I’m sure Larry Ellison is much more likely to be involved in this now that a preliminary meeting arranged by a mutual friend was leaked and he becomes subject to media scrutiny down there. That’s just how rich guys like to roll. They love to be referred to as whales and don’t consider the term derogatory at all. Most importantly the really wealthy always appreciate being involved in media sideshows with every day press conferences announcing every insignificant move.
Ellison has taken a pass. Sorry to Carmichael Dave.
Ellisons out then?
KJ, can you be like Chris Hansen .
Speak softly, and carry a BIG STICK !!!!!!!!.
Interesting note , If the city of Seattle doesn’t
get a basketball team in 5 years starting from 2008,
departure of the Sonics to OKC till present 2013.
Clay Bennett will have to pay the city of Seattle, 30 million
dollars from the 2008 relocation settlement.
Interesting enough Clay Bennett is the Chairman of the Relocation
Committee.
How ironic is that Bennett, will have to make that decision on the possible
move of the Sacramento franchise to Seattle.
I say, relocate Sacramento to a bigger market like Seattle, and save your
self 30 million dollars in the process.
Now thats a win win situation for everyone.
That was contingent on the state approving funding for the remodel of Key Arena. Didn’t happen, so Clay Clay’s off the hook.
This may be too early but you all should attend this saturday. A sonics “we’re back” party at oskars. http://www.facebook.com/events/122220911284005/
I can confirm what Brian is saying, I have a source that managed to have talked to a guy that talked to a guy with knowledge of the situation.
Michael McCann @McCannSportsLaw
@CarmichaelDave It’s possible bankruptcy and right to match issues could lead to injunctions. And Johnson knows that - gives him more time.
Shawn Borin @bgpappa
@McCannSportsLaw @CarmichaelDave Yep. Prospect of lengthy litigation will make NBA nervous. NBA does not want this to drag out.
So one is speculating that a lengthy litigation will cause NBA to reject Sale to Seattle’s group.
Im sure the league will not appreciate this way of “saving” the team…..
agreed i don’t think they would like Sacramento suing.
Sactown is throwing this out, that is if we believe what they are saying, Hansen could have already vetted this info
Carmichael Dave @CarmichaelDave
@McCannSportsLaw it’s what I’ve been calling the “Ness Method”. Got Capone on tax fraud. Not sexy, but effective.
Sac better not abuse these whales. Greenpeace and other animal rights groups might not be too happy.
So my guess was probably correct then?
KJ: Please Larry, I got no-one else. How about you put in an offer, and wait until I’m out of politics before you pull up stumps and head to San Jose?
Larry: Get knotted.
Should be interesting to get a legal read on this.
56s Michael McCann @McCannSportsLaw
@CarmichaelDave Can you email the minority partner agreement to me at michael.mccann [at] http://law.unh.edu - thanks, much appreciated.
Carmichael Dave @CarmichaelDave
@McCannSportsLaw only if you promise to tell me what you think :)
View conversation
if its private trading company how in the world would Dave get a hold of the agreement?
because they are doing EVERYTHING through the press.
Exactly, if a whale farts then we all have to smell it.
Good question
Theres no way this is something hansen overlooked. No way
Hughc5,
by slim chance it was overlooked who says it won’t get settled in court with a few million dollars. Not all litigation ends up with a judges ruling.
Im just sayin this doesnt seem like something he would overlook. But youre right
Whale watching directions from Sacramento.
http://www.chriswhalewatching.com/directions.htm#SF
From Sacramento, CA:
- Starting in Sacramento take CA-99 South/I-5 South
- Exit I-80 West towards San Francisco
- Exit I-680 exit towards Benicia/San Jose
- Exit US-101 towards Los Angeles
- Exit CA-156 West towards Monterey Peninsula
- Continue on CA 1 South towards Monterey
- Exit on Del Monte Avenue
- Turn right into Fisherman’s Wharf
Nice!
I don’t know if anyone heard Art Thiel on KJR this afternoon. He said the sale is anything but a done deal, and, if Sac come up with a reasonable offer, BoG won’t approve the sale. He says standard NBA preferences are to keep the team in its current city, and the only reason the Sonics got “special treatment” was because the NBA saw I-91 as a giant “f*** you” to the league from Seattle voters.
Art Thiel moonlighting for the Sac Bee? Sounds like some the nonsense spewing out of Sac reporters in their articles…
Yeah, if you read the comments in the last post we go off on Art’s thoughts.
And yet he doesn’t take into account of the potential black eye and PR nightmare the NBA would get from screwing seattle AGAIN.
I question that he actually knows what I-91 actually is. It was not a no to public funding but a no to throwing out money with out getting a return investment.
An hour of random speculation.
exactly i rolled my eye balls almost every time Art spoke.
It could be that the station positioned Art as a “devil’s advocate” in order to have debate with Elise.
the only way SAC stays is if we get expansion for 14-15/15-16. I just don’t see how they can tell us to wait for the next available team-again. by the time that comes it may be too late in our deadline.
Question if Sac can’t get the whales then whats the point in trying to delay the inevitable of Kings being relocated to Seattle.
Stop it, nobody likes a quitter.
Go KJ, have a news conference twice a day!
He has nothing to lose by keeping up the fight, and could position his city as the next in line, with interested local developers.
That’s what I’m saying. the only way the league saves face from a PR nightmare should they reject the sale to Hansen is to take the medicine and promise us an expansion team for 14-15 or even 15-16.
Peter, if Sac can’t get the whales then why would NBA reject the sale to Hansen.
This is all just a conspiracy by Stern to destroy Save Our Sonics. Once Seattle gets a team, they’ll finally stop bugging the league.
I think the deal is unstoppable because it’s what the league wants… No doubt in my mind that Stern’s deal with us was to drop the lawsuits and we’ll get you a team. Nickels, and then Schultz, complied. If this really happens then I guess they made the right choice- as much as I hate to admit it.
KJ will probably get a similar offer soon if he keeps up the fight.
Monday was a great day for Us all! Chris does not put anything out unless it is legit. He has been straight forward and honest with us. Put your trust in him and let his lawyers and himself do the work. WE WILL WIN!!
It all boils down to the fact that we have Chris on our side. He knows what he is doing.
EXPANSION IS NOT HAPPENING!!!!!
i think what hugh is trying to say is that expansion is always possible
Ha!
So you’re saying there’s a chance!
LOL
Sonicsman
I agree, Sac is backed in a corner and throwing things against the wall to see what sticks. You notice how quite Chris and the Maloofs are, they are not going to get in a battle with the press. Chris has been one step ahead in the whole process. I am off the roller coaster and on the train to the station
Chris is kinda like the kid in the classroom who put a tack on the teachers chair. Everyone but the teacher knows its there. Until she goes to sit down, it’s like The Charlie Brown cartoons, all he hears is “wuh…wuh wuh….wuh…wuh wuh wuh wuh”.
I am digging that Suns pg.
He has a sweet between the legs dribble (right to left) that has this slight lunge that looks like he is taking a first step, but he picks the ball up with his left hand to a step-back jumper.. For a 3.
If expansion isn’t happening, we better hope Wojo’s report is right and this goes through. if kings stay, I don’t see bucks coming here either, and probably not within our 5 yr window. if they keep on giving other cities a chance to match they all will. so I guess what I’m saying is, if not the kings then we better hope expansion. but lets have that conversation in a month after the ASG if we need to.
Chris Daniels @ChrisDaniels5
Seattle Center Director Robert Nellams tells me about NBA at @KeyArena “there will be enough dates available so you can do 41 home games.”
Chris Daniels @ChrisDaniels5
Nellams tells me about @KeyArena “the reality is it could host the NBA again right now.” #NBASeattle
I love similtaneous posts. It means we all are paying attention.
But the anti-arena crowd said playing at the Key would be bad because it would displace so many other events. It must be true because they said this after spending a year saying “Why not play at Key Arena?” Wait…I’m confused.
Chris Daniels@ChrisDaniels5
Seattle Center Director Robert Nellams tells me about NBA at @KeyArena “there will be enough dates available so you can do 41 home games.”
Chris Daniels@ChrisDaniels5
Nellams suggests need for upgrades in technology and amenities at @KeyArena for NBA, but lots could be done in “two months”. #NBASeattle
Carmichael Dave @CarmichaelDave
.@McCannSportsLaw: As I read it, 9.02 A (page 14) is the key provision - it reads like a right for non-selling owners to match the…..
Carmichael Dave @CarmichaelDave
.@McCannSportsLaw: price paid by the buying entity of the share. So the minority owners seem to have the right to match Hansen/Ballmer’s ..
Carmichael Dave @CarmichaelDave
.@McCannSportsLaw …Hansen/Ballmer’s bid. I assume this clause was not written for them, but for Maloofs, but they still benefit from it.
Hmm so question is was this ROFR violated or not.
Sounds like it. I think. I doubt the nba is going to appreciate this mucking things up though…..
Sounds like it was violating or sounds like there is a ROFR?
So with the 7% going up for auction…wouldn’t any existing owner of the Kings have the right to match any winning bid?
I think it’s less a worry about the 7% and more that it reveals that the non-selling owners can match hansen’s 65% - right?
So this is bad? The non-selling owners would have to match themselves, they can’t partner with additional investors on the shares, correct?
Sounds correct to me.
Looks like each of the three(?) remaining non-bankrupt minority investors had a chance to match Hansen/Ballmer’s offer.
$10 says this happened in the background a long, long time ago when the Maloofs first tried to sell the team, and they know the minority investors’ top figures.
I imagine asking the three guys to match a $525mill evaluation by themselves lasted about five seconds.
in a month the only way we can be sure we meet the 5 year deadline may be to hope for expansion. don’t get so confident, I wont be sure this is a done deal until I hear stern speak on it.
Seriously, dude. Enough with the expansion talk. It’s borderline trollish at this point.
Every credible source says this is a done deal. Only news to the contrary is coming out of Sac. The huge increase in franchise value from this single sale alone almost locks it up. Why would they ever take money out of their pockets for Sac?
Hold on may not be as much of a done deal this ROFR issue could potentially delay things since non of us know if Maloofs offer the deal to the minority owners or not.
Dude, I’m this [ ] close to adding “expansion” to the list of words that send posts to the spam file.
i agree
Its getting annoying.
Or you can just BAN the offenders
I’d support that
Is the spam list open to expansion?
The BoG won’t be giving up a 30% increase in each of their franchises values, plain and simple. All that’s left to do is watch the Dac spiral into lunacy and hope the Kings lose to secure a high draft pick.
Sac not Dac
Michael McCann @McCannSportsLaw
Thanks to @CarmichaelDave I have read what appears to be #Kings ownership agreement - there is a right to match. See his page for more.
Question is it up to maloofs to show offer to minority owners or is it up to the minority owners to claim ROFR?
As the owners, it would surely be on the Maloofs.
“Hey guys, we got an offer, care to match it?”
As I said above, I’d be highly surprised if this hasn’t already occured, and that it was over in minutes.
Dammit
Now all they have to do is what they have been unable to do, which is actually match the actual offer.
Do they remaining minority owners want to send $341 million dollars for 65% of the franchise?
And make that pencil out in Sacramento.
Starting to get rather worried about this whole matching part crap. I would assume Hansen and his army of lawyers have vetted every in and out. Seems all the Sac fans feel it is a done deal the Kings are staying. NBA cannot help but not like KJ’s constant crying wolf!
Here’s some Sacramento whales…
http://www.nmfs.noaa.gov/pr/health/sacramento_humpbacks.htm
“A humpback whale named “Humphrey” similarly swam up the Sacramento River in 1985, reaching Rio Vista (where the whales were observed on Monday). He was successfully guided back to the Pacific Ocean using a “sound net” in which people in a flotilla of boats made unpleasant noises behind the whale by banging on steel pipes, a Japanese fishing technique known as “oikami.” At the same time, the attractive sounds of humpback whales preparing to feed were broadcast from a boat headed towards the open ocean. Humphrey returned to San Francisco Bay a second time in 1990, and became stranded on a mudflat near 3 COM Park. He was successfully pulled off the mudflat into deeper water with Coast Guard assistance, and again guided back to the Pacific Ocean. Since leaving the San Francisco Bay in 1990, Humphrey has been seen only once, at the Farallon Islands in 1991.”
So he hasn’t been seen in 22 years. Not a good sign.
I hope so. agreed, wont mention E word again until we find out how this goes down a month or so from now. hopefully it holds up and SAC comes here, making that sort of talk meaningless.
Michael McCann @McCannSportsLaw
@lawdood @CarmichaelDave If they form a group which includes outside investors & then match, Maloofs could say contract doesn’t say they can
I dont understand this
Basically someone asked if these minority owners could form a group or fashion some type of loan, in order to match Hansen’s bid.
i hate twitter
The actual minority owners have to match, they can’t bring in another person to pay their way into ownership by matching.
The only way into ownership from the outside is, follow me, to buy the 7% that is being auctioned, and even that part can be matched by an existing owner, even a Maloof, depending on the timing of that sale.
I think i read the auction would be around April BOG meeting.
mitch levy @kjrmitch
We’ll discuss this and how worried we should be about it - tomorrow morning at 7am
For all we know the minority owners may have akready waved these right before the deal was signed by Hansen. Only Hanesn, and a few other people know the fact.
Kevin Smith @ksmith1984
@McCannSportsLaw @VitisVinifera2 @CarmichaelDave The NBA has requirements on how leveraged their owners can be in any agreement.
Expand
2m Michael McCann Michael McCann @McCannSportsLaw
@ksmith1984 @VitisVinifera2 @CarmichaelDave Great pt-that’s true. NBA has limits on allowable debt. Could prevent minority owners from match
And that could be our saving grace.
Probably already has been.
Gene - thanks for quoting my post! Glad to see the reply from McCann. I cannot see the NBA approving any deal where a minority owner leverages up to match the offer. This just won’t fly with the NBA.
so they screw seattle over a ROFR.
No worries I’m glad both tweets copied right this time.
The NBA will not allow a minority owner to borrow heavily to buy the team. That is in no way shape or form an acceptable buyout option under the NBA’s bylaws. Either the minority owners are flush with cash, and can put down $340m as a match offer, or they will be rejected by the NBA. A loan simply won’t work.
McCann also tweeted that there is nothing in the agreement that says a minority owner couldn’t match the offer via a group of outside investors.
IF there is a Sac whale that can and is willing to match, this would be the avenue for things to get very messy.
In chris we trust i guess. Lets see how this plays out
Yea nothing we can do about it
@ed_m7 @CarmichaelDave Contract doesn’t directly say Maloofs would be forced to accept match, but wording implies that. Would be litigated.
pmpman @paulpetyo
@McCannSportsLaw more than anything, could help persuade the NBA to force maloofs to accept sac offer to avoid messy litigation?
NBA can’t force Maloofs to accept seesh why people think that.
An owner can not be forced to sell, even if Hansen was denied and the league preferred the matching offer. Maloofs could just say “no thanks” and not sell at all.
People really need to keep that in mind.
agreed that’s the one thing that i annoyed with.
And in that case they keep the $30 mil from Hansen, and the value of the franchise is inflated, and they could realistically look at an arena remodel.
It would really suck, but that’s as much a possibility as some minority owner matching Hansen, IMO.
Stephen Turella @SteilacoomHawks
@McCannSportsLaw Why would Hansen/Ballmer enter into agreement if they knew about this right of first refusal upfront?
Michael McCann Michael McCann @McCannSportsLaw
@SteilacoomHawks They may not see it as threat - can minority owners come up with all that money (& can’t borrow it due to NBA debt limits).
Guessing Hansen knew about ROFR, but also knew about how much debt the minority owners could leverage and felt good enough. Either way this thing isn’t over
Well i’m concerned if this goes to court and that could delay relocation to a year.
No doubt at all in my mind that the Maloofs would have had to lay this on the table as they negotiated.
They’d know the guys’ figures. Chances are that they probably tried to sell the team to these guys first a long time back.
rolla coasta
here we go again.
I’m somebody @PolishLogic
@CarmichaelDave @McCannSportsLaw possible reason for overlooking clause: interpreted it to only apply to the majority prtnrs?
Michael McCann @McCannSportsLaw
@PolishLogic @CarmichaelDave Maybe, but wording in contract did not (intentionally or not) distinguish majority v minority owners there.
hmm so vague wording
Michael McCann @McCannSportsLaw
@CrownDowntown They would have to match what Hansen/Ballmer are paying, and NBA debt limits mean they can’t borrow it all.
Michael McCann @McCannSportsLaw
@Brando817Halien No, they minority owners can group together to come up with the $ (but still a ton of money and not clear they can/want to)
Details
So 340m then.
All this ROFR, the minority owners went from being part owners of a $300mm team to a $525mm…more than a few of them I’m guessing will happily pass. Ellison, Mastrov and Burkle obviously are not going to get involved, otherwise there names wouldn’t be leaked to the Sac media.
Good question did they pass or not.
I’ve got $10 on them having already passed. :-)
Michael McCann @McCannSportsLaw
@SactoKingsFan @CrownDowntown If it goes to litigation, that would make Kings playing in Seattle in 13-14 much less likely. Clock is ticking
My god. There’s zero news that any of the minority owners would even exercise this right. Big “whale” names get published in the sac bee and these desperate fans take it to mean they’re actually in the bag. This is so frustrating to witness. I guess it’s all part of the grieving process. 1. Denial..,
When the national media starts reporting on “whales” being interested in flushing money down the toilet in Sac, then I’ll start worrying, as its sits, they’ve moved on our are actively mocking Sacs efforts.
Exactly. Most of these guys didn’t get rich by being careless with their money. The possible exception is if they inherited it like the Maloofs.
“@McCannSportsLaw: @ksmith1984 @VitisVinifera2 @CarmichaelDave Great pt-that’s true. NBA has limits on allowable debt. Could prevent minority owners from match”
Here comes Mitch on the issue. Stay tuned…
mitch levy@kjrmitch
Been working on the latest Sacramento story claiming that the minority partners have a right to match Hansen’s price.
mitch levy @kjrmitch
We’ll discuss this and how worried we should be about it – tomorrow morning at 7am
Must not be that serious if he is talking about it tomorrow imo
I think some people are freaking out over nothing. Remember how many times something came up 5 years ago that gave us false hope that amounted to nothing in the end. Maybe I’m being naive, but I just trust Chris so much that I’m not worried. Yes, I get sucked in to the “the sky is falling” at times, but I don’t give in to it. Kings are coming to Seattle, bet on it.
James,
denying a minority owner their right of first refusal is serious problem and since Maloofs/hansen are staying quiet we don’t know if this is a huge setback or not.
For all we know, the three week delay in the deal’s announcement could have been giving the minority owners time to match the reported amount.
True enough
Paul Rogers@RPaulRogers
@McCannSportsLaw does the fact that hansen is buying a minority share in addition to the maloof share factor into this at all?
Michael McCann@McCannSportsLaw
@RPaulRogers Might but minority owners could decline to match minority share being sold but match majority = keep team, Hansen gets minority
Paul Rogers@RPaulRogers
@McCannSportsLaw what i meant tho was does the ROFR also apply to hansen with his minority share?
Michael McCann@McCannSportsLaw
@RPaulRogers Timing would matter there - can they match majority share before they decline to match Hansen buying minority? More litigation!
Interesting so technically if NBA rejects sales it would open themselves to litigation?
Reasonable answer to that…
Michael McCann@McCannSportsLaw
@AmadorNante Hansen suing NBA if this falls through is possible but if he ever wants to own an NBA team - or an NFL/MLB/NHL team - he won’t.
If maloofs screwed up it doesn’t seem fair to punish hansen.
bleh someone smack me for failing to look at which reply i clicked on.
You sound like Sac fan talking about “fair.” The idea that Hansen and Balmer would not have planned for or addressed this already is impossible. IMPOSSIBLE.
If the nba screws Seattle and Hansen a second time I say screw the nba. Hansen does not seem
To be a guy that just wants to be a nba owner unless it’s seattle
Otto,
You do realize this would essentially prevent us from getting NHL if no NBA.
Even more interesting… if Hansen put the minority purchase through first and it went through, then had the majority matched by someone else, he has ROFR to match that?
This is getting so ridiculous that I can’t see any way of it being anything more than a Sacto hope angle.
God this is getting like a Monty Python skit. lol
Exactly. Sacramento fights for its team.
http://www.youtube.com/watch?v=kcSMaNlcDPs
I agree i knew it was gonna get messy.
It’s only messy emotionally.
Hope angle all the way. Which when you have 3 embarrassing press conferences in a row and some leaks to the local newspaper, this is what you end up pining your hopes to. There is no hope, so they’re manufacturing it.
Lol interesting, if Hansen bought minority share, he would also get ROFR hah
Bottom line:
“@McCannSportsLaw
@RealMurphdog916 I’m nearly certain they knew about this clause - they are smart and have good lawyers - but probably don’t see it as threat”
Exactly.
Amen. They’d know how much the minority guys have in the bank.
No chance this wasn’t accounted for. Probably helped to set the price. :-)
That’s why KJ’s trying to recruit whales (no that’s not a derogatory word, snicker). Question is should recruit Ellison is it a deal with the devil?
So 53% which is the Maloofs percentage would mean a match of 278.25 million dollars for the Maloofs percentage. So, if the clause is as Mccann says, that would be the amount the minority owners would match.
From what Mccann says it would seem that even if an individual only had 1%, they have a right to match. This could end up being a problem, or not. Who knows?
Hansen’s diligent & meticulous process thus far - - - - he already knows this and planned & protected the PSA accordingly. Seriously, this is one incredibly intelligent and patient businessman. No offer was made or PSA executed without him knowing precisely about ROFR.
Someone give me a time machine so I can skip to mid April. Getting a team or not, I just want all of this to be over.
mitch levy @kjrmitch
I think I will start the segment tomorrow with a little Bobby McFerrin
Sounds positive to me
In case anyone is wondering Bobby McFerrin had a song called “Don’t worry be happy” I’m not sure if that’s one of the songs Mitch plans on playing but its the first one that came up when I googled “Bobby McFerrin” lol
I had a feeling it was that song.
Agreed.. Now I can go to sleep.
Im 100% positive it’s that song. There are no other McFerrin songs people reference.
Well, the B-Side to that single was “Don’t Get Your Hopes Up About that Basketball Team Because A Lot of Convoluted Legal Mumbo Jumbo Could Derail Your Dreams”.
Huge hit in Canada, didn’t break the top 40 in the US, though.
Hey Sean, are you Pinksheets?
Yessir!
Right on. Thought I noticed a similar tone.
If he had done enough research to know about this clause he must be some magician. Mitch does not know. Mccann sports law is researching this still. Mitch has no more answers at this moment than Mccann.
One thing you all should know; “Don’t Worry, Be Happy” was the theme song for the 1992 presidential campaing of George HW Bush. He lost to Clinton.
All Mitch needs to know is whether the existing minority owners:
a) Knew about it;
b) Had an opportunity to match; and
c) Did something about it.
I think you’ll find the answer to all three was “yes”, and what they did was “thanks, but I can’t”.
LOL. You’re really grasping at straws, aren’t you? Considering Mitch’s source is Ballmer, I wouldn’t be surprised if he knew more than McCann.
I have no problem with Hansen buying an NBA team, so exactly what straws am I grasping at?
Because you keep concocting scenarios in which this won’t work out for Seattle. Spinning Mitch’s use of an optimistic song as a harbinger of bad news because of its association with a losing presidential campaign was your most humorous attempt yet.
No, I said that Mitch does not know about this clause. I said that Mitch doesn’t know. That’s all.
So, some song does not mean anything.
As for the use of the song in a presidential campaign, I thought it would be interesting for people to know.
Mitch’s research:
Hey, Steve (Ballmer), its Mitch. What’s the deal with this ROFR Clause?
Uh, Hansen and his people would have way more information on this than anybody in the media, as they are actually privy to the deal itself and everything the Maloofs had.
How’s the weather in Sac, btw?
Another “UHer”. Since when is Mitch Hansen and his people?
Holy shat. You are delusional. I feel sorry for you. Research is not action, names in the local newspaper is not a investment group. Have hope, but tether yourself to reality.
In what way is an individual who does not think Mitch knows more about this than Mccann sports law delusional?
Is Mitch going to pore over California case law all night. I doubt it. I bet Mccann will.
All night? What does he have to gain from that? The fact is Mitch ‘s source is most likely Ballmer who took his billions of dollars and hired a team of lawyers to do all the necessary pouring over of California law. Don’t mistake some guy on Twitter looking to pick up some followers as someone genuinely giving a crap.
Look, I think most of the crap we hear about this deal is full of it. The ROFR issue was brought up on this thread. The claim was made on this thread that Mccann sports law had a copy of the minority owner contract. I simply made comment on the information found here on this thread.
Also, it is not “the fact is” if what comes next is “most likely”. Neither you, nor I, know a damn thing about what Ballmer has done. Don’t mistake your conjecture as “the fact is”.
Wrong. “Don’t Worry, Be Happy” was Poppy Bush’s campaign song in *1988* — the time he WON.
Thanks for the correction.
Somewhere in San Francisco, Chris Hansen is reading this thread and getting a good laugh out of how much we are all freaking out about his “oversight.”
Is 278.25 million dollars to gain ownership control of a 525 million dollar franchise out of the question? I don’t think it is; and I doubt Hansen thinks it is funny.
Yes, because that’s less than Hansen’s share.
Hansen is reported to be buying the Maloofs 53%, and another partners 12% to make a combined 65%, which with the franchise valued at 525 million equals 341.25 million dollars.
The Maloofs 53% would be all that a minority partner would need to gain control of the franchise. The amount for the 53% is 278.25 million dollars. That is what would have to be matched. The other 12% would not matter as much, and would not be needed to take control of the franchise.
So, 278.25 for the Maloofs percentage is not less than Hansen’s offer.
No they wouldn’t. ROFR means that they would have to match the new buyer’s full share, which is 65%.
No it doesn’t. They could take up the right on the Maloofs’ percentage, and not take up the right on the 12%. They would not need the 12%. 53% plus whatever percentage the minority owner has gains control of the franchise.
Yes they would. We could do this all day. ;)
Okay, Why couldn’t the Maloofs percentage be purchased, and not the 12%?
Huh? Not sure what you mean, but I don’t think it’s worth $525M w/out the move/new arena/new local tv deal/etc.
It’ll be more like $287M for 65% of a franchise worth $320M.
Yeah, that franchise ain’t worth close to that in Sacramento. Smaller media market, inferior economy. Just not nearly as much money there.
Don’t forget, the Sacramento arena plan requires the ownership group to contribute at least $75MM on top of that as well.
Hansen says it is worth 525 million dollars; and the new valuations of NBA franchises at Forbes says it is worth 525 million dollars (there was an average 30% increase in franchise value over the last year, according to Forbes. The Knicks the most valuable at over a billion, the Lakers second at 1 billion).
There are a limited number of franchises, I do not think that the value of the Kings would be reduced much if this deal fell through.
Wealthy individuals wish to buy NBA teams. There is demand. The Warriors 3 years ago sold for 450 million.
That was three years ago.
I don’t even think the matter of how good the team is matters anymore to the price. I think it is the limited number of franchises (scarcity) that sets the price today.
So, unless (or maybe even still then) the banned (Peter’s favorite word) E word happens, I do not think the franchise values will go down.
Then you don’t understand the situation. The franchise’s value shot up because of the deal and for no other reason.
You leave this team in Sacramento, they’re not valued top half of the league, my friend.
Sean, The value might have shot up for the Kings because of this deal; but now the value of all the franchises have gone up. I do not think that the purchase price for the Kings is going to go down very much, or at all, if this current deal does not happen. I think that the new Forbes valuations on NBA franchises will stick.
It is if you don’t have it to begin with (or don’t want to spend that much).
You don’t think the minority owners would have tried to buy the Maloofs’ share a long, long time ago if they’d actually had the money to do so?
With the way the Maloofs have ground the team into the dust?
I think you’re extremely naive to the way the world works if you don’t believe Hansen has a 50-tab spreadsheet that analyzes every possible outcome here. I guarantee he has weighed this ROFR issue and determined that either: (1) the clause doesn’t exist or is unenforceable; (2) the minority owners can’t afford to match; or (3) they can be paid off.
Precisely
SMK, On (1) Mcann sports law supposedly saw the contract and says the clause is there (supposedly), (2) probably not; but could others invest through them? (3) I bet that they could be payed off.
Who let Traven in here?
This is the Traven who fought the arena on the Times boards, right?
I believe it is.
If it’s the same guy, I’m impressed with his restraint. He was a complete wacko in the Times comments.
Who the heck is Traven - — - and why ?
Yeah no kidding
Problem is:
1. An existing minority owner has to decide it’s a good investment to drop 278 million for a 53% share of an NBA franchise in Sacramento, with very limited TV revenue opportunities. Are any of these existing minority owners “whale” enough to do that for a valuation that makes no sense for the Sacramento market?
3. Negotiate an entirely new purchase and sale agreement with a now hostile Maloof family. Or would they just take over the Hansen/Ballmer side of the existing purchase agreement? This would have to be settled.
2. One of these minority owners would then have to quickly arrange the financing for a new arena (public/private?). How quick are arena plans ever consummated, and how much additional capital requirements would be required of these non-whales?
4. The new owners would then have to convince the NBA to accept them as the new owners (within acceptable debt/equity limits for NBA) instead of the preferred Hansen/Ballmer group
Just don’t see all this happening. Can they muddy the waters a bit with potential litigation? I suppose, but I don’t think that ultimately stops the sale. Remember, a valid building lease with 2-years remaining meant nothing to the situation in Seattle because in the end the NBA wanted the move to happen.
Now, I think the move to Seattle will happen because that is what the NBA now wants. Potential litigation can and will be settled.
Ooops, got my numbers mixed up! Should be 2, then 3!
Oh, I don’t see it happening either; but stranger things have happened.
Chris is kinda like the kid in the classroom who put a tack on the teachers chair. Everyone but the teacher knows its there. Until she goes to sit down, it’s like The Charlie Brown cartoons, all he hears is “wuh…wuh wuh….wuh…wuh wuh wuh wuh”.
Why is my clever little comment in moderation?
It is not surprising, but is odd how different our thoughts are compared to Sac about this right to refusal clause and the potential “whales” KJ has coming. It’s like night and day. I know we’re all clinging to the fact that we want to see basketball in our respected cities, but it amazes me how much momentum Sac fans think they have right now.
That’s the smell of desperation.
It’s denial. It’s the Schultz lawsuit once the Sonics were already playing in OKC, but even less substantial. I hope there’s a fourth KJ presser tomorrow because this is getting comical.
Actually, I think they sound kind of down, even they seem to be perplexed & dissappointed in KJ’s pressers. They’re becoming a non-event and a joke at this point.
How ’bout a somewhat relevant dumb joke while waiting for my clever little comment to pass through moderation. What did the doctor say to the midget? “I’m sorry, you’ll just have to be a little patient”.
Haha! This thread’s ROFRcopter! :-)
anyone check out the new pelicans logo/merch? surprised to see they already have a bunch of stuff up for sale. it always amazes me when something huge like this actually stays secret ESPECIALLY when it involves having product immediately available upon reveal of the logo. its interesting to think about how many different suppliers/factories/designers/web developers etc…. all had to have seen this and managed to keep it under wraps. pretty impressive.
sooooo… do you guys think our new sonics logo/branding is already developed and finalized? is our merch being made in factories around the world as i type this? its gotta be right?
I hope so…
me too.
Pelicans ? Ugly . I hope we get input on Sonics gear design. Won’t buy anything now as Clay Clay gets paid on it.
I’m hoping so
Yes
For all we know, Hansen so this as a possible rabbit trail that would make the SacTown guys waste more time..again he is playing chess they are playing checkers as someone earlier stated
Yeah, I loved that line, too !! So well put.
He’s not even playing anymore. He beat them, walked away from the table, and now they’re just bashing the chess and checker pieces together while foaming at the mouth with desperation.
Better yet - - - Thanks !!
Zombies, take II
Geez people…here’s a concept….
Hansen already bought a minority portion of the team, in addition to the controlling interest, did he not?
Wouldn’t that mean that at least one minority owner had been informed of the sale? Could that possibly mean that all minority owners had been informed as well, and with no “match” offered, they proceeded with this sale?
Would the Maloofs only let one other partner know about this, and keep the others in the dark?
Maybe the answer is yes to the last question and no to the 2nd question, but we’ve also been informed that discussions between Hansen and Maloofs have been going on for a while (long before we heard of any sale). May be worth considering that the opportunity had been presented during that time, for minority owners to match.
Personally, I do not trust the Maloofs as far as I could throw them. The Maloofs always seem to screw over anyone who does business with them. The Maloofs do not seem to have any regard for honesty, and seemingly do not care about the adverse results of their actions on others. I would not be suprised if the Maloofs just wanted the 30 million non-refundable money, and then work to destroy the deal. It seems like Hansen should have this purchase of the Kings; but this is the Maloofs.
Yep. Hansen and Ballmer just got had by the f**kimg Maloof’s!!
All over $30 million too…
Well, if the Maloofs ever want to actually sell the team, backing out on this deposit would not engender a lot of trust in future buyers. Not exactly in their best interests if they are indeed looking to sell, all for a measley $30 million. I get the feeling the Maloofs need a lot more than $30 million to bail them out of their current financial woes. As shady as they are, taking the deposit and then somehow working to torpedo the deal isn’t in their own best interests, which is no doubt their primary motivator.
Man, if they back out of this one, David Stern is personally walking over to their houses with a bunch of heavies and aiming for their kneecaps.
And then he’ll open the invite to Seattle fans. :-)
The Maloofs do not need to back out. The Maloofs could have other blow up the deal. Shoot the Maloofs have said they wish to maintain ownership in the team.
The Maloofs could even sell 20% (105 million dollars) of the team to the minority owners, giving the minority owners control, and the Maloofs would still own 33% of the team. The Maloofs are not interested in pleasing Hansen, the Maloofs are interested in pleasing themselves.
The agreement has already been signed and there’s nothing the Maloofs can do. Repeat, NOTHING. The only way they get back into the picture is if the BOG decides to reject the sale. Then the Maloofs get their shares back and are back to square one.
I did not say Hansen had been had by the Maloofs.
I would not put it past the Maloofs to work to blow up the deal for 30 million dollars. 30 million dollars is not chump change. The Maloofs would still then own the franchise.
Hansen has diligently & meticulously prepared. There are no surprises. The line above - - - “he’s already beat them and walked away from the table” is perfect. I think that will be Mitchy’s take and why he will be playing “Don’t Worry - Be Happy”
here’s the corrollary (sp?) to the don’t worry be happy song: Paranoia may destroya…
That’s from The Kinks’ “Destroyer”
http://bit.ly/1kG6oJ
Just had a glance at some Kings boards and they have convinced themselves Rllison, Burkle and Mastrov will buy the team via this FROR. I don’t know, I’m trying not to becam asshole, but they amount of fact shaping going on to create a narrative where the Kings stay in Sac actually made e laugh out loud a couple times.
This mccann sports guy may very well be a great lawyer who knows what he is talking about, but to assume hansen/balmer didnt have lawyers just as good if not better looking at the same things that this guy saw in one day or for the few days hes been looking at it is absolutely preposterous to me. I dont see how there is anything in this sale agreement that wasnt thoroughly looked at by hansen/balmer and their attorneys. I’ve seen it written many times on these boards, these guys didnt become billionaires in business by overlooking details in business contracts.
Exactly !! We will be laughing about this when watching a game @ the Key.
Plus, none of us have seen the purchase agreement. Maybe there is an escalation clause which ups the purchase price if a minority owner asserts the ROFR. Saying the ROFR exists is one thing, but saying that Hansen & Co. haven’t considered/dealt with it is something entirely different, and also almost incomprehensible.
McCann specifically acknowledged that Balmer/Hansen most certainly would not overlook this because they are very smart with very good lawyers. He’s just been fielding a million questions from Sacto folks trying to shape this thing into something more crazy than it really is.
Like others have said, our guys are not worried about this. Behind closed doors this has already been addressed and dealt with. In no way is this ROFRCOPTER stuff going to stop this train from Rollin down the tracks
You guys like roller coasters waaaaay too much, haha
From the mid-1990′s until the financial meltdown, it took no great genius for those with careers in the financial sector to get very wealthy. The Maloofs, Hansen, Ballmer are people. Just like you, or your neighbor.
I think we should rent a couple of large suites for the opener. Bring the tissues - I know there will be some tears of joy flowing.
Hansen and Ballmers attorneys make more money than McCann for a reason.
I can hardly fathom how amazing that night will be. I’ve been trying to tame my excitement until this thing truly is a 100% guarantee but its getting pretty hard.
Kings need to suck harder to get a higher pick. Is this draft class coming up have any once in a lifetime talent types like Durant?
Nope, nobody quite that good. I do think there will end up being a handful of really solid, consistent All- Star types.
If the minority owners really did have a ROFR (that they haven’t already waived) and can afford to exercise it, or someone could buy the 7% minority share up for auction and then exercise a ROFR on that, then don’t you think KJ would be talking about it constantly? It just seems really unlikely to me that that’s what’s going to trip this up, it feels like a red herring.
I suppose KJ and the minority owners could be staying quiet in an attempt to use it as a surprise move but so far all the evidence we have points to KJ being as public as he can about absolutely everything.
Well kj just said yesterday that the minority owners are not even part of the conversation. He says they are doing their own thing. You would think that kj would want to work with them especially if there is this clause. Makes me pretty certain that if ROFR is actually in the contract the way people assume it has already been declined. These minority partners are likely not big money men (I will look into their names) and probably like the idea that Hansen will be aching to buy their shares eventually if he can. That means a 100%+ increase on what they bought in at (likely much higher). Additionally, the maloofs will be making capital calls on these guys for a second year in a row and maybe the sale will save them the millions they will likely owe.
Don’t know if this has been talked about yet. The NBA has a debt limit that owners can’t exceed. Even if Minority owners do have ROFR they can only borrow so much to buy team. In other words, they can’t accept Ellison’s money to buy the team for him.
living 3K miles away as I (unfortunately) do, i can provide credible testimony that back east, the national media is spending waaaay more time on the ‘what’s wrong with the lakers?’ story than on ‘wither the kings?’ just like they didn’t pay much attention when clay-clay yanked the sonics.
in the meantime, i’m not going to mock sacramento’s fans for grasping at straws, nor am i going to start believing that after years of torpor, art thiel suddenly started reporting again.
most of the action — cetacean or otherwise — happens below the surface. major kj is positioning for political benefit, which is perfectly appropriate.
i’m wearing my sonics tie to work today. a few pennsylvanians have idly noticed it over the last little while and said, “oh, aren’t they back or something?” either i scare them with the intensity of my response, or i simply smile cryptically.
it’s tough, being obsessed at a distance!
Feel ya Charlie. I’ve been talking to the one person in town here in Richmond who at least gets the issues, but it sure is lonely being a Sonics fan across the country. Hard to explain to people how you’re a fan of a team that doesn’t exist any longer. Well, f**k that noise! They’ll be back soon enough.
I’m already making tentative plans in my head for a trip back for opening night at the Key. That night will be almost too epic for words.
amen, supes-in-richmond. i’m also looking at a game next season at key. maybe we can meet up sometime when the sonics play the wizards. i’m in pennsylvania.