Why so many owners flocking to Sacto?

[Glenn]

I hate starting threads especially one that is so speculative but aren't people blown away by the number of rich people lining up to keep the Kings in Sacramento? Didn't Vivek say he had to turn away some potential owners?

Looking at a few of these people, the Jacobs brothers and their dad's influence on them and Vivek, we have a nice collection of philanthropists. Perhaps it is naive of me to think that many of these guys are doing it for the good of the city. Click here to read about the Jacobs brothers' dad. I didn't add the amount of money to the penny but if you scroll quickly to the topic of Philanthropy, you will see he has donated close to a $1 billion as documented by Wikipedia. I believe there is a group that I am going to call the "You can't take it with you" organization who have vowed to donate most of their money before they pass away and at least one of our potential owners belongs to it.

I don't think these people are in it for the money. Am I naive? Vivek's statement that the team wouldn't take revenue sharing I think even took into account the possibility the Kings would regularly lose money. There is no guaranteeing that the Kings will make money especially if they go all out for a championship and spend money not only on players but on coaches, GMs, and the like.

I typed this without looking up documentation but I AM blown away at the number of very rich people who want to be a part of this ownership.

 

[Glenn]

I can't believe I wrote "Why do" instead of "Why so." Duh!

 

[Warhawk]

I can't believe I wrote "Why do" instead of "Why so." Duh!

Fixed it for you.

 

[Glenn]

Fixed it for you.

Thanks. I hate to look more stupid than I am.

 

[macadocious]

I stated this earlier in another thread, but these investors want in on the development of this city. The city has tons of potential, and it is the state capital. It is being way underutilized as a tourist center and business center. Also, these guys will gain tons of political capital for their own respective businesses in the future because of the goodwill of being one of the people who saved the Kings and revitalized a dead and boring downtown.

The immediate improvements around K-street and Capitol Mall are the tip of the ice burg as far as what these guys will end up doing. That is the eye candy they are showing us today. With the developer and innovators that are collaborating on this, we could see a very technological advanced downtown and begin to see silicon valley companies moving this way. Right now if they want to operate in a city business center, they have to pay exorbitant SF prices.

 

[hrdboild]

I've said this before, but if you look at all the downtown development that is going on nationwide, Sacramento is a relatively untapped resource. If you're a developer and you want to get in on the action right there in the heart of the city, now is the time to do it. There's still a lot of property that can be claimed and relatively inexpensively at that. It's only going to get more expensive from here out. If I were the investing type, I'd be excited about the opportunities there. If you had seen what downtown LA looked like when I moved down here 12 years ago and what it looks like now, you'd be astonished. It's all happened very fast. Sacramento is at that precipice right now and whoever gets the ball rolling is likely to reap the biggest reward.

 

[HndsmCelt]

Think BIGGER, the tech investors have big plans to take the NBA into the Asian markets the first teams in the door will do very well indeed, so well profit sharing is not an option.

 

[Glenn]

The creative minds involved make this exciting. I don't know the possibilities but I suspect they do.

 

[VF21]

Look at it this way: Our cute little city is growing up and a lot of very wise investors are willing to bet on a bright future for Sacramento.

 

[upinsmoke]

"Why so many owners flocking to Sac-Town?"

The Magoofs are wondering the same damn thing

 

[Livinthedream]

Probably a combination of a few things. Very few get to be part of a professional sports ownership group, and Vivek's phone line has basically been open to potential investors. If I had a few million to spare, I'd give him a call too. Another factor is Vivek himself as a business partner others want to work with. You don't get the sense of the ego and entitlement from him that some of the wealthy in this country have. It probably has something to do with him being an immigrant and not being a part of the establishment. Finally, it is what others are saying...the untapped potential of this market. But it's not just that, because this market has been untapped for awhile. It's the politicians in this city who are willing to work with investors and businessmen. That definitely has not always been the case in Sacramento.

 

[uolj]

I wouldn't be surprised if some of the non-developer investors were simply basketball fans that have the financial ability to do something many can only dream of.

And I don't think investing in the team is charity. Even at the absurdly inflated price the Sacramento group will end up having to pay, there's still a good chance that they will make a decent profit if they hold on to their shares for a little while. That doesn't mean it's a money-maker, but I doubt the investors are considering their investment to be lost money.

 

[kennadog]

The market is rebounding in Sacramento and, for investors, now is the time to jump in. Its actually almost late. Also, there is a business friendly Mayor and majority council, too, I would say. Not only will they have the plaza downtown to redevelop, but they will have 180 prime acres in N. Natomas ready to develop as soon as the flood moratorium can be lifted. Why prime? Its only a few minutes from downtown and the airport is just a short hop up I-5. And they will also have some other downtown properties they can develop or sell to other developers.

 

[Glenn]

The market is rebounding in Sacramento and, for investors, now is the time to jump in. Its actually almost late. Also, there is a business friendly Mayor and majority council, too, I would say. Not only will they have the plaza downtown to redevelop, but they will have 180 prime acres in N. Natomas ready to develop as soon as the flood moratorium can be lifted. Why prime? Its only a few minutes from downtown and the airport is just a short hop up I-5. And they will also have some other downtown properties they can develop or sell to other developers.

Thank goodness for a political atmosphere that has helped surgically remove the citizen's collective heads out of their nether regions.

I have several other reasons why these geeky types would want to be a part of it but won't bore people with my ideas. They are speculative but could be a big deal.