TheOnion.com or SacBee: YOU DECIDE

Apparently Chris Hansen simply forgot to hire an attorney.

Had he hired an attorney there is a strong likelihood that he would have asked the Maloofs for a copy of their partnership instead of having George Maloof summarize it over a pint of Guinness.

The real travesty occured at an NBA level where nobody bothered to ask about the partnership agreement and instead they simply filled in the blanks of a standard team purchase agreement that had not been updated since 1986.

Seriously, I get that they are looking for hope. I understand that right of first refusals do sometimes exist in contracts and that they are all relevant to greater or lesser degrees based on the strength of the language in that particular contract. I find it a HUGE stretch to think that somehow there is a smoking gun in that contract that was just somehow overlooked and that every minority partner of the team simply can step up and say “I’m blocking this move.”

It would have been a MAJOR oversight by a lot of people if somehow there is an unlimited and enforceable right of first refusal. If there is some weak language along those lines then try to embarrass the NBA that way. Just try it. See how Harvey Benjamin welcomes you into the owners club after you make that move.

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203 Responses to TheOnion.com or SacBee: YOU DECIDE

  1. Brian Robinson says:

    I would bet you a lot of coin that the NBA specifically prohibits ROFR language that would allow small minority owners to invoke that right for the purpose of transferring the team to a third party. If they did every single one of them would be auctioning it off. It would become a huge commodity.

  2. charliesonic says:

    these fellows live and work in a world where very expensive lawyers are paid handsomely not to make bonehead mistakes. also, the nba will NEVER be comfy with anything that seems to restrict owners’ rights to sell to whomever, whenever. . .

  3. James says:

    And once again Brian has the words to defuse any angst I get with another twist in the story. . I owe you a beer or 2 Brian.

  4. soundersfan84 says:

    Brian Robinson,

    so this is nothing for us to worry about?

  5. Danimal says:

    these are businessmen. They have made billions on business ventures. They don’t overlook things like this

  6. Silvio says:

    Well, it seems pretty unrealistic that Hansen/Ballmer would ever sign a binding offer without knowing all the details contracts.

    And even if that possiblitly exists, wouldn’t it call for those already owning minor parts of the franchise to pony up the $ to buy the team?
    And wouldn’t it, at the end, come down to a legal issue(suing owners, sale and maybe the league) as it’s said to be auctioned the same day as the BOG meeting where they decide on relocation?

  7. Numbers Guy1984 says:

    Chris has been incredibly meticulous and detailed throughout every single aspect of his involvement with bringing a team back to Seattle. I simply doubt he would have looked over such a huge provision in a deal. IMHO, there is no chance of such oversight.

  8. MarkS says:

    I’m guessing the ROFR issue will come up in KJ’s press conference.

  9. soundersfan84 says:

    So we got off one rollercoaster and got onto another one?

  10. jason. says:

    haha best post title ever.

  11. Menace says:

    There is a reason minority owners are minority owners. A lot of time it comes down to what they can afford. If a minority owner wanted to buy more shares of the team and didnt agree to the sale……..and most importantly could afford it………wouldnt they have done something about it by now? I would think so.

    If you have $340 mm…………why are you a “minority” owner?

  12. James says:

    I still ain’t buyin what they are selling. I’d be shocked that Hansen would be caught with his pants down on this. Sacramento is playing checkers, while Hansen is playing chess.

  13. BarelyAble says:

    @carmichaeldave
    I have received a full copy of an unnamed minority owner’s full agreement and have forwarded it to an attorney for clarification.

    I doubt this one but I will keep checking up on it just for fun.

  14. Riboflavin says:

    I think the PC today is to announce the earnings report of concentrated orange juice that is produced in Northern Cali.

    Dear NBA BOG,

    PLEASE address this franchise transaction sooner, rather than later! Californian politicians threatening potential NBA financial partners/owners is an unhealthy picture being painted for all other future NBA financial partners/owners. Put this baby to bed!

  15. James says:

    Lets try to remember, that Hansen bought 65% of the franchise, and another 7% is to be auctioned off, which leaves 28% for the other minority owners. The only one to bring up the first right of refusal is the bankruptcy trustee for the guy who owns 7%. I haven’t heard a word from the other 28%, or am I missing something?

    • soundersfan84 says:

      That 7% isn’t being auctioned off until apirl around the time the vote of the sale agreement.

      So its little to late for who ever ends up with that 7%. Now where are those that own 28% of the team regarding that.

    • Gene Hunt says:

      That’s pretty much it James

    • SonicsDawg says:

      Well, let’s also assume some random third party purchased the bankruptcy shares. Would he then suddenly be granted this right of first refusal? I would think not because the purchase and sale will have already been complete so that person will have a right of first refusal on the NEXT sale (in 35 years or something). It would be really nice if the NBA would approve the purchase (even if not the move) prior to that friggin bankruptcy auction

  16. Gene Hunt says:

    Chris Daniels ‏@ChrisDaniels5
    This Hansen ‘Green Team’ is now focused on foliage on top the #SeattleArena: http://ow.ly/i/1pXPm

  17. BarelyAble says:

    @ChrisDaniels5: This is idea that’ll get #Sonics fans excited. Hansen’s team talking about #SeattleArena wall which can reflect images http://t.co/Spn2XGk4

  18. James says:

    If this right of or at refusal were really an issue, wouldn’t some of the 28% have spoken up by now? This bankruptcy trustee looks likes he’s grasping at straws, or just leveraging to get top dollar for that 7%

  19. Sofa King says:

    That is pretty rad. Gonna blow folks’ minds.

  20. Numbers Guy1984 says:

    The way this Plaza is envisioned by Chris Hansen, seems to me the Mariners should be getting on board with the whole project (then again, I don’t think they should have objected in the first place). Personally, I attend 10-15 M’s games a year. If I had more pre and post-game entertainment options, I would likely go to more games every year. This has the possibility of being a “win win” for everyone involved.

  21. Otto says:

    I
    Am completely confident that Hansen’s lawyers have vetted every single aspect of the contract

  22. Sean says:

    Reports are coming in that Chris Hansen, notorious big dumb meanie and all around poop head, may himself have invalidated the stupid deal he signed with the big jerk Maloofs by spelling his own name incorrectly because he’s a big stupid dork face.

    Per source.

  23. soundersfan84 says:

    Carmicheal dave is claiming the reloc fee is part of the sale so minor owner only need 306m to match.

    Has he even seen the sales agreement so how does he know that 525m entails?

    • Riboflavin says:

      I guess I don’t understand, but isn’t the relocation fee between Hansen and the NBA and a total separate thing from the valuation of the team? I’m confused?

      • Gene Hunt says:

        The relocation fee is between Hansen and the NBA. Its an NBA fee not a Maloof add on demand fee.

        • MartinH says:

          Isn’t the agreement that an owner moving a team has to repay any debts the team currently owes to the old city before it moves? I believe that’s where the $77mill comes from… the Kings owe Sacto $77mill, the NBA requires Hansen to pay off that debt before the team moves to Seattle.
          And that’s only once they start talking relocation. In no way is it connected to the sale of the team.

  24. BarelyAble says:

    @ChrisDaniels5: At this point, both Hansen/Maloofs camps tell me they have nothing to add on #NBAKings ‘right of first refusal’ issue as reported by @sacbee

    • soundersfan84 says:

      I’m assuming their lawyers are handling the issue and they are just keeping quiet?

      • Otto says:

        Like how big boys business do work, our of the media. Sactown waging this war in public proves they have nothing

      • Gene Hunt says:

        The whole first refusal thing is pretty damn flimsy. I think its just noise and a non story. Besides if it gets down to it we Microsoft’s army of lawyers. I’m not worried about it at all.

        • Numbers Guy1984 says:

          Microsoft has tons of Lawyers but Microsoft isn’t buying the Kings…. Ok, i’m being petty - Pretty sure Ballmer has the list of lawyers used by Microsoft and will have their services as the snap of his fingers.

          • MartinH says:

            … and all the lawyers working on the Right of First Refusal issue in Sacto suddenly found their Windows licenses revoked overnight… XD

  25. Gene Hunt says:

    Chris Daniels ‏@ChrisDaniels5
    At this point, both Hansen/Maloofs camps tell me they have nothing to add on #NBAKings ‘right of first refusal’ issue as reported by @sacbee

  26. Supersonics2.0 says:

    Have to say, I hope the arena looks better when its built than in these renderings. Not really liking what I’ve been seeing. I get the whole “green” thing but seems a little too forced in this instance

  27. Sofa King says:

    I don’t care if the arena exterior looks like a used merkin. If it gets us 30+ years of the Sonics and the possility of hockey in the future, I say bring on the merkin!

    • Supersonics2.0 says:

      Haha…no I’m with you on that!! Just saying, guess I was expecting something different. But yeah could care less where they play as long as its here!!!

  28. Gene Hunt says:

    Chris Daniels ‏@ChrisDaniels5
    On issue of ‘Right of First Refusal’, folks in Sacramento are citing Michael Jordan purchase of Bobcats as precedent: http://ow.ly/h6Bot

    and

    Chris Daniels ‏@ChrisDaniels5
    But that same article also notes sale was not complete at time. CW would be that attorneys looked at this issue - so we’ll see. #NBAKings

  29. Paul Rogers says:

    Jordan specifically negotiated that right of refusal when he heard the team might be for sale

  30. Paul Rogers says:

    When I was in high school, I gave this one girl right of first refusal for every date I ever had. She consistently exercised that right to refuse me.

  31. leBleede says:

    My favorite development today? This Steinberg guy picking a fight with Microsoft.
    I’m getting my popcorn out for the results of that play.

    How did Admiral Yamamoto say it?
    “I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve.”

  32. Jared S. says:

    Anybody see this?:

    http://deadspin.com/5978111/a-history-lesson-for-sacramento-how-kansas-city-lost-the-kings?post=56582266

    I never knew it was a Clay Bennett-like con job that brought the Kings to Sacramento.

  33. rambisfan-rmcd says:

    A associate of KJ Greg van Dusen ON 1140 in SacTown. “Seattle has shown its cards. I wouldn’t want to be the one to show its cards first”. HUH!?!?
    You wouldn’t have wanted the Maloffs to sign a bill of sale with a Sac group first?

  34. Numbers Guy1984 says:

    Is it just me or is it not a little shady/unethical for a California state politician to start thrusting himself into a legal business transaction between two private parties? Using his position of power to threaten action against a Company (of which, wasn’t directly involved in the said transaction) seems incredibly unethical to me. With that in mind, I think this is nothing more than a political farce to dumb up political support. If Steinberg tried to pull contracts with Microsoft, the Company would have plenty of ground for legal action against the Corrupt State of California.

  35. Silvio says:

    Well, there seems to be a pattern here.

    First off they’re talking about big investors, matching the offer etc.
    Then they’re talking about maybe mentioning big investors/hoping to name them within some time.
    And now it’s about a possibility to refuse a sale that somehow a group of Ballmer/Hansen haven’t seen while studying the contracts of their purchase?

    I’m by no means a legal expert but to me it seems like their bet now is a possible lawsuit to stop a sale/relocation.
    If so, we all know how much they really matter…

  36. Paul Rogers says:

    Chris Daniels‏@ChrisDaniels5
    RT @Ryan_Lillis Sen Pro Tem Steinberg, Mayor Johnson, other elected officials meeting at Steinberg’s office 3 pm. Press conference to follow

  37. MarkS says:

    Ian Furness is talking to Dale Kasler of the Sac Bee right now.

    http://www.iheart.com/#/live/2565/?autoplay=true

  38. 79 Sonics Forever says:

    Only a few people know the details of Hansens deal. For all we know the minority owners may have already decline any matching offer if they even have the ability. What I like about Chris it is clear he is not going to engage in any press war.

    Also think about it there is no way that someone can come in and buy shares out of bankruptcy court and stop a deal that is aready signed. Sac is reaching and may try to find a reason to delay this in court any way they can.

    FYI

    The minority owners make a lot of money on this deal

  39. MarkS says:

    Apparantly there are three minority owners besides the one declaring bankruptcy.

  40. kba says:

    This should be a Reality TV show.

    The Men without a clue of Sacramento

  41. Numbers Guy1984 says:

    This is a classic case of a bankrupcy trustee trying to maximize the value of an asset. It is unlikely the remaining portion of the team (minority share) will fetch the same value as the first 65% as the majority share fetched a “control premium”. The Trustee is just trying to pry as much value out of that 7% as they possibly can.

  42. Gene Hunt says:

    Sonicsman ‏@sonicsman
    Sacramento loading up Politicians to Save #nbakings, well I guess it worked well for Seattle!! #nbaseattle

  43. James says:

    Whales, ROFRs, lets see what’s next for KJ’s press conference. Cue the circus music please.

  44. Ty says:

    Our boy Dave is at it again, he’s delusional

  45. Zeppe says:

    One thing that’s painfully obvious is that the Seattle anti sports crowd are way more vocal than Sacramento’s. can you imagine if Seattle’s mayor had 3 press conferences in 3 days to talk about saving a team? There would be all kinds of bitching and moaning about “more important things”!

  46. soundersfan84 says:

    LOL

    Joe Cook ‏@GiantsKings9ers
    @Softykjr @SacBee_JoeD, They do when Burkle writes a contract that says he’ll finance it and they sell it to him 5 minutes later for a fee.

    Do people actually realize that ROFR is more complex that they claim.

  47. Sofa King says:

    The ROFRcopter? All aboard!

  48. James says:

    The more and more the situation plays out, it just seems to get more similar to us 5 years ago. A new ownership trying to save the day, now the supposed ROFR clause which reminds me of Howie’s threat of suing Clay to get the team back. Us like them, thought every bit of good news was going to save the day. At the end of the day it sure seems like those we remain quiet seem to have it go their way. That’s why I’m loving Hansen’s continued silence.

  49. jason. says:

    all this has made me glad we didnt have twitter when we lost the sonics. just would have made the inevitable that much harder to deal with.

  50. kba says:

    David Stern should tell KJ to stop this or you will never get another team.

  51. BarelyAble says:

    If I am a minority owner I am probably shutting up because the sale instantly increased my value by 75% and likely nets them a 100%+ return on initially purchase. Sounds rude but they aren’t big money guys in all likelihood.

  52. 206er says:

    have any of these minority owners actually come forward and said they want to buy the maloof’s shares or is this purely speculation on the part of the sac bee and that dude’s bankruptcy lawyer? at this point it seems like those two parties are just saying, “well they might be able to excercise that option if they were willing and able.” i’m curious to see if any of those owners actually have the ability or the will to follow through on those assumptions.

  53. Supes fan stuck in RVA says:

    Hello Sonics fans! I’ve been lurking for a long time on both SonicsCentral and the new blog, but this latest series of events has left me no choice but to jump into things.

    Went to my first Supes game in ’77 against the Buffalo Braves. Don’t know who they are? Well then you’re probably under 40.

    I’ve lived and died with the team since then, but I moved across the country to VA in ’04. As bad as the sucker punch to the gut was when they moved, I was glad I didn’t have to live day to day in Seattle without the Sonics. I really feel for you guys in the last 5 years. As tough as it’s been for me from across the country, I know it’s been doubly tough for you all on the front lines.

    Anyway, thanks for everything that all of you have done to get us to this point.

    So I’m making tentative travel plans in my head to be at the first game of Sonics 2.0 this fall, and I’m just wondering the following: What’s the likelihood that the signed sales agreement between the Terminator of Doubt (aka Chris motherflippin’ Hansen) and the Magoofs is derailed by Sac. “whales”, Rights of First Refusal, BOG denials or any of the other hail mary’s that Sactown comes up with?

    To me it seems pretty simple. Hansen was first in on a purchase agreement, the NBA clearly wants this ownership group and to fill in the Seattle-sized hole in the league, and those two facts alone point strongly to success for us. Think about how many things seemed to be in our favor in ’08. Existing building lease, much larger market, potential whale of all whales lurking in the wings, and still it didn’t happen because the NBA wanted Bennett to move the team.

    Now the league wants the Kings to move to Seattle, it seems to me, so that’s what I think will happen. Unless I’m reading the league wrong, which I certainly could be.

    Overall I give this about a 95% chance of going down, but I’m definitely still very worried about that 5%. That’s why I’m obsessively hitting refresh on this blog every 10 minutes!

    What do you all say? What are our chances on this thing?

  54. Myk says:

    So if Hansen bought a minority share does that mean he could refuse the right of another minority to refuse his right to buy the majority share?

  55. Gene Hunt says:

    Is it just me or does this right of first refusal stuff remind anyone else of Schultz’s lawsuit?

    • 206er says:

      it does but the schultz lawsuit didn’t have any merit because it wasn’t based on an actual contract. it was some side letter that was excluded from the actual sale of the team because schultz is a jackass.

      • MarkS says:

        No it was also part of the contract.

        However there was also a clause that held him liable for the otherside’s attorney’s fees should he sue. Schultz pretty much backed down after the City of Seattle settled.

  56. Ron in Yakima says:

    Does anyone have a link for KJ’s 3:00 presser?

  57. Taylor Made says:

    Key points.

    This guy is a bankruptcy trustee. He is not a minority owner, he is not a lawyer representing a minority owner.

    We have not heard from any minority owners.

    The NBA was briefed on the sale before it was signed. There’s no way Hansen’s lawyers AND the NBA overlooked something this consequential.

  58. pathaught says:

    I’m not worried. And here’s why:

    Either there is no ROFR and this is a complete waste of time by Sacramento or there is a ROFR clause.

    If there IS a ROFR, then why haven’t we heard anything from any of the minority owners about buying the team? It’s been, what, 4-5 days since news broke about the sale? Surely if one of these minority owners wanted to step up and buy the team they would have said something by now.

    This implies that they either:

    A: can’t afford to/aren’t interested in buying the Kings for whatever reason.

    B: they’re unaware of the ROFR clause in their ownership (which is ludicrous because what person invests in a multi-million dollar enterprise like a basketball team and doesn’t pore over the contract)

    If they were even at all interested in helping keep the Kings in Sacramento, wouldn’t you think that these minority owners would have made contact with KJ by now?

    So assuming the minority owners aren’t interested in matching and can’t sell, transfer, or partner up with someone who DOES want to save the Kings, that leaves the 7% to be auctioned off in April (either 1st or 19th according to Sactown Royalty). If it’s the 19th, it won’t matter because the BOG meeting is the day before as I recall.

    From what I understand, Hansen & Co. are interested in buying that last 7% at auction. If that proves to be the linchpin of this whole plan, I fully believe Hansen would not leave such an auction to chance; and as such move Heaven and Earth to buy that last share.

    Still, it was enough to give me a bit of a fright earlier today. Also, hi, first comment.

  59. MarkS says:

    KJ is an idiot. He keeps quoting the Golden State sale. Fact was Ellison gave the larger bid at the last minute when a commitment was already made.

  60. SuperDuper says:

    Was that it?

  61. Paul Rogers says:

    BREAKING: KJ’s news conference revealed … drum roll … nothing new.

  62. tahoe says:

    Is KJ planning to host an Amateur Hour session every afternoon until the BOG?

  63. b-dawg says:

    Hey KJ…cry wolf much?

  64. the nightfly says:

    @Keep the team here, or I’ll keep holding press conferences every day! I’m not bluffing! I have a microphone, and I know how to use it!”

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