Skip to content

Breaking: Deal between Maloof family, Seattle’s Chris Hansen for Kings struck, to be announced

Jan 20, 2013, 10:26 PM EDT

Seattle_Supersonics_Logo

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.

Latest Posts
  1. Kendrick Perkins says you’re blowing the LeBron James/Kevin Love thing way out of proportion

    Mar 29, 2015, 8:00 AM EDT

    Cleveland Cavaliers v Atlanta Hawks Getty Images

    “You don’t have to be best friends to come out here and work together.”

  2. Golden State picks up 60th win, clinches top seed in the West

    Mar 29, 2015, 12:26 AM EDT

    Steve Kerr, Stephen Curry AP

    The Golden State Warriors are the team to beat out West.

  3. NBA, Pacers issue statement in response to Indiana’s Religious Freedom Restoration Act law

    Mar 28, 2015, 6:30 PM EDT

    Adam Silver AP

    Legislation was signed into law in Indiana last week, and has been criticized as one that could legalize discrimination.

  4. Hawks to rest all five starters Saturday after clinching East’s top seed

    Mar 28, 2015, 5:00 PM EDT

    Atlanta Hawks Media Day Getty Images

    Hornets, still fighting for a playoff spot, catch a break.

  5. Stan Van Gundy: ‘Absolutely no chance’ Magic induct him into team Hall of Fame

    Mar 28, 2015, 3:30 PM EDT

    Stan Van Gundy Stan Van Gundy

    Van Gundy coached five seasons in Orlando, but was fired after the way the Dwight Howard debacle played out.

  6. Warriors coach Steve Kerr: ‘I would vote for Russell Westbrook’ for MVP

    Mar 28, 2015, 2:00 PM EDT

    Golden State Warriors v Denver Nuggets Getty Images

    Kerr was joking, and making light of a mini-controversy that occurred recently with the Cavaliers.

  7. Earl Clark signs 10-day contract with Nets, contributes to win over Cavaliers

    Mar 28, 2015, 12:30 PM EDT

    Cleveland Cavaliers v Brooklyn Nets Getty Images

    Clark played key bench minutes the same day he was signed.

  8. Stephen Curry scores 38 in Warriors’ blowout win over Grizzlies (VIDEO)

    Mar 28, 2015, 9:45 AM EDT

    Stephen Curry AP

    Warriors keep rolling, while the Grizzlies are starting to feel like a first round loss.

  9. Kevin Love finds LeBron James for huge alley-oop slam (VIDEO)

    Mar 28, 2015, 8:30 AM EDT

    LeBron James AP

    Highlight-reel play came near the end of a loss to the Nets.

  10. LeBron after Cavaliers fall to Nets: ‘You don’t chalk up losses’

    Mar 27, 2015, 11:44 PM EDT

    LeBron James AP

    LeBron refused to be dismissive of a seemingly harmless regular season loss.

  11. Shaquille O’Neal says he regrets leaving Magic for Lakers

    Mar 27, 2015, 10:30 PM EDT

    Orlando Magic add Shaquille O'Neal to team's Hall of Fame Getty Images

    O’Neal made the remarks while being inducted into the Orlando Magic Hall of Fame.

  12. Draymond Green launches “It’s cool Glen” line of T-shirts in latest banter between him, Doc Rivers

    Mar 27, 2015, 8:30 PM EDT

    b2644bf0-d4c9-11e4-bb85-27743e449672_csg

    The battle between Green and Doc Rivers continues in the funniest of ways.

  13. Cavaliers coach David Blatt: ‘LeBron James is our MVP’

    Mar 27, 2015, 7:25 PM EDT

    Atlanta Hawks v Cleveland Cavaliers - Game 1 Getty Images

    Blatt knows James is unlikely to get the league-wide award this season.

  14. No Durant, what does that mean for Thunder in these playoffs? Trouble.

    Mar 27, 2015, 6:12 PM EDT

    Oklahoma City Thunder v Denver Nuggets Oklahoma City Thunder v Denver Nuggets

    The Thunder defense has become a mess, which is bad for the playoffs.

Featured video

Where does Steve Nash rank all-time?
Top 10 NBA Player Searches
  1. K. Durant (6033)
  2. L. Aldridge (5663)
  3. K. Lowry (5524)
  4. R. Rubio (5405)
  5. G. Hayward (5297)
  1. G. Monroe (5183)
  2. N. Batum (5108)
  3. K. Martin (5079)
  4. A. Shved (5052)
  5. P. George (5049)