza and the new arena and that may win over one or two “NO” votes.

 

[VF21]

Maybe, one of the reasons is to remove the objection of the Maloof family to refuse to sell all or part of the Kings to Ron Burkle. This may be a positive move so that Burkle can put all of his attention to the downtown Plaza and the new arena and that may win over one or two “NO” votes.

I honestly hadn't thought about that, but it's worth considering. Clear Burkle out of the equation and all of a sudden maybe the Maloof's objection doesn't have the venom it once had... Interesting, and telling if they're (the BoG) already thinking about the idea that our bid is a viable and perhaps preferred option. Georgie could have easily made it clear that his family would not seriously consider an offer from Sacramento as long as Burkle was a part of it.

 

[Purple Reign]

I'm sure sonicsrising will try and spin this to their advantage, but if they think about it, it really removes one more obstacle to the Kings staying in Sacramento. If they weren't such pompous jerks, I might even feel sorry for them - emphasis on MIGHT.

I have learned to have no sympathy for Seattle. I am a 49ers fan and they are just as bad on that side. Anyway, enough about them.

 

[Glenn]

I skimmed through the notes so my apologies if I screw something up or step on someone's toes. I haven't even read the linked article which is rude. Burkle has little interest in running the Penguins and has been entirely in the background as to their management. I suspected from the start that he would have next to nothing to do with the Kings and would focus on the arena. The Jacobs money makes up for any loss of Burkle's money. If it satisfies a potential or real conflict of interest, better yet. If it soothes the Maloofs, that is great. They may not squawk if forced to take door #2, the Sacto group. Now he can invest in arenas all around the NBA which I suspect is his desire. <<<< horrible guess of course. Ya know, even billionaires get bored having concurred one line of business and he may be moving into the arena business.

(I am describing myself yet I have yet to earn my first billion)

 

[Fear the Putin]

Our hook to keeping the Kings in Sacramento relies on the arena. Burkle is still spearheading the arena, so I can care less about them "officially" removing Burkle from the ownership group. I never got the sense that the Kings would've been managed by Burkle anyway. Even when they announced just Mastrov and Burkle. It was going to be Mastrov as managing the team and Burkle building the arena.

 

[VF21]

I skimmed through the notes so my apologies if I screw something up or step on someone's toes. I haven't even read the linked article which is rude. Burkle has little interest in running the Penguins and has been entirely in the background as to their management. I suspected from the start that he would have next to nothing to do with the Kings and would focus on the arena. The Jacobs money makes up for any loss of Burkle's money. If it satisfies a potential or real conflict of interest, better yet. If it soothes the Maloofs, that is great. They may not squawk if forced to take door #2, the Sacto group. Now he can invest in arenas all around the NBA which I suspect is his desire. <<<< horrible guess of course. Ya know, even billionaires get bored having concurred one line of business and he may be moving into the arena business.

(I am describing myself yet I have yet to earn my first billion)

Agreed. And I think Burkle (who is almost as reclusive as Howard Hughes was) will be much happier in his traditional behind-the-scenes role.

 

[kingjatt]

sooo it appears Burkle is no longer putting up equity in the team or the arena, reports are that the BOG cited a conflict of interest with his other lines of bussiness, of course as expected sonics fans are running with this.

 

[VF21]

sooo it appears Burkle is no longer putting up equity in the team or the arena, reports are that the BOG cited a conflict of interest with his other lines of bussiness, of course as expected sonics fans are running with this.

He's not going to be an equity partner in the team. He is still the driving force behind the arena and will be a prime investor/developer in the downtown area. That's not subject to a "conflict of interest." Sonics fans (especially those on SonicsRising) are grasping at straws.

 

[Kingster]

Burkle was always primarily the arena guy anyway, whereas Vivek and Mastrov were the prospective Kings owners. This doesn't change anything except for providing even more clear cut roles for the parties involved. And speaking of roles, I'd still like to know for my own curiosity the role of the Jacobs family.

 

[HndsmCelt]

I am not exactly sure what conflict of the Interest the BOG sees, and how that differs from Hansen's involvement in building he Seattle arena?

 

[Section 101]

I am not exactly sure what conflict of the Interest the BOG sees, and how that differs from Hansen's involvement in building he Seattle arena?

He recently bought a company that manages NBA players.

 

[HndsmCelt]

He recently bought a company that manages NBA players.

Ah... sounds reasonable.

 

[Glenn]

Burkle was always primarily the arena guy anyway, whereas Vivek and Mastrov were the prospective Kings owners. This doesn't change anything except for providing even more clear cut roles for the parties involved. And speaking of roles, I'd still like to know for my own curiosity the role of the Jacobs family.

I suspect they will simply do what Ranadive says. That's simplistic but they are friends. I don't know exactly how they came on board but the impression I get is that Ranadive got on the phone and said, "Hey, guys, we need money and it's for a great, great cause." "Cause" and not "investment." I doubt if they will do much of anything but sit at court side seats. I already admire Ranadive and could understand that his sales job to the Jacobs brothers or brother or whoever it is, went very smoothly. Who could turn down Vivek unless they were broke?

 

[VF21]

From Twitter:

Carmichael Dave ‏@CarmichaelDave 8m

Ok. So I did my best to warn everyone earlier. Stay the course. Here's the bottom line:

Carmichael Dave ‏@CarmichaelDave 7m

Burkle is not pulling out. No way. He was asked to recuse himself due to his holdings in Relativity Media, which does biz w/ players.

Carmichael Dave ‏@CarmichaelDave 6m

This was brought up 4/3. NBA tried to work it through, couldn't allow it in the end. Burkle will CONTINUE to be involved in surrounding dev.

Carmichael Dave ‏@CarmichaelDave 6m

The finance group is solid and doesn't change. As Vivek said, each could do this on their own. This is why stern wanted meetings on 4/3.

Carmichael Dave ‏@CarmichaelDave 6m

4/3 meetings allow for NBA to walk through and vet any Sacto issues before vote possibility on 4/19 (which now looks more likely).

Carmichael Dave ‏@CarmichaelDave 6m

Don't get lost. Much like in Oakland with the low bid, here's ANOTHER example of the NBA having an opportunity to crush Sac deal.

Carmichael Dave ‏@CarmichaelDave 5m

If people haven't figured out by now that the NBA very much is working to keep team in Sac, I can't convince you. Look at the actions.

Carmichael Dave ‏@CarmichaelDave 4m

Hope that helps. Questions? Hurry, because Chicago is windy and I'm in a parking lot with a dying cell phone trying to help.

 

[kingjatt]

He's not going to be an equity partner in the team. He is still the driving force behind the arena and will be a prime investor/developer in the downtown area. That's not subject to a "conflict of interest." Sonics fans (especially those on SonicsRising) are grasping at straws.

driving force? I thought he was out completely now, aside from developing projects around the arena, due to a conflict of interest pointed out by the league last week. regardless its not a huge deal, as CD said, its another sign of the BOG pointing us in the right direction.