Maloof Consultant: "Then, and only then, will they consider selling this team."

[MDM]

New article that has a good news/bad news vibe in my opinion:

http://www.sacbee.com/2011/04/27/3581306/ball-is-in-nbas-court-after-sacramento.html

On one of the pledges:

"A spokeswoman for one company on the list, Susan Brauner of Blue Diamond Growers, said her firm has not made a pledge.

A mayoral spokesman said the mayor's office is talking with Blue Diamond. Later the mayor issued a statement: "This process has moved at warp speed, and we understand that some companies may need a little more time. In the case of Blue Diamond, if there has been any confusion on our part, we apologize."

And then the consultant's quote:

Many of the corporations made multiyear commitments, the mayor's office said. But the $10 million was seen as a way to buy one more year for the franchise in Sacramento while progress is made on a new arena. If progress isn't made, one more year is likely all the city will get.

"(The Maloofs) can't stay under the status quo (arena arrangement)," the consultant familiar with the Maloofs' finances said. And if they are told they can't leave, and an arena plan goes nowhere, "then and only then will they consider selling this team."

 

[NewKingsFan916]

They're broke, they'll have to sell no matter what.

 

[Brac-o-matic]

I hope the arena plan takes off. However, I see than advantage to it bombing...!

 

[The Hammer]

"A consultant familiar with the Maloof's finances."

This is a completely hollow statement. But for our purposes, who cares? It's a BS thing said by literally ANY Joe Shmoe (could have been a homeless person, seriously, "consultant"?). But what it signals, that the media is doing this, is a turning of the tide of pubic opinion. The Bee now thinks that this type of thing will sell more papers, so they throw up this piece. Helped by facts, but bolstered by hot air. (Or of course there's just hard cash behind it)

This is the kind of series of events that can force the Maloof's hand. There comes a strange tidal wave of belief/feeling, and it kind of then becomes a self fulfilling prophecy. Helped of course by reality. The reality of the Maloofs strugglig finances no doubt. But the interesting thing is that faux facts will fan the flames.

"Consultant familiar with the Maloof finances...." ... I love it!!!!

I can guarantee you one thing... it's NOT someone speaking on authority and behalf of the Maloofs!!!

All secrecy and speculation... but I'd venture to guess that the Burkle camp are the ones operating the weather machine that is blowing this wind... and God bless 'em!

 

[RookieOfTheDay]

"A source close to the team said the Maloofs have concerns about long-term corporate support in Sacramento and the region's ability to finance a new arena"

Orly? Well guess what, Magoofs, we have concerns about short-term owner support (that's you, Joe, George, and Gavin) in Sacramento and your ability to finance a competitive team. Works both ways, fellas. My how quickly you forgot all those sellout years. You know, those years when you actually ran the team in a semi competent manner. Back before you decided to try and set an NBA record for highest discrepancy between ticket prices and team performance.

No one has any sympathy for you, Magoofs. Anyone can see that Sacramento is a viable and potentially thriving NBA market. But guess what, in order to work, the owners have to do their part too! And that includes things like actually spending some money on your team, soliciting corporate support (you know, that thing Kevin Johnson just did better than you ever did), cooperating with local leaders, maintaining the arena you have until you get a new one, etc.

It seems clear you can no longer do those things properly. So rather than try and sneak out of town and hope Samueli and a "fresh" fanbase can pull your butts out of the fire, why not do the honorable thing? Just admit you're broke and can no longer effectively run a team and step aside. Let Burkle buy the team. Heck, I bet he'd even let you guys hang around as minority owners.

 

[kennadog]

Well, my first reaction was to the "if an arena plan goes no where," the team is leaving no matter who owns the Kings. So kind of a dumb remark.

The only thing that matters to me is keeping the Kings in Sacramento. I could give a rip who owns them, except I'd like it to be an owner who has some money to actually invest in improving the team and, obviously, an owner who wants to keep the team in Sac.

An arena, even if approved in Sac, is going to take some time to be ready. The question is, how long can the Maloofs limp along financially? I sort of suspect the league is wondering about the Maloofs viability as owners, too.

 

[Glenn]

I hope the arena plan takes off. However, I see than advantage to it bombing...!

If the arena bombs, the Kings may very well be allowed to move. We have been given a year to come up with an arena.

"(The Maloofs) can't stay under the status quo (arena arrangement)," the consultant familiar with the Maloofs' finances said. And if they are told they can't leave, and an arena plan goes nowhere, "then and only then will they consider selling this team."

This doesn't represent the reality of the situation as we know it. The rumor is that the city is given one more year and if it can't come up with a concrete plan to build an arena, the Kings will be allowed to leave. In other words, the likelihood of this scenario taking place is remote UNLESS moving a third team to one market is also a sticking point for a majority of the owners.

In any case, this is the first mention that there is a circumstance where the word "sell" has entered the Maloof's vocabulary. That's good news, eh? I can only imagine that the magnitude of the multiple struggles they face is finally wearing them down.

My suspicion also is that the word "sell" entering the conversation is because the Maloofs want what a significant percentage of the Kings' owners do not. Remember them? If Burkle wants the Kings in Sacramento, he is in concert with the rest of the owners. As it is, the Maloofs are out of synch with their own partners which cannot make for happy times.

Lastly, Stern must be licking his chops. The Maloofs have just exposed a scenario where they might sell and there is a buyer waiting. Let us say the area cannot build an arena. That's possible. Even then the NBA might not let the Kings move with this statement that the Maloofs would sell. I don't think it is the wildest conjecture that if Burkle bought the controlling interest of the team, he would turn it into a winner for the forseeable future AND see to it that a great arena is built.

Barring a dramatic shift in the CBA and revenure sharing (possible), smaller markets are STILL at a disadvantage and need a very deep pockets owner.

Certainly the NBA wants the league's most fanatic fans to have a team. I can see this as a winning solution for all involved as it just might be time that the Maloofs would welcome the boredom of a safer investment.

 

[kennadog]

Well, I'll say one thing. If actually true, its the first chink we've seen in the Maloof's wall of "We will never sell this team" type of comments. They've actually stated cinditions under which they would sell.

 

[pdxKingsFan]

I agree that I don't care who owns the team as long as they are committed to the Sac market and building a winning team. I do wonder if the Maloofs can survive until a 2014 arena opening date but that's not really my problem if the work gets done in the next year to make that happen.

 

[The Hammer]

Well, I'll say one thing. If actually true, its the first chink we've seen in the Maloof's wall of "We will never sell this team" type of comments. They've actually stated cinditions under which they would sell.

But have they? That is the interesting question. This person quoted, again, is in no way formally representing the Maloofs. But I do find it interesting that the quote made it into the paper.

Now the question is will the Maloofs refute it? If they do, they begin to look overly fanatical about not selling... refuting a somewhat mild statement about possible future conditions in which they might consider selling... on the other hand... mild as it is, the statement is out there (wherever it came from)... so what do you do about that?

For all we know this statement came from a Burkle plant.

Or, I'm just letting my dark and sinister side run wild with speculation, and this quote really is from the Maloof camp, and that they are just easing their way to the bargaining table... just slowly sidling up.

This statement could also set themselves up for a sale rather quickly. Since its nearly a foregone conclusion that they'll be "told they can't leave" (at least this year), all it might take is a minor hitch in the arena process and they could conceivably have an excuse to sell.

I suspect the hard line not selling thing is more a matter of family pride, both within the family and publicly. I think if there can be constructed at least a facade of a legitimate reason to sell, I that might take care of whatever philosophical or family pride reason is getting in the way. Cause I don't think it's financial at this point.

Just help them save a little face on the way out, maybe that'll do the trick.

 

[kennadog]

Well, Sacramento has got to get an arena deal done, period, or the Maloofs will have their best reason to move the team next year. I don't want the Maloofs foot-dragging on coming to an agreement on a new arena, just so they have that excuse. I hope the league keeps an eye on whether the Maloofs cooperate in trying to get a deal done here in Sac.

 

[The Hammer]

Well, Sacramento has got to get an arena deal done, period, or the Maloofs will have their best reason to move the team next year. I don't want the Maloofs foot-dragging on coming to an agreement on a new arean, just so they have that excuse. I hope the league keeps an eye on whwther the Maloofs cooperate in trying to get a deal done here in Sac.

I think at this point, hopefully, and with the help of the Simmons piece, that enough of their ulterior motives for moving the team have been exposed, that any such foot dragging would be seen as in support of said motives by the NBA. Hopefully. Of course we all see that that would be the case. And KJs corporate cash heroics have hopefully exposed that too.

But yes, a reasonable arena deal needs to get put together asap. Hopefully the bulk the the dealmaking can circumvent the Maloofs similar to how things just have.

 

[Bricklayer]

Well, I'll say one thing. If actually true, its the first chink we've seen in the Maloof's wall of "We will never sell this team" type of comments. They've actually stated cinditions under which they would sell.

That was what I took form it. I have real doubts about this source, but if he actually was legit, even the extreme equivocation about selling is a step back foirm the "we won't sell under any circumstances".

People I think have to back off the selling enthusiasm though. Not only is it likely not to happen, but the process would likely paralyze the team's decisionmaking at a time it can't be paralyzed.

 

[Kingster]

Well, Sacramento has got to get an arena deal done, period, or the Maloofs will have their best reason to move the team next year. I don't want the Maloofs foot-dragging on coming to an agreement on a new arean, just so they have that excuse. I hope the league keeps an eye on whwther the Maloofs cooperate in trying to get a deal done here in Sac.

And that's what I wonder about: Exactly how much money does the NBA expect the Maloofs to put into any arena deal? What will define "cooperative" by the NBA?

 

[D13]

Orly? Well guess what, Magoofs, we have concerns about short-term owner support (that's you, Joe, George, and Gavin) in Sacramento and your ability to finance a competitive team. Works both ways, fellas. My how quickly you forgot all those sellout years. You know, those years when you actually ran the team in a semi competent manner. Back before you decided to try and set an NBA record for highest discrepancy between ticket prices and team performance.

Good job... this got a laugh out of me... Touche!

 

[BradC79]

Again the Maloofs have said time and time again they will spend on free agents when the new cba is in place.

 

[RookieOfTheDay]

Again the Maloofs have said time and time again they will spend on free agents when the new cba is in place.

Yeah but what they didn't say was they planned on doing it in Anaheim with money borrowed from Samueli.

 

[bajaden]

I hope the arena plan takes off. However, I see than advantage to it bombing...!

I see no advantage in playing Russian Roulette with the arena. The best case scenario is for the arena deal to be finalized, regardless of who owns the team at the time. If the arena deal gets done, sacramento keeps the team. If the deal bombs, there are no guarantee's.

 

[Larry David]

People I think have to back off the selling enthusiasm though. Not only is it likely not to happen, but the process would likely paralyze the team's decisionmaking at a time it can't be paralyzed.

I respectfully disagree. Based upon your other posts, I'm guessing that you are talking aobut this being is a huge offseason in terms of position and cap ... so we can't screw it up. I respect that but

I think fans being excited / rooting for Burkle does two things. First, it makes the arena more likely to be funded. It doesn't make logical sense to be more excited to pay for more than half of a building for a much richer guy ... but many in town are done with the Maloofs. This doesn't hurt anything on the arena front, which is by far the primary issue for many Sacramento Kings fans.

Second, we might get a much better owner. There is only one thing an NBA can't over come ... bad management. When they had money, the Maloofs were fine. But they've run the Palms into ground and damaged the ticket base of the Kings ... when you combine that with their shallow pockets (by NBA standards) they are most likely going to hold us back.

I'd rather have the Maloofs at 1/2 speed this offseason and Burkle full speed for the next 10 ... than bank on the Maloofs turning it around for the long haul.

And talking about improves the odds it will happen.

 

[ArcoKings]

I know the Burkle group has expressed interest in buying the Kings but is it known if the Burkle group has actually made a monetary offer to the Maloofs to buy the team? If an arena deal does get hammered out and the Maloofs stay will the concessions that the Maloofs will receive ($$) be at least what they get from PBP, better, or is there an NBA 'scale' that would be used to determine the goodies the Maloofs will receive using the size of market and everything else plugged in to evaluate?

 

[Section 101]

I know the Burkle group has expressed interest in buying the Kings but is it known if the Burkle group has actually made a monetary offer to the Maloofs to buy the team? If an arena deal does get hammered out and the Maloofs stay will the concessions that the Maloofs will receive ($$) be at least what they get from PBP, better, or is there an NBA 'scale' that would be used to determine the goodies the Maloofs will receive using the size of market and everything else plugged in to evaluate?

That is all negotiated between MSE and the arena owners. They can use other arena deals as samples.

 

[kennadog]

I know the Burkle group has expressed interest in buying the Kings but is it known if the Burkle group has actually made a monetary offer to the Maloofs to buy the team? If an arena deal does get hammered out and the Maloofs stay will the concessions that the Maloofs will receive ($$) be at least what they get from PBP, better, or is there an NBA 'scale' that would be used to determine the goodies the Maloofs will receive using the size of market and everything else plugged in to evaluate?

The Maloofs have always asked for a lot of concessions here in Sacramento. What's to the city's advantage now, is they have seen a copy of the Maloof's lease with the City of Anaheim and they pretty much got nothing.

The one thing is the TV revenue. The Kings apparently have the second to worst TV contract in the league (I think $11 million/year). The one they inherited when they bought the team was the worst at the time. Appreantly, the league average TV contract is $20 million/year. However, Comcast has said they are willing to renegotiate the Kings existing contract, supposedly to sweeten it.

The city may need to make more concessions on a lease than Anaheim (Anaheim might still provide a better TV contract and is a richer region with a better corporate prescence), but Sacramento at least has a measuring stick to drive a tougher deal than what the Maloofs asked for before.

 

[ArcoKings]

Cool. Thanks for clarifying, 101 and Dog.

 

[Trueblood]

I found it interesting that the article said that the Maloofs would only sell if no arena plans came to the forefront and they were "forced to stay". I have to think that the league would grant them a relocation if nothing comes to fruition by March 1. Or does this imply that they're at the end of their rope now and one more season at Arco will doom them?

IMO, they'll keep the payroll at a bare minimum and make money again next year so I don't see their hand being forced. An arena plan needs to happen now.

 

[Section 101]

I found it interesting that the article said that the Maloofs would only sell if no arena plans came to the forefront and they were "forced to stay". I have to think that the league would grant them a relocation if nothing comes to fruition by March 1. Or does this imply that they're at the end of their rope now and one more season at Arco will doom them?

IMO, they'll keep the payroll at a bare minimum and make money again next year so I don't see their hand being forced. An arena plan needs to happen now.

There is one situtation that could happen. If they league determines Anaheim is not a viable market or they dont want a team close to the Lakers/Clippers. Then they would have to move somewhere else.

 

[Trueblood]

There is one situtation that could happen. If they league determines Anaheim is not a viable market or they dont want a team close to the Lakers/Clippers. Then they would have to move somewhere else.

Possible but I doubt it now. They've made a decent proposal. Nothing earth shattering but enough to get their foot in the NBA door. Hypothetically, let's say no arena deal is made in Sacramento. If the league decides that Anaheim isn't any good then the Maloofs will have legal options as well. Stern doesn't want a mess like that. I think this really all comes down to getting something done in the next 10 months and something that will break ground by August of 2012. The league nor the Maloofs are going to wait until 2016 or whatever to see an arena open it's doors. November of 2014 is the deadline which means you have to break ground next summer.