HANG TIME WEST – Now the group trying to buy the Kings and move them to Seattle has increased its offer in what is either the latest smart strategy move to put disorganized Sacramento on the clock with another problem (the Seattle viewpoint), or the desperate act of an operation that knows a big lead is about turn into defeat and is resorting to Hail Mary passes (the Sacramento viewpoint).
The $25-million bump by the always-proactive enterprise from Washington state would push the sale price for the Maloof family’s 65 percent of the team to $357.5 million – and put the total valuation of the Kings at $550 million. The Sacramento Kings. The Sacramento Kings annually residing in the lottery. The Sacramento Kings rated by Forbes in 2012 as the 23rd-most valuable franchise in the league, with an estimated worth of $300 million.
Those Sacramento Kings.
Except, in what has become the factor too often overlooked, no one is trying to buy a basketball team. That goes for both sides, the Chris Hansen–Steve Ballmer group aiming for the reincarnation of the SuperSonics and the Sacramento counter-strike led by mayor Kevin Johnson and Vivek Ranadive and Mark Mastrov as majority investors trying to keep a civic institution in town. Neither party is paying a record amount for an NBA franchise, the prorated equivalent of $100 million more than what the Warriors sold for in 2010, for the chance to decide what to do about DeMarcus Cousins.
They are trying to buy a piece. As much as they are sports fans with the chance for the ultimate toy, the Kings are the catalyst for a much larger plan. The Washington Generals would be worth $550 million.
Both cities have arena plans. Seattle’s projected building is close to the stadiums of the Mariners and Seahawks. In Sacramento, though, the bigger picture is the revitalization of an entire downtown area. No NBA team, no arena. No arena, no economic injection from construction. (Or at least no arena of this scale – Johnson has said his city will need a new entertainment complex with or without professional sports as an anchor tenant.)
Also, Ron Burkle, once part of the Sacramento bid for the arena and team before a conflict of interest forced him to drop out, has committed to being part of development around the arena. Burkle invested in your city is a very good thing.
In financial terms alone, apart from the emotional value of the only major-league team in town, losing the Kings would have a dramatic effect. The team is a marketing tool that helps Sacramento stay on the national map, and some local leaders through the years have expressed worry that convention business would suffer without the loud presence of the NBA.
How much is having the league back in Seattle worth to Hansen-Ballmer? According to Chris Daniels of King 5, the NBC affiliate there, the group has alreaady spent $100 million just to put itself in position for the honor of setting the value of a 28-53 team at a record level. This is, of course, about much more than the 28-53 team that could be playing its final game in Sacramento when the Kings face the Clippers on Wednesday night at Sleep Train Arena. The Seattle group envisions $40 million a year from local television alone, Daniels reports.
The original plan was to have Sacramento-Seattle resolved when the Board of Governors meets Thursday and Friday in New York. When both cities made presentations to a group of owners and league officials April 3, commissioner David Stern raised the possibility of the answer not coming within days of the end of the regular season. Tuesday, it became official: no vote this week, and no new date set.