Maloofs still on fence about move

[RookieOfTheDay]

Remember that 2003 season when the Maloofs went "Championship or Bust" by going over the luxury tax? Well, they busted.

That season seems like eons ago.

 

[Larry David]

It didn't use to happen in Sacto. Basically the entire appeal of the Sacramento market is that its fans were supposed to be different/better. For 20 years they were. But they got spoiled and until finally in desperation there was a partial revival of the old spirit, the fans were showing up in smaller numbers than anywhere else in the league. I should note if that happens again next year, it may still be bye bye Kings. In Sacramento the fans ARE the franchise. If they don't show they care, plenty of cities can match the rest of the package.

During those times, ticket prices were always pretty low when compared to the rest of the league.

 

[Gary]

Gary-- that might be the case, but can you say more about the exact facts of why you think so? Is it just a hunch? No problem if it is. I just want to hear more support for your statement.

Loans, loans, and more loans. A LOT of money is being given to the Maloofs up front, plus their fees are being covered if they got approved. They scoff at the Sac 10mil saying that they were looking at the long term and how long it would be to put an arena in place ect ect. It's a hunch but I believe that they NEED this money up front, and wont have the economic viability to just tread water until an arena gets in place.

It just seens weird to me. I am sure we aren't given all the details but something doesn't seem right. You get the Maloofs blowing off Sac and loving this deal where there is a lot of up-front money..

 

[sk4ever]

It just seens weird to me. I am sure we aren't given all the details but something doesn't seem right. You get the Maloofs blowing off Sac and loving this deal where there is a lot of up-front money..[/QUOTE]

I'm with you there. I don't care how much better the deal is, borrowing more than the team is worth just seems crazy.

Not to mention we don't know the details of the "new pledges" from Anaheim, for all we know they have to split it with Samueli.
And does anybody know about rent on their part?

 

[The Hammer]

Loans, loans, and more loans. A LOT of money is being given to the Maloofs up front, plus their fees are being covered if they got approved. They scoff at the Sac 10mil saying that they were looking at the long term and how long it would be to put an arena in place ect ect. It's a hunch but I believe that they NEED this money up front, and wont have the economic viability to just tread water until an arena gets in place.

It just seens weird to me. I am sure we aren't given all the details but something doesn't seem right. You get the Maloofs blowing off Sac and loving this deal where there is a lot of up-front money..

If that truly is the case that they can't tread water until an arena deal comes through then they are basically laundering money/value from the minority owners/NBA.

Yes they took out loans from the NBA, but did they not technically make a profit last year? Is that without having to make payments on that NBA loan? If they made a profit even with making payments, then what this Samueli deal is is basically mortgaging their stake in the team in order to pay off debt somewhere else... who knows where? Again, according to it's own books... the Kings turned a small profit last year, am I wrong?

So then Samueli gives a loan to cover relo/arena upgrade costs... then provides additional undisclosed sum... again collateralized against god knows what, the team? but for what... current operational debt? there is none that I'm aware of...

In effect what this amounts to is using a thing of value to procure cash to use somewhere, but again from the numbers I'm aware of the Kings within themselves are breaking even. The other owners simple CANNOT be happy about this, as it is risking their stake (with the risky move to an unproven market), which is their asset, to bail the Maloofs out of non team related matters through the deal with Samueli.

 

[Section 101]

Not to mention we don't know the details of the "new pledges" from Anaheim, for all we know they have to split it with Samueli.
And does anybody know about rent on their part?

How does Samueli split the money that he is paying? Until other companies come out and say it, it's all still from Samueli's other companies.

 

[The Hammer]

How does Samueli split the money that he is paying? Until other companies come out and say it, it's all still from Samueli's other companies.

Exactly. What's even funnier is that it's money from his companies, to his companies.


Personal loan paid pack as rent.

TV deal money given back to pay off other loans.

Corporate support possibly even simply tv spots bought by his own companies paid to his own tv channel to be able to pay a high enough tv contract (coming back anyway to pay off personal loans) to make it look like a lucrative tv market to jack up the 2 percent interest in his new team and jack up the perceived value of the franchise and therefore the maloofs stake so that they can "borrow" more against that stake... and on and on... until this one man puppet show has his hooks into the franchise and somehow wrestles ownership.

Do you all like how my mind works??

 

[kennadog]

It's a blanket statement and false. The Kings made profits for years. Oklahoma City makes a profit and it's half the size of Sacramento. It can be done but it everything has to go just right to do it.

The Kings did not make profits for years. They were spilling red ink all over the place. That's why the pre-Maloof owner received a loan from the city. Thomas was trying to get a new arena and he was desperate. He said he'd need a loan or he was going to have to move the team.

Also, for several years the Maloofs opened their books to the Sacramento Bee, who confirmed losses over the ealy years of their ownership, when they, too, were trying to get a new arena.

Basically, the Kings finally broke out of the red when they started making the playoffs. The extra revenue from those games was a difference maker. Then we pushed the payroll to the third highest in the league and the Maloofs were paying luxury taxes. That scenario was only going to work if that team kept winning, making the playoffs and selling out games.

By the way, it was Forbes magazine, I believe that reported that 22 of the teams lost money last season. Pro sports teams are an expensive hobby for the very wealthy. Just like horse racing generally is and why horse racing called the sport of kings. Maybe NBA ownership should take over that title.