Sources: Deal for Grizzlies reached

Mike0476

Starter
Not Kings or arena related but this could give us an idea of what the Kings could be sold for.

http://espn.go.com/nba/story/_/id/8...robert-pera-agrees-purchase-memphis-grizzlies


Sources told ESPN.com that Heisley has an agreement in principle to sell the team to communications technology magnate Robert Pera, who at 34 has a spot on Forbes' list of the 10 youngest billionaries in the world.

The purchase price is in the $350 million range, sources said. A formal announcement to publicize the agreement between the parties is expected this week, possibly as soon as later Monday, with NBA Board of Governors approval then required before Pera can be officially installed as successor to Heisley, who recently turned 75.

Sources say that Pera intends to keep the team in Memphis. The Grizzlies' lease at the FedExForum, furthermore, ties the team to the city until the year 2021, with steep financial penalties attached to breaking that lease.

Aaron Bruski tweeted the following on the upcoming sale of the Grizzlies:

https://twitter.com/aaronbruski

The reported (approx) $350M price is noteworthy for Kings fans, as it sets the market in a range the Maloofs may bite on.

The SAC TV market (#20) is over twice the size of Memphis (#49) and NO (#52, $338M - Benson).
 
where does that put the kings at roughly? we have much less in payroll on the books and a bigger tv market granted memphis does have a newer arena.
 
I would say it’s significant for another reason. There were points in this process where fans could say, I hope Sacramento keeps the Kings, but if they can’t maybe we could get the Hornets, Grizzlies, or another team that might move at some point. At this point, there don’t appear to be any teams, other than the Kings, that are likely candidates to move in the next five years. (The Grizzlies couldn’t even move in that span, but they seemed like the 2nd most likely team to relocate.)

Sure, if you wanted to, you could make a case for MJ moving on and a new owner taking the Bobcats here, or Kohl selling to somebody that wanted to move the Bucks, or even this Grizzlies owner deciding to move from Memphis to Sacramento after 2021. I just don’t think those odds are very good.

The NBA doesn’t want to expand. Therefore, Seattle and every other city that wants an NBA team has one franchise in their sights.

I think the BOG would rather keep the team here and if they think the Maloofs can’t hold out for more than 18 months, then maybe they help Sacramento by slow playing the Maloofs to keep the franchise here. Otherwise, I think they’ll try to push the Maloofs into a deal where they keep some of the team and bring in Seattle ownership. We got burned by NBA owners, but so did Seattle. Between the Maloofs shares and all of the minority shares opening up right now either through bankruptcy or passing away, it seems possible the guy in Seattle that wants to be the majority owner could get majority control and the Maloofs could still own a major minority chunk of the team. Or the NBA could just push the Maloofs away from Anaheim and into a Seattle sale or move.

For a national perspective, people wouldn’t bat much of an eye if the Kings were moved to Seattle to become the Sonics. Most people would say, that stinks for Sacramento but at least Seattle got a team back.

The primary issue for the BOG will be a referendum on the Maloofs – whether they can hold on as NBA owners. After that, I think the question is going to be whether the team is staying here in a new arena or heading to a new arena in Seattle.
 
As long as Sacramento is ready to pounce on an arena deal with invested owners I don't think Stern is going to accept anyone looking to move the team. At least someone openly doing so.
 
Of course, the Sacramento situation is completely different than what happened in Seattle. I'm not saying Seattle isn't a possible destination for the Kings, but I really get tired of people acting like the Kings leaving Sacramento is similar to the Sonics leaving Seattle. Not. even. close.


Also, in Seattle, basketball would be the third ticket behind football and baseball.
 
Don't forget Seattle draws 40k to MLS. But my guess, assuming they are a mediocre franchise, is that they'd be third ticket behind NFL and MLS. MLB from my experience up there is an away fan's paradise, but Seattle will come out to see a winning team so really who knows where they'd be - depends on how good they are. They also have no guarantee of getting a deal done up there. Crazy to think the NBA would allow it, imho.
 
Seattle is not as close to a arena deal as people give them credit for. Remember they lost the Sonics because they wouldn't and couldn't build a new arena. Whatever they have going right now, they are a very long way from having a what Sacramento had going before George shoved a stick in the spokes. Most of what Seattle did is a bit a of salesman job and not very concrete.

The Sac deal as written in the term sheet is a lot more real. It still is provided there is some change in the ownership of the team.
 
Sonics fans may not like it but OKC making the finals is a blessing for seattle, it brings their issue to the forefront of the national media. I think *if, and thats a very big if, seattle got an arena done and someone overpaid to buy the kings and moved them to seattle the league would take much less of a national PR hit with all of the sympathy going on for seattle.
 
The arena is years a way. More likely to land the NHL as anchor tenant.
 
To put it in simpler terms, it's far more likely that a check of the size we are talking about here to build an arena (over 200 million) are written by cities - not magic arena fairies like Chris Hansen. Special situation do exist, but their locations are called Staples Center, Madison Square Garden... etc.

Seattle has not signed on an agreement to cut a check the size of 250 million like Sacramento did. So any bid to buy the Kings and move them has a lot more risk then selling the team to ownership willing to accept the term sheet in Sacramento. It's not about the total purchase price because when it's all said and done, Stern will always get the top bid to his liking.
 
I still maintain that the overall value (sans debt) of the Kings franchise is upwards of 400M. Would not be surprised at all if they sold for the equivalent of 425M. Just so many positives about this market, if managed correctly. It's THE gem opportunity of the NBA and every interested buyer knows it.

My guess, at this point, is it's sold for the equivalent of $430M. With the current arena deal (or something similar) in place??? Absolutely. That alone has incredible value. The Maloofs just aren't able to capitalize on it.
 
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Of course, the Sacramento situation is completely different than what happened in Seattle. I'm not saying Seattle isn't a possible destination for the Kings, but I really get tired of people acting like the Kings leaving Sacramento is similar to the Sonics leaving Seattle. Not. even. close.


Also, in Seattle, basketball would be the third ticket behind football and baseball.

And soccer. For real. **** got crazy up there with the soccer. Soccer is drawing the bitter sonics fan all too ready for the rebound relationship (pun intended) as well as all the computer geeks who never made any sports team and hence ended up playing rec soccer, or who fancy themselves liberal/globally conscious, therefore soccer fans. It's kind of the PERFECT market for soccer. You got the rowdy underclasses, airplane mechanics and military, punk, various subcultures, all of which can identify with the rowdy beer drinking soccer fan type, and then you have the sophisticates who fancy themselves a match. Perfect Storm (another pun intended). I lived there for four years. That's how I know.
 
And soccer. For real. **** got crazy up there with the soccer. Soccer is drawing the bitter sonics fan all too ready for the rebound relationship (pun intended) as well as all the computer geeks who never made any sports team and hence ended up playing rec soccer, or who fancy themselves liberal/globally conscious, therefore soccer fans. It's kind of the PERFECT market for soccer. You got the rowdy underclasses, airplane mechanics and military, punk, various subcultures, all of which can identify with the rowdy beer drinking soccer fan type, and then you have the sophisticates who fancy themselves a match. Perfect Storm (another pun intended). I lived there for four years. That's how I know.
Most importantly they've won a largely ignored trophy and sold it as one of the most prestigious things in the soccer universe and so the masses have eaten it up.

No need to diss soccer players as computer geeks or athletes who can't hack it. I played rec soccer for years and couldn't wait to ditch it in HS and play American Football. Why? Because I HATE running (get shin splints). Worst decision ever as I went from toothpick to fatty in 4 years.
 
Most importantly they've won a largely ignored trophy and sold it as one of the most prestigious things in the soccer universe and so the masses have eaten it up.

No need to diss soccer players as computer geeks or athletes who can't hack it. I played rec soccer for years and couldn't wait to ditch it in HS and play American Football. Why? Because I HATE running (get shin splints). Worst decision ever as I went from toothpick to fatty in 4 years.

Hey man I played rec soccer for 14 years. I also played competitive and high school soccer. I'm just saying there's a vast world of former soccer players out there who were either too intelligent to play football, or not good enough. There's also a small number who were fantastic athletes who just preferred soccer (one of them was a high school teammate, and later founding star of the MLS, and Olympic medalist. But the majority of the fan base is not them. I'm just stating the the truth.

I myself was a very good middle school running back, and probably could have excelled as a defensive back or running back in high school, if I was socially desperate enough for the approval, and willing to give up a sport that I loved more (soccer). Face it: soccer players, for the most part, in our society, tend to be rebels, outcasts, or nerds. I know my rec soccer teammates were for the most part. This fits the demographic in seattle beutifully.

Yeah that whole America's cup or US open or whatever it was was a brilliant marketing thing for them. I kind of think the fans honestly could have cared less that it was a non big deal trophy. For all they care, they're "in" on the sham of making it a much bigger deal than it was in the past. Which, honestly, is also about making soccer a bigger deal in america. You need special trophies and traditions. These things are all made up by a small number of people at some point in a sport's history. World Series? What the hell is that? And why is it the world??? Super Bowl... what a silly name. Isn't that a college thing? Didn't even exist in the 50s.... "All-Star" game...??? you get my point...
 
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Hey man I played rec soccer for 14 years. I also played competitive and high school soccer. I'm just saying there's a vast world of former soccer players out there who were either too intelligent to play football, or not good enough. There's also a small number who were fantastic athletes who just preferred soccer. But the majority of the fan base is not them. I'm just stating the the truth.

I myself was a very good middle school running back, and probably could have excelled as a defensive back or running back in high school, if I was socially desperate enough for the approval, and willing to give up a sport that I loved more (soccer). Face it: soccer players, for the most part, in our society, tend to be rebels, outcasts, or nerds. I know my rec soccer teammates were for the most part. This fits the demographic in seattle beutifully.
I feel like that's kind of a huge stereotype, my friends in the TA are by and large normal sports fans. At my high school there wasn't anything remotely rebellious about the soccer team and our big matches drew the same crowds as the football team. Which isn't to say it doesn't exist, because I am sure I fit a few of those stereotypes myself, but I know plenty who don't.
 
Face it: soccer players, for the most part, in our society, tend to be rebels, outcasts, or nerds. I know my rec soccer teammates were for the most part. This fits the demographic in seattle beutifully.

Exactly how old are you? Soccer has failed to be a popular sport in America for a long, long time now, but it is definitely on the up. At my high school, the soccer players were the "cool kids". They were the jocks. I'm in college now and it is still the same way. When the girls here talk about their "favorite type", its the soccer players, not the football or basketball players. So I have no clue what you're talking about when you describe the soccer players as rebels, outcasts or nerds. It just simply isn't true anymore.

With the growth of the MLS and the exposure Americans are now getting to EPL, World Cup, etc, there is a huge growth of soccer in this nation. The REAL reason why the youth in America chose the other sports over soccer is because "How will I make a living playing soccer? There is no future there." Well now there is, so the kids who love soccer are able to play that now with the hope of making it to MLS and european competitions too. And with American clubs beginning to form the infrastructure (facilities and regional youth academies) needed to develop real, actual soccer talent, you'll see the growth of the MLS and USMNT continue.

When it comes to the US Open, every nation has its own form of domestic cup. It isn't a "brilliant marketing thing" as you describe it, its a part of every nation's soccer/football federation. That is like dismissing the winners of the euroleague because NBA fans don't care. Or why should teams celebrate winning the NIT championship, its obviously not the best competition. MLS has become a top 15 league in the world, which is EXTREMELY impressive for a league that is only 17 years old. Given another generation or two of young children in America beginning to idolize soccer players, and who knows how good the league could become? Apparently living in Seattle and being with all the "hipster" or "liberal" people (as you describe them) has given you the delusion that you are a knowledgeable soccer pundit.
 
Of course, the Sacramento situation is completely different than what happened in Seattle. I'm not saying Seattle isn't a possible destination for the Kings, but I really get tired of people acting like the Kings leaving Sacramento is similar to the Sonics leaving Seattle. Not. even. close.


Also, in Seattle, basketball would be the third ticket behind football and baseball.

I agree with this. The situations are very different. The major difference is that our major is fighting for the Kings and he has NBA on his side. In Seattle NBA was on side of NBA team and not the city. Here its a different thing. Stern and KJ are on one side, Maloofs on the other. Generally sides supported by Stern win the battle.
 
Would the Maloofs even sell if an offer came in around 400-450 million? We can all speculate how much longer they will be able to afford the team, but this all still looks very pessimistic to me.
 
Would the Maloofs even sell if an offer came in around 400-450 million? We can all speculate how much longer they will be able to afford the team, but this all still looks very pessimistic to me.

That's the $450 million question!

Oh how I wish for the day when Maloofs announce that they have agreed to sell the team to an owner who has committed to staying in Sacramento and is willing to contribute some $100 million to the new arena!
 
I dont understand why they don't just sell a majority of the team and remain a minority owner. They can still have their courtside seats, they can still participate in all team functions, but they'd be in much better financial shape and can focus on running their actual ventures.

Give the Maloofs 2% ownership of the Kings and call it a day.
 
When it comes to the US Open, every nation has its own form of domestic cup. It isn't a "brilliant marketing thing" as you describe it, its a part of every nation's soccer/football federation. That is like dismissing the winners of the euroleague because NBA fans don't care. Or why should teams celebrate winning the NIT championship, its obviously not the best competition. MLS has become a top 15 league in the world, which is EXTREMELY impressive for a league that is only 17 years old. Given another generation or two of young children in America beginning to idolize soccer players, and who knows how good the league could become? Apparently living in Seattle and being with all the "hipster" or "liberal" people (as you describe them) has given you the delusion that you are a knowledgeable soccer pundit.
It's a marketing thing because in Seattle they are a bit fair-weathered and they needed a trophy to sell to the fan base, they chose to go after the one that was easily purchased and sell it just like the FA Cup or the Pokal. But in truth MLS teams virtually ignored the Cup, the home field rights were auctioned to the highest bidder by the USSF and half the MLS wasn't even invited without playing multiple rounds of play-ins. They've finally made some adjustments this year to level the playing fields a bit and we've seen a lot of upsets of MLS clubs by lower division teams and that's great. Maybe one day the USOC will be as meaningful as those other cups and we will have the Sounders to thank, but for now it is what is is, the NIT of professional soccer in America.
 
We have to remember the other problem the Maloofs have. Even if they sell the team, how the heck are they going to pay off the debt on Arco Arena? They are also the majority interest owners of that. It's greatest value is just in the land/site itself. But isn't really good to any potential buyer until the flood issue is mitigated.
 
We have to remember the other problem the Maloofs have. Even if they sell the team, how the heck are they going to pay off the debt on Arco Arena? They are also the majority interest owners of that. It's greatest value is just in the land/site itself. But isn't really good to any potential buyer until the flood issue is mitigated.

I would assume that the new owner would be buying that as a packaged deal with the team. I guess it makes no sense for the Maloofs to sell the team only (ie without the Arco Arena and the land) so the new owner picks up the debt on that deal. But it might be the sticking points with potential suitors (they want to buy the team but not the arena and the site itself as its dead value).

That is one thing I did not consider. Might explain the complexity of the situation even further. Am I right in thinking that if the Maloofs or the new owner paid off the loan from the city in one lumpsum, then the city would be up for penalty payments on bonds used to fund the loan?
 
I feel like that's kind of a huge stereotype, my friends in the TA are by and large normal sports fans. At my high school there wasn't anything remotely rebellious about the soccer team and our big matches drew the same crowds as the football team. Which isn't to say it doesn't exist, because I am sure I fit a few of those stereotypes myself, but I know plenty who don't.

C'mon man. All you have to do is admit that a high school soccer team that draws as many spectators/interest/newspaper coverage as the football team is a total anomaly, and this argument will be painlessly over. C'mon, you can do it... not that hard!
 
Exactly how old are you? Soccer has failed to be a popular sport in America for a long, long time now, but it is definitely on the up. At my high school, the soccer players were the "cool kids". They were the jocks. I'm in college now and it is still the same way. When the girls here talk about their "favorite type", its the soccer players, not the football or basketball players. So I have no clue what you're talking about when you describe the soccer players as rebels, outcasts or nerds. It just simply isn't true anymore.

With the growth of the MLS and the exposure Americans are now getting to EPL, World Cup, etc, there is a huge growth of soccer in this nation. The REAL reason why the youth in America chose the other sports over soccer is because "How will I make a living playing soccer? There is no future there." Well now there is, so the kids who love soccer are able to play that now with the hope of making it to MLS and european competitions too. And with American clubs beginning to form the infrastructure (facilities and regional youth academies) needed to develop real, actual soccer talent, you'll see the growth of the MLS and USMNT continue.

When it comes to the US Open, every nation has its own form of domestic cup. It isn't a "brilliant marketing thing" as you describe it, its a part of every nation's soccer/football federation. That is like dismissing the winners of the euroleague because NBA fans don't care. Or why should teams celebrate winning the NIT championship, its obviously not the best competition. MLS has become a top 15 league in the world, which is EXTREMELY impressive for a league that is only 17 years old. Given another generation or two of young children in America beginning to idolize soccer players, and who knows how good the league could become? Apparently living in Seattle and being with all the "hipster" or "liberal" people (as you describe them) has given you the delusion that you are a knowledgeable soccer pundit.

Well, that's kind of exactly what tends to happen. I was in high school 20 years ago, and it was just BARELY starting to be cool. But yeah, as always, the alt/punk/rebels then become the cool kids. The Beatles were a hard rock/punk band when they started. For real, look it up.
 
C'mon man. All you have to do is admit that a high school soccer team that draws as many spectators/interest/newspaper coverage as the football team is a total anomaly, and this argument will be painlessly over. C'mon, you can do it... not that hard!
In general that's right, but I don't think its about athletes or nerds or rebels as much as its about the emphasis put on soccer vs. football culturally and especially in media. Obviously wins mean a ton and when you have a nationally ranked soccer program you'll get attendance just like nobody goes to watch the 0-10 football team.
 
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