OC Register: NBA deal or no deal: Which will Maloofs choose?

I thought the Maloofs only own 53% of the kings, and the other minority owners oppose the move so I assume they wouldn't be selling to Samueli. So if Samueli would become a minority owner is he getting 2% owned by the Maloofs?
 
And if they want to spout numbers, then they should be looking at the other 150 million reasons why a move is improbable. If both Grant and Youngman have heard that the relo fee was going to be near 150 million, then there is little chance that they can afford that. And if the market is all the Maloofs dream it is, then they should have to pay every penny of that fee and everything else they owe to the City of Sacramento as well. Yeah well life is a bummer and I can't afford to buy a 2 million dollar mansion in Granite Bay either... so no sympathy from me!
 
JB_kings said:
And if they want to spout numbers, then they should be looking at the other 150 million reasons why a move is improbable. If both Grant and Youngman have heard that the relo fee was going to be near 150 million, then there is little chance that they can afford that. And if the market is all the Maloofs dream it is, then they should have to pay every penny of that fee and everything else they owe to the City of Sacramento as well. Yeah well life is a bummer and I can't afford to buy a 2 million dollar mansion in Granite Bay either... so no sympathy from me!
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And I would hope the league wouldnt want them owing $225 million. Make them pay it upfront not on a loan.
 
Section 101 said:
And I would hope the league wouldnt want them owing $225 million. Make them pay it upfront not on a loan.
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If so, the cash to pay that comes in a loan from... Samueli? And again, I ask... what is the collateral?? I suppose it could be Wells Fargo stock. I just wonder what the rules are in the NBA for using your stake in a team as collateral. Or, maybe Samueli won't require collateral... hard to believe though.

I think these questions are some of the ones the NBA had when they said the Anaheim deal wasn't completely clear at the BOG meetings.
 
The Hammer said:
If so, the cash to pay that comes in a loan from... Samueli? And again, I ask... what is the collateral?? I suppose it could be Wells Fargo stock. I just wonder what the rules are in the NBA for using your stake in a team as collateral. Or, maybe Samueli won't require collateral... hard to believe though.

I think these questions are some of the ones the NBA had when they said the Anaheim deal wasn't completely clear at the BOG meetings.
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That's what I mean. Dont let them pay via any type of loan. They have already extended beyond their shares in the team. $150 mil up front.
 
Krunker said:
I thought the Maloofs only own 53% of the kings, and the other minority owners oppose the move so I assume they wouldn't be selling to Samueli. So if Samueli would become a minority owner is he getting 2% owned by the Maloofs?
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No, Samueli would likely get some percentage of Maloof stock (say, 20% of the total stock available for arguement's sake) leaving the Maloofs with say, 31-33%. The majority vote would still be to move, however the Maloofs would still be a majority holder. 2-5% or so isn't enough to raise much money if they really are hurting, I think.
 
Section 101 said:
That's what I mean. Dont let them pay via any type of loan. They have already extended beyond their shares in the team. $150 mil up front.
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So maybe the conversations aournd the Maloof family dinner table are:

J/G: "Hey Mom, we want to cash out 150 mil of Wells Fargo stock to put into the Kings for the relocation fee."

Rest of Family: "Are you serious?"
 
I really don't understand the financials here.

$77 repayment of bonds + $150 relocation fee + $70 million to renovate honda center

And the maloofs only own 53% of the team.

Is the NBA really going to let the maloofs take on over a quarter of a billion dollars in loans just to move the kings a market is 2 teams already?
 
NewKingsFan916 said:
I really don't understand the financials here.

$77 repayment of bonds + $150 relocation fee + $70 million to renovate honda center

And the maloofs only own 53% of the team.

Is the NBA really going to let the maloofs take on over a quarter of a billion dollars in loans just to move the kings a market is 2 teams already?
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I don't think the Maloofs are responsible for the $70 mil to upgrade, and of course the $150mil relocation fee or whatever is stil to be determined. If the owners thought this was a great idea they could go ahead and make it $0 if they wanted to. Of course they don't think its a great idea, but still, its not written in stone.
 
Warhawk said:
No, Samueli would likely get some percentage of Maloof stock (say, 20% of the total stock available for arguement's sake) leaving the Maloofs with say, 31-33%. The majority vote would still be to move, however the Maloofs would still be a majority holder. 2-5% or so isn't enough to raise much money if they really are hurting, I think.
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But then could not another party buy out the minority owners and gain control? Do all NBA controlling owners own at least 51%?

And if a move such as you suggest is suspected, could not a quick sale/pooling of some kind of the minority owners be set up to be enacted quickly to take control?

I don't know these things.
 
Bricklayer said:
I don't think the Maloofs are responsible for the $70 mil to upgrade, and of course the $150mil relocation fee or whatever is stil to be determined. If the owners thought this was a great idea they could go ahead and make it $0 if they wanted to. Of course they don't think its a great idea, but still, its not written in stone.
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So Samueli is upgrading the honda center for the maloofs for free?
 
The Hammer said:
But then could not another party buy out the minority owners and gain control? Do all NBA controlling owners own at least 51%?

And if a move such as you suggest is suspected, could not a quick sale/pooling of some kind of the minority owners be set up to be enacted quickly to take control?

I don't know these things.
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Yes, they could. But if you are in a jam and have someone vested in you staying where you want to go (such as Samueli), then you could sell a portion of your shares/stock knowing that they would back you for the move. However, you would now be a minority owner yourself, just one with the biggest chunk of stock at this time.

I don't think that the NBA is looking kindly upon Samueli's attempt to wrest control of the team the way he is (apparently) going about it. Just my $0.02 on it.....
 
NewKingsFan916 said:
So Samueli is upgrading the honda center for the maloofs for free?
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No, he is upgrading it for the option to host an NBA team. Not for the Maloofs. He wants the revenue a team would bring and apparently thinks he can eventually gain control of the team from the Maloofs, I think. The minority ownership idea is probably just a start for him......suck them in then make them default so you gain control of the team.
 
70 million to the city of Sacramento
77 million to the NBA
150 million dollars they already owe people....

The relocation fee I bet will be more than the Maloofs think. I think it will be close to 100 million dollars.

I don't know how the NBA would even let this move happen.
 
Here is (among many) the things I don't like about this deal:

The past two weeks Sac has really stepped up it's game and brought viability (corporate sponsors, political will, cash on the table, grass roots movement, etc) to a great next year financially and a real chance to get an arena done. Yet the 2nd biggest market in the country and throw a few billion dollars on the table to try to move a team there.

If the BOG/Stern approves this, this will set a HORRIBLE and SICKENING precedent for other small markets. I can see if we had no corporate support step up and no real attempt at a arena plan, but everything is in motion and the past few weeks have been going great.
 
Channel 13 news tonight covered this story as exuberantly as Grant did on his show... in fact they used Grant as a source for confirming the story. To me it seemed pretty much fueled from Grants sway on the story... and came off just as unsparing.
 
The Hammer said:
But then could not another party buy out the minority owners and gain control? Do all NBA controlling owners own at least 51%?

And if a move such as you suggest is suspected, could not a quick sale/pooling of some kind of the minority owners be set up to be enacted quickly to take control?

I don't know these things.
Click to expand...

See my other answer in another thread. I need legal advice on what a partnership with managing partners consists of. I have heard of partnerships where the managing partner owned no interest. They just did all the work.

It is best that the dealings between Samueli and the Maloofs does not appear slimey as the ultimate judge is the BOG with Stern being stern in his advice because of the bad image this would convey. Owners need to be approved whether they come in through the front door or the back door.

Help Brick!
 
The Hammer said:
But then could not another party buy out the minority owners and gain control? Do all NBA controlling owners own at least 51%?

And if a move such as you suggest is suspected, could not a quick sale/pooling of some kind of the minority owners be set up to be enacted quickly to take control?

I don't know these things.
Click to expand...

It seems to me that if the Maloofs sell enough of their shares to Samueli so they lose majority+1 control, that as long as Samueli and the Maloofs vote the same way then together can control the team? Seems dangerous though, if there is ever a falling out or the other minority owners sell to Samueli then he would get sole control.
 
Krunker said:
It seems to me that if the Maloofs sell enough of their shares to Samueli so they lose majority+1 control, that as long as Samueli and the Maloofs vote the same way then together can control the team? Seems dangerous though, if there is ever a falling out or the other minority owners sell to Samueli then he would get sole control.
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good point... whats to stop that from happening - a handshake between Maloofs and Sameuli?

Here we sell. Here we sell. Here we sell. When is the rally?
 
I think the NBA requires one group to have 50+1% control so if the Maloofs sold anything likely they would sell him stock in MSE that way they could sell close to half of their share and yet still have full control.
 
pdxKingsFan said:
I think the NBA requires one group to have 50+1% control so if the Maloofs sold anything likely they would sell him stock in MSE that way they could sell close to half of their share and yet still have full control.
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The maloofs own 43% now. They sold 10% to Heinrich, but maintained voting rights on that 10%.
 
I have the feeling the Maloofs are really on the horns of a dilema. The proposed move to Anaheim seems like a truly desperate move by the Maloofs to try and salvage their ownership in the Kings. I think the last thing the Maloofs want now is to have Sacramento come up with a feasible and fundable arena proposal. They just can't afford the wait for a new arena. Even if fast-tracked, its going to take 2 to 3 years to open. I just get the strong feeling they can't survive that long.

So I don't think they want to come back to Sacramento at all, because it just isn't financially feasible for them as owners. That's probably why some in the family appear to be ready to sell the team, especially if the NBA forces them to stay in Sacramento.

The way the Maloofs have explained their family decision-making process is that all members have to agree to the decision. Even one family member is opposed, then its a no go. So I don't think it's even mainly about an arena at this point, its about an immediately improved financial situation. The Maloofs apparently can no longer afford to wait for an arena in Sacramento.

I think the decision right now, for the family is, if the league won't let us move, do we sell? I'm sure that's a heart-wrenching decision for the family. They were forced to sell a team once. If they decide to sell, then the question becomes who gets to buy? And would the new owner want to move the team? What if the Maloofs end up wanting to sell to Samueli? Would the league approve a move to Anaheim then?

Ugh, I just wish they'd sell to Burkle. That's my dream now.
 
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kennadog said:
I have the feeling the Maloofs are really on the horns of a dilema. The proposed move to Anaheim seems like a truly desperate move by the Maloofs to try and salvage their ownership in the Kings. I think the last thing the Maloofs want now is to have Sacramento come up with a feasible and fundable arena porposal. They just can't afford the wait for a new arena. EWven i fast-traked its going to take 2 to 3 years to open. I just get the strong feeling they can't survive that long.

So I don't think they want to come back to Sacramento at all, because it just isn't financially feasible for them as owners. That's probably why some in the family appear to be ready to sell the team, especially if the NBA forces them to stay in Sacramento.

The way the Maloofs have explained their family decision-making process is that all members have to agree to the decision. Even one family member is opposed, then its a no go. So I don't think it's even mainly about an arena at this point, its about an immediately improved financial situation. The Maloofs apparently can no longer afford to wait for an arena in Sacramento.

I think the decision right now, for the family is, if the league won't let us move, do we sell? I'm sure that's a heart-wrenching decision for the family. They were forced to sell a team once. If they decide to sell, then the question becomes who gets to buy? And would the new owner want to move the team? What if the Maloofs end up wanting to sell to Samueli? Would the league approve a move to Anaheim then?

Ugh, I just wish they'd sell to Burkle. That's my dream now.
Click to expand...

They have blocked selling to owners who want to move teams in the past. No reason I see they wouldnt do it again. I think the leagues biggest concern about the Anaheim deal is Samueli himself. I don't think they want him as an owner with his recent past.
 
Section 101 said:
They have blocked selling to owners who want to move teams in the past. No reason I see they wouldnt do it again. I think the leagues biggest concern about the Anaheim deal is Samueli himself. I don't think they want him as an owner with his recent past.
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Yes, it has seemed from reports that they are not thrilled about Samueli as an owner. Burkle apparently doesn't have a stellar history either, but the league seems to view him more favorable. Of course, the fact that he says he want to keep the Kings in Sac would help his cause with the league, I'm sure. Since he, so far, has kept the Penguins in Pittsburgh and turned that franchise around, I accept his desire to keep the Kings here at face value.
 
kennadog said:
I have the feeling the Maloofs are really on the horns of a dilema. The proposed move to Anaheim seems like a truly desperate move by the Maloofs to try and salvage their ownership in the Kings. I think the last thing the Maloofs want now is to have Sacramento come up with a feasible and fundable arena porposal. They just can't afford the wait for a new arena. EWven i fast-traked its going to take 2 to 3 years to open. I just get the strong feeling they can't survive that long.

So I don't think they want to come back to Sacramento at all, because it just isn't financially feasible for them as owners. That's probably why some in the family appear to be ready to sell the team, especially if the NBA forces them to stay in Sacramento.

The way the Maloofs have explained their family decision-making process is that all members have to agree to the decision. Even one family member is opposed, then its a no go. So I don't think it's even mainly about an arena at this point, its about an immediately improved financial situation. The Maloofs apparently can no longer afford to wait for an arena in Sacramento.

I think the decision right now, for the family is, if the league won't let us move, do we sell? I'm sure that's a heart-wrenching decision for the family. They were forced to sell a team once. If they decide to sell, then the question becomes who gets to buy? And would the new owner want to move the team? What if the Maloofs end up wanting to sell to Samueli? Would the league approve a move to Anaheim then?

Ugh, I just wish they'd sell to Burkle. That's my dream now.
Click to expand...

Kenna, that was an exceptionally good post.
 
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