In another sign that the NBA is tilting toward the keeping the Kings in Sacramento, the NBA reportedly has asked the hometown bidders to refund Seattle developer Chris Hansen his $30 million deposit, according to Sports Business Daily.
Hansen paid the deposit to the Maloof family as part of the $341 million price for 65 percent of the team, based on a valuation of $525 million, an NBA record. SBD did not identify the source, nor did the NBA or Kings bidders comment.
The report said that if the Kings stay, the NBA wants to make Hansen whole and assure that the league remains high on Seattle the market.
That would tack on $30 million to the $341 price that Hansen has offered, which the Sacramento bidders may resist, since that deal was with the Maloofs, the current owners. The NBA would likely not make the ask of the owners if they were not seriously considering rejecting the Hansen offer. The new owners would have to assume $77 million in debt from a loan from the city to the Maloofs in 2008 when the Great Receession hit and left the family nearly broke. to the team in 1997.
The Sacramento group is expected to submit its final package to the NBA Friday, as well as announce some new investors. The league has been scheduled to vote on the winning bid April 19, although that may be postponed.
23 Comments
How many businesses can make a person renege on something they purchased?
I keep telling you — it’s a monopoly operation; they can do what they want.
A Monopoly?…True that…right down to rigging playoff games,when needed…..The NBA
was at its best in the late 60’s and the 1970’s, Big fros,gold
chains,lotza facial hair, cocaine and delayed broadcasts notwithstanding…..Different NBA Champions nearly every year…’69 Celtics,’70 Knicks,’71 Bucks,’72 Lakers,’73
Knicks,’74 Celts,’75 Warriors,’76 Celtics,’77 Trailblazers,’78
Bullets,’79 Seattle SuperSonics, and then….Magic and Bird……and later, M.Jordan…..Boo!….Gimme
back the old school NBA/ABA……affordable,real, and the players were
genuinely likable……The Seattle Center Coliseum, 14,000
plus…Portland’s Glass Palace…held just 12,666…Can You imagine that
nowadays?…( Me neither, but I got me memories dammit!)…lol….:)
It’s called “Franchising”. That’s why the NBA can essentially do whatever they want in regard to the sale of a team, so long as it’s part of their Operating System. It wouldn’t be any different were someone trying to buy a McDonald’s franchise from an existing owner. No franchise sales are ever final until approved by the franchisor. That’s just the nature of the business unfortunately…to the detriment of the customer base. Of course you wouldn’t see this level of discourse in regard to the sale of a McDonald’s franchise. That’s what makes sports such a volatile emotional investment for the fans. Meanwhile, it’s an extremely profitable monetary investment for most owners.
So you can’t be too mad if the NBA rejects the Seattle bid…well, you can be mad, but you can’t fault them for following their business model. Now, the sale to Bennett and subsequent move to OKC? That was simply deplorable. But in the current situation the NBA is being forced to choose between two equally impressive plans/groups. Sacramento seems to have their stuff together, and if they do, it would be selfish to fault anyone for keeping the team there. Just because Hansen “got there first” doesn’t mean he automatically gets the team. From what I’ve gathered, the Maloofs never even gave Sacramento a chance to find someone to buy the team and keep it in town. In fact, when Ron Burkle inquired about purchasing the team, they got quite upset. Seems to me Sacramento is simply getting the chance they were never given to being with, and are making good on their promise to get a viable ownership group assembled, and arena plan approved. Why should they not be allowed to keep their team? If this exact scenario were playing out when the Sonics were about to leave, Seattle would think it even more of an injustice to lose their team if they had Hansen and his arena plan.
Devil, you have a good grip on the narrative. The franchise analogy is pretty good, but the franchise operators get no public tax subsidy, which nearly all pro teams do. That adds an element of public stewardship, but the NBA has many lawyers who have kept that from becoming a point of law. The public entity has an investment, but no control over the enterprise. It is the business model. Fairness and justice not included.
The loan from the city was from 1997 not 2008
Right you are. Fixed. Thanks.
Seattle should be done with the NBA if this doesn’t go through…outrageous.
Feeling used? This was a realistic prospect before Hansen signed the deal, just as LA has been used by the NFL to threaten municipalities around the country to capitulate or face relocation. Been done for more than hundred years throughout pro sports.
So using that logic, we will never get an NBA team then? LA is a convenient example, but they’ve never been this close to getting an NFL team back.
Seattle will get a NBA team , just not the Kings. nothing outrageous about Sacramento fighting hard to keep the kings. everyone knew Sacramento was Battle Ready.
True that…right down to rigging playoff games,when needed…..The NBA was at its best in the late 60’s and the 1970’s, Big fros,gold chains,lotza facial hair, cocaine and delayed broadcasts notwithstanding…..Different NBA Champions nearly every year…’69 Celtics,’70 Knicks,’71 Bucks,’72 Lakers,’73 Knicks,’74 Celts,’75 Warriors,’76 Celtics,’77 Trailblazers,’78 Bullets,’79 Seattle SuperSonics, and then….Magic and Bird……and later, M.Jordan…..Boo!….Gimme back the old school NBA/ABA……affordable,real, and the players were genuinely likable……The Seattle Center Coliseum, 14,000 plus…Portland’s Glass Palace…held just 12,666…Can You imagine that nowadays?…( Me neither, but I got me memories dammit!)…lol….:)
Treasure them, McKoosa. But I hope you don’t want your rotary phone back.
Whaddya MEAN “Back”?…I still gotz it…itz over there, on the table right nixt to the Black and white Motorola tee vee!!! :)
“Receession”
Fixed. Thanks.
It sounds to me like the deal is done in Sacramento’s favor.
Is it me or does this feel like David Sterns actions this year is just a way to prove that Sonics to OKC relocation was successful? By moving a team from a top 10 market to a top 40 market he was able to engineer the sale of a bottom 10 franchise for the highest purchase price ever. And at the same time force the taxpayers of Sacramento to overpay for an arena that in the most generous estimates will be a break even proposition. Brilliant work for his bosses the NBA owners at the expense of the communities of Seattle and Sacramento. This is David Sterns legacy that people should be talking about.
As for the deadline..Why should the Sacramento group react to the deadline? They are not and have never been negotiating with the owners of the team instead they are working directly with the NBA independent of any sort of binding agreements. If Sacramento ownership group knows that they have the required 8 BOG votes that will block sale then they can drag their feet and come in with a much lower (comparable) offer and the Maloofs will have no choice but to sell.
Oh yes, one more loose end the 30 million that exchanged hands…Easy force it on the local Sacramento owners KJ introduced in the first week. Most of those guys will be forced out with the first couple of cash calls.
I bet the email servers in the NBA offices are going to be wiped clean when all is said and done however KJ’s email account should be available as part of public record.. right?
Wheels within wheels.. fascinating stuff
Bennett overpaid for the Sonics, so shall Seattle/Sactown overpay for the Kings. It’s all about equity appreciation. Like your home. Unless you bought between 2005-08. Stern’s legacy is indeed a huge appreciation in franchise equity, which is exactly the job he was ordered to do.
Fans feelings have always been secondary.
In your last article you said “Seattle can wait.” Maybe–but I’d be worried about the fallout if people here feel that Stern has fixed the game against us yet again. The market was already damaged enough last time. Maybe the league doesn’t care about all that, but Hansen presumably does. How’s he going to deal with that?
Poor, poor Hooterville. How could something like this happen to such a forward-thinking, strong, deep-pocketed, God’s gift to the 21st Century city like Hooterville? This is the second time in the last five years it has allowed itself to be punked by the NBA.
And I guess that McGinn is not only a world-class jackasss–that was always a given–but he also, contrary to an earlier Sportspress Northwest column, is not “lucky.”
Well Seattle how does it feel to be penetrated by Sterns bifocaled face again, are you going to go back again for thirds? We are just a leverage point and they will keep using us for one as long as we let them, just drop the chalupa and slowly back away!
This entire soap opera stinks. From the beginning Stern has manipulated this entire process. Our first clue was when Stern basically forced Sacramento to increase its bid to match Seattle. Today there were several reports attributed to NBA insiders that Sacramento’s presentation was weak compared to Seattle’s. Clearly, Sacramento’s bid includes a lot of moving parts and appears to be a work-in-progress. Whereas Hansen’s bid is fully vetted and further along in its process. Favoring Sacramento at this point smells like a fix. I still believe the owners will save face offering Seattle a compromised future commitment to place or add a team here. Stern be damned.