Why doesn't Mastrov-Burkle team up with John Kehriotis?

[ockingsfan]

David Stern came out publicly and stated that the Mastrov-Burkle bid comes up short to Seattle's bid.

Since we have a current part owner (John Kehriotis) who has the legal right to match the Seattle offer and has the desire to make a strong bid to buy the Kings and keep them in Sacramento and then we have the Mega-Whales with Mastrov-Burkle who's bid has come up short.... Why don't they join up and make the bigger bid to keep the Kings in Sacramento?

Especially since John Kehriotis has the inside track, being a current part owner. He also wants to use mostly private funds to fix or do the arena... so if they combine their resources, Mastrov-Burkle and John Kehriotis can form a SUPER SACRAMENTO GROUP...

They can combine their plans and bring more of Kehriotis private funds into the arena plan and have less public funding for the new Arena downtown...

Either way, John Kehriotis will still be a part owner, even if Mastrov-Burkle wins their bid, so why not bring him in now to put in a stronger offer to the BOG to make sure we keep the Kings in Sacramento, before it is to late!!!

 

[Glenn]

David Stern came out publicly and stated that the Mastrov-Burkle bid comes up short to Seattle's bid.

Since we have a current part owner (John Kehriotis) who has the legal right to match the Seattle offer and has the desire to make a strong bid to buy the Kings and keep them in Sacramento and then we have the Mega-Whales with Mastrov-Burkle who's bid has come up short.... Why don't they join up and make the bigger bid to keep the Kings in Sacramento?

Especially since John Kehriotis has the inside track, being a current part owner. He also wants to use mostly private funds to fix or do the arena... so if they combine their resources, Mastrov-Burkle and John Kehriotis can form a SUPER SACRAMENTO GROUP...

They can combine their plans and bring more of Kehriotis private funds into the arena plan and have less public funding for the new Arena downtown...

Either way, John Kehriotis will still be a part owner, even if Mastrov-Burkle wins their bid, so why not bring him in now to put in a stronger offer to the BOG to make sure we keep the Kings in Sacramento, before it is to late!!!

It makes too much sense. What is wrong with this idea? It also is probable that Burkle can come up with more but I can't speak for him. Also if they just want or need money, MVP in the Philippines would be happy to be part of the ownership group. He has already been told he can't own a team outright because of lack of experience so I'm sure he'd love to get his tootsies wet.

 

[John Galt]

I agree it would be great if JK joined BurkStrov in the bid, but we need the public arena subsidy ... the NBA likes that a lot. But I do hope Kehriotis joins the ownership group!

 

[ockingsfan]

I agree it would be great if JK joined BurkStrov in the bid, but we need the public arena subsidy ... the NBA likes that a lot. But I do hope Kehriotis joins the ownership group!

They can still have the public subsidy, but maybe it could be less, on par with Seattle's $200mil, instead of $255mil... that would help quiet some of the anti-arena people

 

[Mojo]

Too many cooks in the kitchen? Only potential problem I see with it.

 

[HereWeBoogie]

Too many cooks in the kitchen? Only potential problem I see with it.

that just means better food!

 

[Fear the Putin]

that just means better food!

or no food if they can't agree on what to cook

 

[Cwebb#4]

or no food if they can't agree on what to cook

Intelligent insight.

 

[Cwebb#4]

Hmm.

 

[Sac.1989]

We need something like this to happen. Our bid needs to clearly beat Seattle otherwise its anyones guess which way this goes.

The following Stern comment puts it into perspective:

"At the end of the day, it is for the board of governors to make the ultimate decision as to who the team will be sold to and where it will be located," he said. "I've spent a fair of number of years to establish that power and prerogative within the board of governors. If an ownership group has decided to exit our league, it doesn't retain the ultimate right to tell us where the team will be located. It is for the board of governors to decide."

take from that what you will. Our bid needs to be strong in comparison if not stronger to give us every chance at bringing this one home

 

[kennadog]

Kehriotis seems to be working with Greg Van Dusen, who is still hung up on the Natomas. I don't know if Van Dusen still thinks the current STA can be renovated and I don't think they can build a completely new arena there, because of the building moratorium. Also, despite the minor splash Kehriotis made, he hasn't followed up with any more announcements or proof of guaranteed money. I think the arena site is the main hangup for the two groups getting together, though.

 

[uolj]

The other thing to remember is this isn't charity work. These guys are making an investment. Every additional partner that chips in dilutes the size of the stakes in the team the others in the bid have. Maybe Mastrov wants 51% of the team for himself no matter what. More money from Kehriotis or anybody else wouldn't help if his bid for 51% was too small.

 

[Sac.1989]

this is true but as it stands our offer is under par. As we can increase our bid so can the seattle based group - that is what i lose sleep with at night.

We need as strong a bid as possible and because we're coming from behind, collaboration is one way of getting there. the other is straight deep pockets and outbidding

 

[jpsls]

this is true but as it stands our offer is under par. As we can increase our bid so can the seattle based group - that is what i lose sleep with at night.

We need as strong a bid as possible and because we're coming from behind, collaboration is one way of getting there. the other is straight deep pockets and outbidding

Seattle cannot up their bid. They already signed a binding agreement and gave the Maloofs a $30 million non-refundable deposit. If they wanted to up their bid, they would have to amend the old one, with only a month before the BoG meetings.

 

[Circa_1985_Fan]

The reason why they don't team up: Kehriotis doesn't want the same thing Burkle/Mastrov & the city do. Meaning Burkle/Mastrov & city want to grow downtown and Sacramento, Kehriotis wants to do patchwork with all private $$$ which does nothing for the city as far as making the city $$$.

 

[Darth Divac]

I like the idea of them being seperate. Say the BOG says moves the team to Seattle this april. Everyone's sad, Burkstrov loses,KJ in shame-But wait! Kehriotis excersises his ROFR, does the private stuff, no money out of the taxpayer's wallet, and hooray! Everybody wins! (besides Burkstrov)

 

[Circa_1985_Fan]

I like the idea of them being seperate. Say the BOG says moves the team to Seattle this april. Everyone's sad, Burkstrov loses,KJ in shame-But wait! Kehriotis excersises his ROFR, does the private stuff, no money out of the taxpayer's wallet, and hooray! Everybody wins! (besides Burkstrov)

BOG's still has to vote on it even IF that scenario were to come to fruition. None of this happens if the board votes FOR relocation...but if they vote down relocation, it's a free for all then...and I see the Burkle/Mastrov team still coming out on top with the team/arena here in Sacramento...I don't see the board voting FOR relocation, so that should be a non issue.

 

[Gilles]

If ROFR was in place, Maloofs would've sent it to every minority owner, and it would've been leaked or at least reach KJ for sure, which it looks like didn't happen. Unless every contract with ROFR contains confidentiality agreement...to me it seems unlikely, but I'm not a lawyer and live in another country, so maybe it's there just in case.

 

[kingjatt]

If ROFR was in place, Maloofs would've sent it to every minority owner, and it would've been leaked or at least reach KJ for sure, which it looks like didn't happen. Unless every contract with ROFR contains confidentiality agreement...to me it seems unlikely, but I'm not a lawyer and live in another country, so maybe it's there just in case.

From what i understand the minority owners already had copies of the partnership agreement which aknowledges to some degree a ROFR clause, Carmicheal Dave even has a copy of that. The minority owners were given details of the purchase agreement between hansen and the magoofs because legally the goofs had to provide it. On the purchase agreement however the magoofs were free to make the minority owners sign a confidentiality agreement hence why Mastrov etc or anyone doesn't have access to it.

 

[bajaden]

this is true but as it stands our offer is under par. As we can increase our bid so can the seattle based group - that is what i lose sleep with at night.

We need as strong a bid as possible and because we're coming from behind, collaboration is one way of getting there. the other is straight deep pockets and outbidding

I think your missing a point. We, or should I say, the Mastrov/Burkle group doesn't know what is in the Hansen bid. Its sealed! And I'm sure that their bid will be sealed as well. This isn't going to be an auction where both sides sit there with a little paddle and raise it to increase the bid.. I seriously doubt that money is the problem. The problem for Mastrov/Burkle was that they were shooting blind the first time around. Now that Stern has given them a heads up, I suspect that they'll come in with a very competitive bid. What you don't want to do, is end up bidding against yourself.

As far as adding another partner to the deal, is really doubt that will happen. Billionaires don't become Billionaires by playing second fiddle. The fact that you could get two of them together and have them come to an agreement on who will run the team, is a small miracle in itself. Your talking about very confident men with strong ego's who are used to running things. Adding another to the mix, would only muddy the waters. Too many alpha dogs!

 

[ParniValjak]

I think your missing a point. We, or should I say, the Mastrov/Burkle group doesn't know what is in the Hansen bid. Its sealed! And I'm sure that their bid will be sealed as well. This isn't going to be an auction where both sides sit there with a little paddle and raise it to increase the bid.. I seriously doubt that money is the problem. The problem for Mastrov/Burkle was that they were shooting blind the first time around. Now that Stern has given them a heads up, I suspect that they'll come in with a very competitive bid. What you don't want to do, is end up bidding against yourself.

As far as adding another partner to the deal, is really doubt that will happen. Billionaires don't become Billionaires by playing second fiddle. The fact that you could get two of them together and have them come to an agreement on who will run the team, is a small miracle in itself. Your talking about very confident men with strong ego's who are used to running things. Adding another to the mix, would only muddy the waters. Too many alpha dogs!

While I agree with you, I would personally be making sure I outbid Hansen just to make it another tick in my box when it comes to the NBA decision makes. For example, it is reported that the total valuation of the Kings was $525 million and as such,, Maloofs are getting some $341 million for their 65%. If I was bidding for the team and really wanted it, my valuation of the franchise would be $530 million with Maloofs getting 65% of that!

This way, its only 5 million over in the overall value and Maloofs get a bit extra. Then again, it might explain why Burkle and Mastrov are billionaires and I am working a 9 to 5 job!

 

[Glenn]

Burkle likes to be in the background. I doubt if he would be searching for GMs and coaches. Mastrov seems more energetic. I hope between them they have enough liquid cash to buy the team and build an arena. My guess is that the info from Seattle that they were $80 mil short might be accurate. Someone up there knows something. I also suspect Stern will whisper in Burkle's ear and Burkle can pass it on to Mastrov.

I still haven't found an answer to my question of whether they are intermingling their funds in buying the team or not. In other words, is it a Burkle/Mastrov buy of the Kings? It seems to be assumed so but my impression is that the minority owners are individuals. Can someone give me as definitive answer as possible? Perhaps if Mastrov wants to be totally in charge of the Kings buy, he can borrow money from Burkle. I am tempted to just quit thinking and let it play out. Less stressful but also less fun.

I would overbid also.

 

[Livinthedream]

Burkle likes to be in the background. I doubt if he would be searching for GMs and coaches. Mastrov seems more energetic. I hope between them they have enough liquid cash to buy the team and build an arena. My guess is that the info from Seattle that they were $80 mil short might be accurate. Someone up there knows something. I also suspect Stern will whisper in Burkle's ear and Burkle can pass it on to Mastrov.

I still haven't found an answer to my question of whether they are intermingling their funds in buying the team or not. In other words, is it a Burkle/Mastrov buy of the Kings? It seems to be assumed so but my impression is that the minority owners are individuals. Can someone give me as definitive answer as possible? Perhaps if Mastrov wants to be totally in charge of the Kings buy, he can borrow money from Burkle. I am tempted to just quit thinking and let it play out. Less stressful but also less fun.

I would overbid also.

I think the only definitive thing you're going to get is that they were referred to as the Mastrov team by the Mayor during the state of the city. Which to me means without a doubt, Mastrov is not working alone. Burkle is the bigger name and can overshadow Mastrov in just about every discussion. For Mastrov to truly be the face of the franchise, and Burkle to be in the background, you have to drop Burkles name when referencing the bid and so on. Doesn't mean that he's not in the mix.

By the way, Stern talked directly to Mastrov during his visit to Oakland, so I don't think he has to use Burkle as an intermediary.

I would over bid too.

 

[Kingsfan23]

While I agree with you, I would personally be making sure I outbid Hansen just to make it another tick in my box when it comes to the NBA decision makes. For example, it is reported that the total valuation of the Kings was $525 million and as such,, Maloofs are getting some $341 million for their 65%. If I was bidding for the team and really wanted it, my valuation of the franchise would be $530 million with Maloofs getting 65% of that!

This way, its only 5 million over in the overall value and Maloofs get a bit extra. Then again, it might explain why Burkle and Mastrov are billionaires and I am working a 9 to 5 job!

I believe this franchises value was only like 300 million as of last year. I wouldn't blame, nor do I really expect Mastrov to be forced to equal Seattle's exorbitant bid. I believe that our bid will definitely be less, the only question in my mind is how less. Which is fine, as I've said all along, no precedent should be set for an outsider to come in with a ridiculous price that can't be matched by locals to move the team where he chooses, it aint right and the NBA shouldn't tolerate it

 

[ParniValjak]

I believe this franchises value was only like 300 million as of last year. I wouldn't blame, nor do I really expect Mastrov to be forced to equal Seattle's exorbitant bid. I believe that our bid will definitely be less, the only question in my mind is how less. Which is fine, as I've said all along, no precedent should be set for an outsider to come in with a ridiculous price that can't be matched by locals to move the team where he chooses, it aint right and the NBA shouldn't tolerate it

I don't particularly agree with your approach. This is not exactly the time to stand the ground on principle. This is a do or die moment and something is worth how much someone is prepared to pay for it. That $300 million is irrelevant now because there is someone who is willing to pay $525 million so that is the new market price, inflated or not!

Scramento is coming from way behind on this one and as such, we really need every tick in the box that we can get. Beating the Seattle offer would certainly help. I would not be sitting back and banking on NBA to do the right thing so my offer can be lower. I would remove all doubt by beating the offer that is already on the table so the check lick would read

Price: tick Sacramento!

 

[Warhawk]

I don't particularly agree with your approach. This is not exactly the time to stand the ground on principle. This is a do or die moment and something is worth how much someone is prepared to pay for it. That $300 million is irrelevant now because there is someone who is willing to pay $525 million so that is the new market price, inflated or not!

Scramento is coming from way behind on this one and as such, we really need every tick in the box that we can get. Beating the Seattle offer would certainly help. I would not be sitting back and banking on NBA to do the right thing so my offer can be lower. I would remove all doubt by beating the offer that is already on the table so the check lick would read

Price: tick Sacramento!

I agree. As long as the Maloofs get the same amount of $$$ or slightly more, I think we would be fine here.

But it isn't my money, either.....easy to spend something that isn't yours. I hope that Mastrov/Burkle really want to own the team bad enough and figure they will make enough $$$ on the associated real estate improvements, arena, etc. that they can afford to truly "top" the Seattle bid.

 

[John Galt]

I agree too... Burkstrov should TOP the Seattle bid outright. Only matching it is a gambling move. Coming in less is a degenerate gambler's move and I'm not sure that even I as an NBA owner would force the Maloofs to accept a lower hometown bid. In fact.. I know I wouldn't.

Playing a game of moral chicken with the NBA billionaire owners club is something I'd rather do another day - when I can afford to be wrong. If it was some Omaha Nebraska rich oilman with a pipe dream arena and a huge price tag for the team ... then ok I can see the owners rejecting it. But Seattle is not that. Their offer is strong and legit.

No hometown discount... I think that is what Stern is making clear to Mastrov. If Mastrov pushes the envelope - submits a lower price - and loses.... well it doesn't make him a bad guy but it damn sure DOES make him a loser for the second time.

 

[Uk kings fan]

Any updates?? i havent been keeping track im afraid

 

[The Hammer]

I agree too... Burkstrov should TOP the Seattle bid outright. Only matching it is a gambling move. Coming in less is a degenerate gambler's move and I'm not sure that even I as an NBA owner would force the Maloofs to accept a lower hometown bid. In fact.. I know I wouldn't.

Playing a game of moral chicken with the NBA billionaire owners club is something I'd rather do another day - when I can afford to be wrong. If it was some Omaha Nebraska rich oilman with a pipe dream arena and a huge price tag for the team ... then ok I can see the owners rejecting it. But Seattle is not that. Their offer is strong and legit.

No hometown discount... I think that is what Stern is making clear to Mastrov. If Mastrov pushes the envelope - submits a lower price - and loses.... well it doesn't make him a bad guy but it damn sure DOES make him a loser for the second time.

I really don't think it's a question of him wanting to get a "good deal" on this team. He knows his bid has to be "competitive", which probably translates to within a few million, I'd say within 5 million. But, if you're going to be that close anyway, you might as well top it by a million or two, basically just as an insurance policy that you get the team. That amount is nothing for these guys.

The real issue is knowing how much the other bid WAS. It being a "sealed bid" (and what that really means, none of us seem to know -- in fact, nobody really even knows how this whole freakin process really works, let's admit) ...this seems to indicate that there is some legal issue with Stern or the league outright telling Maburklestrov how much to bid so they can get it. Doing so may open the league up to a lawsuit??

None of us really know that at this point. But I feel fairly confident making the inference that if he's willing to spend $350M on a team, he's willing to spend $357M on a team.

****, a coaching contract alone can vary by just that much over 3 or 4 years.

And I'm sure he's creative enough to figure out how to create a stream of income with the asset that will make up that few million he'll have to pay to buy it. His main concern, (mine would be), "What's the overall strength, resiliency, viability of the market, and the political environment towards the Kings, and is there a favorable long term arena deal in place that will contribute to that security? And p.s., give me the phone number to Comcast."

A few million is nothing when you are considering the overall strength and security of an asset this large. The only use it may serve is to distract the media and some of the public away from what your real concerns and questions are. But as I just clearly demonstrated, I've got him figured out. Aren't we all lucky that I'm around?

I think what's unique about a local buyer in this situation is that you have a chance to get in on some major development projects downtown, and also to have the city look favorably on you if you wanted to do even more development in the near future. Basically it would position you to be a MAJOR player in the economic revitalization of a downtown core, and possibly even more real estate opportunities in the region. That's something that seems to be going under the radar at least for now as a huge benefit to a local buying group. I'm sure it's why the location was switched to the downtown plaza.

 

[kennadog]

I think the only definitive thing you're going to get is that they were referred to as the Mastrov team by the Mayor during the state of the city. Which to me means without a doubt, Mastrov is not working alone. Burkle is the bigger name and can overshadow Mastrov in just about every discussion. For Mastrov to truly be the face of the franchise, and Burkle to be in the background, you have to drop Burkles name when referencing the bid and so on. Doesn't mean that he's not in the mix.

By the way, Stern talked directly to Mastrov during his visit to Oakland, so I don't think he has to use Burkle as an intermediary.

I would over bid too.

Burkle is part of the bid, although for what percentage of the team we don't know. All the was said is that both would be part of the team, including the "local" investors, but that Mastrov was the lead person for working on the bid to buy the team. (FYI - Burkle owns 20% of the Penguins.

As for how much to bid, no one has to pay more than it is worth to them as business people. The fact is, though, that if the Mastrov-led bid isn't pretty darn close (I mean really close) to the Hansen bid, then we lose our team. Remember, the amount of the Seattle bid makes the value higher for every team in the league. The owners will see their own financial benefit in voting to approve a higher bid.