Kings staying in Sacramento

d-train · Post #1 » by **d-train** » Thu May 2, 2013 5:43 am

I'm glade the NBA Owners committee decided unanimously to keep the Kings in Sacramento. This decision shows the NBA is a business but not a business without integrity. Sacramento made every commitment the NBA asks a city to make so there should be no question about where the Kings will play. Sure, the NBA is a business but cities should not have to bid for the privilege of hosting games as if they are at auction. Seattle will have another NBA team sooner than they deserve one.

DBoys · Post #2 » by **DBoys** » Fri May 3, 2013 2:22 am

Not finalized yet. The owners as a whole have yet to vote, and if the relocation is denied by all 30, then any number of things could happen.

The Maloofs will not be forced to sell to anyone if they don't want to. So what they do if relocation is turned down is up to them.

But if they want to sell, it takes 3/4 in favor to approve a sale. Given what has happened so far, it's unlikely that the Maloofs would be able to get approval to sell to any entity who isn't working to keep the team in Sacramento, unless the existing Sacramento group is first given a chance to put up or shut up on the terms they've already indicated, and then can't get it done as promised.

d-train · Post #3 » by **d-train** » Fri May 3, 2013 10:14 pm

I haven't followed this closely but I read somewhere that the Hansen group put down a $30M non-refundable deposit. Do the Maloof's really make $30M even if the sale to the Seattle group falls apart?

Dunkenstein · Post #4 » by **Dunkenstein** » Sat May 4, 2013 6:13 pm

d-train wrote:I haven't followed this closely but I read somewhere that the Hansen group put down a $30M non-refundable deposit. Do the Maloof's really make $30M even if the sale to the Seattle group falls apart?

I'm sure that the deposit will be refunded if the NBA forces the Maloofs to renege on their deal with Hansen.

DBoys · Post #5 » by **DBoys** » Sat May 4, 2013 7:34 pm

Dunkenstein wrote:
d-train wrote:I haven't followed this closely but I read somewhere that the Hansen group put down a $30M non-refundable deposit. Do the Maloof's really make $30M even if the sale to the Seattle group falls apart?

I'm sure that the deposit will be refunded if the NBA forces the Maloofs to renege on their deal with Hansen.

FYI I read the same thing as d-train, that the 30M is non-refundable if the deal is rejected by the NBA. And as I understand it, that was a bit of the "equalizer" that raised the value of the Sac offer: if the team goes to the Sacramento group, Maloofs get what the Sac group pays PLUS $30 M.

Dunkenstein · Post #6 » by **Dunkenstein** » Sun May 5, 2013 12:17 am

DBoys wrote:FYI I read the same thing as d-train, that the 30M is non-refundable if the deal is rejected by the NBA. And as I understand it, that was a bit of the "equalizer" that raised the value of the Sac offer: if the team goes to the Sacramento group, Maloofs get what the Sac group pays PLUS $30 M.

Personally, I don't believe everything I read on the internet. I would think the purpose of the non-refundable deposit would be to protect the Maloofs if Hansen pulled out of the deal. I find it hard to believe a businessman as smart as Hansen wouldn't put a clause in his contract with the Maloofs protecting him if the NBA forced the Maloofs to renege on the deal.

d-train · Post #7 » by **d-train** » Sun May 5, 2013 9:13 am

It is hard to believe Hansen would gamble $30M on the NBA approving the Kings move to Seattle. But, I don't see how the NBA or the Maloofs are reneging on any deal. I find it hard to believe the Maloofs are representing the ability to sell anything more than an NBA franchise located in Sacramento. The Maloofs would be foolish if they didn't require a non-refundable deposit from Hansen in the event Hansen decides to back out of the sale because he can't secure NBA approval to move the Kings. But, $30M non-refundable is hard to believe.

Dunkenstein · Post #8 » by **Dunkenstein** » Fri May 17, 2013 8:28 pm

Nick Eaton: When Hansen reached an agreement with the Maloof family to buy their controlling stake in the franchise for $341 million, Hansen’s ownership group also put down a $30 million nonrefundable deposit. Under the agreement, if the Kings stay in Sacramento the Seattle group would lose that money — but the NBA apparently doesn’t want that to happen.

Daniel Kaplan of SportsBusiness Daily, citing an anonymous source, reported Thursday that the NBA has asked Sacramento’s ownership group to cover that $30 million if the Kings stay. Kaplan suggests that the league is trying to show future buyers that merely making an offer would not cost them millions of dollars.

Michael McCann, a sports law expert and writer for Sports Illustrated, tweeted that the NBA may be trying to cover its behind in case of antitrust allegations or in case of a lawsuit from the Seattle group claiming “tortuous interference” with the agreement between Hansen and the Maloofs.

Chris Mannix: League sources say owners offered to pay Hansen-Ballmer group the $30 million non-refundable deposit they paid the Maloofs. They declined. Sources also say that hedge fund manager Chris Hansen will not file any lawsuits in relation to the Kings/Seattle situation.

I just love anonymous sources.