George Maloof wants to start negotiating again?
- Thread starter Warhawk
- Start date
George can start negotiating with David Stern very soon!
Sounds like a weak PR effort going into the BOG meetings. Trying to show the other teams he hopes to convince that this is a bad deal. And he's ready to negotiate for a better one. Maybe Stern is giving him the silent treatment and he's starting to squirm.
Sounds like a weak PR effort going into the BOG meetings. Trying to show the other teams he hopes to convince that this is a bad deal. And he's ready to negotiate for a better one. Maybe Stern is giving him the silent treatment and he's starting to squirm.
Livinthedream
All-Star
The NBA was negotiating on behalf of the Maloofs. The Maloofs don't like this deal, then they need to take it up with the NBA. I agree 100% with KJ not even entertaining any "renegotiation" talk with the Maloofs. Appears the NBA handed the reigns back to the Maloofs too soon.
rainmaker
Hall of Famer
They already sat at the table and negotiated the deal, only to back out. Why would anyone entertain the idea of re negotiating with them only to see them once again back out two months from now?
George, I guess with your background you don't understand lying and burning bridges of people doing their best to work with you only hurts you in the long run. And if you seriously wanted to renegotiate, you really went about it the wrong way. Your loss. Hope you lose the team along with it.
George, I guess with your background you don't understand lying and burning bridges of people doing their best to work with you only hurts you in the long run. And if you seriously wanted to renegotiate, you really went about it the wrong way. Your loss. Hope you lose the team along with it.
ParniValjak
All-Star
Sell already! 
Sell already!
Bring on Burkle or Enter Ellison's Ownership! lol
kennadog
Dog On It!
I think George completely understands. He does not want the team in Sacramento, so he's going to do everything possible to bar an arena happening here. You note that the pre-development costs are only the beginning of what they want to re-negotiate. They have a whole laundry lists of items they want to re-negotiate. The Maloofs shouldn't have signed the term sheet, if they couldn't live with it. Sacramento's only hope is new ownership and I can't imagine the other owners are going to force that on the Maloofs.
ParniValjak
All-Star
I am hoping that Stern and other NBA owners have had enough of the Maloof antics and will force their hand to sell and spare everyone of the bull**** spoiled brat games that they are pulling here.
This is their biggest business asset and I am sorry but if you cannot afford to have a team (which is a privilege not a right) then go away and do something else.
Circa_1985_Fan
All-Star
PLEASE STERN...PRETTY PLEASE WITH CHERRIES ON TOP...BRING ON THE BURKLE YEARS IN SACTOWN!!!!!
Kingsfan23
All-Star
I'm in the 1% but I personally haven't seen enough yet to unequivocally label the Maloofs liars with a foot in Anaheim. The terms of this deal have never been oficially agreed on and were hurriedly assembled just before the Orlando negotiations. David Stern himself came on Grant's radio station and stated the predevelopment had yet to be fully worked out. With that being said, I am certainly going to be intently following their efforts to get this deal back on track
Working out the many details of where that pre-development money is going and on what timetable would be a reasonable way for the Maloofs to negotiate right now but that's not what they're doing. George Maloof is telling anyone who will listen that he doesn't intend to pay any of the pre-development costs, despite what was already agreed to in Orlando. There may be a 1% chance that he doesn't expect this to completely de-rail the arena plan, but for all practical purposes it amounts to a backhanded attempt to kill the deal without coming out and saying he wants to kill the deal. They can afford to front $3-4 million towards a $400 million arena deal. There's less risk there than the $12 million contract they just handed to Travis Outlaw. There's some other reason he's backing out -- could be Anaheim, I'm not sure. Hopefully this will start to make more sense after the BOGs meeting.
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Kingsfan23
All-Star
Oh I believe that. He's got principles after all.
But the Orlando agreement makes it pretty clear that the Kings were expected to pay 25%. So why do you shake the mayor's hand with David Stern in the room and make a big show out of telling everyone that you have a deal only to re-neg on one of the key elements of that deal mere weeks later? It means George Maloof knew this whole time there was no deal -- only now because of the way this plays out, how can the city trust him to honor any agreements going forward? We're talking about a major 3 year development project. How many times are we going to have to go through this same charade?
Bricklayer
Don't Make Me Use The Bat
The selling thing may or may not remain a fantasy, but I really really hope Stern completely eviscerates George at the upcoming meeting. Its time for us to have the big dog on our side for once.
PurpleHaze
All-Star
If results of BOG meeting in a few days do not move arena process forward at least on immediate crisis of pre-development fee split, where are we then? Call it a certified nightmare and forget about having a new arena by 2015 or even 2016 - if ever. Can NBA force the Maloofs to sell? Probably not, unless Kings fail to meet payroll, in affect branding themselves insolvent, embarrassing, deadbeat owners. Perhaps a boycott by irate fans of all things MSE, from individual/season tix purchases, to merchandise, etc., might be an effective strategy - damaging survival cash flow. Would BOG approve Maloofs moving their franchise? Maybe, but more likely not since getting majority vote of NBA owners to approve seems fairly unlikely at least to Anaheim - with strong Lakers/Clips pressure against. However, a move to another location like Seattle (if they can get new arena) or maybe Kansas City (with a new arena in place) is perhaps not out of the question if Sacramento is finally written off as a hopeless debacle.
ParniValjak
All-Star
Here is the thing that I am counting on and it might be a fantasy BUT....Maloofs were extremely surprised when they realised this time last year that they would not get the majority vote to relocate whether that is to Anaheim or anywhere is irrelevant at this point IMHO. Here is why. Kevin Johnson, the Sacramento major and a former NBA All-Star, one of NBA's proud sons came in and blew them away with his ability to drum up over $10 million in ticket sales and sponsorship for this season. Now that is impressive and showed other owners that Maloofs did not try to make it work in Sacramento. KJ also asked them for 12 months and he will have a financing plan in place for the Arena. He has delivered on his part. The NBA negotiated the deal on behalf of the Maloofs which suggests that they are happy with the terms of it.
In other words where we sit now is that NBA negotiated this deal and are happy with it, KJ has delivered everything that he promised 12 months ago. One of NBA's favourite son's has delivered on his promise as he said he would. Where does that leave the Maloofs in the eyes of the NBA and the owners of other team?! I don't think they come off looking good from all of this. They accuse KJ of being a liar. They ask for all the records of interactions between Sacramento and the NBA, the question is why?! Stern would be pissed with this. KJ would be pissed with this and you can bet your bottom dollar that other NBA owners would not be thrilled with the stunts lately.
So where does that leave the Maloofs. IMHO, it leaves them in bad books with the NBA and it taints them in the eyes of other owners. So even if they file to relocate, they either get a flat out NO, or their relocation fee is ASTONOMICAL to the point where it would be a fair bit cheaper for them to build the arena. It would be a black mark on the NBA if the Kings leave especially after the latest effort by the city to build the arena. Then there is the Burkle factor. Stern would love to have the guy in the NBA. The owners would also rather be associated with a multi-billionaire that has accumulated his own wealth and not with a bunch of playboys that have pissed their inheritance into the wind. For Maloofs Kings is their biggest asset but for Burkle it would be one of many toys.
Now the NBA cannot make the Maloofs sell but they CAN make life very difficult for them where they will have no other choice but to sell or go bankrupt. Remember at last years BOG meeting, one of the owners was quotes as saying "The boys don't have money" and that is becoming more and more apparent every day.
The deal itself is not unfair as NBA negotiated it on the Kings' behalf and they would have the idea on what it took for Orlando to build the arena. Here is the conspiracy theory for you, what if NBA deliberately negotiated a deal that is considered fair by most owners but one they know would make the Maloofs squirm uncomfortably as they would not be able to make the ends meet. "You've got Burkle!" is what Stern said to KJ 12 months ago. What is this is Stern's calculated ploy to force Maloofs to sell by making them pony up more cash for the arena than they are capable of doing?! Maybe this is Stern's subtle way of forcing Maloofs' hands without coming out and implying that they should sell. He comes off looking squeaky clean and in the end gets Burkle into the NBA circle without blood in his hands. Stern is a very foxy negotiator. You don't stay a commissioner in the NBA for as long as he has without having a few tricks up your sleeve.
I honestly think other owners would not approve the relocation which leaves Maloofs with these options:
1. Fund the arena as expected (a good option for the fans to keep their team but it would ensure that the team in a basketcase for years/decades to come because the owners don't have the money to spend on players, coaches and basketball operation staff)
2. Refuse to meet the funding agreement (framework) and stay in Sacramento, eventually forcing them to sell or try and re-locate in a few years time by which time they would burn more bridges
3. Refuse to pay their part of the new arena and take an anti-trust lawsuit against the NBA in which case I say, good luck as you will certainly need it and you might not be able to afford it
4. Realise that it is a losing battle that they are fighting and just sell sparing everyone prolonged pain, heartache and financial drain.
I would be staggered if they get majority vote in favour of relocation. Not after the event of last year's BOG meeting and everything else that has taken place in the last 12 months. I just can't see it.
Here is the thing that I am counting on and it might be a fantasy BUT....Maloofs were extremely surprised when they realised this time last year that they would not get the majority vote to relocate whether that is to Anaheim or anywhere is irrelevant at this point IMHO. Here is why. Kevin Johnson, the Sacramento major and a former NBA All-Star, one of NBA's proud sons came in and blew them away with his ability to drum up over $10 million in ticket sales and sponsorship for this season. Now that is impressive and showed other owners that Maloofs did not try to make it work in Sacramento. KJ also asked them for 12 months and he will have a financing plan in place for the Arena. He has delivered on his part. The NBA negotiated the deal on behalf of the Maloofs which suggests that they are happy with the terms of it.
In other words where we sit now is that NBA negotiated this deal and are happy with it, KJ has delivered everything that he promised 12 months ago. One of NBA's favourite son's has delivered on his promise as he said he would. Where does that leave the Maloofs in the eyes of the NBA and the owners of other team?! I don't think they come off looking good from all of this. They accuse KJ of being a liar. They ask for all the records of interactions between Sacramento and the NBA, the question is why?! Stern would be pissed with this. KJ would be pissed with this and you can bet your bottom dollar that other NBA owners would not be thrilled with the stunts lately.
So where does that leave the Maloofs. IMHO, it leaves them in bad books with the NBA and it taints them in the eyes of other owners. So even if they file to relocate, they either get a flat out NO, or their relocation fee is ASTONOMICAL to the point where it would be a fair bit cheaper for them to build the arena. It would be a black mark on the NBA if the Kings leave especially after the latest effort by the city to build the arena. Then there is the Burkle factor. Stern would love to have the guy in the NBA. The owners would also rather be associated with a multi-billionaire that has accumulated his own wealth and not with a bunch of playboys that have pissed their inheritance into the wind. For Maloofs Kings is their biggest asset but for Burkle it would be one of many toys.
Now the NBA cannot make the Maloofs sell but they CAN make life very difficult for them where they will have no other choice but to sell or go bankrupt. Remember at last years BOG meeting, one of the owners was quotes as saying "The boys don't have money" and that is becoming more and more apparent every day.
The deal itself is not unfair as NBA negotiated it on the Kings' behalf and they would have the idea on what it took for Orlando to build the arena. Here is the conspiracy theory for you, what if NBA deliberately negotiated a deal that is considered fair by most owners but one they know would make the Maloofs squirm uncomfortably as they would not be able to make the ends meet. "You've got Burkle!" is what Stern said to KJ 12 months ago. What is this is Stern's calculated ploy to force Maloofs to sell by making them pony up more cash for the arena than they are capable of doing?! Maybe this is Stern's subtle way of forcing Maloofs' hands without coming out and implying that they should sell. He comes off looking squeaky clean and in the end gets Burkle into the NBA circle without blood in his hands. Stern is a very foxy negotiator. You don't stay a commissioner in the NBA for as long as he has without having a few tricks up your sleeve.
I honestly think other owners would not approve the relocation which leaves Maloofs with these options:
1. Fund the arena as expected (a good option for the fans to keep their team but it would ensure that the team in a basketcase for years/decades to come because the owners don't have the money to spend on players, coaches and basketball operation staff)
2. Refuse to meet the funding agreement (framework) and stay in Sacramento, eventually forcing them to sell or try and re-locate in a few years time by which time they would burn more bridges
3. Refuse to pay their part of the new arena and take an anti-trust lawsuit against the NBA in which case I say, good luck as you will certainly need it and you might not be able to afford it
4. Realise that it is a losing battle that they are fighting and just sell sparing everyone prolonged pain, heartache and financial drain.
I would be staggered if they get majority vote in favour of relocation. Not after the event of last year's BOG meeting and everything else that has taken place in the last 12 months. I just can't see it.
I find myself nodding in agreement as I read this. I just hope that it is either items 1 or 4. The others are recipies for disaster for Sacramento, the City Council, and the team.
Another option is that the NBA fronts the money to Sacramento and then just adds it to the loans the Kings already have with the league. Which I think may be the ultimate outcome here. How much that would actually accumulate to (total league loans to the Kings) and at what point the league can take over a team based on the loan amounts, I don't know.....
kupman
Starter
I am right there with you. While I am not "on the Maloofs side," I could see were there may have been a difference in opinion on how solid the term sheet was coming out of Orlando. It would not shock me if the rest of the details of the term sheet could be worked out starting theis weekend and this project would be taking another big step forward.
I am also with Brick in thinking that the constant Burkle talk may be wishful thinking. I mean, if it does come to fruition, fine. However, until then I am not hanging my hopes on anything of the sort. Plus, be careful for what you wish. Pro sports owners are a different breed of cat and there is nothing that says that he would not have his own issues revealed once the honeymoon is over.
Right now, I am wishing all parties good luck on coming to more agreements in this deal.
I think George is about to hit his brick wall on options. He's been willing to burn too many bridges here locally among the city leaders and fans to have a safe path going forward in Sacramento. I don't see him putting one dime into the arena deal now or ever. It's either be allowed to move to Anaheim where it's no secret he wouldn't mind selling to Samueli at a tidy profit down the line or sell now in Sacramento where he might not get as much money.
These guys are too broke to ride out the arena process until 2015. Something has to happen for them this summer - one way or another.
These guys are too broke to ride out the arena process until 2015. Something has to happen for them this summer - one way or another.
Kingster
Hall of Famer
Seems to me if the NBA has a plausible case that the Maloofs can't perform on their obligations, whether it's repaying their loans to the NBA and Sacramento, paying for their share of the Arena, or having the financial wherewithal necessary for providing a competitive NBA team, they would be able to yank the franchise from them.
I just hope that the Maloofs have overplayed their hand and the NBA puts an end to the charade. If the NBA doesn't cut the cord, then when the Maloofs come back and jerk everybody around again, they will have nobody to blame but themselves.
Maloofs getting killed now in the national media: http://www.cbssports.com/nba/blog/eye-on-basketball/18445795
K
Kingsguy881
Guest
Lol.....'stab Sacramento in the back'!
ElRey
Starter
yeah I agree. I have not seen anything from George to show he's sincere to make an arena deal happen. Hiring a lawyer to make public statements is NOT negotiating. Come to think of it, have there been any negotiation at all since Orlando. I haven't heard of one meeting between the Maloofs and the city of Sacramento.
kingjatt
Starter
The city is done negotiating they have done everything they were asked to do. the only negotiating the maloofs can do is with the NBA, yeah, good luck with that.
Nope, going to the media and sending the city letters indicating a lack of faith in the city's ability to meet the deadline and demanding communications records is not negotiating. It's preparing for a lawsuit.
Right now I think there are four options coming out of the BOG meetings, with odds:
1) The NBA convinces the Maloofs to take the current deal after all (through some combination of refusal to grant relocation/leveraging current Maloof debt) (5%)
2) The NBA convinces the Maloofs to sell the team (through some combination of refusal to grant relocation/leveraging current Maloof debt) (4%)
3) The NBA decides to let the Maloofs back out of the deal and move (1%)
4) All parties stand fast; the Maloofs file an anti-trust suit against the NBA (90%)
So basically, I'm ready for that anti-trust lawsuit to be filed. In the meantime, the arena project gets postponed indefinitely. Hate to say it, but that's what I see happening.
GREAT article! And I tend to agree with the writer when he says that although the owners tend to side with each other, they just might have had enough of the Maloofs.
For those reasons, I have to disagree somewhat with Capt. Factorial. I think the odds of the owners siding with the Maloofs are slim, while the odds of them convincing the Maloofs to take the deal (with perhaps a few minor modifications of the "toss them a bone" genre) are significantly higher. An anti-trust suit does nobody any good and the ramifications would ripple throughout the league, quite possibly affecting the other owners' bottom line - and that's not something they'd be too happy about.
kingjatt
Starter
hate to say it but i agree with you. its easy to get caught up in the wishful thinking but everything is pointing towards option 4. As long as the maloofs continue to meet payroll, (which they will because the only pay the salary floor and that is covered by revenue sharing under the new CBA) we are stuck with this mess. I just hope the movement to get an ESC doesnt lose momentum over time and im sure george is banking on that hence all of this stalling.
Glenn
Hall of Famer
So George and by extension the NBA would be willing to destroy a city's hopes? That isn't exactly the reputation I'd care to have. Unfortunately I have a real bad feeling about this where a slimey little man can destroy the dreams of a city.
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