Check my signature. I'll start the campaign today.
Kings owners balk at paying costs for planning Sacramento arena
- Thread starter Section 101
- Start date
Check my signature. I'll start the campaign today.
Glenn
Hall of Famer
The swiftness of the action was breathtaking, wasn't it? I've already posted a note elsewhere about what I thought of this but simply put I think it was a "don't eF with us or the city" statement by Stern. The fact he had the money at his disposal to do this shows they were ready for this eventuality (not that I understand the NBA inner finances). I think we fans can take heart in knowing that the NBA is behind us and maybe not so behind the Maloofs.
Now I still like a few Maloofs but there is one that is really stirring the pot and has been doing so for a long time. The family, the City, the NBA, and the fans need a Georgectomy.
The Hammer
All-Star
Agree with all this.
If this is the final straw which forces the Maloofs to sell the team, than maybe we'll eventually look back on this day as the moment when things started to change for the better. One can hope.
PS -- I'm a little sad the other thread got closed because I really needed to say this somewhere: F U LA Times! The more you drag out this tired Anaheim Royals story, the more you look like greedy vultures circling an easy target when none of this has anything to do with you. You already have two teams for chrissake. Two! Stay the H out of it!
PS -- I'm a little sad the other thread got closed because I really needed to say this somewhere: F U LA Times! The more you drag out this tired Anaheim Royals story, the more you look like greedy vultures circling an easy target when none of this has anything to do with you. You already have two teams for chrissake. Two! Stay the H out of it!
Last edited:
bajaden
Hall of Famer
I'm Bajaden, and I approve this message!
bajaden
Hall of Famer
I've got the row boat all warmed up..
kupman
Starter
I bet Stern has it. Although, he probably would not be able to tell you what it is because he just hits #1 on his speed dial when calling him.
Larry David
Starter
The NBA meetings could be pretty interesting. Stern had owners and a city botching this deal, the city was the black sheep. But over the past year, the city got it and is ready, willing, and able to close the deal. And now the Maloofs are the problem.
Because most owners have gone 15 rounds with a city over these issues, owners back other owners, and the Kings would sell for less than market (not the reported number "sale number", that would be big. The new owner will buy an asset that has a ton of debt, so that "actual value" of the sale will go down and hurt the sticker for other owners (this already went down to lesser degrees with the 76ers and Pistons). Normally, I wouldn't expect Stern to be able to hammer most owners.
But ... because this has drug on so long, the Maloofs are now starting to carpet bomb their good will with even the most die hard fans. Stern will not let this become Charlotte 2.0. (Shin's facts were worse, but the ugly and neglect has gone on much much longer here.) It's appears the NBA wants this market, so they can't allow two cash strapped dummies to ruin it for the next 10 years.
And Stern has leverage. At this point, the NBA owns most of the Kings. If the owners did something like adjusting the interest just a little on the NBA's line of credit "due to improving market conditions" it would probably derail the Maloofs ability to hold onto the team. And the NBA can both: (1) stop the Maloofs from moving the team; and (2) not help them get the money to close a new arena deal here (while, staying locked in to the team staying here under KJ's terms).
Because most owners have gone 15 rounds with a city over these issues, owners back other owners, and the Kings would sell for less than market (not the reported number "sale number", that would be big. The new owner will buy an asset that has a ton of debt, so that "actual value" of the sale will go down and hurt the sticker for other owners (this already went down to lesser degrees with the 76ers and Pistons). Normally, I wouldn't expect Stern to be able to hammer most owners.
But ... because this has drug on so long, the Maloofs are now starting to carpet bomb their good will with even the most die hard fans. Stern will not let this become Charlotte 2.0. (Shin's facts were worse, but the ugly and neglect has gone on much much longer here.) It's appears the NBA wants this market, so they can't allow two cash strapped dummies to ruin it for the next 10 years.
And Stern has leverage. At this point, the NBA owns most of the Kings. If the owners did something like adjusting the interest just a little on the NBA's line of credit "due to improving market conditions" it would probably derail the Maloofs ability to hold onto the team. And the NBA can both: (1) stop the Maloofs from moving the team; and (2) not help them get the money to close a new arena deal here (while, staying locked in to the team staying here under KJ's terms).
mr. moustache
Bench
Let's be honest. It's an abusive relationship. If you're still sympathetic towards the Maloofs, AND you're a Kings fan; I think you're in denial.
kupman
Starter
I am another who is a strong believer in #3. Therefore, I am reserving judgement and reaction.
Having said that, this is of course just horrible for the Maloofs public image which is poor at best.
It should be noted that the Maloofs pulled a last second move the last time the City was prepared to do something about a new arena that killed that effort (that effort may have been doomed from the start, but the maloofs actions poisoned their relations with the City). This move on their part is even more perplexing. I don't have anything against the Maloofs personally; I have friends that work for them and they seem like decent employers. But I am a Sacramento fan first and a Kings fan second. I don't really care who the owners are if they are committed to Sacramento. This last turn of events causes me to seriously distrust whether the current owners are committed to Sacramento. It is baffling that this comes on the heels of AEG's dramatic performance. If they don't get their act together tomorrow, they really have to go, for the good of Sacramento.
Larry David
Starter
http://www.sacbee.com/2012/03/30/4379328/kings-owners-stay-they-still-want.html
The Kings paying 25% of this cost was on the term sheet. The term sheet was out for several days before the big vote. It was read on the night of the big vote with a Maloof in the room and the team president, who is an attorney, sitting right there. After it passed, the Maloofs said Thanks for the deal, we'll get to the final details. But we're here to stay. After every lawyer or money person had time to review what the city made public for a week and voted on, the Maloofs brought out KJ to mid court to show Kings fans the deal was done.
When the very first payment came due, the Maloofs refused to pay. They claim that they've never taken any other stance on pre-development costs. That clearly not true.
This reeks of "Everything at the Palms is fine." Look, we aren't dumb. Try telling the truth for once.
And when Stern steps in and says, The NBA is fronting the money "on behalf of the Kings" he seems to agree.
The Kings paying 25% of this cost was on the term sheet. The term sheet was out for several days before the big vote. It was read on the night of the big vote with a Maloof in the room and the team president, who is an attorney, sitting right there. After it passed, the Maloofs said Thanks for the deal, we'll get to the final details. But we're here to stay. After every lawyer or money person had time to review what the city made public for a week and voted on, the Maloofs brought out KJ to mid court to show Kings fans the deal was done.
When the very first payment came due, the Maloofs refused to pay. They claim that they've never taken any other stance on pre-development costs. That clearly not true.
This reeks of "Everything at the Palms is fine." Look, we aren't dumb. Try telling the truth for once.
And when Stern steps in and says, The NBA is fronting the money "on behalf of the Kings" he seems to agree.
bajaden
Hall of Famer
When you rule by committee, or by family, you seldom have one voice. Disagreements within such orginazations are going to happen, and when you have a loose canon, like a George Maloof, problems are going to arise. Apparently the Maloofs, or George, its not clear, hired someone named Eric Rose last week to handle the new arena issues, including PR. Judging from his start, I'd say that PR isn't his strong suit.
When his statement blew up in his face, guess who came to his rescue? You got it, George Maloof! Frankly I'm sick of this thug, who must have a lot of pull within the family to do what he does without condemnation. My hope is that one David Stern is getting tired of George, and the rest of the family. The fact that Stern came quickly to the rescue, and then deferred any future decisions until after the owners meeting in april, I think bodes well for sacramento and the arena.
As pointed out in another article I read. Stern didn't say that the league was picking up the tab instead of the Maloofs, but was simply paying the bill for the Maloofs, meaning it still goes on their tab. Which is a rather large tab right now. Owners tend to stick together, and its rare that they force another owner to sell. But I think at this point, where the city and the league has done everything possible to bring a new arena to sacramento, and its the Maloof family thats not living up to what it agreed on, it would be a huge PR black eye for the league if they were to back the Maloofs.
This team needs a new arena, and a new owner. I used to like, and defend the Maloofs. Now I can't stand the sight of them. Great PR guys! Its a wonder your still in business.
When his statement blew up in his face, guess who came to his rescue? You got it, George Maloof! Frankly I'm sick of this thug, who must have a lot of pull within the family to do what he does without condemnation. My hope is that one David Stern is getting tired of George, and the rest of the family. The fact that Stern came quickly to the rescue, and then deferred any future decisions until after the owners meeting in april, I think bodes well for sacramento and the arena.
As pointed out in another article I read. Stern didn't say that the league was picking up the tab instead of the Maloofs, but was simply paying the bill for the Maloofs, meaning it still goes on their tab. Which is a rather large tab right now. Owners tend to stick together, and its rare that they force another owner to sell. But I think at this point, where the city and the league has done everything possible to bring a new arena to sacramento, and its the Maloof family thats not living up to what it agreed on, it would be a huge PR black eye for the league if they were to back the Maloofs.
This team needs a new arena, and a new owner. I used to like, and defend the Maloofs. Now I can't stand the sight of them. Great PR guys! Its a wonder your still in business.
Fear the Putin
Starter
The wealthy defend the wealthy.
Too bad the Maloofs are broke now, so the rest of the owners will hopefully tear them a new one at the next meeting.
Too bad the Maloofs are broke now, so the rest of the owners will hopefully tear them a new one at the next meeting.
Larry David
Starter
I agree Baja. He's putting this on the Kings tab, which seems to say, "As far as I can see, they owe this money. I'll put this charge on their bill, because we already own most of the team anyhow.
It's all speculation, but I've heard they took as much as 100 million on their line of credit. I would have to know more about the terms and what they used for security, but a percentage of the MS&E portion of team as an asset would be a good guess. If all this is true, it would mean that the NBA could hold more ownership of the team than the Maloofs do... HOWEVER, this means little unless they default on the payments towards of the line of credit.
ParniValjak
All-Star
Remember the line from the other owners when Maloofs went to NY for the NBA meeting flagging their intent to relocate?!
Wasn't it "The boys don't have the money"?! Indeed they don't.
Thet owe ~ $70 million to the city of Sacramento on their previous loan and have taken that loan from the NBA a couple of seasons ago which was written to be around ~ $100 million! That's in excess of $150 million of debt. Don't forget that they are not outright owners. They own around 55% of the Kings which gives them the controlling interest but their share of ownership is pretty much worth roughly the same amount that they owe to Sacramento and NBA.
That is not even getting to the ~$150 million they have committed to the new arena where ~$75 million is up front and the rest over the course of the deal!
Now I am no finance expert but that is some seriously scary numbers
Wasn't it "The boys don't have the money"?! Indeed they don't.
Thet owe ~ $70 million to the city of Sacramento on their previous loan and have taken that loan from the NBA a couple of seasons ago which was written to be around ~ $100 million! That's in excess of $150 million of debt. Don't forget that they are not outright owners. They own around 55% of the Kings which gives them the controlling interest but their share of ownership is pretty much worth roughly the same amount that they owe to Sacramento and NBA.
That is not even getting to the ~$150 million they have committed to the new arena where ~$75 million is up front and the rest over the course of the deal!
Now I am no finance expert but that is some seriously scary numbers
Larry David
Starter
Your numbers are good.
When you consider they went from owning 80% of the Palms to 3% because they took on way too much debt, we know the Maloofs weren't adverse to scary debt numbers at one point.
macadocious
Starter
Do they personally owe those numbers, or do the Kings as a franchise. Because you have to halve all those number in relating it to them.
Also, where are the other owners as far as liquidity and helping to pay for things. It's not like the Maloofs own 55% and they are paying all the costs.
Also, where are the other owners as far as liquidity and helping to pay for things. It's not like the Maloofs own 55% and they are paying all the costs.
ParniValjak
All-Star
Kings as a franchise owe those numbers but you have to keep in mind that Maloofs have the controlling interest of the team and as such are the decisionmakers in all this. They make the decisions without consulting the other minority owners as evidenced by last 12 months where other owners were not aware of their desire to relocate until it all became public!
These morons have taken loan after loan after loan to remain as owners of the team. Even when they were talking relocation last year they were going to borrow money from Samueli for the relocation fee. Not exactly a financially savy bunch!
kingjatt
Starter
honestly im sure they were banking on the fact that the city wouldnt be able put together a plan in a year, now that we have a plan and have stepped up they simply dont have 73 million in cash to pay for it, hell they were going to take 70 mill from samueli just to cover some of their debts where the hell are they gonna pull 73 million from?
PurpleHaze
All-Star
I totally agree. Maloofs seem so confident they have (to be exact) $73.25 million agreed to in Orlando and spelled out on the term sheet. Where is it? The only conceivable big equity I can see that the family has is long-standing Well Fargo Bank stock - unless they've been tapping into it in recent years. Also, WFB stock has lost a lot of share value in recent years. The 55% ownership of the Kings is also an equity position but obviously only available if they sell.
kingjatt
Starter
signs that the maloofs are broke: palms ownership drops from 80% to 3%, sale of the beer distributorship, lowest payroll in the league year after year, the nba confirmed a 100+ million dollar line of credit extended to them a couple of years ago. they strip the organization to bare bones including having the lowest paid coach, downsized FO and scouting staff.....and the list can go on and on. They cover their league low payroll with NBA revenue sharing which gavin has said helped them out with costs ALOT.
You dont have to be a finance major to know they are scrambling for that 73.25 mil and will pull more of this crap down the road. They may have more money than you and me but this is a billion/hundreds of millions dollar business and they are simply not viable owners anymore based on terrible business moves made in the past decade.
Larry David
Starter
They went to Orlando with a monster gap between what they wanted to pay and what it was going to take to make a deal. Everybody stretched to get a deal done. The Maloofs were cheered for going the extra mile and it made sense that they wanted to do it as the Anaheim deal was set up to divest them of the team.
Now, they have buyers remorse. They broke out the numbers, looked at the market, figured off how long it will take to pay off the debt on kings. And they are freaked out. Grant keeps talking about "what's the point of having an arena if the owners don't have enough revenue to put a winning team on the court." That's certainly a new company line.
And at the same time, the Dodgers deal entices them with so cal money and a home for their games as the Dodgers clearly are planning on a new sports network, that would need winter programing.
Therefore, the Kings appear to be started open ended negotiation tactics and George said he has several issues. If the city breaks itself bending to a deal that works, they stay. If not, they are gone. Same crap, now dishonest to the face of kj and AIG.
There were a lot of details to be hammered out, but here they are backing away from the critical term sheet agreement from Orlando. What dirt bags
Now, they have buyers remorse. They broke out the numbers, looked at the market, figured off how long it will take to pay off the debt on kings. And they are freaked out. Grant keeps talking about "what's the point of having an arena if the owners don't have enough revenue to put a winning team on the court." That's certainly a new company line.
And at the same time, the Dodgers deal entices them with so cal money and a home for their games as the Dodgers clearly are planning on a new sports network, that would need winter programing.
Therefore, the Kings appear to be started open ended negotiation tactics and George said he has several issues. If the city breaks itself bending to a deal that works, they stay. If not, they are gone. Same crap, now dishonest to the face of kj and AIG.
There were a lot of details to be hammered out, but here they are backing away from the critical term sheet agreement from Orlando. What dirt bags
Last edited:
