Records request another sign of strained Kings/city relationship

[The Hammer]

I wonder how Gavin fits into all this. How can a guy be in tears in Orlando after a deal was supposedly struck to be a part of all this?

I've wondered that too. But know first hand how insane families can be, my guess is there is some serious dysfunction within the clan.

To be honest I also kind of identify with Gavin, as a middle child. Middle children are often the most reasonable, or at least can see what the right thing to do is, they have perspective. Now, Gavin may not have the power or the desire to steamroll George right back (he's clearly the most manipulative of the three), for not wanting to create a rift in the family, but I'm fairly convinced that if Gavin had his way, we'd be having a smooth, celebratory run up to the first shovel in the ground ceremony. In short, I believe his tears, and lay the insanity at the feet of others in the family. You can say he's guilty by association, but we also don't know the inner dynamics of the family. He may have already done everything he can, and he might not think it's worth it to publicly call out his family and risk serious ostricization and possible damage to personal finances as a result, just to look like the guy who's keeping the Kings in town, when in fact there's very little possibility they'll leave anyway, and when he may have advance knowledge of an unavoidable sale. I do notice he's never the one who says the serious dumb**** anti-sacramento crap, though.

 

[ElRey]

Does anyone know how much the maloofs have borrowed from the NBA?
IMO the maloofs want to move the Kings to Anaheim because they will be more valuable down there and will get them a larger sale price. However I just don't see how Stern can stomach having 3 teams in LA. It just seems so foolish.

There is going to a SHOWDOWN of epic proportions between the Maloofs and the Kings/NBA at the Board of Governors Meeting this month!

 

[Larry David]

There is one part of this story that makes sense. If, for whatever reason, you'd decided to back out of a deal, you wouldn't agree to lock 6 million into the deal you intend to blow up.

 

[ArcoKings]

The Maloofs are doing this because they are broke. Plain and simple. The family is over extended. The NBA should examine their finances. There must be a clause in their contract with the NBA that requires ownership to be above a certain financial threshold. Just like when you want to buy a McDonald's franchise. The corporation requires you to have a certain amount of liquid, assets and experience to qualify and then generate revenue to satisfy the corporation based on your location. I think if the NBA investigated their financial situation at this juncture they would discover that they have financial issues. I thought Forbes had the Kings valued around $325 million not too long ago. I don't think enough equity can be squeezed out of the franchise to pay everything off that the Maloofs owe to the NBA plus the outstanding bonds. Maybe the NBA pardons a portion of the loan with the agreement that the Maloofs sell.

 

[ArcoKings]

I wonder how Gavin fits into all this. How can a guy be in tears in Orlando after a deal was supposedly struck to be a part of all this?

IMHO I don't think its him, its George. He's the money manager for the family.

 

[LWP777]

Does anyone know how much the maloofs have borrowed from the NBA?
IMO the maloofs want to move the Kings to Anaheim because they will be more valuable down there and will get them a larger sale price. However I just don't see how Stern can stomach having 3 teams in LA. It just seems so foolish.

I'm not sure if this is relevant or not but the fact that the Clippers now look like they'll be a powerhouse for years to come makes a potential Kings move to Anaheim even more ridiculous. I know Anaheim might be a different market and all but who the hell is really going to care about the Kings if they end up moving down there?

 

[Kingster]

The more I read this board, and connect the dots, the more I think this could be a very good thing. This upcoming BOG meeting could be the first major step to an ownership change.

 

[VF21]

I've wondered that too. But know first hand how insane families can be, my guess is there is some serious dysfunction within the clan.

To be honest I also kind of identify with Gavin, as a middle child. Middle children are often the most reasonable, or at least can see what the right thing to do is, they have perspective. Now, Gavin may not have the power or the desire to steamroll George right back (he's clearly the most manipulative of the three), for not wanting to create a rift in the family, but I'm fairly convinced that if Gavin had his way, we'd be having a smooth, celebratory run up to the first shovel in the ground ceremony. In short, I believe his tears, and lay the insanity at the feet of others in the family. You can say he's guilty by association, but we also don't know the inner dynamics of the family. He may have already done everything he can, and he might not think it's worth it to publicly call out his family and risk serious ostricization and possible damage to personal finances as a result, just to look like the guy who's keeping the Kings in town, when in fact there's very little possibility they'll leave anyway, and when he may have advance knowledge of an unavoidable sale. I do notice he's never the one who says the serious dumb**** anti-sacramento crap, though.

This is my take, too. I just do not get a negative vibe from Gavin - never have.

 

[kennadog]

The more I read this board, and connect the dots, the more I think this could be a very good thing. This upcoming BOG meeting could be the first major step to an ownership change.

We can only hope.

 

[The Hammer]

There is one part of this story that makes sense. If, for whatever reason, you'd decided to back out of a deal, you wouldn't agree to lock 6 million into the deal you intend to blow up.

Haha. Sometimes we miss the most obvious of signs. That actually completely makes sense. I mean duh!

 

[Glenn]

Haha. Sometimes we miss the most obvious of signs. That actually completely makes sense. I mean duh!

Maybe it makes sense but what do the Maloofs gain from this? Nothing. They will continue to lose money where they are. They will not be able to move as I can't for the life of me envison the BOG authorizing a move to the people that destroyed what could have been yet another beautiful arena for their teams to play in.

If they are out of money; sell. It seems like the most sensible thing to do.

 

[JB_kings]

The Maloofs are quickly building a good list of burned bridges in Sacramento and in the NBA offices. If they really aren't interested in selling the team, then perhaps they feel they have a case to just move to Anaheim without approval and sue the NBA and the city. As far fetched as that sounds, that really looks like their plan to my eyes. I know some are thinking that this is about getting more leverage in the current arena deal, but they are doing it all wrong. As for deep pockets to pay legal fees, I'm sure Samueli would be bankrolling some of that.

 

[VF21]

The Maloofs are quickly building a good list of burned bridges in Sacramento and in the NBA offices. If they really aren't interested in selling the team, then perhaps they feel they have a case to just move to Anaheim without approval and sue the NBA and the city. As far fetched as that sounds, that really looks like their plan to my eyes. I know some are thinking that this is about getting more leverage in the current arena deal, but they are doing it all wrong. As for deep pockets to pay legal fees, I'm sure Samueli would be bankrolling some of that.

If they have a plan, I would equate it to something Wile E. Coyote would concoct and we all know how well that turns out. This is another indication of their total lack of anything remotely resembling business acumen. Anybody can make money in a boom town when the economy is flourishing. When they had to start making real business decisions when the going got tough, the only thing they did consistently was screw the pooch. Beer distributorship - gone. Palms - all but gone. Kings - soon to be gone. I have spent most of my life trying very hard not to hate people - except the Lakers. At this point, I have to confess the Maloofs may have taken over the number one spot on my list. And it's not the good list. I will never stop supporting my team but I will never again waste any energy on supporting the Maloofs.

 

[kennadog]

If they have a plan, I would equate it to something Wile E. Coyote would concoct and we all know how well that turns out. This is another indication of their total lack of anything remotely resembling business acumen. Anybody can make money in a boom town when the economy is flourishing. When they had to start making real business decisions when the going got tough, the only thing they did consistently was screw the pooch. Beer distributorship - gone. Palms - all but gone. Kings - soon to be gone. I have spent most of my life trying very hard not to hate people - except the Lakers. At this point, I have to confess the Maloofs may have taken over the number one spot on my list. And it's not the good list. I will never stop supporting my team but I will never again waste any energy on supporting the Maloofs.

Co-signed.

 

[Purple Reign]

The Maloofs are quickly building a good list of burned bridges in Sacramento and in the NBA offices. If they really aren't interested in selling the team, then perhaps they feel they have a case to just move to Anaheim without approval and sue the NBA and the city. As far fetched as that sounds, that really looks like their plan to my eyes. I know some are thinking that this is about getting more leverage in the current arena deal, but they are doing it all wrong. As for deep pockets to pay legal fees, I'm sure Samueli would be bankrolling some of that.

And if that is the case, I would think that the NBA would have no other choice than to give Sacramento another team. As in the case with the Charlotte situation

http://en.wikipedia.org/wiki/Charlotte_Hornets_(NBA)#Relocation_to_New_Orleans

Now I know this situation is nowhere near the dirty dysfunction of George Shinn, but the arena situation is somewhat similar.

I do believe that the NBA would rather press the issue with the Maloofs NOW to either take this deal or sell, rather than go through with another Charlotte/New Orleans situation which resulted in Shinn selling the team anyway. IMHO

 

[VF21]

And if that is the case, I would think that the NBA would have no other choice than to give Sacramento new owners.

Fixed.

 

[Purple Reign]

Fixed.

I really wish it was that easy to get new owners. Trust me, I really do. But I can not see how the NBA could force an owner to sell a team that is not in dire financial straits. I know that the family may have personal financial struggles, but the team is not in a position for a hostile takeover, neither is it for sell.

 

[VF21]

I really wish it was that easy to get new owners. Trust me, I really do. But I can not see how the NBA could force an owner to sell a team that is not in dire financial straits. I know that the family may have personal financial struggles, but the team is not in a position for a hostile takeover, neither is it for sell.

I think Stern and the BOG might have more influence in this regard than we know. While we are aware of the loan the Maloofs are still paying off to Sacramento, we don't know all the details of the significant loans they have received from the NBA.

I don't know how the NBA compares to other franchised corporations, but I do know that there is often verbage in the franchise agreements that allows the parent corporation to take back the franchise if the owners are operating against the best interests of the rest of the group.

 

[The Hammer]

I think Stern and the BOG might have more influence in this regard than we know. While we are aware of the loan the Maloofs are still paying off to Sacramento, we don't know all the details of the significant loans they have received from the NBA.

I don't know how the NBA compares to other franchised corporations, but I do know that there is often verbage in the franchise agreements that allows the parent corporation to take back the franchise if the owners are operating against the best interests of the rest of the group.

If the franchise agreement is anything like GNC, which I am familiar with, the legal wording of the agreement is heavily slanted towards the franchisor. It's worded so that there are many things that could trigger a takeover, but that the majority of times, they are not acted upon, unless the frachisor has other reasons, or it becomes blatantly bad. In my opinion, we are very close to that situation, and appear to be heading there. I don't know what specific thing would trigger it, but it's hard to imaging Stern not being able to excercise that power. The most glaring thing to me, still, is the neglect of the sponsorship market. Also, Stern may go after testimony from employees or seek other hard evidence that indicates sabotage for the purpose of moving. The franchise agreement is probably very long, maybe upwards of 300 pages, easily.

 

[rainmaker]

I really wish it was that easy to get new owners. Trust me, I really do. But I can not see how the NBA could force an owner to sell a team that is not in dire financial straits. I know that the family may have personal financial struggles, but the team is not in a position for a hostile takeover, neither is it for sell.

Question is can the Maloofs afford to pay back the NBA however much they owe, which I've heard is estimated as high as $125M. Also the $70M they owe the city on top of it, AND the $73M separate loan for the arena on top of it, can they pay that back without moving to Anaheim and getting a loan from Samueli? That's what I think may cause the pressure to heat up. I don't think they can afford to pay back those loans if they stay.

 

[Kingster]

Question is can the Maloofs afford to pay back the NBA however much they owe, which I've heard is estimated as high as $125M. Also the $70M they owe the city on top of it, AND the $73M separate loan for the arena on top of it, can they pay that back without moving to Anaheim and getting a loan from Samueli? That's what I think may cause the pressure to heat up. I don't think they can afford to pay back those loans if they stay.

I just wonder if the NBA can call that $125 million? If the terms of the loan allow them to do that when they choose, then game over. It's certaintly not unheard of to have that kind of clause in loan agreements. Banks do it all the time.

 

[JB_kings]

I just wonder if the NBA can call that $125 million? If the terms of the loan allow them to do that when they choose, then game over. It's certaintly not unheard of to have that kind of clause in loan agreements. Banks do it all the time.

Nobody knows for sure. It's just a line of credit much like any homeowner. Although I think it's different in that the NBA is between the bank and the team owner. I've never seen the details discussed anywhere. I've seen that the Kings have tapped into anywhere between 75 and 125 million. Depends on the source of the info. I know Rob McAllister of KFBK said 75 back in February. We do know the NBA has stated a max of 125 million for any team. Of this I am sure, David Stern has not been blindsided by this and has probably had a plan to deal with this. Find out soon we should.

 

[VF21]

Question is can the Maloofs afford to pay back the NBA however much they owe, which I've heard is estimated as high as $125M. Also the $70M they owe the city on top of it, AND the $73M separate loan for the arena on top of it, can they pay that back without moving to Anaheim and getting a loan from Samueli? That's what I think may cause the pressure to heat up. I don't think they can afford to pay back those loans if they stay.

I don't think the BOG is going to approve a move to Anaheim solely as an attempt to shore up Maloof finances. With the emergence of the Clippers as a viable NBA team, the likelihood of a third franchise succeeding in the area has dropped significantly.

 

[kennadog]

I don't think the BOG is going to approve a move to Anaheim solely as an attempt to shore up Maloof finances. With the emergence of the Clippers as a viable NBA team, the likelihood of a third franchise succeeding in the area has dropped significantly.

While I'm sure the owners don't want to set any bad precedents in this case, they must be getting damned tired of the pocket-change Maloofs and their obvious lack of business acumen.

I'm beginning to think George Maloof is just the out in the open face of this battle. If your the family, you don't want Gavin and Joe blamed for all of this, if you end up staying in Sacramento. I think it's just a version of the good cop, bad cop routine. Don't forget the "good" cop is a fake. He's trying to stab you in the back, too, while your attention is on the bad cop. I will never again speak a good word about anyone in the Maloof family.