Local buyer reportedly enters the picture!

[HndsmCelt]

Just trying to be helpful

 

[Warhawk]

I always did like the way you think.

Agreed. That is all kinds of awesome.

 

[Section 101]

see Seattle

they also had interested buyers

They did after bennett was moving the team. They did not have any when Bennett bought them.

 

[JB_kings]

A local buyer who inherits the $77M loan is in no better position than the Seattle group if they chose to pay that loan back with another loan. That's the point. Many include the $77 million loan as some kind of discount, it isn't. The main difference/discount of buying locally is only the relocation fee. Don't see how you could argue otherwise.

Because... 77 million is the total of the outstanding balance of 65 million plus a 12 million early payoff penalty. This was confirmed by the city manager in the mayors press conference the other day. If someone assumes that loan, it will be refinanced. But no early payoff penalty is due. And you need to understand that payout off 77 million dollars today versus 65 million over 15 or 20 years has some advantages.

 

[Arco Arena]

I really don't think you're reading a word I've written.

Gee, another snarky comment. Thanks, this was a nice discussion.

 

[Arco Arena]

Because... 77 million is the total of the outstanding balance of 65 million plus a 12 million early payoff penalty. This was confirmed by the city manager in the mayors press conference the other day. If someone assumes that loan, it will be refinanced. But no early payoff penalty is due. And you need to understand that payout off 77 million dollars today versus 65 million over 15 or 20 years has some advantages.

Ah yes you're right, I forgot about the early payoff penalty (I thought it was 10 million). Though the point remains, the loan can be paid off with a new loan, and thus not all out of the Seattle groups pocket today.

 

[Capt. Factorial]

Gee, another snarky comment. Thanks, this was a nice discussion.

It wasn't snarky at all. If you actually read the comments you responded to, we had practically no disagreement at all.

 

[kennadog]

Exactly. This is our opportunity to fight for our team, get a new arena and get rid of the Maloofs. Talk about a win-win-win. I'm not giving up.

 

[kupman]

so in thinking of ways that new owners could be encouraged and enticed in to buying the team and building a new arena, an idea struck me that would help offset a little of the cost, encourage fans and pay just tribute to the former owners.
Long ago i began referring to my bathroom breaks during games as “taking a maloof.” so it occurred to me a few commodes could be set aside as “maloof family memorials” with the maloof name in the bowl. Fans could purchase a one-time use card know as a “little gavin” for $5 or a “joey” a day long pass for $25. And for those fans that are just full of it, there would be the “big george” season pass for $100. Remember these would be in addition to free toilets, but due to the cost they would create sort of an express lane in you will, while also giving fans a time and place to pay tribute to those who have paid like tribute to us.

awesome!

 

[Warhawk]

I don't know if it has been posted here before, but this is a national article on KJ and the arena/team issue:

http://www.usatoday.com/story/sport...johnson-sacramento-save-team-maloofs/1828335/

SACRAMENTO — Sacramento Mayor Kevin Johnson swears he still has a shot to save his hometown team.

Johnson, the native son and former NBA point guard who has spent recent years trying to keep the Maloof family that owns the team from taking it elsewhere, told USA TODAY Sports on Friday night that Seattle hasn't won this game just yet. Asked if his window had closed in light of a Wednesday report that the Maloofs and the Chris Hansen-Steve Ballmer group were finalizing a deal to bring the NBA back to Seattle and more reports on Friday that the deal was done in principle for $525 million, Johnson spread his hands wide and smiled. The window, he swears, remains open.

"(NBA Commissioner David Stern) knows that I'm going to make a request to speak to the governing board (before any Seattle deal is formalized)," Johnson said, noting that the deadline to file for relocation is March 1.

Stern said Thursday night that potential buyers who might keep the team in Sacramento deserve a shot, even naming billionaire supermarket mogul Ron Burkle as one candidate.

"This will be decided by a committee of owners and the NBA's board of governors with the advice of me but not leading the way," Stern said on Thursday night.

As was the case when he made an impassioned and ultimately successful pitch at a board of governor's meeting in New York to keep the team from going to Anaheim, Calif., in April of 2011, Johnson — who had an agreement in principle with the Maloofs and the NBA for a new arena last February before they backed out — is confident Stern will give him the time necessary to organize his effort.

While the prospect of engaging in a bidding war with someone with someone like Ballmer (reported net worth $17 billion) is daunting, Johnson has spent recent weeks rounding up local and outside investors who he is confident could come with a competitive offer. Because a Sacramento-based offer would not include a relocation fee and the new owners could assume the $77 million loan that the Maloofs owe the city, he said the target figure for an offer that is comparable to the $500-525 million in Seattle is $425 to $450 million.

"I think from my standpoint, we're thinking about $450 (million) — $425 to $450 (million)," he said. "There's a lot of due diligence that has to take place on both sides. But everybody we're talking to, who has some interest, they know the number is going to be pretty darn high. It's going to be over $400 (million) for sure. The good thing is that there's not a shortage of people who are interested."

A person with knowledge of the deal said the formal Sacramento offer would have to involve a viable arena plan in order to be considered by the NBA. The person spoke to USA TODAY Sports on the condition of anonymity because the talks are ongoing.

The identities of some of the involved parties have become more clear. As first reported by CBSSports.com, Mark Mastrov, the founder of Northern California-based 24-Hour Fitness, is considered a major player on the local front. Burkle is also part of this picture. Johnson, who spent recent weeks ramping up his effort to organize a response to this sort of situation, is in the process of managing all the money men.

"Some of the big dollars may not be from Sacramento, but we knew we'd have a local presence as well," he said. "I think we have an opportunity to do that. We know what the number is, and we know what's at stake, and there's no shortage of interest."

Johnson didn't indicate a timeline for presenting the formal offer from his group.

"What we need to do is to take a step back, get our process together, get organized and get a game plan that makes sense," he said. "We don't all want to be bumping into each other. We don't want to be bidding against each other. We need to have one Sacramento offer that makes really good sense and put ourselves in a position of strength.

"We're going to get one shot to really put our best foot forward and we want to be able to do that. The clock is ticking. We know the March 1 deadline is looming, and we're going to work our way backwards from there.

"I feel very strongly that we will be able to produce a group that has Sacramento ties that can be competitive or at least comparable. I believe the NBA knows that we're a proven market. ... I want Seattle to get a team. They deserve a team, but I don't want it to be our team."

 

[Section 101]

Ah yes you're right, I forgot about the early payoff penalty (I thought it was 10 million). Though the point remains, the loan can be paid off with a new loan, and thus not all out of the Seattle groups pocket today.

Your missing the point. They are including this in the purchase price. If someone assumes the debt and offers $450 million then the maloofs take home more money. The same with the NBA loan. If a local owner assumes that debt they can offer lower than the reported $525 mil deal and the maloofs get more money.

 

[Siranthony]

KJ is my hero!

 

[Bricklayer]

Your missing the point. They are including this in the purchase price. If someone assumes the debt and offers $450 million then the maloofs take home more money. The same with the NBA loan. If a local owner assumes that debt they can offer lower than the reported $525 mil deal and the maloofs get more money.

Suppose the inverse is also true -- if a local group offers $450mil and assumes that loan debt, then under 'Seattle math" they're actually offering $527mil.

 

[Kevin's Good Feet]

A major player steps into the ring
http://www.sacbee.com/2013/01/12/5109940/group-plans-to-buy-kings-and-build.html
In a stunning new twist on the Sacramento Kings saga, a group including the new owner of Downtown Plaza is proposing to buy the team and build a $400 million arena on the site of the troubled shopping center.

A source connected to the proposal said the group believes it would make a viable alternative to the Maloof family's potential sale of the team to a consortium planning to relocate the Kings to Seattle.

A source said the group includes other deep-pockets investors who have the ability to pull the deal together.

"We make the case to the NBA that we've got the funding," said the source, who insisted on anonymity.

The source said the group includes JMA Ventures, the San Francisco investment firm that bought Downtown Plaza last year at a bargain-basement price.

 

[analoq]

I wouldn't mind that at all. Downtown Plaza's always dead now anyway.

 

[whozit]

A major player steps into the ring
http://www.sacbee.com/2013/01/12/5109940/group-plans-to-buy-kings-and-build.html
In a stunning new twist on the Sacramento Kings saga, a group including the new owner of Downtown Plaza is proposing to buy the team and build a $400 million arena on the site of the troubled shopping center.

A source connected to the proposal said the group believes it would make a viable alternative to the Maloof family's potential sale of the team to a consortium planning to relocate the Kings to Seattle.

A source said the group includes other deep-pockets investors who have the ability to pull the deal together.

"We make the case to the NBA that we've got the funding," said the source, who insisted on anonymity.

The source said the group includes JMA Ventures, the San Francisco investment firm that bought Downtown Plaza last year at a bargain-basement price.

This one is huge! It doesn't involve the rail yards but is still downtown. The more the better. It shows that the market is viable.

 

[PurpleHaze]

Let's say this happens and a new Sacramento arena gets built on site of Downtown Plaza with acceptance of this local group and other deep-pocket investors. With the railyards site continuing to be developed, however slowly considering all of its issues. We keep the Kings in Sac, get new $400M arena faster than expected and have railyards for perhaps a future baseball/football stadium. We can still dream big it seems... Fingers crossed!

 

[Tetsujin]

Let's say this happens and a new Sacramento arena gets built on site of Downtown Plaza with acceptance of this local group and other deep-pocket investors. With the railyards site continuing to be developed, however slowly considering all of its issues. We keep the Kings in Sac, get new $400M arena faster than expected and have railyards for perhaps a future baseball/football stadium. We can still dream big it seems... Fingers crossed!

Or any other public attraction (aquarium, museum, themepark).

 

[sauce-26]

Or any other public attraction (aquarium, museum, themepark).

That actually sounds like a really good idea.

 

[rainmaker]

Carmichael Dave ‏@CarmichaelDave
Word is Gavin Maloof is emptying his house here.Gave a $2300 chandelier to his car wash guy. Giving other employees TVs, etc as thank yous.

 

[PurpleHaze]

Or any other public attraction (aquarium, museum, themepark).

Agreed. I've walked around the railyards and just across other side on Sacramento River in West Sac - amazing how large that total area is. It appears not only could large multi-purpose sports stadium be constructed there but also all or part of public attractions you mention - although some might be strung across river into Yolo County. It appears there's actually more new infrastructure already in place on the otherside. A car/bike/walk bridge would be necessary but that should be part of any plan to develop the "riverwalk" in that entire area. The railyards has a new federal courthouse now but hopefully it will have a set aside for eventual "homerun," like stadium plus other much needed public venues.

Meanwhile let's get this done - new arena at Downtown Plaza site, perhaps much like new sparkling one in in Brooklyn.

 

[LWP777]

A major player steps into the ring
http://www.sacbee.com/2013/01/12/5109940/group-plans-to-buy-kings-and-build.html
In a stunning new twist on the Sacramento Kings saga, a group including the new owner of Downtown Plaza is proposing to buy the team and build a $400 million arena on the site of the troubled shopping center.

A source connected to the proposal said the group believes it would make a viable alternative to the Maloof family's potential sale of the team to a consortium planning to relocate the Kings to Seattle.

A source said the group includes other deep-pockets investors who have the ability to pull the deal together.

"We make the case to the NBA that we've got the funding," said the source, who insisted on anonymity.

The source said the group includes JMA Ventures, the San Francisco investment firm that bought Downtown Plaza last year at a bargain-basement price.

Do the right thing David Stern! Let us keep our Kings and give Seattle an expansion team. Win-win IMO.

 

[Tetsujin]

Carmichael Dave ‏@CarmichaelDave
Word is Gavin Maloof is emptying his house here.Gave a $2300 chandelier to his car wash guy. Giving other employees TVs, etc as thank yous.

Gavin has, it seems, been on Sacramento's side. Hard to really blame him for too much f this when George is running around being a royal richard. Also for some reason the image of Gavin driving around to his employees' houses and giving them things out of the back of his car makes me laugh.

 

[LWP777]

Carmichael Dave ‏@CarmichaelDave
Word is Gavin Maloof is emptying his house here.Gave a $2300 chandelier to his car wash guy. Giving other employees TVs, etc as thank yous.

Good riddance!

 

[HereWeBoogie]

reading Carmichael Dave's twitter feed i cant help but get excited. really hope this works out for Sacramento

 

[rainmaker]

Gavin has, it seems, been on Sacramento's side. Hard to really blame him for too much f this when George is running around being a royal richard. Also for some reason the image of Gavin driving around to his employees' houses and giving them things out of the back of his car makes me laugh.

If there's one Maloof I like, it's Gavin. But if that tweet is true it's telling. The guy who's been in Sac's corner and wants to stay here is clearing out his house. Tells me the team is for sale(not that there isn't evidence to suggest otherwise) and the Maloofs are preparing to cut ties with the city and move on to other ventures in the near future.

 

[bajaden]

I really don't think you're reading a word I've written.

People see and hear what they want to see and hear. He's so caught up trying to make his point that he can't see past it.

 

[HereWeBoogie]

ya they are clearly bouncing out of Sacramento. i just hope the NBA gives Sac a shot to buy the team. and right now its starting to look like we have a great chance if they do let us keep it

 

[whozit]

Or any other public attraction (aquarium, museum, themepark).

Once the building ban is lifted, the Natomas site would be a good place for a themepark.

 

[bajaden]

Suppose the inverse is also true -- if a local group offers $450mil and assumes that loan debt, then under 'Seattle math" they're actually offering $527mil.

Essentially your correct, except that with Seattle its all up front money, and with a local buyer it isn't. The relocation fee is the exception. The local buyer doesn't have to pay it, and the Seattle buyer does. What I find amusing, is that people throw the 12 mil early payoff fee, or the 30 million relocation fee around like its nothing. Just chump change! How do some of these people think these guys got to be billionaires in the first place. They don't light their cigars with 100 dollar bills.

This whole thing could change on a dime if Stern gave Hansen a call, and says, you know what, were going to expand in a year. Why don't you just wait and save yourself around 200 million dollars. I think you pointed out the financial advantage of waiting for an expansion team. Not only would Hansen benefit, but the whole league would benefit. Hansen has the reputation of being a very patient man, and he's not a fool. If I were the Maloofs I wouldn't play too many games with him if they want to keep him as a serious buyer.