Kings, Maloofs, & Money

kevin44 · Post #1 » by **kevin44** » Sat Apr 14, 2012 5:30 pm

Here is a breakdown of some important numbers for the Kings & the Maloofs.
Maloofs owe the NBA 75 mil
Maloofs owe Sacramento 75 mil
Fee to move the Kings 30 mil
Territorial rights fees to the Lakers and Clippers (estimated to be between $30 million and $50 million to each team)
Physical Cost to move the Kings 30 mil

Value of The Kings according to Forbes in 2011 was 293 million.
Kings are losing 10 million a season.
Last team to move was Seattle which had the same 23 million in ticket sale before they left.
Honda Center is undergoing a $20 million arena renovation right now.

SacTown Kings · Post #2 » by **SacTown Kings** » Sat Apr 14, 2012 7:41 pm

I think the Maloofs have shot themselves in the foot and have backed themselves into a corner. It's seems clear they never had intentions on staying. I don't think they thought KG coukld get a deal done and then when he did they had to find excuses to back out. However I think they are in a corner because I don't really seeing them having many options. I just don't see how they can move. Even if their loan to sacramento and relocation fee is paid upfront for them, how are they able to afford to pay for territorial rights...and even if the finances added up for them I can't see the nba approving a move when there is a fair deal in place that the nba helped put together. Are there any other business men out there that burn more bridges and shoot themselves in the foot more than the Maloofs, it's absolutely unbelieveable!

Sacballer916 · Post #3 » by **Sacballer916** » Sat Apr 14, 2012 10:36 pm

Theres no way the maloofs can pay all that. The best thing for them and the city of sacramento is for then to sell the team to burkle. Too bad the 3 stooges wont. The last 7 years have sucked for us faithful fans.

SacKingZZZ · Post #4 » by **SacKingZZZ** » Sat Apr 14, 2012 10:59 pm

I can't remember the specifics about the deal with Sac right now, but if I recall, didn't it essentially have them "giving" the PBP to the city in the process? I think the Maloofs lawyers looked at the deal in a worst case scenario sense and it had the Maloofs way overextended with no way out. However, if they are in dire straights there is no way "out" regardless of what happens. If they use the team as collateral to move to Anaheim, they are going to lose their team and end up with nothing anyway. They would end up even more overextended by taking that Samueli deal.

Now here's something I haven't read yet, if the NBA fronted them the money to get this deal done, don't you think they'd front the money to pay off Sac too? That's if they are even considering selling or leaving PBP, I remember reading blurbs last year that they were going to keep it. I don't know, I don't see that loan with the city being much of an issue and since Samueli would be loaning them the money to move they'd be fine for the time being. Until that awesome TV deal they THINK they're going to get turns out to be a lemon, or until the corporate sponsorships they THINK they're going to get don't materialize and they end up having to sell ad time to life alert and Jerry's Burger Barn. If and when that happens Samuelis plan comes full circle and the Maloofs are even further down the hole than had they just taken the deal in Sac.

kevin44 · Post #5 » by **kevin44** » Sun Apr 15, 2012 3:14 pm

Samueli has offered them 100 million. They need at least twice that to move. Stern might make it difficult to loan the Maloofs anymore money. The number don't add up. If they stay here they will lose more money next year. If they move they will have to borrow almost as much as the Kings are worth today. Selling the team is the only solution to this mess.

OGSactownballer · Post #6 » by **OGSactownballer** » Mon Apr 16, 2012 6:05 am

They only have rights to 52% of the team. I cannot see the rest of the ownership (Sacramento businessmen) allowing the team above that percentage to be used as collateral.

SacKingZZZ · Post #7 » by **SacKingZZZ** » Mon Apr 16, 2012 11:20 am

I don't know what the situation is completely, but if I recall correctly from the debacle last year because the Maloofs have the majority they can pretty much do what they want. That Anaheim deal was based entirely on the team being used as collateral. The deal was sh*tty from top to bottom and they would have lost the team with the kind of debt they were amassing.

gold_leader64 · Post #8 » by **gold_leader64** » Mon Apr 16, 2012 11:04 pm

kevin44 wrote:Here is a breakdown of some important numbers for the Kings & the Maloofs.
Maloofs owe the NBA 75 mil
Maloofs owe Sacramento 75 mil
Fee to move the Kings 30 mil
Territorial rights fees to the Lakers and Clippers (estimated to be between $30 million and $50 million to each team)
Physical Cost to move the Kings 30 mil

Value of The Kings according to Forbes in 2011 was 293 million.
Kings are losing 10 million a season.
Last team to move was Seattle which had the same 23 million in ticket sale before they left.
Honda Center is undergoing a $20 million arena renovation right now.

The relocation fee is arbitrary and could potentially be nothing. Also, where is this 75mil owed to the NBA from?

gold_leader64 · Post #9 » by **gold_leader64** » Mon Apr 16, 2012 11:06 pm

kevin44 wrote:Samueli has offered them 100 million. They need at least twice that to move. Stern might make it difficult to loan the Maloofs anymore money. The number don't add up. If they stay here they will lose more money next year. If they move they will have to borrow almost as much as the Kings are worth today. Selling the team is the only solution to this mess.

Where are you getting this 200mil to move figure?

SacTown Kings · Post #10 » by **SacTown Kings** » Tue Apr 17, 2012 1:41 am

I believe the costs are:

1. Around 70 million they owe sacramento
2. I guess according to everyone else they owe the nba money (70 million? idk)
3. Relocation fee of ?
4. Actual cost of moving which I've read would be about 30 million although that seems like an awful lot to move
5. Then there's the territorial fees which I've read could be anywhere from 40 million to 90 million.

RekeHavoc · Post #11 » by **RekeHavoc** » Tue Apr 17, 2012 8:15 am

gold_leader64 wrote:
kevin44 wrote:Here is a breakdown of some important numbers for the Kings & the Maloofs.
Maloofs owe the NBA 75 mil
Maloofs owe Sacramento 75 mil
Fee to move the Kings 30 mil
Territorial rights fees to the Lakers and Clippers (estimated to be between $30 million and $50 million to each team)
Physical Cost to move the Kings 30 mil

Value of The Kings according to Forbes in 2011 was 293 million.
Kings are losing 10 million a season.
Last team to move was Seattle which had the same 23 million in ticket sale before they left.
Honda Center is undergoing a $20 million arena renovation right now.

The relocation fee is arbitrary and could potentially be nothing. Also, where is this 75mil owed to the NBA from?

lol The lakers are going to lose 20% of their 3 billion dollar TV contract with time warner if a 3rd team moves to SoCal. You really believe the Lakers and the league are just going to be okay with losing like 600 billion dollars and not get compensated at all? btw the Maloofs took out 100 mill from the NBA on a line of credit. They owe atleast 175 mill on the Kings(between Sacramento bonds and their credit debt to the NBA), plus they would have to compensate the Lakers and Clippers a **** load of money.

OGSactownballer · Post #12 » by **OGSactownballer** » Tue Apr 17, 2012 1:22 pm

All this not including Benvenuti and the rest of the 48% minority ownership filing suit against the Magoofs PERSONALLY if they compromise the interest of the other owners - IF they allow the team to be put up as collateral.

kevin44 · Post #13 » by **kevin44** » Tue Apr 17, 2012 3:54 pm

200 million includes the repayment to Sac 77 mil, 30 mil for the physical move, 30 mil to the NBA owners for the right to move & the territory charge for the 2 LA teams which could be 70-100 million. Every team can take out a line of credit up to 125 million. As we can all see The Kings are levered to the max.