What really are the Maloofs intentions?

[kennadog]

I see....They do spend a lot....In their hotel and beer company. You say that we recently had one of the top three salaries in the NBA. And then you say that we didn't get rid of Webber because of his salary. We got the same amount but not in one player, but in three. That's how much they were valued. And that's how they played.... Now, they want to get rid of the highest contract we have: Mike Bibby. It's interesting that almost everytime, when they want to make changes, they look at highest contract.

I'm sure their hotel/casino and beer distributorship produce a ton more revenue than their basketball team could ever dream of producing, especially in a small market. That would be why they can get bank loans to bankroll those businesses.

Any businessman knows that you don't keep draining money out of one business to pay for another. The franchise has to stand on its own financial feet as much as possible. The previous ownership was drowning in red ink. That's why they had to, first, borrow from the city and then sell. Also, the Maloofs do not own the Kings by themselves. They have partners. The Maloofs just happen to own a bit over 50%, so they have ultimate decision-making, but can't ignore the other owners.

Paul Allen, owner of the Blazers is the 19th richest man in the entire world. (The Maloofs money is like pocket change to him.) It did not prevent his ownership of the arena from going bankrupt. Why? Because it was a losing business that couldn't support itself.

Good grief, why do people just assume the Maloofs can just afford to pour tons of money into the Kings? The Maloofs as a family may have quite a bit in assets (probably leveraged quite a bit); but not a single one of them is on Forbes list of billionaires.

(Cuban is, though, and apparently doesn't mind spending on any stupid thing he gets in his head. Like his lawsuit aghainst Nellie.)

 

[kennadog]

According to Forbes, the team has made money most years since the Maloofs bought it, is in the black for that time period overall, and has been consistently making money since '02-'03. The Maloofs are also supposed to have gotten 150% appreciation on their 9 year investment, which should be some consolation for the low profit margin. Forbes could be wrong, I suppose, but that's what they claim.
http://www.forbes.com/lists/2006/32/biz_06nba_Sacramento-Kings_327146.html

Although You notice that in our highest payroll year (02/03), the franchise took a big loss. There were a few things that came together to help the revenue stream.

When the team started getting good and fun to watch, the sell-outs came back. Even more important, the Kings made the play-offs for 8 years. The extra revenue from the play-offs helped tip the books toward the black. Then the Maloofs stated trimming team salary after 02/03. Operating costs go down, revenue goes up. It also helped when the team finally got to maybe the end worst TV deal in the league and negotiated a better deal. They held out all that one season and something tells me they still didn't get as nice a contract as they would of liked.

I would expect that revenue fell off some this last year. Despite what they said, the arena was emptier for games than I'd seen in a while and there was no playoff revenue. I think its going to be worse this upcoming season. Most likely no play-off revenue. Clearly the waiting list for season tickets has evaporated and a lot of season ticket holders are declining to renew. I expect the arena will be emptier than ever, unless the team can at least manage to be fun to watch.

 

[slugking50]

Webber was a free agent. As part of the campaign to get him to re-sign with the Kings, Joe Maloof took out a billboard jokingly saying if Webber did sign again with the Kings he would make sure Gavin mowed his (Webber's) lawn. It WAS A JOKE!

I actually had the impression that they were serious as they were asked if they'd really do it..... they said yes..... They had plenty of oppertunities to say they weren't serious and it was a joke. I never heard them say that.

So..... Im still waiting for them to mow....

 

[Backlash]

They did mow his lawn if I am not mistaken.

 

[CaminoChaos]

I see....They do spend a lot....In their hotel and beer company. You say that we recently had one of the top three salaries in the NBA. And then you say that we didn't get rid of Webber because of his salary. We got the same amount but not in one player, but in three. That's how much they were valued. And that's how they played.... Now, they want to get rid of the highest contract we have: Mike Bibby. It's interesting that almost everytime, when they want to make changes, they look at highest contract.

They have actually lost money over the last 3 years with the Kings. So it's not about the money.