OC Article - Personal loan from Samueli

Section 101

Section 101

All-Star
http://www.ocregister.com/sports/-296659--.html

The bonds will be purchased and guaranteed by three Samueli companies, with no risk to taxpayers, so essentially Samueli is borrowing money from himself to make the deal happen.

The Maloofs also have a substantial loan with the City of Sacramento that they say they will pay off when they relocate. The Maloofs also will receive a personal loan from Samueli that has not been publicly disclosed.
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So how are they saying their finances are ok if they can't even pay for the move on their own?
 
I knew it. I speculated on this a week or two ago. There had to be some unreported loan, that may not even fall under the scope of the NBA, possibly used to save their precious casino that was the real lure. The Honda Center deal is so far under par and I bet that's why the NBA didn't get it either, even before the Berkle bomb.
 
Great news. Someone email this to the relocation committee. This revelation pretty much destroys their claim that their finances are much better than being reported.
 
If this is true, which we all expected, the Anaheim deal is kaput. No way the NBA approves this.

This is seriously the best news we have heard.
 
RookieOfTheDay said:
It doesn't seem like the NBA would be too keen on the idea of owners taking out personal loans to move. What do you guys think?
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I don't think they care. They are more concerned about where their clubs are, who they might be infringing upon, and where they are playing.
 
Oh, the relocation committee will see this whether or not we email them. They do their research, and the momentum is clearly creeping over in favor of Sacramento.
 
JB_kings said:
Cripes, I'm pissed. How come I'm the only guy in this country that hasn't loaned the Maloofs money?
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Don't be pissed, be happy -- you are about the only guy in the country who isn't going to lose his shirt when they go bankrupt. ;)
 
rainmaker said:
Oh, the relocation committee will see this whether or not we email them. They do their research, and the momentum is clearly creeping over in favor of Sacramento.
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How do you figure that? All the articles in the Bee today sang the praises of the Burkle group and even the possiblilty of saving the Kings. Good stuff, but there is really nothing new on the arena issue. Of course, we'll see what the proposal is, but my feeling being out here is that there is no way public money will be going into this arena, especially if it is more than $77M dollars. I just don't see it. Hope I am wrong or am otherwise missing something here.
 
twosomeca said:
How do you figure that? All the articles in the Bee today sang the praises of the Burkle group and even the possiblilty of saving the Kings. Good stuff, but there is really nothing new on the arena issue. Of course, we'll see what the proposal is, but my feeling being out here is that there is no way public money will be going into this arena, especially if it is more than $77M dollars. I just don't see it. Hope I am wrong or am otherwise missing something here.
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If there was nothing new, Stern wouldn't haven given an extension so the relocation committee could come to Sac and see what's going on.

I wonder what the collateral is for this previously undisclosed loan.....
 
Isn't this illegal? Moving a professional sports franchise to take a personal backroom loan? Like a conflict of interest and fraud. Because that money will probably be used on other debts.
 
twosomeca said:
How do you figure that? All the articles in the Bee today sang the praises of the Burkle group and even the possiblilty of saving the Kings. Good stuff, but there is really nothing new on the arena issue. Of course, we'll see what the proposal is, but my feeling being out here is that there is no way public money will be going into this arena, especially if it is more than $77M dollars. I just don't see it. Hope I am wrong or am otherwise missing something here.
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I was talking about the previously undisclosed loan, mentioned by the op. This committee will look under every single rock, and be aware of every detail pertaining to the Maloofs finances.
 
rainmaker said:
Oh, the relocation committee will see this whether or not we email them. They do their research, and the momentum is clearly creeping over in favor of Sacramento.
Click to expand...

I went ahead and emailed them the quote with a link to the article just for the heck of it anyways. I sent it to the league office.
 
Sounds like the tide has turned. BIG TIME. :cool:

Notice how Schulman didn't mention the Kings in terms of Anaheim being a legit NBA city. I think they know the writing is on the wall. Just got to hope that KJ knocks the socks off the of the committee when they visit Sac in the next couple of weeks.
 
You guys are making assumptions regarding the personal loan. A personal loan from Samueli just means he is lending the Maloofs additional money directly under his own name rather than through the bonds like with the initial $75 million deal. The loan can be very well used for the $77 million they need to repay Sac. If thats the case, they are not adding any additional debt as they are just borrowing to pay off the loan.
 
It's not the "personal" part of the loan that is notable, it is the fact that it has been kept separate from the NBA deal, at least the part that was made public.
 
Peter_Gibbons said:
You guys are making assumptions regarding the personal loan. A personal loan from Samueli just means he is lending the Maloofs additional money directly under his own name rather than through the bonds like with the initial $75 million deal. The loan can be very well used for the $77 million they need to repay Sac. If thats the case, they are not adding any additional debt as they are just borrowing to pay off the loan.
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You don't get it my Anaheim friend, or sympathizer.. Why would they have to borrow the money if they are fine in regards to their financial situation? Why would the NBA allow this move?

I know this isn't college Basketball but it does raise some questions about the Maloofs motives.
 
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Do the Maloofs have any money of there own? It seems possible that they have no cash but just property and that's used as collateral. I haven't kept track of how many loans they need to repay but if you count the Palms it has to be A LOT!
 
It would make more sense if the money was to pay for relocation fees or territorial rights fees. Then they would actually be incurring more debt. Either way, moving to Anaheim doesn't appear to be getting them out of any financial binds. It's actually potentially giving away their ownership of the team. It makes their argument for moving that much more difficult.
 
Peter_Gibbons said:
You guys are making assumptions regarding the personal loan. A personal loan from Samueli just means he is lending the Maloofs additional money directly under his own name rather than through the bonds like with the initial $75 million deal. The loan can be very well used for the $77 million they need to repay Sac. If thats the case, they are not adding any additional debt as they are just borrowing to pay off the loan.
Click to expand...

Sure... and what would be the security for such a loan from Samueli? Therein lies the answer of why the NBA board would care. There are lots of questions the board had about the Anaheim deal. They have been working this for some time and to not be upfront with everything in the transaction is deceptive. This is part of the reason for the delay today. The bottom line is they are going to find out all the info on what is going on. If it's all ok, no worries for you. ;)
 
They have stock in Wells Fargo I believe. Nowhere near what they have lost in the Palms but enough that it could cover some of the relocation expenses.
 
pdxKingsFan said:
It's not the "personal" part of the loan that is notable, it is the fact that it has been kept separate from the NBA deal, at least the part that was made public.
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Again, you are making an assumption regarding the loan being not connected with the Kings. It could just be a loan that was not made public when they initially made most of the announcements regarding the $75 million bonds, the potential lease and the city of Anaheim's pursuit of the Kings. Keep in mind that the deal has been adjusted repeatedly as they continue to negotiate.

When Sac came out publicly threatening the Maloofs to repay the loans, that could have been an additional deal that was just recently negotiated for Samueli to facilitate that part. No one really knows, its all assumptions.
 
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