New whale, higher Seattle bid and other news, rumors. etc.

[Gary]

Personally I don't think we have to match to win. Remember, Seattle has to prove that Sacramento is a bad market, lacks fan support and does not have an arena on the way in order to take our team. It's unheard of to pull the carpet out from under a city like this, and I don't think it has even been done since Cleveland went to Baltimore. I don't think it's ever been done in the NBA.

Just ask yourself if the NBA would approve a deal to move the Lakers to say Vancouver if Buss went behind the NBAs and LA's back and sold to someone that wanted to move the team to Vancouver. Would the league approve that if there was someone in the waiting in LA to buy the team from Buss, but only paying 900mil instead of say 1bil? Hell no. LA IS the Lakers. Just like SACRAMENTO IS THE KINGS. There won't be anyone taking this team. I wish you people would get that through your skulls

 

[Elektrik]

If Sacramento does meet this most recent uptick of 16 million in the sales price of the team then I guess David Stearn doesn't have the kind of control he thought he had. His words of "This will not turn into a bidding war" were just that....words, and dont carry the weight I once gave him credit for. First 30 million, now 16 million. That would be an additional 46 million we would have kicked in. How much next time?

Makes me sick to my stomach that the magoofs are holding the city hostage like this.

 

[HndsmCelt]

The Sac buyers said they would match the bump, but I would not be surprised to see Stern/NBA tell Seattle that the only offer being voted on was the offer presented.

 

[Gary]

If Sacramento does meet this most recent uptick of 16 million in the sales price of the team then I guess David Stearn doesn't have the kind of control he thought he had. His words of "This will not turn into a bidding war" were just that....words, and dont carry the weight I once gave him credit for. First 30 million, now 16 million. That would be an additional 46 million we would have kicked in. How much next time?

Makes me sick to my stomach that the magoofs are holding the city hostage like this.

And this latest gaff by the Maloofs and Hansen is just making it look that much worse. It's bad enough that they went behind Sacramento's back in the first place but now they are doing things that the NBA stated there wouldn't be any of. It's desperation on Seattle's part, sure, but it still goes against what Stern and the NBA want this to be about.

 

[Turgenev]

Agree with the last few comments.

Increasing the offer after the presentation at the BOG and less than a week before the vote is a little bit disrespectful to Stern and the process he is trying to facilitate. Especially after the comment re this will not turn into a bidding war. In addition, the public comments re the Friday deadline seemed to be off the script (well... off Stern's script but consistent with the Maloofs body of work).

The Maloofs behaviour has not just been an f you to Sacramento, but now also an f you to Stern and the NBA. No doubt Stern will be as happy to have this over as anyone else.

There is also the view that the increase, and the timing of the increase, was a disrespectful move by the Seattle group. They present the move as if 'we have voluntarily increased our offer because we love the NBA so much...' But really- after both sides had made their presentations and the BOG was considering the verdict...

 

[ParniValjak]

What was the exact quote from Stern on the bidding war?

Was is that this will not turn into a bidding war to was it that he doesn't think or doesn't expect it to turn into a bidding war. There is a big difference between the two quotes and I don't think Stern was definitive (ie it will not turn into a bidding war). To me a more of a Stern thing to do would be to say he doesn't think or he doesn't expect it to turn into a bidding war.

Either way, I would be much more comfortable if our potential ownership group matched the Seattle offer again to remove any doubt. I have to believe that the decision not to match $15 million offer on Cook's share is in part because we expected this increase in offer from Hansen and it would be more beneficial for us to use that money on the 65% than it was to use it on the 7% and if Sacramento's offer prevails, then the likely outcome is for NBA to reject Hansen's purchase of the 7%.

I have to believe that we expected this and it is in part the reason why we decided not to match on the 7%. I guess we will know in less than a week!

 

[HndsmCelt]

At this point I feel like I am watching a bad episode of Storage Wars. Seattle is just trying to bid up the price they hope the Sac buyers will have to further over pay so they can have a nice laugh once it's over. They know the votes are not there, and I seriously doubt this new move will gain them a single vote. There is a reason that they don't just put NBA franchises up on eBay.

 

[Cwebb#4]

At this point I feel like I am watching a bad episode of Storage Wars.

Dammit, Seattle! I like that show.

 

[HndsmCelt]

Dammit, Seattle! I like that show.

Rumor has it Dave Hester is leading the negotiation committee for the buyers.......... Yuuuuuuup

 

[wazzups]

I think that this will all be done soon and the team will be here. I have not been able to pay as much attention as I wanted to in the last 2 weeks as my life is changing right now. I will tell you this tho in my recent and hurried move to a new place I have my 2002 Kings Bobbleheads and stand....There is hope

 

[Warhawk]

The Sac buyers said they would match the bump, but I would not be surprised to see Stern/NBA tell Seattle that the only offer being voted on was the offer presented.

See, I think this is key. They submitted a signed contract/offer to the league for approval. Now, if the contract has an option to increase the bid, maybe the bump will be "honored" by the NBA.

However, if you read the below from the Sacbee article yesterday, the offer was "rewritten" - not sure about the implications of that with regards to the offer submitted. I would think it would not be considered given that an offer was already submitted for approval.

Maloof spokesman Eric Rose confirmed the family had rewritten its agreement for the higher offer but declined additional comment.

Read more here: http://www.sacbee.com/2013/04/12/5337365/ex-facebook-executive-joins-local.html#storylink=cpy

 

[Jose]

Personally I don't think we have to match to win. Remember, Seattle has to prove that Sacramento is a bad market, lacks fan support and does not have an arena on the way in order to take our team. It's unheard of to pull the carpet out from under a city like this, and I don't think it has even been done since Cleveland went to Baltimore. I don't think it's ever been done in the NBA.

Just ask yourself if the NBA would approve a deal to move the Lakers to say Vancouver if Buss went behind the NBAs and LA's back and sold to someone that wanted to move the team to Vancouver. Would the league approve that if there was someone in the waiting in LA to buy the team from Buss, but only paying 900mil instead of say 1bil? Hell no. LA IS the Lakers. Just like SACRAMENTO IS THE KINGS. There won't be anyone taking this team. I wish you people would get that through your skulls

The precedent being set here is that, for example, when the Buss family (or any othe owner) wants out and wants a huge payout, all they have to do is go behind the city's back, get someone to "offer" a ridiculous amount of money ($2B for the Lakers?) and then hold the city hostage until they get someone to overpay.

The NBA should have NEVER allowed this sales contract to be considered. It should have been voided then and there, the Clowns should have been told to GTFO, and the league should have taken custody of the team immediately, paying the Clowns a fair assessed value of the team in SACRAMENTO. Instead, now we have given the owners a back door: find a wealthy out of town buyer (heck, even a friend willing to be part of the scam will do!), inflate the team price and laugh all the way to the bank.

It's ridiculous - I say, NBA should let Hansen take the team and get us an expansion team (300M?). All minority owners sell their part to him (I think he's obligated to buy minority shares at the current valuation), and stick him with a $550M purchase, a huge relocation fee and all the debt.

We could use a fresh start with new owners and a team that's not crippled by debt.

 

[rhythmless]

The precedent being set here is that, for example, when the Buss family (or any othe owner) wants out and wants a huge payout, all they have to do is go behind the city's back, get someone to "offer" a ridiculous amount of money ($2B for the Lakers?) and then hold the city hostage until they get someone to overpay.

The NBA should have NEVER allowed this sales contract to be considered. It should have been voided then and there, the Clowns should have been told to GTFO, and the league should have taken custody of the team immediately, paying the Clowns a fair assessed value of the team in SACRAMENTO. Instead, now we have given the owners a back door: find a wealthy out of town buyer (heck, even a friend willing to be part of the scam will do!), inflate the team price and laugh all the way to the bank.

It's ridiculous - I say, NBA should let Hansen take the team and get us an expansion team (300M?). All minority owners sell their part to him (I think he's obligated to buy minority shares at the current valuation), and stick him with a $550M purchase, a huge relocation fee and all the debt.

We could use a fresh start with new owners and a team that's not crippled by debt.

I get what you're trying to do with the Lakers example, but one of the biggest reasons that the Lakers have had such success is because they are in LA. No one is going to buy the Lakers to move them. LA is a premiere market, has excellent weather, celebrities, nightlife, huge TV deal, sponsors, blah blah. Pick a different team. Someone can bid 2B for the Lakers, but they sure as hell won't move them.

We had a short window of success in SPITE of our location. And then promptly returned to the doormats of the NBA. That is why we are vulnerable. And that is why LA is not.

 

[VF21]

Excellent article here that asks (and answers) the question of whether or not the choice between Sacramento and Seattle is really that tough.

 

[VF21]

And Marcos Breton weighs in here with his thoughts that there is NO good reason to take the team from Sacramento.

 

[Jose]

I get what you're trying to do with the Lakers example, but one of the biggest reasons that the Lakers have had such success is because they are in LA. No one is going to buy the Lakers to move them. LA is a premiere market, has excellent weather, celebrities, nightlife, huge TV deal, sponsors, blah blah. Pick a different team. Someone can bid 2B for the Lakers, but they sure as hell won't move them.

We had a short window of success in SPITE of our location. And then promptly returned to the doormats of the NBA. That is why we are vulnerable. And that is why LA is not.

The point is, the Buss family can nearly double their money by "finding" an out of town buyer, getting a ridiculous offer and then having local buyers have to scramble and grossly overpay to keep the team in town.

No matter how you look at it, the Maloofs bypassed the "standard" NBA franchise sell/buy process to obtain a record valuation for one of the league's bottom franchises. They played the city of Sacramento, Virginia Beach, Seattle and the NBA to get more money. By allowing this, the league has set a precedent for other owners to follow: get an outsider to overpay and the local buyers will have to match.

 

[HndsmCelt]

VF21... good stuff. I could not agree more. In fact I becomeing convinced the Hansen by plying best buddy and protector to the Maloofs may have set himself at odds with the NBA and by disregarding the no bidding war comment on a Friday night in order to try to squeeze out an additional 17 mil for his new buddies could have assured himself that if Stern has anything to say about it he may NEVER get an NBA team. The Seattle folks who want to become Sonics fans if they get a team may be slow to see it but their best hopes to get a team (after this debacle is over) may be vanishing BECAUSE of Hansen's strong arm tactics

 

[VF21]

The point is, the Buss family can nearly double their money by "finding" an out of town buyer, getting a ridiculous offer and then having local buyers have to scramble and grossly overpay to keep the team in town.

No matter how you look at it, the Maloofs bypassed the "standard" NBA franchise sell/buy process to obtain a record valuation for one of the league's bottom franchises. They played the city of Sacramento, Virginia Beach, Seattle and the NBA to get more money. By allowing this, the league has set a precedent for other owners to follow: get an outsider to overpay and the local buyers will have to match.

Could we just drop the Lakers analogy? It ain't gonna happen and using it doesn't really say what you're trying to say. The Lakers are pretty much untouchable but I'd be willing to bet teams like Orlando and Memphis and Charlotte might not be if the price was right and the precedent was set by whatever happens to the Sacramento Kings.

 

[VF21]

What was the exact quote from Stern on the bidding war?

Was is that this will not turn into a bidding war to was it that he doesn't think or doesn't expect it to turn into a bidding war. There is a big difference between the two quotes and I don't think Stern was definitive (ie it will not turn into a bidding war). To me a more of a Stern thing to do would be to say he doesn't think or he doesn't expect it to turn into a bidding war.

Either way, I would be much more comfortable if our potential ownership group matched the Seattle offer again to remove any doubt. I have to believe that the decision not to match $15 million offer on Cook's share is in part because we expected this increase in offer from Hansen and it would be more beneficial for us to use that money on the 65% than it was to use it on the 7% and if Sacramento's offer prevails, then the likely outcome is for NBA to reject Hansen's purchase of the 7%.

I have to believe that we expected this and it is in part the reason why we decided not to match on the 7%. I guess we will know in less than a week!

Stern said, "This will not turn into a bidding war" as a direct response to a question (perhaps by Chris Daniels but I cannot recall for sure).

 

[kupman]

Could we just drop the Lakers analogy? It ain't gonna happen and using it doesn't really say what you're trying to say. The Lakers are pretty much untouchable but I'd be willing to bet teams like Orlando and Memphis and Charlotte might not be if the price was right and the precedent was set by whatever happens to the Sacramento Kings.

That being said, Jose makes a really good point. This is a terrible precedent that the league should in no way support. If this behind the back tactic works for the Maloofs, it will only be a matter of time before another city's team is held for ransom.

 

[Kingsfan23]

And Marcos Breton weighs in here with his thoughts that there is NO good reason to take the team from Sacramento.

It is, and has been disturbing how much Seattle sentiment is in the Sacbee comments section.

1. Either there are that many Seattleans with no life and no empathy for a team being taken from here (persons with both aspects)

2. There really are a handful of nagging anti-arena folks who just congregate there

 

[rhythmless]

The point is, the Buss family can nearly double their money by "finding" an out of town buyer, getting a ridiculous offer and then having local buyers have to scramble and grossly overpay to keep the team in town.

No matter how you look at it, the Maloofs bypassed the "standard" NBA franchise sell/buy process to obtain a record valuation for one of the league's bottom franchises. They played the city of Sacramento, Virginia Beach, Seattle and the NBA to get more money. By allowing this, the league has set a precedent for other owners to follow: get an outsider to overpay and the local buyers will have to match.

This is where Sac bias gets in the way of objective discussion. You are assuming that the Maloofs actively sought out the Seattle group. If you have something to back this up, I'd like to see it. The Virginia Beach/LV situations are all about relocation, with the Maloofs as owners. That doesn't speak to the Maloofs sale, but their desire to MOVE their business out of Sacramento. Not sell it.

We know that the Maloofs were approached by Burkle et al to purchase the Kings. I am assuming it was for near market valuation (which was ~350M?). They were rebuked. Maloofs were not selling for market price. They could not foresee someone coming in and wanting to grossly overpay. There was also talk that Seattle had a non-disclosure agreement with the Maloofs, which meant that once the offer was on the table, they could not talk about it. Which meant they could not ask a local buyer to match. Which meant that if they wanted the $525M, and they did, they could only deal with Seattle.

I just looked at it another way, and the Maloofs did not bypass the standard NBA buy/sell process. I'm not saying this is exactly what happened, but it's got as much traction as your scenario, maybe more.

 

[Kingsfan23]

Excellent article here that asks (and answers) the question of whether or not the choice between Sacramento and Seattle is really that tough.

Beyond disconcerting some of the responses and the poll in the comments section - I have to learn to just not care what folks think.

 

[Jose]

This is where Sac bias gets in the way of objective discussion. You are assuming that the Maloofs actively sought out the Seattle group. If you have something to back this up, I'd like to see it. The Virginia Beach/LV situations are all about relocation, with the Maloofs as owners. That doesn't speak to the Maloofs sale, but their desire to MOVE their business out of Sacramento. Not sell it.

They didn't necessarily seek out the Seattle group, but they made it very clear that the team was valued more due to its "mobility". They flirted with moving several times, making it clear that MONEY was more important than this market. Then maybe got lucky and Hansen called (that is assuming they didn't reach out to him - we will probably never know).

The thing is, the league should have VERY CLEARLY stated that they should not even be looking outside Sacramento until all avenues were exhausted for:

1) A new arena (how many deals did the Clowns kill?)

2) Selling to an ownership group interested in keeping the team here (of course a team is worth more to an outsider who wants to grab the team and move it - that should not affect the franchise's price as the franchise and market are tied together)

3) Proving the current market is not a viable one (no way they could prove that)

As long as the market is viable, the city is willing to work on an arena deal, and there is interest in buying the team to keep it in its market, the league should simply NOT allow any outside offers to be entertained. This is where the NBA failed the Sacramento market, and this is what they have to correct to avoid this fiasco from repeating itself on another market.

You bought and own a franchise in its current maket. Its value is determined by how you manage it and the market it's in. The league should NEVER entertain offers/attempts to move a franchise unless one or more of the above is true. Right now they've basically set a precedent that any NBA franchise is up for grabs by an outsider with lots of money and can be moved to ANY market, unless the existing market ponies up the $$$ to match the outsider's offer.

 

[Capt. Factorial]

It is, and has been disturbing how much Seattle sentiment is in the Sacbee comments section.

1. Either there are that many Seattleans with no life and no empathy for a team being taken from here (persons with both aspects)

2. There really are a handful of nagging anti-arena folks who just congregate there

The Bee is the Anti-Arena hangout. It's Sacramento's own internet Mos Eisley as it were.

 

[rhythmless]

The thing is, the league should have VERY CLEARLY stated that they should not even be looking outside Sacramento until all avenues were exhausted for:

But the league didn't state that, nor has it stated this. Owners of the teams are owners of the NBA, and, if you hadn't noticed, goes out of its way to protect their own. These provisions that you are listing are your own wish list. If Seattle contacted them, dropped a number, and made the Maloofs sign a non-disclosure during negotiations, then the Maloofs were only doing what was right by their family. What you're asking for is all well and good, but that's not the NBA we have in this universe.

So is your outrage with the NBA, or the Maloofs? Or the Seattle group? You're all over the place with the what others "should" do. At the bare minimum, Maloofs have acted in accordance with NBA policy (outside of that silly ultimatum thing). The NBA = 30 owners. Why would they enact all these policies on themselves? You're trying to apply altruistic public policy to a privately owned enterprise.

 

[VF21]

It is, and has been disturbing how much Seattle sentiment is in the Sacbee comments section.

1. Either there are that many Seattleans with no life and no empathy for a team being taken from here (persons with both aspects)

2. There really are a handful of nagging anti-arena folks who just congregate there

They've been there for several years, stifling most honest discussion. A lot of people I know have quit reading the comments altogether because of it.

 

[VF21]

But the league didn't state that, nor has it stated this. Owners of the teams are owners of the NBA, and, if you hadn't noticed, goes out of its way to protect their own. These provisions that you are listing are your own wish list. If Seattle contacted them, dropped a number, and made the Maloofs sign a non-disclosure during negotiations, then the Maloofs were only doing what was right by their family. What you're asking for is all well and good, but that's not the NBA we have in this universe.

So is your outrage with the NBA, or the Maloofs? Or the Seattle group? You're all over the place with the what others "should" do. At the bare minimum, Maloofs have acted in accordance with NBA policy (outside of that silly ultimatum thing). The NBA = 30 owners. Why would they enact all these policies on themselves? You're trying to apply altruistic public policy to a privately owned enterprise.

While it's true that the owners may want to protect their own, they also want to protect their investment, their league and their future. I think people sometimes forget that it's more about the future of the NBA than the Maloofs at this point. The team, regardless of ownership, will continue to be part of the league and I'm pretty certain ALL the owners are beyond fed up with the unending drama that the Maloofs have brought for the past couple of years.

If the league votes to move the team, this isn't the end. The resulting outrage and animosity towards a bunch of billionaires who would screw over a city and a fanbase just to protect one of their own will be just another black eye - and something David Stern will do just about anything to avoid at the end of his long career.

 

[Trueblood]

The precedent of all of this is what upsets me and will forever taint me to national sports..

Ethically, whoever has the most money should not dictate where a franchise should be placed. It is just wrong. It is why I didn't even think we should have had to match the initial bid. It should not be tolerated. Just as a 50 billionaire shouldn't be allowed to offer the Buss' 800 million and relocate the lakers to Bismark, North Dakota, it shouldnt be tolerated here or anywhere. Where or not a city is deserving of its franchise shouldn't depend on whether they can outbid some ********** who is wealthier who wants to relocate them. This is where ethics have to trump money, yes, ethics have to trump money. The NBA shouldn't allow this precedent

The NBA doesn't want to allow this precedent. The problem is the legal system. I've asked the question since before Hansen put in a bid for the team and Stern pretty much answered it at the Oakland press conference. Forcing the Maloofs to take a lower bid will open up an anti trust case against the league that the NBA wants no part of. This is squarely on the Maloofs for being greedy and threatening lawsuits.

 

[rhythmless]

While it's true that the owners may want to protect their own, they also want to protect their investment, their league and their future. I think people sometimes forget that it's more about the future of the NBA than the Maloofs at this point. The team, regardless of ownership, will continue to be part of the league and I'm pretty certain ALL the owners are beyond fed up with the unending drama that the Maloofs have brought for the past couple of years.

If the league votes to move the team, this isn't the end. The resulting outrage and animosity towards a bunch of billionaires who would screw over a city and a fanbase just to protect one of their own will be just another black eye - and something David Stern will do just about anything to avoid at the end of his long career.

I agree, they all view the Maloofs as a joke. But when we're talking about loyalty to Sac, who has it? No one really cares for that angle but us. Likewise, my non Kings friends are very ho hum about it all. The rhetoric has already been written. Sac/Maloofs were lousy. Seattle wants a team again. If Sac gets shafted here, only Sacramento will care. No one really cared about the Bennett saga until the emails came out. Don't make the mistake of projecting our hopes as the rest of the nation. We aren't clear cut good guys here. If Seattle gets a team, the story won't be about Maloofs running us into the ground then selling to Seattle, it will be how the Kings were horrible for too long and Seattle finally got a team back after getting screwed by Bennett. There will be no outrage or animosity outside of Sacramento. And if you think otherwise, well, I'm glad you think anyone else cares about us. This isn't the Kings going to a new city with no history, this is the Kings turning into the Sonics. A black eye isn't the only spin. Some will herald Stern as bringing basketball back to Seattle as well.