Jan 20, 2013, 10:26 PM EST
While Sacramento will get a final shot to convince NBA owners that this is not something they want to approve, sources have told ProBasketballTalk that Seattle’s Chris Hansen is ready to announce a tentative agreement to purchase the Sacramento Kings in the coming days.
Following this come reports other teams have been notified of a sale, something PBT can confirm. The sale price is $525 million of which the new owners will get 65 percent.
Adrian Wojnarowski reported a week ago a deal between the Maloof family and Hansen was “at first and goal from the one,” and furthermore that the Kings moving to Seattle was a done deal. That report had been echoed by CSN Bay Area’s Matt Steinmetz and David Aldridge of NBA.com, though each reporter left a little wiggle room in case the Maloofs changed their minds.
According to our sources, any deal sending the Kings to Seattle would not be a done deal because any deal would be subject to an approval by the NBA’s Board of Governors. In addition, sources tell PBT that Sacramento has been approached by at least three groups of “heavy hitters.” Sacramento could be getting close to announcing a group that meets NBA criteria that has the “vision to transform one of the NBA’s most proven markets into a top NBA franchise.” This, they believe, will help win the NBA’s support for keeping the Kings in Sacramento.
As we’ve followed this story for the last two years, the city of Sacramento has bent over backwards to accommodate the Maloofs according to sources from all sides of the situation. One league source called their offer of public funds to build an arena for the Maloofs a “model offer of public funds,” and the NBA itself supported the failed deal from last year that the embattled Maloof family backed out of.
Since reports of the Kings’ move to Seattle have hit the net from very reputable sources, Sacramento has been firing on all cylinders in what has been a long-term initiative to respond in the event the Maloof family was willing to sell the team. Indeed, sources close to the situation in the California capitol have told PBT that preparing for this contingency has been a prime focus of the city, and that when it comes time to present Sacramento’s offer to the Board of Governors that they believe it will be a compelling and competitive offer.
It will be up to the Board of Governors — made up of the 29 other NBA owners — to make that determination.
We reported in September that Seattle’s Chris Hansen would need to put up more money to beat Sacramento’s offer, and that is one of the main sources of the city’s confidence according to sources speaking on condition of anonymity.
We calculated that an offer from Sacramento of $425-450 million for the overall price of the Kings franchise would put more money in the Maloofs’ pockets than the reported $525 million offer from Hansen, because a Sacramento owner would not need to worry about the Maloofs’ outstanding loan to Sacramento (~$75 million). The city also doesn’t have to worry about the league’s relocation fee, which was $30 million when the Sonics moved to Oklahoma City and became the Thunder, although the Board of Governors can set that fee at whatever level they wish. USA Today’s Sam Amick confirmed Sacramento’s target offer in his exclusive interview with Sacramento Mayor Kevin Johnson last week.
The biggest point in Sacramento’s favor according to sources is the “model offer” of public funds itself, an offer that was in excess of $200 million in a California climate that normally doesn’t support public funds for sports facilities.
Sources close to the situation tell PBT that this, along with the league’s fear of another Sonicsgate, will be the deciding factors should Sacramento be able to provide an actionable offer that is competitive with Seattle.
The Maloofs themselves have reached the point where they have to sell the team, something that doesn’t really help their leverage. Their financial struggles are well documented and in May they asked their minority owners for a $10 million cash call. Along with the threat of having a lame duck year in Sacramento, nobody with knowledge of the situation has said that there is a realistic chance that the family decides not to sell.
This means that this story is coming to a head, and if the Board of Governors pushes the Maloofs toward the Sacramento offer they will have to listen. Because a Sacramento offer can put the same type of dollars in the family’s pockets, sources in Sacramento like the city’s chances to pull this out.
Favoring Seattle is the fact they have a larger television market than Sacramento (Seattle is 14th, Sacramento is 20th), and that a relocation fee assessed to Seattle could put money in each owners’ pockets, but Sacramento isn’t without ammunition here. They have no competition from other sports teams and have a long and storied history of supporting their franchise. They are also arguably further along in their arena building process, as Seattle is still facing two relatively toothless lawsuits and an environmental review while Sacramento’s arena deal was ready for approval last year. In addition, as SB Nation’s Tom Ziller points out, there are several reasons that expansion could benefit the league and owners would also benefit from an expansion fee in that case as well, which would theoretically give the Hansen group a better price point to join the club.
Sacramento has been working for a long time and has not been caught off guard by the Maloofs’ intentions to sell. As long as Mayor Kevin Johnson can deliver the package he has been foreshadowing, it will be up to the league to decide whether or not they want to turn their back on Sacramento.
As usual, it comes down to showing the league the money. Fortunately for Sacramento, this is something that Mayor Johnson has a great track record with.
Sacramento Mayor Kevin Johnson will reportedly get that chance, but he’s going to have to convince the owners to reject a deal put before them. While those same owners did that in the case of a proposed Kings move to Anaheim, this may be a tougher pitch for Sacramento.
Dec 13, 2013, 8:45 AM EST
There is a whole lot of spin going on around the idea of a trade of Kyle Lowry from the Raptors to the Knicks, but a couple of themes seem to be consistent: 1) The Raptors want a lot to give up Lowry. By a lot we mean Raymond Felton plus some combination of Iman…
Dec 13, 2013, 8:00 AM EST
By Brett Pollakoff NEW YORK – It was only a week ago that the Nets were a sinking ship on the verge of capsizing completely, following consecutive losses at home where the team didn’t even seem capable of competing much less staying close enough to win for anywhere near the requisite 48 minutes. Jason Kidd may…
Dec 13, 2013, 2:50 AM EST
Our quick look around the association on a busy Thursday night, or what you missed while worrying about what could happen to Santa’s home due to global warming… LaMarcus Aldridge, Portland Trail Blazers. I’ve been saying he is the best power forward in the game all season (yes, better than Kevin Love) and he showed…
Dec 13, 2013, 12:12 AM EST
There was a time when “Deron Williams or Chris Paul?” was a legitimate question worth debating. Not for the past few years however — D-Will has hobbled around with injuries while CP3 has assumed the title of best point guard in the game (with reason). But for a night, the debate could be on again.…
Dec 12, 2013, 10:46 PM EST
NEW YORK – Things were going almost perfectly for the Nets by the time the team suffered its latest injury blow, a sprained ankle to Brook Lopez that prematurely ended his night. Lopez returned to the game briefly after coming out to get the ankle looked at with four minutes or so remaining in the…
Dec 12, 2013, 9:41 PM EST
NEW YORK – Deron Williams began the night by falling to the floor after being victimized by a crossover from Chris Paul. The fact that he stepped on the foot of teammate Brook Lopez was what ultimately caused him to crumble, but Paul’s action at least sent Williams sliding in that direction. In the second…
Dec 12, 2013, 8:30 PM EST
After trying to play through it for a month and it not really working, Golden State’s Jermaine O’Neal is going to have surgery to repair the torn ligaments on the outside of his right wrist, the team announced Thursday. 1 of 2) @jermaineoneal will undergo arthroscopic surgery tomorrow to address a torn ligament in his…
Dec 12, 2013, 5:45 PM EST
We don’t need to tell you the Pacers are doing just fine without Danny Granger — they have the best record in the NBA (19-3) and knocked off the Miami Heat this week. Yet with Granger, they either will improve or they will have a potential trade piece to shop around at the deadline (or…
Dec 12, 2013, 4:43 PM EST
The Lakers, already without Steve Nash and Jordan Farmar due to injuries, will now be without Steve Blake until likely the start of February at least. Blake has a torn ulnar ligament in his right elbow at least six weeks, the Lakers announced. Speaking with the media, Blake said if he were a baseball player…
Dec 12, 2013, 3:25 PM EST
Glen Davis, even down to the lowest weight of his career, is big. After games, he’s big and sweaty. So, FOX Sports Florida’s Dante Marchitelli faced quite the challenge of staying focused during this, literally, touching interview. That man deserves a raise! Marchitelli, not Davis. Davis is paid just fine, and at least it’s his…
Dec 12, 2013, 3:05 PM EST
The Nets and Knicks have been the NBA’s two most underwhelming teams this season, but some statistical models predicted New York would slip. Few, if any, expected Brooklyn to struggle like this. From afar, I recognize Brooklyn’s troubles, but like most, I’m mostly numb to them. That’s certainly not the case for Kevin Garnett certainly,…
Dec 12, 2013, 2:33 PM EST
Rajon Rondo’s high school coach said Carmelo Anthony was recruiting Rondo, a 2015 free agent, to New York. As Kurt wrote, those types of conversations happen all the time. Of course, nobody publicly admits to them while they’re ongoing (except Chandler Parsons, who bragged about recruiting Dwight Howard to the Rockets). Anthony, via Ian Begley…
Dec 12, 2013, 2:32 PM EST
The Knicks need help on offense — a shot creator besides Carmelo Anthony — and they are looking at another point guard to get it. Multiple reports say the Knicks are now talking with the Toronto Raptors about getting Kyle Lowry, who became available when the Raptors picked up Greivis Vasquez in the Rudy Gay…
Dec 12, 2013, 2:00 PM EST
Tom Thibodeau is represented by Creative Artists Agency. We have to start there. CAA and the Knicks enjoy an extremely harmonious relationship. The Knicks actually made Mike Woodson fire his agent and retain CAA, according to Howard Beck of Bleacher/Report. Ken Berger of CBSSports.com: Once Woodson switches his representation to CAA, the agency will control…
Dec 12, 2013, 1:58 PM EST
It’s your game fans. The NBA All-Star Game is an exhibition filled with the players you vote to see. Whether those players deserve the honor based on their performance the first half of the season or not. Sometimes the most deserving guys don’t make the cut while guys hobbling through the season do. Which brings…
Dec 12, 2013, 1:25 PM EST
We present this to you with very little commentary on our part. Jim Brown is an NFL legend and an outspoken man about the African American community and how it fits in with overall American society. Brown was on the Arsenio Hall Show on Tuesday night and was asked to comment about Kobe Bryant’s return…
Dec 12, 2013, 12:35 PM EST
A lot of players have friends or family in the Los Angeles area (a shocking number live there in the off-season), so when they come to play the Lakers or Clippers they are looking to buy a few extra tickets to get those people in the door. There is always a scramble. Rudy Gay is…
Dec 12, 2013, 11:36 AM EST
It’s not that Brandon Jennings can’t play defense. He can. If you remember Jennings from the first couple seasons he was a solid defender on the perimeter. But that has changed over the years — he doesn’t seem to care about that end of the floor now, save for gambling for steals. He shows flashes,…
Dec 12, 2013, 10:56 AM EST
Zach Randolph has had his fair share of off-the-court issues over the years, but this is also a guy who gives back. He won the NBA’s Community Assist award for November for example: “As a part of the NBA’s Season of Giving, Randolph distributed 900 Thanksgiving food baskets at Booker T. Washington High School and…
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