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Here is one of the last guys that tried to keep the Kings in Sacramento, what now ?

AnDrOiDKing4 wrote:Here is one of the last guys that tried to keep the Kings in Sacramento, what now ?

Scenario 1) Maloofs go bankrupt before Feb 1st, 2014 and Burkle/Others buy the King's and keeps them in Sacramento.

Scenario 2) Maloofs go bankrupt and the Seattle Group (of like $20 billion net worth) buys the King's and moves them immediately.

Scenario 3) Maloofs get approval to move to LA/Anaheim before Feb 1st, 2014.

Scenario 4) Maloofs get approval once Stern retires to move to LA/Anaheim.


Those are your 4 most realistic scenarios (Maloofs wanting to stay in Sacramento or moving somewhere else (unless some other billionaire/group throws millions at them for free) are just completely unrealistic and an absolute pipe dream)

Stern has said he's done dealing with the Maloofs after the arena deal. Now he wants them to sell & move the team to Seattle. The Maloofs won't be filing for bankruptcy anytime soon. The way I see it the Maloofs are trying to make a deal to keep & move the team which is tricky due to the 200 million they owe. They can't move to Anaheim due to the territory rights they would have to pay to the L.A. teams up to a 100 million. They are in a holding pattern right now looking for a new place to play that will help them with their debt or get someone to overpay for the team.

kevin44 wrote:Stern has said he's done dealing with the Maloofs after the arena deal. Now he wants them to sell & move the team to Seattle. The Maloofs won't be filing for bankruptcy anytime soon. The way I see it the Maloofs are trying to make a deal to keep & move the team which is tricky due to the 200 million they owe. They can't move to Anaheim due to the territory rights they would have to pay to the L.A. teams up to a 100 million. They are in a holding pattern right now looking for a new place to play that will help them with their debt or get someone to overpay for the team.

They have nowhere to go. They have severely leveraged the team. The Maloofs situation with the team is equal to you or me owing $1,000,000 on a home with a market value of $500,000. No matter how long we keep it or how much the potential buyer wants it we are losing money. The only option the Maloofs have is bankruptcy. They can't go anywhere without paying an immediate $70mm in debt to the city of Sac not to mention an additional re-location fee of around $30-50mm. On top of the $100mm already borrowed to cover operating costs. Wherever they go will have a new ownership group ready bleed them dry until they relinquish the club. The only question is do the Maloofs fo the right thing and sell the team to a new group willing to keep the Kings in Sac (Burkle/MVP)? Or does the Seattle group overbid to the point the Maloofs can't say no?

Call Me Geoff wrote:They have nowhere to go. They have severely leveraged the team. The Maloofs situation with the team is equal to you or me owing $1,000,000 on a home with a market value of $500,000. No matter how long we keep it or how much the potential buyer wants it we are losing money. The only option the Maloofs have is bankruptcy. They can't go anywhere without paying an immediate $70mm in debt to the city of Sac not to mention an additional re-location fee of around $30-50mm. On top of the $100mm already borrowed to cover operating costs. Wherever they go will have a new ownership group ready bleed them dry until they relinquish the club. The only question is do the Maloofs fo the right thing and sell the team to a new group willing to keep the Kings in Sac (Burkle/MVP)? Or does the Seattle group overbid to the point the Maloofs can't say no?

How are the Maloof's forced to sell...

The franchise is worth $300 million. Their loan is worth $70 million. If they move somewhere such as VA or KS, relocation fees will probably be $30 million.

If either of those cities offers an arena for free, moving the King's would cost the Maloofs $100 million and the team's worth $300 million, would essentially mean the King's are worth $400 million to the Maloofs.

How many ownership groups would be willing to pay $400 million + $70 million loan + $30-100 million relocation fee + cost of arena?

And if the Maloofs are very adamant about not selling, it would cost more than $400 million to make them budge.

It's not looking good. As everyone knows, Hansen will easily outbid Burkle. The city of Sac is done working with them. Seattle seems inevitable.

Nicky Nix Nook wrote:It's not looking good. As everyone knows, Hansen will easily outbid Burkle. The city of Sac is done working with them. Seattle seems inevitable.

I don't disagree that the King's will be moving and its a done deal essentially...


What I do disagree is the premise that the King's will necessarily end up in Seattle.

Assume Hansen pays an extra $100 million to entice the Maloofs to sell ontop of the current teams valuation of $300 million.
Add $70 million loan to Sacramento
Add $30 million relocation fee.


That's $500 million to move the Kings. Add an additional $300 million to build the arena.

You're now looking at a total of $800 million to bring in a franchise.


The key difference between Hansen and the Maloofs is, Hansen is actually competent at business and financial matters. In fact he's actually extremely good at it. At what point is it simply a bad business move to get the King's to Seattle?


Again...all of this is on the premise that the Maloofs are willing to sell the franchise, which I do not buy. The Maloofs are douchebags. I fully believe they will hang onto the franchise and squeeze every last penny out of it. Even when Sacramento was a scrub of a team...the Maloofs were able to keep costs so low...they still made money. Why do you assume they will do the responsible thing and sell the franchise?

The Maloofs have destroyed every business they touch, but most know they have 300 million worth of Wells Fargo stock. They actually have money, so no way they file for bankruptcy. If they move they need 70 million for Sac debt + 30 million relocation fee. They still owe the NBA 100 million. If they sell then they need to repay 170 million & if they own 50% of the Kings they need at least 400 million price. Forbes has the team valued at 300 million. If they can't find a new home or can't get someone to overpay for the team then their only option is to stay here until they find a deal. They can make money staying here with the new TV deal & by selling enough tickets, food, & merchandise.

kevin44 wrote:The Maloofs have destroyed every business they touch, but most know they have 300 million worth of Wells Fargo stock. They actually have money, so no way they file for bankruptcy. If they move they need 70 million for Sac debt + 30 million relocation fee. They still owe the NBA 100 million. If they sell then they need to repay 170 million & if they own 50% of the Kings they need at least 400 million price. Forbes has the team valued at 300 million. If they can't find a new home or can't get someone to overpay for the team then their only option is to stay here until they find a deal. They can make money staying here with the new TV deal & by selling enough tickets, food, & merchandise.

Does anyone know if the responsibilities of the loans are Maloof specific or franchise specific?

Meaning if they were required to repay the $70 million Sacramento loan, are they responsible for $37.1 million (53% of $70) or the full $70 million.

I think they own the building themselves so I believe they would owe the entire thing. That debt might be leveraged against the Kings but I don't think so because otherwise we would have heard that when talk of them moving to Anaheim came up.

deNIEd wrote:

Nicky Nix Nook wrote:It's not looking good. As everyone knows, Hansen will easily outbid Burkle. The city of Sac is done working with them. Seattle seems inevitable.

I don't disagree that the King's will be moving and its a done deal essentially...


What I do disagree is the premise that the King's will necessarily end up in Seattle.

Assume Hansen pays an extra $100 million to entice the Maloofs to sell ontop of the current teams valuation of $300 million.
Add $70 million loan to Sacramento
Add $30 million relocation fee.


That's $500 million to move the Kings. Add an additional $300 million to build the arena.

You're now looking at a total of $800 million to bring in a franchise.


The key difference between Hansen and the Maloofs is, Hansen is actually competent at business and financial matters. In fact he's actually extremely good at it. At what point is it simply a bad business move to get the King's to Seattle?


Again...all of this is on the premise that the Maloofs are willing to sell the franchise, which I do not buy. The Maloofs are douchebags. I fully believe they will hang onto the franchise and squeeze every last penny out of it. Even when Sacramento was a scrub of a team...the Maloofs were able to keep costs so low...they still made money. Why do you assume they will do the responsible thing and sell the franchise?

Yep. Any potential buyer of this team IF they can get that arena deal back in place is much better off keeping the team here.

It's funny how this has worked out, the Maloofs financial situation may end up being the sole reason they stay. The Maloofs realized they are much better off just staying in the building they own. I wouldn't be surprised to see them wait until property and land values go back up. That part of the new arena deal where they turned over the land they own in the deal, if that's what it was, seemed sketchy to me and was one of the issues I would have had if it were me. That probably makes up a decent portion of their wealth at this point.

SacKingZZZ wrote:I think they own the building themselves so I believe they would owe the entire thing. That debt might be leveraged against the Kings but I don't think so because otherwise we would have heard that when talk of them moving to Anaheim came up.

But I also remember there being an issue of,

The King's and Arco are two completely different franchises/companies. The debt is associated with the Arena. I don't think the arena is even worth $70 million at this point, so if they moved the King's and let the company that owns the arena and owes the debt go bankrupt, could the city of Sacramento even go after the "King's" part of their business?


Either way, if they simply moved to LA and sold the team there they would come out on top like bandits IMO. If the Sonics/Thunder were able to sell at 150-170% of what the franchise was worth (making the King's worth $450-$500 million)...I wouldn't be surprised at all if a LA franchise sold anywhere between $600-800 million at a bare minimum...even upwards of $1 billion wouldn't shock me at all.

*Look at the Dodgers...in 2011 evaluated to be worth $800 million, in 2012 sold for $2 billion.

Stern has said that the one goal he has left as commish is to get a team back into Seattle. If it's true that he has completely given up on trying to keep the Kings here, then as financially unlikely as it is a move to Seattle might happen.

When the Maloofs said they were going nowhere & then turned down the arena deal Stern knew he was being lied to. I can't see anyone wanting to do business with the Maloofs. If the Kings are still here after Stern retires, it's about time he stepped down, maybe there is a chance the new commish could resolve this.

The one I think it totally unlikely is them getting permission to move to Anaheim before or after Stern retires. Remember, the commissioner works for the owners. The owners didn't want that move to happen. With Stern or Silver at the helm, that's going to be true.

The thing that worries me the most is them getting an Anaheim-like offer from Seattle. They have a ton of capital of up there and could theoretically offer it. But I think they'll stubbornly hold onto the team until then. As long as they're not bankrupt, they're holding onto this team for dear life. (Un)fortunately for us.

deNIEd wrote:

SacKingZZZ wrote:I think they own the building themselves so I believe they would owe the entire thing. That debt might be leveraged against the Kings but I don't think so because otherwise we would have heard that when talk of them moving to Anaheim came up.

But I also remember there being an issue of,

The King's and Arco are two completely different franchises/companies. The debt is associated with the Arena. I don't think the arena is even worth $70 million at this point, so if they moved the King's and let the company that owns the arena and owes the debt go bankrupt, could the city of Sacramento even go after the "King's" part of their business?


Either way, if they simply moved to LA and sold the team there they would come out on top like bandits IMO. If the Sonics/Thunder were able to sell at 150-170% of what the franchise was worth (making the King's worth $450-$500 million)...I wouldn't be surprised at all if a LA franchise sold anywhere between $600-800 million at a bare minimum...even upwards of $1 billion wouldn't shock me at all.

*Look at the Dodgers...in 2011 evaluated to be worth $800 million, in 2012 sold for $2 billion.

If the separation of entities is correct, then the Maloofs aren't going ANYWHERE no matter what.

You realize that if they are seperately the OWNERS of the arena as Maloof Sports and Entertainment, then if they try to Bankrupt that aas a business to get out of the loan, their assets (the $200 million of WF stock - not 300) become liable to the business debt. So the city can then collect - as can anyone else they owe personally - against theri personal assets.

In addition, they reamin only PART owners of the team. Managing general partners means they basically give away their interest if they sell at even above market value of the franchise.

OGSactownballer wrote:If the separation of entities is correct, then the Maloofs aren't going ANYWHERE no matter what.

You realize that if they are seperately the OWNERS of the arena as Maloof Sports and Entertainment, then if they try to Bankrupt that aas a business to get out of the loan, their assets (the $200 million of WF stock - not 300) become liable to the business debt. So the city can then collect - as can anyone else they owe personally - against theri personal assets.

In addition, they reamin only PART owners of the team. Managing general partners means they basically give away their interest if they sell at even above market value of the franchise.

Well, wouldn't that depend on the details of the loan?

If the debt a specifically as business debt or not. Because if it is specifically a business debt, Maloof Sports and Entertainment's LLC protection should clear the Maloofs from being personally liable for any business incurred debts.