Posts Tagged ‘Maloofs’

‘Final’ Vote On Kings Comes Today



.

HANG TIME HEADQUARTERS – The long wait is almost over … well, we think it might be over.

We could know before nightfall where the Kings will play in the future: Sacramento or Seattle.

The NBA’s Board of Governors meet today in Dallas with an expected final vote by all 30 owners on the Maloof family’s relocation proposal that would move the Kings from Sacramento to Seattle, where a group led by hedge fund manager Chris Hansen and Microsoft executive Steve Ballmer is set to purchase the franchise for a record price.

The formal recommendation two weeks ago from the committee of owners formed to study the relocation plan was a resounding vote for the Kings remaining in Sacramento. But the Maloofs have made it clear that their desire is to go with the Seattle group’s generous reported offer of $406.25 million and flee California’s capital city.

It’s not as simple as that, of course, what with the lawyers involved and the league waist-deep in a back and forth between two cities that are both desperate to keep a team, in Sacramento’s case, and regain a team, in Seattle’s case.

That’s the short version. The long version, in complete detail courtesy my main man, TNT’s David Aldridge, who is going to be on the scene in Dallas today, is much more complicated.

The Seattle group has covered all of its bases in trying to complete this deal. They’ve reached an agreement on that secondary deal, which they want enacted in the case that the Board of Governors reject the relocation proposal today.

That deal would include the Maloofs selling 20 percent of the Kings to the Hansen-led group for $120 million, and that’s based on a franchise valuation of $600 million. The Kings would stay in Sacramento for the 2013-14 season with the Maloofs as the owners. The Hansen group is also willing (and able) to pay an unprecedented $115 million relocation fee, a payout of approximately $4 million for every owner, if the owners allow them to purchase the Kings and move them to Seattle next season, raising the stakes yet again in this hundred million dollar exhibit in the business of basketball.

Sacramento Mayor and former NBA star Kevin Johnson is using the Kings’ history in Sacramento and the NBA’s loyalty to a fan base and city that has supported the Kings fervently, through good times and bad, as his trump card in this saga. The Sacramento group does not seem at all interested in some bidding war for the franchise that’s made it’s home there for last three decades.

Sort through the minutiae as best you can, but the bottom line is one set of fans will wake up tomorrow relieved that they finally have some answers about their team while another group of fans will wake up to the nightmare that their team is either leaving or not coming to town.

Again, the long wait is almost over … we think!

Sacramento Or Seattle? Committees Offer Up Recommendation On Monday

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.

The Sacramento Deadline That Isn’t

 

HANG TIME WEST – In the latest twist that wasn’t, the Sacramento Bee reported Wednesday that the Maloof family, owners of the Kings, has given Sacramento leaders until 5 p.m. Friday to submit a written backup offer to buy the team in the event the NBA turns down Seattle. What the Bee does not report is what happens if mayor Kevin Johnson and potential owners Mark Mastrov, Vivek Ranadive et al miss the deadline.

Nothing.

Love the chess move by the Maloofs, presumably in coordination, or at least in consultation, with the Seattle group. Put another item on Sacramento’s plate to deal with while playing catch up, sometimes awkwardly, in the final days before a possible vote by the Board of Governors. It is also the latest clear sign the Maloofs are digging in and willing to show their teeth. But there’s no there there.

The people of Sacramento have a lot to worry about in keeping the Kings, but this so-called deadline is not one of them. Johnson probably knows it, too.

All the scenario does is underline what was reported here before: The city and the current owners may again have to deal with each other. Anyone who thinks the league can force an immediate sale to a Sacramento group if the Seattle deal is voted down, the popular perception in some circles, is living a lie.

If the Board of Governors denies Seattle – if – the Kings stay in Sacramento, no matter who is owner. The vote on Seattle relocation is essentially a vote on whether the league believes in a future in the California capital. The Maloofs can keep the team, the Maloofs can sell to someone who isn’t plotting a midnight run out of town, but Johnson gets the result he wanted. It might not be with the owners he wants, but Sacramento still has the NBA under that scenario, and that is the bottom-line monster victory.

The deadline itself, though, is a negotiating tactic. If it is missed, it will not signify a permanent end to negotiations. It might not even signify an end for the month if the governors turn down Seattle. (If Seattle is approved, of course, everything else becomes moot.)

It is no shock that the Maloofs are re-asserting control of the ownership situation in the event the team stays. My previous reports stand: If Seattle is voted down, they remain the owners. The league cannot dictate a sale to the group currently in place and waiting for a chance. The Maloofs could easily wait a month or so to see what other billionaire wants to offer up, and then decide on a sale. They could go into next season, as uncomfortable as that would be with 3,000 people in the stands. The latter is unlikely, but far from impossible.

The unavoidable truth is that the Maloofs and Sacramento will still need each if Seattle is denied. If the Maloofs want to get the prorated equivalent of the biggest sale in NBA history for their shares, deadlines have to be dropped or negotations have to be started with new parties. If Sacramento wants someone else to own the team, they have to go through the Maloofs. As always.

It is no coincidence that Johnson has become much more complimentary toward the Maloofs over time. KJ told me he is simply trying to give the family due credit for the many positives they brought to the city, a reminder that was long overdue but unpopular to note in town, but it looks an awful lot like a schmooze job. The Maloofs are emotional, which has been one of their best attributes and also a problem area, and making nice could go a long way.

Johnson had a telling response when asked about the story about the deadline, about why the Maloofs would give such an ultimatum. He could have belittled the strategy or laughed at how little it means, and he might have in the past. This time, the mayor wisely took a pass.

“You would have to ask them,” he said.

It is worth noting some family members have also said nice things about how Johnson has led the comeback. The sides will be able to at least talk if it comes to that, whether about moving forward together or finalizing a sale to new owners. Just as importantly, they will be able to talk even if no offer is submitted by Friday at 5 p.m.

The Kings Did The Right Thing

***

HANG TIME HEADQUARTERS – Only time will tell if Kings big man DeMarcus Cousins will live up to his immense potential or if Keith Smart will indeed have staying power as a coach in the NBA.

We can close the book on one thing: the Kings (specifically co-owners Joe and Gavin Maloofs) made the right decision changing coaches — from Paul Westphal to Smart eight games ago. That change had to happen, and not just for Cousins but for an entire team in need of a change in mood and direction.

The Kings are 3-5 since Smart took over for Westphal — that’s not exactly playoff-ready and is a mark that probably doesn’t have the Western Conference elite worried about them. But the difference in this team’s confidence is evident. They’ve shown a resilience and cohesion that was simply absent under Westphal, battling back from huge deficits to win games (last night’s win over Indiana being the latest such effort) that could have easily been blowout losses added to their pile.

Blaming the former coach for all that went wrong would be more than a little shortsighted on our part, so we’ll stop right here and point out the shared responsibility of all involved (coaches, players, front office, etc.). Still, a team that looked like a complete dysfunctional mess just a few weeks ago is at least showing signs of life now.

Sometimes a different voice, a different approach, is what it takes to get through to a team. Take Smart’s approach to his power forward rotation, per the Sacramento Bee (courtesy of my main man Jason Jones):

“I’m trying to create an environment where the power forward position is a partnership where no one is being demoted or upgraded over the next player,” Smart said. “I want to be able to write down tonight I’m expecting 20 points and 10 rebounds from that group and they form a partnership.”

(more…)