The NBA’s relocation and finance committees will have a conference call on Monday, April 29, and make a recommendation on whether to approve the sale of the Sacramento Kings to a Seattle-based group that would move the team there next season or to reject the sale and keep the team in Sacramento.
After the recommendation is officially delivered to the NBA, the league’s owners will have seven business days to contemplate what to do and to conduct a final vote. That would mean the league could have a final vote as early as Wednesday, May 8, though it does not mean they would vote that day.
The NBA’s Board of Governors did not take a vote on whether to allow the sale from the Maloof Family to a group led by hedge fund manager Chris Hansen and Microsoft CEO Steve Ballmer at its annual meeting earlier this month. The city of Sacramento, led by Mayor Kevin Johnson, has put together an ownership group led by software magnate Vivek Ranadive and 24-Hour Fitness founder Mark Mastrov that has put in a bid to buy the team from the Maloofs and keep them in Sacramento.
Both cities have received local approval for building new arenas that would take some public funding as part of the construction costs. Owners on the committees wanted more information concerning the schedules each city has for constructing the building, as well as potential environmental and legal issues each city faces before construction can begin.
The Hansen group reached agreement with the Maloofs in January to purchase 65 percent of the team, on a franchise valuation of $525 million, equaling $341 million for the 65 percent, and gave a $30 million non-refundable deposit to the Maloofs. Earlier this month, after the Ranadive group made it clear to owners it would match the Hansen offer, Hansen announced his group would “voluntarily” raise its franchise valuation of the Kings to $550 million, meaning an additional $16.5 million would go to the Maloofs, for $357.5 million for 65 percent of the team.
The Ranadive group has matched the $525 million valuation, but has not yet opted to match the $550 million valuation. According to a letter released by the Maloofs earlier this month, the Ranadive group has pledged a $15 million non-refundable deposit.
The Maloofs have consistently told the league that they want to take the deal with the Hansen group. But Commissioner David Stern has been adamant that while the NBA generally allows owners to sell to whomever they like, the league will make the determination whether the Kings will be allowed to move.
A vote to approve a sale requires three-quarters of the league’s owners, or 23 of the 30. A vote to approve a franchise move requires a simple majority, or 16 of the league’s 30 owners.