OC Article - Personal loan from Samueli

[The Hammer]

That's why I think they extended it again. I believe that the Maloofs are over their head in debt and got a bailout, so to speak, from Samueli. The reason it can't work for the Maloofs in Sac is because they need this bailout money NOW, and what are they to do in Sac? Ask Sac for more money (on top of the 77mil they owe)? They cannot sit idle while their businesses go down the drain so if they get money now they can pay their creditors. That's why they weren't listening to any plans regarding an arena.

I think Samueli gave them a sweet deal with cash up front to use for whatever they needed then the rest goes on their tab to be paid later. That's why they are fighting the whole Arco Arena loan as well. They just DON'T have the cash to pay it off. This whole deal smells, and it's at the expense of the fans who are LOYAL AS HELL to the Kings. The Maloofs shortcomings shouldn't be at the expense of the fans.

Sell the damn team if you cannot make it work here. Let them keep a % of the ownership of the Kings to show once the team is making money that yes, it would have worked had they stayed here. Just don't give them majority ownership ever again.

This is what my "hunches" were that I referred to earlier. If true, and the Maloofs thought they could sneak this by the league... wow. They might be on the verge of getting blown up... I just have the sense that this might not end pretty for them, unfortunately. Hopefully, they won't get torn up too much, but will be approached in private, offered a way out that doesn't defame them too much, and they have the good sense to accept. Then go public with a plan that makes them look like good guys. We want to have everybody turn out ok here.

 

[Aenadin]

they probably hammered a deal between two parties with out even the league knowing the details.. theres a lot to consider...

there is no way clips and lakers would allow a 3rd team into their territory the area is already littered with sports team and other sorts of entertainment. and no, they can't sell it to samueli unless the league approves him as an owner yes? a local owner ship is preferable right? and if KJ and his crew gets a really legit and solid plan, its going to be good for sacramento.

to save face they'd have to sell their part their part to sacramento and probably burkle, but would the local fans still want anything to do with them being partial owners of the team if they happen to stay? they really need to sell thats the only clean way they can get out of this. the loan from samueli just smells of under the table dealings

 

[pdxKingsFan]

If the arena situation gets sorted out and the Maloofs still retain their majority ownership I am willing to let bygones be bygones. I think the way they've behaved the past few months is bush league but all I care about is the team stays in Sac. On the other hand I'm not likely to stay at the Palms in the near future or make any other goodwill gestures by attending any of their other promotions.

 

[jpsls]

I could forgive them if they show they are willing to be real owners and spend money on the team

 

[Aenadin]

doubt they'd be able to spend money now though....

 

[BradC79]

The Maloofs have said time and time again when the new cba is in place they will spend because they will be 25 plus mil under the cap. Also the Maloofs financial situation is not as bad as we are reading in the media. I know you will all shoot this down, but grant napear has said numerous times that the maloofs financial portfolio is not as bad as those in the media make it out to bed. In other words don't believe everything you read.

 

[Aenadin]

well grant napear's boss is the maloofs so of course he would say that.. I'm Just saying its grant against numerous sources saying they are in that bad of a shape.. and reading from StR well lets just say some of them have condescending opinions regarding grant and his rant show. I searched for readings regarding their statements and it seems i keep seeing they are bleeding money. not good. even with the CBA. Sacramento Kings don't need only new arena but also a new owner. the BOG will reach an agreement,

 

[ParniValjak]

Lets hope that BOG is of the belief that Maloof finances are in dire state. Lets also hope that all the alleged underhanded dealings with Anaheim (eg personal loans) are uncovered. All this should lead to BOG blocking Maloof's request to move the team to Anaheim.

Furthermore, I am hoping by blocking their move, Maloofs are forced to sell their share of the team to someone who doesn't need to take loans left, right and center just to stay afloat buys it (eg Burkle).

Being an owner of an NBA team should be a hobby and the team should NOT be used as a means of leveraging all their personal debts.

 

[Aenadin]

The media has done its damage already spreading that little quote today in LA times. they ARE in dire state. I just hope That ICON and KJ wow the BOG further and show them a solid concrete platform.

 

[PurpleHaze]

Lets hope that BOG is of the belief that Maloof finances are in dire state. Lets also hope that all the alleged underhanded dealings with Anaheim (eg personal loans) are uncovered. All this should lead to BOG blocking Maloof's request to move the team to Anaheim.

Furthermore, I am hoping by blocking their move, Maloofs are forced to sell their share of the team to someone who doesn't need to take loans left, right and center just to stay afloat buys it (eg Burkle).

Being an owner of an NBA team should be a hobby and the team should NOT be used as a means of leveraging all their personal debts.

Spot on. I've never heard of any professional sports team owner using their franchise as a way to leverage a biz empire or make a living exclusively. These enterprises are generally not profit/cash cows - by a long shot. Most owners simply revel in the bragging right of their hobby/toy - like collecting baseball cards which maybe they did as a kid. The big money (or some amount of return on investment) is only made when they sell, not day-to-day, month-to-month operations.

 

[Aenadin]

and Earning is just a bonus.

 

[LPKingsFan]

I thought this was an important quote from the Breton article:

Locally, there are fears the Maloofs will default, but recent statements by the NBA make it clear that Commissioner David Stern would not permit his league to be stained by unpaid debts.

Read more: http://www.sacbee.com/2011/04/17/3558344/marcos-breton-nba-needs-a-timeout.html#ixzz1Jn9GhOY6

I bet the Maloofs simply thought they could walk away from their loan to the city and just leave the Arena collateral. Stern, though, won't allow it and now that's another wrench in their plans.

 

[Fear the Putin]

the loan from samueli just smells of under the table dealings

http://en.wikipedia.org/wiki/Henry_Samueli#Financial_Investigation

 

[The Hammer]

If the arena situation gets sorted out and the Maloofs still retain their majority ownership I am willing to let bygones be bygones. I think the way they've behaved the past few months is bush league but all I care about is the team stays in Sac. On the other hand I'm not likely to stay at the Palms in the near future or make any other goodwill gestures by attending any of their other promotions.

And even though you can let bygones be themselves, this is the other problem now. People are less likely to participate in their sponsors, promotions, etc, because of this. It kind of hurts the team overall. People less likely to advertise with them too... at least without KJ doing the selling!!

 

[SacTownKid]

http://en.wikipedia.org/wiki/Henry_Samueli#Financial_Investigation

Hmmm...wonder if KJ used that little weapon during his stay in NY.

 

[Gary]

Lets hope that BOG is of the belief that Maloof finances are in dire state. Lets also hope that all the alleged underhanded dealings with Anaheim (eg personal loans) are uncovered. All this should lead to BOG blocking Maloof's request to move the team to Anaheim.

Furthermore, I am hoping by blocking their move, Maloofs are forced to sell their share of the team to someone who doesn't need to take loans left, right and center just to stay afloat buys it (eg Burkle).

Being an owner of an NBA team should be a hobby and the team should NOT be used as a means of leveraging all their personal debts.

Exactly.. Said it ealier myself.. They are using this team as an investment, and I don't think that any pro sports franchise should be used in this way. Especially when their businesses around them crumble.

 

[macadocious]

Do you guys really think that owning an NBA team should be a hobby?? That is ridiculous. Like, supremely and ultimately insane.


You want an owner who wants to make a profit and run a successful business. Do you thin Jerry Buss runs the Lakers as a hobby? Jerry Jones with the Cowboys? If it is a hobby, then they are more likely to meddle. In fact I would argue that the Maloofs were treating this like a hobby which is why they are in the position they are in now.

 

[Löwenherz]

Do you guys really think that owning an NBA team should be a hobby?? That is ridiculous. Like, supremely and ultimately insane.

You want an owner who wants to make a profit and run a successful business. Do you thin Jerry Buss runs the Lakers as a hobby? Jerry Jones with the Cowboys? If it is a hobby, then they are more likely to meddle. In fact I would argue that the Maloofs were treating this like a hobby which is why they are in the position they are in now.

Insane? Not actually. Unless you're the Lakers, Cowboys and Yankees of the world, the majority of professional sports teams run in the red more often than not. That's why owning one is reserved for the uber-wealthy who can write blank checks to keep things running and just claim it all as a tax write-off.

During the Kings' glory years, the Maloofs attempted to run things this way, handing out max contracts to Webber and Bibby, going all in to sign Keon Clark, etc. until it caught up to them and they had to cut costs drastically.

The only specifically for-profit example of a sports team I can readily think of is the Clippers - one of the most reviled franchises in all of sports and a black spot on the NBA. Sterling has found a way to consistently make a profit through a rich TV deal in a major market, corporate luxury suites and cutting corners with talent.

Guess which team the Maloofs are seemingly trying to emulate now?

 

[ParniValjak]

Do you guys really think that owning an NBA team should be a hobby?? That is ridiculous. Like, supremely and ultimately insane.


You want an owner who wants to make a profit and run a successful business. Do you thin Jerry Buss runs the Lakers as a hobby? Jerry Jones with the Cowboys? If it is a hobby, then they are more likely to meddle. In fact I would argue that the Maloofs were treating this like a hobby which is why they are in the position they are in now.

Of course its a hobby for Buss! The only difference is that Lakers pretty much pay for themselves and then some. There are not many team that are profitable because they are generally owned by people who think its their toy.

Now I am not saying we want an owner who has no idea of how to run a team because there is a bit more to it than that but we do need an owner who does not penny pinch. An ownership group that will open their wallets to attract talent and be formidable. Maloofs used to be that when the bought the team and before they started bleeding money on many fronts.

Take Cuban for example, he always opens up his wallet to improve his team. While you can question his sanity on the deals that his teams do, he is not afraid to pay if he things the team will be better.

With a smart operator like Petrie and an owner who deosn't own a team to make profit but rather to have satisfaction and a toy to play with.

 

[jpsls]

Insane? Not actually. Unless you're the Lakers, Cowboys and Yankees of the world, the majority of professional sports teams run in the red more often than not. That's why owning one is reserved for the uber-wealthy who can write blank checks to keep things running and just claim it all as a tax write-off.

During the Kings' glory years, the Maloofs attempted to run things this way, handing out max contracts to Webber and Bibby, going all in to sign Keon Clark, etc. until it caught up to them and they had to cut costs drastically.

The only specifically for-profit example of a sports team I can readily think of is the Clippers - one of the most reviled franchises in all of sports and a black spot on the NBA. Sterling has found a way to consistently make a profit through a rich TV deal in a major market, corporate luxury suites and cutting corners with talent.

Guess which team the Maloofs are seemingly trying to emulate now?

I agree 100%. This move has nothing to do with Sacramento being an unviable market. According to Forbes, this is the Kings operating income from 2001-2010.

Year Operating Income
2001 10
2002 14
2003 -17
2004 1
2005 10
2006 16
2007 21
2008 7
2009 -3
2010 -10

If this is true, the argument that Sacramento is too small of a market for an owner to profit holds no credence. I think this relocation is more about the Maloof's attempts to find fairweather fans who will pay for a $70 ticket despite the cr*p that's put on the floor.

 

[Aenadin]

Really there are no such things as small oportunities.. only small time businessmen... if they can't make it work or won't make it work in Sacramento then they aren't fit in the league... Sacramento if you look at it has great potential (imagine ONE PROFESSIONAL SPORTS TEAM) if they knew how to work it... they were too focused on their vegas and their other business that when they turned to their "investment" the kings they messed everything up.