Posts Tagged ‘Mark Mastrov’

Board Of Governors Vote To Keep Kings In Sacramento

From staff and wire reports

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The Sacramento Kings aren’t going anywhere anytime soon.

The saga of the Kings’ future began back in January with an agreement between the Maloof family and Seattle-based investors Chris Hansen and Microsoft CEO Steve Ballmer that would have sold the team to them. They would then have brought the Seattle SuperSonics back to the NBA after they were relocated to Oklahoma City after the 2007-08 season.

But the Hansen/Ballmer group is coming away empty-handed in its attempt to bring the NBA back to the Emerald City, as the NBA’s Board of Governors voted 22-8 to deny relocation of the franchise, keeping it Sacramento for now.

The NBA’s relocation committee voted 7-0 on April 29 to recommend rejecting the relocation of the team to Seattle, but Hansen’s group tried to sweeten the pot by increasing the franchise’s valuation and offering a record relocation fee as well.

Sacramento’s efforts have been led by software magnate Vivek Ranadive as well as Sacramento Mayor Kevin Johnson, who have worked tirelessly to local and regional businesses and leaders to establish the framework for a new arena for the Kings.

The Ranadive group has a competing deal on the table based on the original franchise valuation of $525 million that Hansen and the Maloofs reached in January.

The Ranadive group has agreed to match the 65 percent price of $341 million for the Kings in that deal, and has put at least 50 percent of that $341 million into escrow. NBA Commissioner David Stern said last month that while the Sacramento bid to keep the Kings at the time was slightly lower than the Seattle bid, the league considered the Sacramento bid binding.

Although there has been substantial buzz in Seattle that there are potential antitrust issues that could be the basis for a lawsuit against the NBA if and when Hansen’s bid is rejected, Hansen’s group apparently remains uninterested in legal remedies upon rejection, according to the source.

Hansen believes that this may be the last time in the foreseeable future that political and business interests in Seattle will be aligned to give support for an NBA bid. The city of Seattle has committed up to $200 million toward construction of a $490 million arena in the city’s SoDo area, next to Safeco Field, where baseball’s Mariners play. Hansen, who has already purchased the land on which he wants to build the arena, would pay the rest.

Sacramento has committed $250 million toward construction of a $447 million arena that would be the centerpiece of a development plan at the current Downtown Plaza mall site.

Ranadive’s group, which includes 24-Hour Fitness founder Mark Mastrov and the Jacobs Family, billionaire owners and managers of the Qualcomm company, has pledged to the NBA that it will not be a revenue sharing recipient if the Kings remain in Sacramento, citing the expected increased revenues the team will be able to get from a new building.

The Sacramento Bee reported this week that the NBA has encouraged the Ranadive group to put the remaining half of the $341 million into escrow as well to alleviate concerns of the Maloofs that the group has the financial wherewithal to complete the transaction.

Information from TNT analyst David Aldridge was used in this report.

Seattle-Sacramento Tug O’War Gets 3 More Weeks Of Rope

 

NEW YORK – Calling it a “wrenching” decision, NBA commissioner David Stern told reporters Friday that the thorny issue of the Sacramento Kings’ proposed sale and relocation would be resolved within the next three weeks.

Which way it goes – the Kings staying and playing right where they are or shifting north as the second coming of the Seattle SuperSonics – remains unclear. And, as Stern told it after the latest NBA Board of Governors meeting, it even has him guessing.

“It’s the only time in the last 37 – 47 years – that I haven’t known the answer,” Stern said, playful with his own timeline in response to a reporter’s question, then turning serious about the process. “No, but this is one that’s just been quite difficult and confusing for the owners as well. And we’ve been working very hard to give it a structure at their direction.”

Whether you believe that assessment might hinge on your view of Stern. Did the most powerful (and some would say controversial) commissioner in sports get that way by behaving like Lady Justice, blindfolded and scales all even-steven? Or is he still the delicatessen owner’s son from Teaneck, N.J., adept at resting a thumb ever-so-slightly on the scale?

Advocates on both sides of the Maloof family‘s possible sale and transfer of the franchise to Seattle interests headed by investors Chris Hansen and Steve Ballmer are skeptical that Stern isn’t shading or influencing the process in some way. If both sides are worried that it’s tilting against them, that at least is worth something.

The bottom line out of the BOG sessions held Thursday and Friday, after diligent work by the relocation and finance committees, was that any tilting would matter after the week of May 6-10. That’s when a FINAL final vote will be taken and the Kings’ fate decided.

Why the wait? Those committees will meet again next week to sort through remaining questions about arena construction and financing and about the particulars of each group’s offer. The report they issue will be sent to the entire Board of Governors, which must have at least seven business days to review it. Also, Sacramento mayor Kevin Johnson told NBA.com Friday that he thought his group would be permitted to make a final pitch on that city’s behalf.

All of that pushes the BOG vote out three weeks. A league spokesman said it could be held face-to-face again or via conference call. Any meeting might be back in New York or could be held in one of the active playoff cities. Then and only then would folks watching the NBA Draft Lottery know whether the team card in the big envelope said Sacramento or Seattle.

Said Stern: “What makes this particularly difficult … is the Seattle group has done a lot of work. It’s well funded. It’s got spectacular businessmen who support the community behind it, and the Sacramento group has a very strong base of economic support as well.”

The Hansen-Ballmer group recently upped its offer to $357.5 million for a 65 percent controlling interest in the Kings, which pushed the team’s valuation to $550 million. The Sacramento group led by Johnson and investors Vivek Ranadive and Mark Mastrov also have made a bid that, Stern said Friday, is being treated as a signed agreement. Both offers are “in the ballpark,” Stern said when asked about significant differences.

Both have the same negative, too: Neither the Kings’ current home or an NBA return to Seattle’s KeyArena offers the long-term solution.

“We’ve got two temporary facilities that we’re going to be playing in,” Stern said, “whichever way the board goes, and the quality of those facilities and there’s so many other issues and the critical path based upon environmental reviews, potential lawsuits and the like.”

It’s a hot mess, an either/or dilemma that is likely to leave one of the markets – the capital of California or the former Pacific Northwest home of one of the league’s showcase teams – on the outside looking in.

When asked about expansion to Seattle as a compromise solution, Stern said: “I haven’t heard that in any shape or form, particularly when we don’t know at this time what the next television network contract would be.” Remember, beyond dilution of talent and scheduling and alignment concerns, divvying up the hundreds of millions of dollars a 31st NBA franchise would pay for entry would mean cutting another slice from the broadcast revenues in the future.

Then there is Stern’s legacy, which will be sealed next Feb. 1 when he resigns after 30 years. Deputy commissioner Adam Silver has been tabbed as his successor.

Said Stern: “We have expended not only enormous man‑hours but enormous sums of money for outside consultants. This will be by far our most extensive review of anything like this in the league’s history.”

Among other items on the BOG agenda Thursday and Friday:

– Reports on revenue-sharing and the impact of the collective bargaining agreement were heard. “Very upbeat in terms of improving team operations and the competitiveness of the league,” Sterm said.

Jeannie Buss was approved as controlling governor of the Los Angeles Lakers, as the family continues its succession of late owner Jerry Buss. Also, Cleveland owner Dan Gilbert and partners purchased additional interest in the Cavaliers franchise.

– The governors “had fun” with a report on officiating, while formally welcoming former NBA player and league exec Mike Bantom as the new head of officiating.

– A report from the competition committee was educational for the owners in highlighting the trends of increased 3-point reliance – from no teams that averaged 20 or more attempts from the arc in 2001 to a dozen that did so this season, Stern said. That, in turn, has opened up the game to the bosses’ satisfaction.

– Security matters also were discussed, especially in the wake of the events this week in Boston. The bombings at the Boston Marathon led to the cancellation of Tuesday’s Pacers-Celtics game in that city. The NBA will be making a “significant contribution,” the commissioner said, to the One Fund established to aid victims of that terrorist attack.

– Stern said he remains optimistic that human-growth hormones will be added to the NBA’s anti-drug testing program but that addition involves cooperation of the National Basketball Players Association, which is busy finding a replacement for executive director Billy Hunter.

 

Deal Reached On Sacramento Arena

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The city of Sacramento moved a step closer to a showdown with Seattle by reaching agreement Saturday with private investors to build a downtown arena, mayor Kevin Johnson announced, an important part of the bid to keep the Kings.

The deal with Ron Burkle and Mark Mastrov, the original lead investors of the comeback bid, and now joined by Vivek Ranadive, a Warriors minority owner, had long been expected. Putting a group together that will attempt to buy the team if NBA owners deny the Seattle bid had been expected. And, today’s deal is expected to be approved by the Sacramento city council on Tuesday. These have all been predictable layers to a process of key unpredictable moments.

The news of Saturday and the near-certain upcoming news on Tuesday set the stage for the real developments next month. On April 3, officials from both cities and each group trying to buy the Kings from the Maloof family will be in New York for presentations to owners in advance of the Board of Governors meeting. It is at the Board of Governors gathering April 18-19, after the final certain game in Sacramento on April 17, that a vote will be taken on the agreement the Maloofs reached with the Seattle interest led by Chris Hansen and Steve Ballmer.

If the board – one representative from each team, usually an owner – approves the sale to Hansen-Ballmer, the Kings will be in Seattle next season, likely as the SuperSonics, and the efforts in Sacramento will be moot. But if the work of Johnson and the Ranadive-Mastrov-Burkle bid convinces the board to turn down Seattle, Sacramento would have a plan in place to buy the team and build an arena.

The deal announced Saturday  is for a $448-million downtown arena close to where the city planned to build when it reached an agreement with the Maloofs about a year ago, only to have the family back out of the non-binding agreement after approval by the city council. The vote Tuesday is also non-binding, but with no indication the package would fall apart down the line after the new investors have been involved in negotiations.

Lead Investors Revealed In Kings Bid

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Sacramento’s comeback attempt to keep the Kings reached an important stage Thursday as mayor Kevin Johnson announced business magnate Ron Burkle, the owner of the Pittsburgh Penguins, and Mark Mastrov, founder of 24 Hour Fitness, will have leading roles in the push to convince the Board of Governors to deny the Seattle bid and keep the team in Northern California.

The Mastrov-Burkle pairing had been expected, just not in the specific roles Johnson outlined in his State of the City address. Instead of both buying into the Kings if Sacramento’s dream outcome turns into reality – the team stays but the current owners, the Maloof family, is gone – Mastrov was revealed as the majority investor while Burkle will take the lead on a new downtown arena. Given that the two deals are so closely related, though, Burkle, the wealthier of the two, could be part of the purchase of the club. Those specifics were not disclosed.

What is clear is that the plot just thickened. Not only does Sacramento now have a long-awaited counter-strike to go with the promise from commissioner David Stern that Johnson would pitch the Board of Governors, but another Maloof enemy is officially in the mix. The family may not have the same distaste for Burkle as for Johnson, but Burkle is pretty high up the list.

Johnson announced that Mastrov, who made a serious run at buying the Warriors before Joe Lacob and Peter Guber won the bidding, would submit his bid to the league office on Friday. The Board of Governors will meet April 18-19 in New York to decide the future of the franchise. If the sale to the Seattle group led by Chris Hansen and Steve Ballmer is approved, the Sacramento efforts are moot.

“We never give up, we never give in, we never say never,” Johnson told the crowd at his address. “That is who we are. So, with all due respect to Seattle, and I absolutely do wish them well, and I do hope they get a team some day… let me be perfectly clear. I said let me perfectly crystal clear. It is not going to be this team. Not our team. No way.”

The audience erupted in cheers and a chant of “Sac-ra-men-to!”

“We have done and will continue to do whatever it takes to keep our team in Sacramento,” the mayor said.

When Johnson announced Jan. 22 he had 19 investors at $1 million each, with another to follow, the former All-Star point guard said he hoped to reveal the big-money backing within about two weeks. The delay then turned into more than a month, with the additional update Thursday that former Kings star Mitch Richmond was one of the 20.

Putting himself on the clock was a tactical error that should have been easy to avoid, but KJ incurred no actual damage. Seattle had a strong deal — and pending litigation the NBA doesn’t consider much of a threat — and Sacramento needed to send a message to owners around the league that it was organized and could be counted on to deliver.

But once All-Star weekend came and went without an official response to the Seattle purchase agreement with the Maloofs, the missed opportunities started to count. Johnson was in Houston to press Sacramento’s case — lobbying the Board of Governors to vote against the attractive Seattle package has always been the biggest challenge for the mayor – except that he didn’t have anything to press with.

Minus an accompanying plan in hand, Johnson was basically telling league power brokers that Sacramento and the NBA have been good for each other. Everyone already knew that. KJ is a charismatic salesman with credibility in front of the Board of Governors. Everyone already knew that too.

League executives and owners left All-Star weekend unmoved by anything Johnson had to say, insiders report, or anywhere close to gauging Sacramento’s chances of an upset because they had not seen a proposal. That will change in the wake of Thursday’s announcement by the mayor and the expectation that the official notice will be delivered Friday.

Future Home Of Kings Remains In Doubt





SACRAMENTO, Calif. – The Kings’ future in Sacramento remained uncertain Friday afternoon amid contrasting reports that the Maloof family has either been in talks with a buyer who would keep the team in town or that the owners have reached an agreement in principle to sell to a group that would move the team to Seattle.

One thing is definite: Hall of Famer Magic Johnson is not part of a bid, NBA.com has learned.

Johnson was a prominent part of the group when California businessman Mark Mastrov made a serious run at the Warriors in 2010. Now, Ken Berger of CBSSports.com is reporting Mastrov has talked to the Maloofs about buying the Kings, quoting Mastrov as saying, “Definitely, there’ve been conversations. Definitely there’s interest in acquiring the team and keeping it in Sacramento.”

The story does not say whether negotiations are in the early stages or at a serious point, or whether the talks are current or have stalled as the Maloofs have by many indications moved close to a sale that would result in the team going to Seattle.

Meanwhile, Matt Steinmetz of CSNBayArea.com, citing a source familiar with the negotiations, wrote the Maloof family has struck a deal with the Chris Hansen-Steve Ballmer group as the first major step to filing for relocation before the March 1 deadline to have the Kings in Washington next season. The cost would be approximately $525 million, Steinmetz reported.

There had been no independent confirmation by NBA.com and, as has been the stance all along, no comment from the Kings.

Johnson, with major investments in several business ventures, once owned approximately five percent of the Lakers, before selling in 2010. He was part of the effort to buy the Warriors that same year, before losing out to Joe Lacob and Peter Guber, and probably Larry Ellison as well. Johnson has since become a minority owner of the Dodgers, the current source of most of his sports-related energy. He remains a vice president of the Lakers with no day-to-day input.

Johnson and Sacramento Mayor Kevin Johnson, former rivals on the court, are friends, though not in regular contact.