People need to understand that absolutely nothing changed last week. Every article and every tweet is indicative of an existing situation being made public or just some crazy speculation that has no basis in fact. It does not mean that something new is happening. The NBA is an aircraft carrier, not a jetski. It does not change directions that fast.
Billion dollar transactions march to completion and take slow, wide turns. IF there is one going on here any actual impacts on the transaction will happen over a span of weeks, not hours.
There were no new ownership groups who emerged in Sacramento, just some revelation of things that were already going on. It is very unlikely that there was a single substantive change in contract negotiations, let alone the dozen or so that were brought out by twitter.
From what I hear it sounds like the reason you are hearing two VERY divergent and contrasting story lines emerging has a lot to do with Kevin Johnson and the strong media relations he has. Stories like this one by Sam Amick can serve a lot of purposes.
First and foremost they provide hope, and hope can potentially result in time. They need time to get this going. If they lose hope then there is no shot. People will give up, the potential saviors will see the writing on the wall and it will be over. I can tell you that firsthand.
Secondly this type of “we will do everything we can to save the team” campaign continues to put the blame for the teams departure SQUARELY on the Maloofs. The implication that “there were groups in Sacramento that would have stepped up.” changes the legacy on this one forever even if the truth of the matter is that none of those guys really have the commitment or chance to make it happen. If people believe there were options and the Maloofs ignored those options that helps the city save a lot of face during very difficult circumstances.
Lastly these stories takes advantage circumstances and force guys who have expressed interest, but been unwilling to really commit to sh!t or get off the pot. Lots of guys want to talk about buying an NBA team but at some point people have to say they are willing to roll up their sleeves and get it done. This is the big challenge. It is not just a public statement of interest. They need one of these rich guys to come into work on Monday and tell their staff “I am giving up my regular duties for the next 2 months because it is going to be a full time job to save the Kings. If I am successful then this will consume me for the next 6-12 months at minimum.” They need that person to come out and start writing big checks to bring in lawyers and support staff and to agree that not only will they buy a team, but that they are willing to buy them at the huge numbers being thrown around.
Perhaps most importantly they have to deal with the fact that if they come out with the best of intentions, but after reviewing it determine that they simply cannot financially pay the price this team is going to trade for or disrupt their business and family to the degree this is going to require then the public is potentially going to view them as quitters or not willing to spend enough to make it happen. If they are not careful they could become one of the bad guys.
I don’t think it bodes well for them that since the original surge of interest their people have already backed off:
JMA Developers, who reportedly proposed a second site alternative (don’t even get me started on how disruptive that added complication will be) at their Downtown Plaza mall issued a statement today that they would not be bidding for the team. This group reportedly features potential angel Ron Burkle. Let me just say for the record that a preliminary feasibility study for an arena is not a plan. The city of Tacoma and Emerald City Center are other groups that have a feasibility studies for NBA buildings..
Sleep Train CEO Dale Carlson downplayed reports that he could be a savior and stated that he can’t afford to buy the team.
A third buyer Mark Mastrov has a reported net worth of $350 million and that has to be concerning.
So which one of these guys, or some other player is going to step up and get it done in 6 weeks? We don’t know.
I strongly encourage you not to respond so emotionally to every single rumor. It’s going to be a crazy time.
Take a cue from yesterday’s Seahawks game. You can get excited, you can get dejected and back again, but the game’s not over until the clock hits 0:00.
Great post Brian. This has been my guy feeling (and hope)- nice to see it on paper. Keep the faith Sonics fans, we have been blessed with the Hansen/Ballmer/Nordstrom group who have such clout and experience in major transacations. No comments have come from their camp which I have to believe is a good thing.
Great post Brian. You are spot on how this situation is playing out. It’s hard for all of us to be patient, but patience is what’s going to get us a team, and that team very well could be the Kings. We’d all love to hear an announcement this week especially after we need a pick me up after the Seahawks ending their season yesterday. However, we all need to realize that March 1st is right around the corner. Everything has to fall perfectly into place for Sacramento, and we already have what they want and need in place. Stay positive, stay patient Sonics fans! In Chris we trust!
Thanks for the post, Brian. Very calming!
@ChrisDaniels5
#Sacramento Fans launch #HereWeBuy site & take pledges for season tickets and convince David Stern to keep team there: http://ow.ly/gNrUm
@ChrisDaniels5
The #HereWeBuy site calls it the “final battle”…encourages Stern to award expansion franchise to Seattle in ’15-16. #NBAKings
I really required this post! Thanks!
Thanks for this Brian. It puts things in perspective. This doesn’t mean that Sacramento COULDN’T succeed. It does mean that they have a lot of catch up to do in a short period of time.
Brian also told us something during arena negotiations that is important right now. It was a very good thing that negotiations between Hansen and city council weren’t being done in public, other than the one Burgess-O’Brien-Clark press conference in the beginning. There was a long dark period where we really didn’t hear much of anything because NEITHER side was negotiating in public, where ultimatums and guilt trips tend to be given.
If negotiations are done in public, it usually means that they aren’t going well in private.
Of the three major parties in this issue (Hansen group, Maloof brothers, Sacramento leaders), which are doing everything in public and which are doing everything in secret?
Other than some unfortunate leaks, the Hansen group has been air tight on this. The Maloofs have been quiet for the most part as well. The civic leaders in Sacramento are making ALL of the public noise. God bless them for it because it’s their only recourse and it’s what they should do for their community, but it means that they are likely still on the outside looking in.
I still think Hansen will get this and I still think the Kings move here before next season. Things can still go wrong, but I think Hansen is in much better position.
Great post Paul! Btw have you been getting the message on Twitter to retweet a link to that Sonics Fever site that has all the Gold skyline logo shirts for sale? The shirts have the skyline logo and then something like “Thank You Chris” or “Hansen is my hero.”
Haven’t seen them.
@TaylorB1983
Getting one once the official announcement comes. http://sonicsfever.bigcartel.com/product/we-re-back-shirt … #sonics
They look cool. I’ve got my eyes on a new Sonics hoodie that I want to buy at the appropriate time. Please let it be soon.
Excellent point, Paul. I always said that “no comment” usually means more than a comment could. As they say, “silence speaks volumes.”
This was also the first thing that convinced me that Virginia Beach was a dead end. The mayor’s ultimatum.
Great post Brian. Thank you for clearing it up a lot.
As with anything, nothing is ever certain, even when you think you have victory.
But definitely need some good news hopefully out of the Sonics situation. Yesterday was painful.
Chris Daniels @ChrisDaniels5
#Sacramento Fans launch #HereWeBuy site & take pledges for season tickets and convince David Stern to keep team there: http://ow.ly/gNrUm
Chris Daniels @ChrisDaniels5
The #HereWeBuy site calls it the “final battle”…encourages Stern to award expansion franchise to Seattle in ’15-16. #NBAKings
Here’s an alternative. How about David Stern should respect the results of any sale between Hansen and the Maloofs and award Sacramento an expansion franchise in ’15-16?
In fact I think that’s what will happen. Seattle will get the Kings and when Sacramento has a consolidated project Stern will make an expansion. I think it’s the most probably option.
Sad to say…Sacramento will not be a worthy candidate for an expansion team
I agree, Stern should respect the results.
Have you guys listened to Stern’s interviews lately? Dude sounds like he’s checked out early. Everything from the Pelicans/Hornets debate to this ordeal, all his answers seem like a lot of words that boil down to “I don’t really give a sh*t.”
I do have a question though about Sacramento and their fuzzy math. Isn’t the relocation fee totally separate from rumored $525million? It seems like that would be a separate dealing with the NBA once the team was purchased by Hansen’s group and not part of the sale price.
YES, YES, and, …what was the other thing?…. Oh yeah. YES!!!
Thank you Paul
So Sac has no discount rate and they have to match the 525m offer?
Yes and no. They could assume the $77m debt to Sacramento. So they could bid $423m for the team and it would equal out to $525m total price. So if they were to offer $450m, it would actually wind up being more in-pocket for the Maloofs.
Ah ok thanks for the explanation!
Whoops, bad math. The 423 number should actually be 448.
The difference in price comes from the debt that the Maloofs owe the city of Sacramento. The new owners can just assume the debt, so they could theoretically get away with paying $450mm for the team. The debt must be paid before the team can relocate, though. So Hansen would have to pay it and could not just assume it.
If its a pay it before you leave scenario then couldn’t Hansen get ownership of the team and pay that fee at the same time as the relocation fee? Which would seem like that would also be a separate transaction from the sale price? I’m just trying to wrap my head around the numbers that have been thrown out there.
It seems so. But I’m sure Hansen’s $525m bid was including the money to cover the debt. I don’t think he’d bid $525m for the team and then pay off the debt on top of that. Then it would be costing him over $600m, not even including the Seattle arena or the relocation fee.
Its not a difference in price, but a difference in cash required. You could pay $425M cash and assume the $75M loan instead of paying $500M cash and paying the loan off. That doesn’t affect what the maloofs collect or change the price.
It is a tall task to convince 29 NBA owners that they are better off having their franchises valued at $425M each than $500M each.
Good point.
It is less cash but still a cost less relocation fees. So, the local buyer would have to have the ability to afford (carry) that burden.
This is the problem I have with Bruski’s report, $75 million dollars just vanish? Uh, no.
The loan is between the Maloofs and the city. Thats up to them to deal with.
Relocation fee is completely seperate.
Thank you Brian for this post!
I hate Twitter right now(not really)…LOL.
David Aldridge weighs in
http://www.nba.com/2013/news/features/david_aldridge/01/14/morning-tip-kings-relocation-to-seattle-john-wall-early-struggles/index.html?ls=iref:nbahpt6f
Some quick math. If Hansen does buy the team for the rumored $525m, add that to the cost of the arena ($490m), plus the relocation fee (we’ll say $30m since that’s what it was for OKC), you’re looking at $1.05B to get the Sonics back.
Good thing we have guys like Hansen, Ballmer, and Nordstrom in the group.
Well there are other people that hansen has yet to name
Totally debunks the anti arena folks theory that they will just declare bankruptcy to get out of paying a portion of $200 mm. Yeah…..they are going to have over a billion invested and will put all that at risk over A PORTION of $200 mm.
The latest from David Aldridge; “They’ve got a clean path” to Seattle, one industry source said last week.
http://www.nba.com/2013/news/features/david_aldridge/01/14/morning-tip-kings-relocation-to-seattle-john-wall-early-struggles/index.html?ls=iref:nbahpt6f
Great post Brian.
As hard as it is, we should try to not read too much into every new report or tweet that comes out and have some patience.
I also have my doubts about potential buyers in Sacramento and how those deal should come together for them, as their former deal isn’t as sure as they probably think(AEG is being sold and new owners are mostly looking to cut costs not add them) and no one knows who else is interested in buying the team besides that one guy.
Anyways, here’s a new article by David Aldridge of nba.com
http://tinyurl.com/byhpqs7
Aldridge’s article is really fantastic. I wanted to throw out one line from it, which makes total sense, and would like to hear your guys’ takes on it (especially you all with legal backgrounds):
“(I’m not a businessman, but wouldn’t you assume Hansen and the Maloofs have an exclusive rights window in which to negotiate terms of a sale, which would legally bar the Maloofs from having discussions with anyone else?)”
That is maybe one of the reasons why Hansen group has been totally quiet. Beyond just that it is always the best strategy to play it away from the public eye, but also, because they are in an exclusive window.
That caught my eye as well. I’m wondering, if the Maloofs were to step outside the exclusive window and talk to someone else, what legal recourse would Hansen, et al, have?
Great post Brian.
There’s so much info going back and forth that you don’t know what to think or believe.
One thing I’m almost sure of is to not believe the info coming from Sacramento. I’m not sure if their sources are pass along bad info or if the people passing the info are making stuff up but what is coming out in Sacramento flies in the face of every other outlet.
From reports that the Maloofs rejected an off then the next day reporting that there was no offer to reporting that JMA and Mastro (sp?) being interested in buying the team and building an arena to news yesterday that they are not or can not make an offer. It seems like there is a PR ploy going on down there.
I’m taking a more positive, patient approach to this. I’m taking solace in the fact that the only noise is coming from Sacramento, and zip from Seattle. Good things seem to happen when it is quiet and behind the scenes.
It seems just as Brian said, these people that are interested in buying the Kings may have been there all along and the Maloofs chose Hansen’s offer over theirs. The articles coming out puts the blame on the Maloofs faliure and not the city or it’s political leaders. These people didn’t just pop up yestersay and to pull off a deal takes months not a couple weeks. It’s a positive spin that saves face and gives fans enough hope to drive up ticket sales in the teams final days. If a miracle happens then God bless the fans and everything they’ve done. Regardless like us they deserve a team and it’s because of their owners they are in this situation in the first place.
Great article from Aldridge, way more in depth then I thought it was going to be and the included NBA TV or NBA.com interview with Calabro was awesome. Can’t wait for him to be back as the voice of the Sonics.
My guess is that the exclusive negotiating period is the reason that we are hearing all these numbers thrown out in public by KJ. He’s trying to negotiate with the Maloofs from afar. That’s why they’re at such a disadvantage. You also don’t get an exclusive negotiating period unless you’re very close. I’m sure that as soon as that was agreed upon is where all the rumors started up.
NBA relocation committee call reveals ‘deal points’ of Kings’ proposed sale to Seattle group (from Wojnarowski)
http://yhoo.it/13vmVEj
Maybe there was some truth to the whole Seahawks angle. Does anyone know what happens to minority owners in these sales? I am still confused about how that would work.
Anyway, keeping this as a rumor until I hear anything official.
Yeah, I doubted the whole Seahawks thing too. But It almost seems as if that might be the case. And if so, to me it just makes Chris Hansen all that much more professional and classy, which I already thought he was.
The Aldridge angle said he is good friends with Paul Allen, which would explain a lot.
Very interesting that Hanson/Ballmer would pay 525 million for 65% of the team.
What does this mean? More money in the pockets of the Maloofs.
Say you take 12% out of the 525 million subtract 77 million owes to Sac and 125 million owed to NBA and the Maloofs get 260 million. How can Sacramento match that?
I think it says that the $525 million is in franchise value, not actual payment for the 65% portion. Obviously a sale agreement would show the value and how much is paid to who.
Good point. Not sure. I was reading this part where it says 525 mil sale of majority ownership. I took it as selling their stake plus Heinrich for 525 mil.
The call detailed what NBA officials described as “a non-binding set of deal points” on a $525 million sale of majority ownership to the Chris Hansen-Steve Ballmer group, sources said.
Notice the language Woj uses;
“The Kings have yet to file for relocation to Seattle, but will do so before the March 1 deadline to insure that the franchise can play the 2013-14 season in Seattle’s KeyArena, sources said.”
I noticed that too Taylor Made
Man, if Hansen gets the Kings and relocates them here for next season, March Madness is going to have so much more meaning and importance for me. I can actually watch for entertainment and NBA draft prospects again.
I don’t think that was an intentional use of that tense. Maybe it was though.
Chris Daniels @ChrisDaniels5
That means Clay Bennett is now in the loop people… #NBAKings #seattle
Not too worried about Clay this go round.
I’m not worried about Bennett either.
Bennett doesn’t care about sticking it to Seattle. He got what he wanted and probably would like a team in Seattle so they will stop playing Sonics tapes every time OKC makes the finals.
Agreed. I don’t like Clay but he is not going to stop this IMHO… In fact, Barely is probably right - it ends any connection between his franchise and our city… (Other than a few pictures of Durant wearing green…)
unless we have that “shared history” BS
He had to be in the loop, he is head of the relocation committee.
Woj has Hansen-Ballmer group paying $525M for 65% of Kings that Maloofs and associate own, making total value $807M. Am I missing something?
nevermind. The sale price of $525 million is considered an overall valuation of the franchise.
Yes, you do.
Those $525 mil would be the value for 100% but they only buy 65%, which means they’d pay less then the number mentioned.
So that would be about $342 MM for 65% share.
Chris Daniels @ChrisDaniels5
I can tell you there is another 7% that’ll be up for auction this year, so Hansen group could easily get roughly 75% of franchise. #NBAKings
http://hangtime.blogs.nba.com/2013/01/14/kevin-johnsons-looming-challenge/
This is interesting, but I would highly doubt (like sell of my kidneys sort of doubt) that the owners would not approve the sale of a team if it an be for $200 million over value. Also, owners want to be able to move if need be so I would doubt anyone would vote against this. Still interesting from the politiking side of things…
Chris Daniels @ChrisDaniels5
Again - as I’ve said for a while. It’s not over. Very, very close. #NBAKings
http://hangtime.blogs.nba.com/2013/01/14/kevin-johnsons-looming-challenge/
This went to moderation. About KJ using influence to convince BOG.
Looks like I am being moderated. There is an NBA hangtime blog about mayor Johnson using influence to convince BOG not to approve a sale. Mostly about KJ’s likability to the league than actually something that would work. Maybe it will go through soon
KJ is in no authority to influence the NBA to not approve the sale.
KJ has twice been able to convince the BOG to give Sacramento a second (and third) chance. Not sure how many more times they can do so.
Taylor thats cause there really no other options thus it make sense to allow KJ to continue trying.
Well, they did block the Anaheim move to give KJ one more shot. But I just don’t see them blocking a sale of this magnitude for him.
They didn’t block anaheim for KJ they blocked it cause it wouldn’t be good for the league to have 3 teams in that general area. Nevermind lakers and clippers were against it.
They never blocked Anaheim. Lakers and Clippers cant do anything about a team moving there.
The article was mainly how KJ was able to convince the NBA to give them their previous chances. It was again about KJ and less about the sale. Just used a hypothetical to say how classy and determined he looked previously.
Once again, Sacramento has had 10 years to get a building situation rectified. Granted, they accomplished it once last year, and the Maloofs were the ones to back out. However, they are still back at square one trying to figure out a way to make it happen, while Hansen has a plan and is ready. Seems a no brainer for the league, regardless of the Mayor of Sacramento being an ex-NBA player.
Fun fact: Nets finished 31st in merchandise sales last year in NJ. But, but, only 30 teams in NBA?! Nets were behind the Sonics.
LOL now that is funny.
So here’s how the math works according to that article
Maloofs own 53% of the team
Hernreich own 12%
Other minority owners - 35%
Valuation of team = $525mm
Money owed to city = $70mm
I’m assuming that the debt to the city is share equally between all current owners (meaning the maloofs are on the hook for 53% of the city debt)
That puts Hansen/Balmer paying out the following for the purchase after removing the city’s debt:
Maloofs - $241,150,000
Hernreich - $54,600,000
City - $45,500,000
Total - $341,250,000
The remaining minority owners will be dealt with via however their original purchase agreement was done. Hansen may have the right to buy them out, or if there’s a sale, Hansen gets first dibs.
I’d imagine Hansen would make the city whole and do a deal with each minority owner to get their shares, minus what Hansen already fronted them.
Pretty staright forward.
If $525m is the determined value of the team, that takes the “Sacramento owners can pay less” argument off the table, no?
I think the only thing that makes it possible for someone to pay less is if the city forgives the loan (or part of it). That would be pretty irresponsible for them to do that IMO……but it could be a card they can play.
This. I can’t imagine a scenario where the city would or even could forgive that kind of cash. That’s a lot of money and heads would roll if they essentially threw it away.
I agree 100%. Seems very unlikely. But if they are truly desperate who knows.
Just because it would never happen in Seattle. Remember Sac already was willing to just fork over parking revenues for a new arena.
Great comment.. Thanks for doing the math on that.
One point the Sacramento bloggers will likely miss on this is that the Maloofs will NOT owe the entirety of their loans back - only 53%… Hernreich will owe 12% and the other 35% will be owed by the minority partners… So - as you said, this leaves a lot of cash in the Maloofs’ pockets
This hits at the crux of why this transaction is highly complex. If Hansen & Co., is only purchasing ~65% of the overall franchise, then technically they are only assuming ~65% of the team liabilities as well. In other words, they would “own” only 65% of the Sacramento loan and the loan to the NBA. However, before relocating, 100% of the Sacramento loan would have to be purchase and it’s probably the desire of the Hansen group to repay the NBA loan as well. If so, they would have to capital call the minority owners to contribute their proportion of the loan. While minority owners are almost always legal bound to such capital calls, this does create quite a bit of red tape to work through. Nothing deal breaking here, just a lot of moving parts and a number of details that have to be worked through.
So then they can only move 65% of the team here. What 35% should they leave behind? :)
Chris Daniels on KJR now to talk about Kings to Seattle
Chris Daniels @ChrisDaniels5
Hoping on @SportsRadioKJR NOW with @Softykjr to talk about Kings-to-Seattle….
http://www.iheart.com/live/2565/?autoplay=true
Could you please report what he’s saying?
Can’t listen to it from over here in Germany.
He says “9 out of 10″ towards getting done.
He also says that Bennett has been briefed on the “finer details”
minority owners would stay with Hansen/Ballmer group unless they sell their shares
Also an auction will happen later this year for a 7% minority share
My uneducated guess is that the minority owners would quickly look to cash in for their share - but for now Hansen-Ballmer want to work with the majority owners and worry about the minority owners later…
“It’s not over til it’s over”
That’s absolutely true.
Until Hansen’s holding a press conference talking about aquiring a team I’m gonna keep staying sceptical.
Its not over until the fat lady sings (ie clay bennett).
Thanks guys, sounds very interesting and positive.
All in all it sounded pretty positive.
last-minute offerings are not going to make the nba as comfortable as long-planned, meticulously outlined deals. brian’s post and aldridge’s article seem right to me. i think it’s about to sacramento’s turn to be ‘out’ in the game of franchise musical chairs. it might not take them forever to get back ‘in,’ though. . .
there are fans sitting in places like minnesota who think this has nothing to do with them. oh, how wrong they are.
I kind of think KJ might just be going for the “long con” (for lack of a better phrase) here. He could be setting up to get an arena and then push the NBA for a relocation, or even possible expansion, later.
I was kind of thinking the same thing Taylor Made.
I imagine he’s just playing politics now and putting up a public fight to increase his opinion ratings. Seriously.
I dont know Charlie. I think the only places this matters is Sacramento and Seattle.
I think the idea that its franchise musical chairs is a little over exaggerated. Teams really dont move that often. And its not easy at all. If you think about it we really are making history in how this is all going down.
Why isn’t it binding now? If it is non-binding the Maloofs can still get out of the deal?
I would assume because there’s no pen-to-paper yet.
Good news finally! But let’s go step by step…
Chris Creamer thinks it’s “historically inaccurate” for us to get our records back.
http://news.sportslogos.net/2013/01/11/sonics-kings-nba-possibly-back-in-seattle-this-fall/
Chris Creamer is “historically insane”
my response to him was “It’s more ‘historically accurate’ for the OKLAHOMA CITY THUNDER to claim a championship won by the SEATTLE SUPERSONICS?”
I really wish all relocation could be treated as contraction/expansion.
I agree it would make far more sense
Chris Creamer = Idiot
If Sacramento gets an expansion team, we would give back Kings history? and if answer is yes, would Oklahoma do the same?
I think we will leave the Kings’ history in Sacto.
I would hope that it would stay in Sacto. As for our own history Bennett has no reason really to keep it and with a team back here it seems like there would be even more incentive for him to either give it back to us or sell it to Hansen.
In essence, the Sonics history stayed in Seattle (in that the banners are in a museum there). I see no point in not allowing Sacto to do the same.
After that, it just becomes an argument over which set of stats to use (and we all know about lies, damned lies and statistics).
1st off OKC doesnt have to give anything. It is and always will be a SHARED history. That is the worst case scenario.
Bennett will keep sharing it. He paid for it. If he didnt want to use it then they wouldnt be using it now.
History is a weird thing. Can you decide to not use history? If you can, even if you do that there is still a history that follows you. Just because you buy something does that give you the right to decide history?
If and when we get the team. Say we decide to not use the history. Either way the team we get did used to be the Sacramento Kings………and that is part of history…….whether we choose to use it or not. It is what it is.
History isn’t actually a weird thing. History isn’t tangible…it cannot be bought or sold. So, the only weird thing is that there are people actually think it can be “shared” and/or that Clay Bennett spent money for something that does not capable of being sold.
Interesting wikipedia note (FWIW);
“On January 9, 2013, NBA.com reported that the Sacramento Kings were in discussions with a Seattle-based ownership group to sell and relocate the team. The Kings were offically sold January 13, 2026 to the Seattle-based group.”
Note that “officially” is spelled wrong.
Anyone can edit wikipedia
hence “FWIW” (for what it’s worth)
That here we buy website is a great idea and insane in the first place…amazed that only 800 people are willing to pledge their imaginary money to buy imaginary tickets to be honest.
yeah. Its probably a bad sign that they dont have more pledges from more people. Especially when its all play money at this point.
I pledge to buy Sonics season tickets with play money. If it costs play money I will buy for everyone here on the site.
Chris Daniels @ChrisDaniels5
High Level NBA League type tells me Kings-to-#Seattle a “high intensity situation”.
@ChrisDaniels5
NBA spokesman would not confirm, nor deny, relocation committee has been briefed on Kings-to-#Seattle deal.
LOL your fingers are getting quicker gene
LOL thanks man. Maybe its from all the years I’ve played guitar ;)
Chris Daniels @ChrisDaniels5
NBA spokesman would not confirm, nor deny, relocation committee has been briefed on Kings-to-#Seattle deal.
Chris Daniels @ChrisDaniels5
NBA spokesman would not confirm, nor deny, relocation committee has been briefed on Kings-to-#Seattle deal.
Chris Daniels @ChrisDaniels5
High Level NBA League type tells me Kings-to-#Seattle a “high intensity situation”.
STOOOOPPPPP!!!!!
LOL
Just goofin’
This is what happens when you don’t hit refresh before posting someting
I was just saying stop because the back and forth news is killing me. Yet, I keep refreshing this website and Twitter on my phone…LOL.
Chris Daniels @ChrisDaniels5
KJ will have to show he has the financing figured out, approved, an owner with deep pockets, land, etc, etc…time in running out. #NBAKings
Chris Daniels @ChrisDaniels5
KJ needs to move quickly to get a legit buyer and make a hard pitch, and/or get a guarantee from the #NBA on a future team. #NBAKings
I don’t think those are available to KJ. He’s had two years to put this together and still hasn’t been able to do it. He knew the Kings would be for sale at some point.
Seems daunting what kj would have to go through. Negotiations seem too far along to allow any time to get that stuff sorted out.
Chris Daniels @ChrisDaniels5
#Seattle took 12-24 months to figure that all out, and it appears Mayor KJ may have days, or weeks. #NBAKings
It definitely sounds like an uphill climb through mud
Yeah, I think it’s gone waaaay passed SacTowns window. I speculate KJ has been working on this for a couple years too, but hasn’t gotten anywhere to convince the NBA into keeping the Kings in Sacramento.
Chris Daniels @ChrisDaniels5
I’ll be on with my buddy @cougsgo (Jim Moore) and Dave Wyman on @710espnseattle at 4:30 to talk about all this Kings-to-#Seattle stuff…
McGinn’s even talking about all of this with the P-I
http://bit.ly/ZQbCCU
Why is it assumed Chris will only be paying a pro-rated amount of the $525 million? Controlling interest is worth more than simply its percentage of the total valuation for obvious reasons. They could predicate that they value the franchise at $525 million and are willing to pay that price to obtain the controlling interest. That doesn’t mean the value of the franchise is extrapolated out from the $525m, but simply that Hansen and his group value the franchise at number X and are willing to pay that amount to gain control of it, even if they don’t own 100% of it. They’re establishing a value and saying we’re willing to overpay for a certain percentage of the company if it grants us control.
Am I totally off base here?
Sean, yes. I believe you are off base. See my explanation above about how the sale is supposed to break down. This is all based off a report earlier today that was given to the NBA’s relocation committee.
http://sports.yahoo.com/news/nba-nba-relocation-committee-call-offers-deal-points-of-kings-proposed-sale-to-seattle-group-183116508.html
This article clearly states that the valuation of the team is $525mm and that hansen will be buying percentages of the team based on the valuation. He is NOT paying $525mm for only 65%.
If this were not the case, you’d be saying that 65% of the team costs $525mm which would mean the total value is somewhere close to $800mm. That is not possible.
So then a block that composes controlling interest is worth no more than any other? There is no added value in that? That just seems odd.
I understand what you’re saying, but I’m saying the Hansen group could also establish that their valuation of the Kings if $525 million but that does not they can’t pay far more than 65% of that for 65% of the team. Couldn’t this all be spelled out in a deal?
Think of it like shares of stock in a company. To determine what a share of a stock is worth you need to know the total value of the company divided by the total number of shares. That way if I sell my share of Microsoft stock, I get the same price per share that Steve Balmer gets for his share.
The same would hold true for this. A value for the company/team needs to be set, then each person would get their percentage of the valuation based on the amount of the team they own.
Hansen’s play is to get a controlling stake so that he can move the team, then deal with the minority owners at some point. No one knows what the original Kings purchase agreement was like so we don’t know how easy or hard it will be to get the remaining 35%. As far as operations of the team goes though, that 35% isn’t large enough to have any say in what happens with the team. Hansen will be the majority owner and he can do what he wants with it.
Getting history back shouldn’t be a big problem. History only exist in memory. It is not a tangible object unless you count what people write about it and/or photograph/digitally record etc as the OBJECT ITSELF. If a book is banned in China all one has to do is memorize it, leave the country and write it down elsewhere. NOT ONE THING CHANGES the history of the book even if no copies exist anymore. No Twinkies or Ho Ho’s are currently being made. However any baking company can purchase the recipes AND the history,,for a price.
The Kings history should not follow the team. Anyone can remember the Big O, Tiny Archibald, Mitch, Vlade and CWebber just like anyone can remember the I Love Lucy Show even though it is no longer being filmed.
Just as Star Wars and it’s history has changed hands after a gap in movies made, the Sonics can continue with new ownership owning all the prior history as well as a future Kings/Royals franchise someday. Hopefully for no cost or a reasonable one.
Exactly….if Clay Bennett says he won’t give us his history I am pretty sure I will still remember who played in the 1996 Finals. Pretty sure I will remember where the team was located when they won the NBA Championship….none of that can change
I can’t believe they would give KJ any chances to keep the team. The NBA wants a team in Seattle more than Sac because they can make more money.
publicly giving sac. a chance is a good thing for the NBA’s public image. They have to know it’s an extreme long shot so might as well cover your ass so you can say “we tried everything possible in Sac, but couldn’t make it work”
Adrian Wojnarowski @WojYahooNBA
In studio for @NBCSportsTalk on @NBCSN to report latest on Sacramento Kings-Seattle deal talks and more NBA. 6 PM ET.
To be honest, I have never heard of NBCSN (which is, apparently, NBC Sports Network) until now.
used to be Versus.
it’s new. i think they just launched it this fall. it’s a cable channel for nbc sports.
NBCSN paid an ungodly amount to get F1 broadcasts locked up in the US, taking them away from SPEED. That’s all I know about them, but for that alone I hate them.
SPEED is going away in the fall if you hadn’t heard. Will be Fox Sports 1. They want to get in on a national network and will convert SPEED to that network.
Seriously!? Oh that sucks. I hadn’t heard that.
That’s the rumor. I read about in one of those Catholic 7 tv contract articles. Apparently they want somewhere to put on more MLB games and move some of their NASCAR stuff there. Plus they would bid for other sports. It may be good in the long run but bad for racing fans.
It has to do with improving ratings for their network, They have MLS, NHL, EPL (english soccer) and now F1.
Hard as it is, I think we are going to have to wait about a month before any of this gets made official by the NBA. The Twitter leak has caused a mess, but the NBA is all about process. The BOG will decide this on their time.
We’ve been waiting for several years to this point. Surely we can persevere another month. Won’t be a fun month if that’s the case, but that’s the breaks.
I’ll celebrate when there’s ink on the contract. I have no reason to believe that the NBA would block a sale to what would become one of the richest ownership groups in all of sports.
It’s a bit misleading to call all the recent news “a twitter leak”. David Falk’s daughter tweeted something inaccurate that she then deleted, but other than that, the latest developments have been coming from reputable sources like Adrian Wojnarowski and David Aldridge.
The post from Aldridge on NBA.com today is to be taken seriously. He is a very plugged-in reporter and would not make the assertions he makes just to hype a story. Articles and leaks like this can serve a lot of potential purposes; one of them being to “soften the market” for an eventual deal. That’s what has changed: that a deal is so close that well-sourced stories and attendant rumors are circulating like crazy.
Lastly; I don’t get all the hand-wringing over the history. Seattle will get the Sonics history and records, full stop. Sacramento will retain their history for a hypothetical future franchise. It’s that simple and really the last thing to worry about.
I still feel sick for Sacramento going through more or less the same thing Seattle went through, and hate that righting our wrong creates a new one for them, and at the same time solves problems and gives millions to the massive douchebag Maloofs. With that said, I’m provisionally excited for what appears to be a deal very close at hand.
I doubt it fails, but I’ll celebrate when the team is here. The NBA has declined obscenely rich owners before, Larry Ellison the latest example. Moving the Sonics to OKC in the first place wasn’t the sanest of moves, but it happened anyway. Logic isn’t what makes this tick.
But Ballmer rich? No way they decline that.
Ellison is worth almost 3 times as much as Ballmer
really? had no idea… dang! ;)
Ballmer - $15.9B
Ellison - $41B
totally right, man- Ellison is loaded.
http://www.forbes.com/forbes-400/#page:1_sort:0_direction:asc_search:_filter:All%20industries_filter:All%20states_filter:All%20categories
That’s what happens when you found Oracle. Still, not much difference between 15 and 40 billion as far as the NBA is concerned.
You also have to factor in though that Stern has said in the past that he wants Ballmer in the league as owner. That definitely helps our case.
I thought Larry Ellison backed out to buy his own Hawaiian island.
j/k - but he does own his own island.
I wouldnt say the NBA has declined Larry Ellison. At least not out in the open.
But lots of owners, including Shultz, have chose not to sell to him.
At the same time Ellison hasnt bid $525 mm for a franchise either.
Did he have an arena at the time too? Being Down Under, I can’t recall if Anaheim has an arena already.
Because, really, if he didn’t have half the things in place that Hansen does by now, I can see why he was turned down ($41 billion not withstanding).
David Aldridge @daldridgetnt
Talking Kings on The Beat at 6 on NBA TV w/ @SekouSmithNBA & http://NBA.com ‘s @SHowardCooper. Plus, the Spurs’ grind, w/GM RC Buford!
Hawks vs Bulls are on NBA TV at 5pm. No listing of NBA Beat at 6pm or later tonight.
Oops, 3pm our time.
New thread is up.