Kings Would Seek $500M Sale Price

[netseee]

Kings would seek $500M Sale price

 

[lwc]

If they are serious, I am happy. However that is a steep price to pay in addition to a new arena. It might cost a new ownership group $700 million for a new arena and ownership.

Burkle please?

 

[LWP777]

I will personally pitch in $100

 

[upinsmoke]

If the warriors sold for 450m in a huge market with no debt what makes the kings worth 500m?

 

[Proof21]

I'll chip in $1,000.

 

[hrdboild]

If they are serious, I am happy. However that is a steep price to pay in addition to a new arena. It might cost a new ownership group $700 million for a new arena and ownership.

Burkle please?

Is that all it would cost? Where's Magic Johnson when you need him?

 

[Glenn]

If the warriors sold for 450m in a huge market with no debt what makes the kings worth 500m?

Nothing.

 

[Jose]

http://basketball.realgm.com/wiretap/225296/Kings_Would_Seek_$500M_Sale_Price

I assume that's a valuation they're throwing around because they want $250M for their majority ownership? I wonder if that includes the new majority owner(s) assuming their $175M debt to the city and NBA, or if they would pay off that debt with the proceeds of the sale.

"The Maloofs believe that the mobility of the franchise makes the seemingly unrealistic valuation plausible." - What mobility? And yes, unrealistic valuation, even if they are planning on paying off the debt. If they're thinking the new owners pay that PLUS assume the debt, then they're crazier than I thought.

"The Kings can escape their lease at Sleep Train Arena at any time." - Sure, after paying back the $75 MILLION owed to the city, and with a nearly impossible to win fight to get relocation approval.

"The Grizzlies are the most recent franchise to be sold, fetching a $377 sale price. The Warriors were sold in 2010 for a league-record $450 million." - As someone else stated, those two franchises are in a much better situation (financial, management, attendance, success) than the Kings.

But of course when you're selling you start high, the buyer starts low, and the sale ends somewhere in between. But at least now we're talking about selling. FINALLY!!

 

[Capt. Factorial]

If the warriors sold for 450m in a huge market with no debt what makes the kings worth 500m?

Delusion. Desperation. Maloofery.

 

[kupman]

Have the Maloofs actually said they would be willing to sale for $500 million? I don't care about the price at the moment. If they admitted that there is a price that would lead them to sale the team this would be a huge turn from what they have said all along - "not for sale!"

 

[ParniValjak]

If true this is the first domino that has fallen in a long line of events that will likely take place.

They have gone from "WE ARE NOT SELLING! TELL BURKLE TO GO BACK TO WHERE HE CAME FROM!" to "We will sell for $500 million!"

The wheel are starting to get into motion and these clowns will sell one way or another. They are starting to realise that they are boxed in! They would love to move to a new city with a new arena at minimal cost to them which would in their eyes allow them to start reclaiming some of their wealth.

The problem is that they are looking for a dream deal that will not likely be offered and even if it is, they know that there is no way in hell NBA BOG approves the relocation request from the city that has gone above and beyond what was expected and it just happens to be the 20th largest media market in the country with a single professional sports team.

I still think they will either sell to an owner or ownership group who wants to keep the team in Sacramento and agrees to the framework of the arena deal and this would absolutely get approved by the NBA, OR the NBA takes over the team and sells it to owner or ownership group who wants to keep the team in Sacramento and agrees to the framework of the arena deal.

I do not believe that Maloofs will own the Kings for much longer. This seasons and next season at the absolute maximum. I still think that David Stern's parting gift to the NBA and Sacramento will be the Kings getting new ownership who want to keep the team here and agree to the arena plan on the table.

 

[Gary]

If true this is the first domino that has fallen in a long line of events that will likely take place.

They have gone from "WE ARE NOT SELLING! TELL BURKLE TO GO BACK TO WHERE HE CAME FROM!" to "We will sell for $500 million!"

The wheel are starting to get into motion and these clowns will sell one way or another. They are starting to realise that they are boxed in! They would love to move to a new city with a new arena at minimal cost to them which would in their eyes allow them to start reclaiming some of their wealth.

The problem is that they are looking for a dream deal that will not likely be offered and even if it is, they know that there is no way in hell NBA BOG approves the relocation request from the city that has gone above and beyond what was expected and it just happens to be the 20th largest media market in the country with a single professional sports team.

I still think they will either sell to an owner or ownership group who wants to keep the team in Sacramento and agrees to the framework of the arena deal and this would absolutely get approved by the NBA, OR the NBA takes over the team and sells it to owner or ownership group who wants to keep the team in Sacramento and agrees to the framework of the arena deal.

I do not believe that Maloofs will own the Kings for much longer. This seasons and next season at the absolute maximum. I still think that David Stern's parting gift to the NBA and Sacramento will be the Kings getting new ownership who want to keep the team here and agree to the arena plan on the table.

If that were the case I would call him God and worship the ground in which he walks. Seriously though, that would totally make me forget about his part in the Ewing lottery draft.

 

[VF21]

I'd like to see it in print and on tape that the Maloofs have made any such statement. I believe there is way too much assumption and too little actual fact to base this on.

Here's a link to the original story from which realgm took the information:

...The team's uncertain status in remaining in Sacramento could be causing a ripple effect here, as well. The Maloofs have long since targeted Cousins as the prized asset of their organization and have been extremely reluctant to trade him thus far. According to people with knowledge of the situation, the Maloofs continue to discuss their preferred option of relocation with several cities and have let it be known in all the appropriate circles that bidding for the unlikely sale of the club should begin at an astounding $500 million.

"have let it be known in all the appropriate circles" is a far cry from "have come right out publicly and stated". There's no credible source cited and I cannot help but believe if there were, it would be all over ESPN, Fox Sports, etc.

 

[Npliam]

I'd like to see it in print and on tape that the Maloofs have made any such statement. I believe there is way too much assumption and too little actual fact to base this on.

Here's a link to the original story from which realgm took the information:



"have let it be known in all the appropriate circles" is a far cry from "have come right out publicly and stated". There's no credible source cited and I cannot help but believe if there were, it would be all over ESPN, Fox Sports, etc.

There will never be a "credible" source on this until it is done. There is no upside to that for either party.

 

[VF21]

There will never be a "credible" source on this until it is done. There is no upside to that for either party.

If you search back, you'll see that Carmichael Dave (famous locally for both rising from a fan to a radio personality and being fired for daring to speak out against the Maloofs) made a tweet a few days ago that hypothesized a potential selling price of --- you guessed it - $500M. Now, several days later, Sam Amick - former Sacramento Bee reporter and Kings beat writer - comes out with the same amount and says "let it be known" blah, blah, blah... Sorry, but verbage is everything, especially when you're dealing with free lance journalists.

I maintain my assessment of the situation. If the Maloofs had indeed named a number, someone would have gotten the information to someone much further up the food chain than Sam Amick or Carmichael Dave.

 

[bajaden]

I'd like to see it in print and on tape that the Maloofs have made any such statement. I believe there is way too much assumption and too little actual fact to base this on.

Here's a link to the original story from which realgm took the information:



"have let it be known in all the appropriate circles" is a far cry from "have come right out publicly and stated". There's no credible source cited and I cannot help but believe if there were, it would be all over ESPN, Fox Sports, etc.

That reference you posted is from a Sam Amick article in USA Today. He stated that he has three sources within the Kings orginization, but of course can't reveal them. Amick is usually pretty credible. As for ESPN, Fox Sports, just give it a few hours and they'll at least pickup his story. I would like to know just who the appropiate circles are.

 

[upinsmoke]

Dave has been on top of this from the beginning and is as credible to me than any reporter out there
, same goes for Amick. To your point vf21 of course the maloofs are not going to stand up and say yup thats right 500m gets it done.

 

[VF21]

Dave has been on top of this from the beginning and is as credible to me than any reporter out there
, same goes for Amick. To your point vf21 of course the maloofs are not going to stand up and say yup thats right 500m gets it done.

That brings up an interesting point. IF this goes national and starts garnering a lot of attention, what do the Maloofs do? If ESPN calls and asks them flat out, what do they say? If it's true and they out and out deny it, it looks once again as though they're nothing more than liars and frauds who have been trying to pull the wool over the eyes of Sacramento fans once again. If it's not true, they pretty much have to deny it - which I cannot see them doing as we can all assume there is a number in George's mind where selling becoming paramount. Perhaps this is more maneuvering to try and force the Maloof's hands. How sweet would it be if the whole rumor was started (a la dirty politics policy) by someone in a position to benefit by the Maloofs being on the hot seat once again? (Okay, yes - I'm thinking someone in one of the potential buyer camps but I'm not gonna point any fingers. Just remember who used to be in charge of Think Big and what he does for a living.)

 

[VF21]

That reference you posted is from a Sam Amick article in USA Today. He stated that he has three sources within the Kings orginization, but of course can't reveal them. Amick is usually pretty credible. As for ESPN, Fox Sports, just give it a few hours and they'll at least pickup his story. I would like to know just who the appropiate circles are.

I read the original story. Amick's comment about three sources inside the organization referred to Gavin calling Cousins and wasn't about the potential sales price of the team:

The decision to reinstate Cousins on Dec. 24 was made unilaterally by the team's owners and went against the wishes and planned protocol of the team's front office, according to three people with knowledge of the situation who spoke to USA TODAY Sports on the condition of anonymity because of the sensitivity of the situation. Specifically, one person with knowledge of the situation said Kings co-owner Gavin Maloof initiated a dialogue with Cousins on Dec. 23, had him discuss the situation with Smart and then made it clear that Cousins would return to the team the following day at practice.

And, to clarify, Amick didn't say three people inside the organization. He said "three people with knowledge of the situation"...there is a difference. And there's a big difference between knowing people "with knowledge of the situation" when it comes to player-type items and people in the know about the Maloof financial dealings.

All I'm saying is that people shouldn't get too excited...yet.

 

[Rug King]

Beggars can't be choosers... or something like that. The maloof's will take what they can get, period. They can't hang on much longer.

 

[Bricklayer]

Beggars can't be choosers... or something like that. The maloof's will take what they can get, period. They can't hang on much longer.

Would not be so sure about that.

As people have mentioned elsewhere, doing the math it looks like $350mil could be about a break even point for them. As in if they sell at that price, they might walk away with nothing. No debt, but also no asset, and no future. To chase them they need to score such an enormous profit that they look at it greedily and see it as a new lease on rich playboy life. As seed money to start a new ascent.

 

[Jose]

Would not be so sure about that.

As people have mentioned elsewhere, doing the math it looks like $350mil could be about a break even point for them. As in if they sell at that price, they might walk away with nothing. No debt, but also no asset, and no future. To chase them they need to score such an enormous profit that they look at it greedily and see it as a new lease on rich playboy life. As seed money to start a new ascent.

The question is... How much do they want to walk out of this with? 25M? 50M? I imagine it would be easier for someone to buy their majority ownership and assume the debt than it would be for someone to plunk down 400M...