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.
Mar 7, 2014, 3:35 AM EST
Our quick look around the NBA, or what you missed while wondering how you could read a novel in 90 minutes, well, there’s an app for that… Gerald Green, Phoenix Suns. If all you think Gerald Green can do is dunk, you need to watch the tape from Thursday night. It may have been true…
Mar 7, 2014, 2:39 AM EST
Adidas and the NBA will tell you that the sleeved jerseys are selling faster than they had projected, which is why you are seeing more of them (including the “Latin Nights” series of games, that are going on) . All-Star weekend commissioner Adam Silver said math showed that shooting percentages were almost identical when players…
Mar 6, 2014, 11:40 PM EST
In the first meeting of the season between the Heat and the Spurs, Miami had little trouble securing victory in the Finals rematch, in large part due to the fact that the Spurs were cobbling together a lineup that didn’t entirely feature the team’s best players. The rematch of the rematch, however, saw the Spurs…
Mar 6, 2014, 10:21 PM EST
Plenty of teams are rolling out throwback jerseys these days, but the ones the Raptors are planning for next season may be some of the more highly-anticipated. Toronto will wear the team’s original “Dino” jerseys for select games during the 2014-15 season, according to an official release. “We are excited to bring back a piece…
Mar 6, 2014, 9:14 PM EST
Zydrunas Ilgauskas will have his jersey retired in Cleveland this weekend, and his former teammate with the highest league-wide profile will be in attendance — despite the implications that many will attempt to ascribe to that gesture of personal support. LeBron James will be there when the Cavaliers raise Big Z’s jersey to the rafters,…
Mar 6, 2014, 8:01 PM EST
Dwight Howard returned to Orlando as a member of the Houston Rockets on Wednesday, and as part of the Magic’s 25th anniversary season, they played a video tribute to Howard between the first and second periods. Plenty of fans let their disapproval be heard, and boos rained down on Howard as the video began. Howard…
Mar 6, 2014, 6:55 PM EST
And in some very surprising news, a college basketball coach supports the college basketball system. Larry Brown brings some credibility to this — he is the only coach in history to win an NCAA title (1988 Kansas) and an NBA title (2004 Detroit) and is remains one of the great teachers of the game. He’s…
Mar 6, 2014, 6:02 PM EST
If you ask league executives, pretty much everyone expects a 2017 lockout. They see the owners putting in the groundwork now for another work stoppage in three years and most people see it as inevitable. The only question is how long it lasts and if it costs games. Three years from now, the summer of…
Mar 6, 2014, 4:28 PM EST
I’ll be honest, I don’t really remember the Shaq Fu video game. What I do know is that people didn’t really like it. Which is putting it kindly. So Shaq is trying to do a sequel. Of course. Dan Devine at Yahoo’s Ball Don’t Lie has the details. O’Neal and his partners at Big Deez…
Mar 6, 2014, 3:32 PM EST
Suns rookie Alex Len is the only current Ukrainian on an NBA roster. Ankle injuries combined with surprisingly good play from the Suns existing front line (Channing Frye, Miles Plumlee, the Morris twins) have kept him on the bench much of the season. However Thursday night he is going to get the start against the…
Mar 6, 2014, 2:34 PM EST
If you want to beat the best, you need to learn from the best. Paul George wants to beat the best, and right now the best is LeBron James. LeBron may be the most physically gifted player in the game (arguably ever) but he also has maybe the best basketball mind in the game. Team…
Mar 6, 2014, 1:49 PM EST
We told you last week to expect this and now it is a reality: Royce White is now a member of the Sacramento Kings. The Kings announced Wednesday the signing of White to a 10-day contract. He was immediately assigned to the Kings D-League affiliate Reno Bighorns. White was the No. 22 pick of the…
Mar 6, 2014, 1:34 PM EST
You know what Tupac Shakur is doing right now? Having lunch with Elvis, Jim Morrison and Andy Kaufman. In heaven (or your afterlife of choice). Because they are all dead. Outside of a hologram at Coachella you are never going to see Tupac again… but then who was that at the Warriors/Celtics game on Wednesday…
Mar 6, 2014, 12:55 PM EST
Tommy Lasorda is a motivator. The legendary Dodger skipper was never a managerial genius with moves that wowed baseball’s intellegentia, but his players would run through a wall for him. He understood enough that is a limping Kirk Gibson wants to pinch-hit in the World Series you send him out there, but mostly he just…
Mar 6, 2014, 12:14 PM EST
The last time the Philadelphia 76ers won a game it was Jan. 29 in Boston. Since then the Sixers have lost 15 in a row, by an average of 19.8 points a game (a couple 40+ point losses skew that number). Coach Brett Brown is not sure his team will win another game this season…
Mar 6, 2014, 12:03 PM EST
The Orlando Magic showed their Dwight Howard tribute video, and as expected, fans booed (though not as thoroughly as I would have hoped during the entire video). Presumably, Chandler Parsons, now Howard’s teammate with the Houston Rockets, was not among the jeerers. But in a different time and place, he could have been. Jonathan Feigen…
Mar 6, 2014, 11:33 AM EST
The Nuggets got a pretty good bargain signing Nate Robinson to the bi-annual exception. But in exchange for paying Robinson such a low salary, they had to give him a player option for the second season of his two-year contract. That way Robinson wasn’t stuck being underpaid if he had a strong year, and he…
Mar 6, 2014, 11:07 AM EST
After ranking third in the NBA in 3-point percentage last season, the Oklahoma City Thunder have slipped to below league average this year. So, it appears they’ll target outside shooting with their vacant roster spot. Darnell Mayberry of The Oklahoman: The Thunder is filling its 15th and final roster spot with the signing of shooting…
Mar 6, 2014, 10:36 AM EST
Reports Carmelo Anthony could sign with the Chicago Bulls this offseason are nothing new. Even Melo has stoked the flames of the rumors. But most published work on the subject has focused on where Melo desires to play. Sure, by trading Luol Deng for Andrew Bynum and draft picks, the Bulls signaled a greater interest…
Mar 6, 2014, 10:00 AM EST
The Detroit Pistons couldn’t do much to bother Joakim Noah, who had a triple-double in the Chicago Bulls’ 11-point win Wednesday. But the Pistons’ mascot, Hooper, sure scared the Bulls center after the game. Announcement: Pro Basketball Talk’s partner FanDuel is hosting a one-day $50,000 Fantasy Basketball league for Thursday night’s games. It’s $25 to…
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- Suns’ rookie Alex Len takes to court with #prayforukraine on shoes 18
- Paul George wants LeBron James to be his mentor 41