Seattle SuperSonics Thread

[tyrekeevans]

^ and thats the real reason. maloofs will go back and say the arena plan made by KJ was not fair to them and to sactown. By exclusively selling to a buyer who wants to relocate, there would be no way of proving them wrong.

 

[frink85]

Also the 525 mil includes the relocation fee right, and that goes to the nba right? Wouldn't a local buyer be paying less than that for the same net price? Or is it semantics?

Edit: now that I think about it, I remember reading that the team was valued at 375 mil, so there's no way a relocation fee would be 100 mil+. Ballmer is overpaying like crazy if that's the case...no wonder maloofs don't wanna turn it down

 

[Sinner]

I think the 525mn doesn't include the relocation fee.  Isn't that yet to be determined by the NBA? 

 

[lightweight champion]

It doesn't include relocation fee. Buy that wouldn't matter to the Maloofs because they're not paying it. If the team stays the new owners wouldn't have to pay relocation fee and the Maloofs debt to the city also vanishes. I can't imagine they would hold onto Sleep Train with a new arena being constructed and no tenants to pay rent.

 

[Deleted member 38182]

525 mil isn't even what whoever is buying, will be paying. That's only the valuation of 100% of the franchise. Who ever buys from the Maloofs and their d bag friend, will be purchasing around 65% of that, or $340 mil. Which is why I am confidant Burkle or whoever could match that with ease

 

[crcballer55]

That's what some of us are thinking. Why sell to a Seattle based group when you know you have interested investors local? And even if Hansen and co set the number at $525 mil why not see if anyone else local would match or outbid? A lot of us feel it was their two middle fingers up to Sacramento.

Same could be said for Howard Schultz back in the day. Everyone knew if Schultz told Steve Ballmer that he was selling, Ballmer would have stepped in. In the end, it's a money grab for a malcontent owner (in this case, a family of owners), and definitely a double-bird to the city.

That being said, the problem with "matching" the $525 million figure is the fact the franchise isn't valued that high in Sacramento. If a local owner matched dollar-for-dollar (because that's all the Maloofs care about), it'd be a boondoggle, financially. They'd be civic heroes, but at a cost they'd never recoup. Therein lies the juxtaposition: nobody will match Hansen, dollar-for-dollar, based on the valuation. Because of that, the Maloofs won't be inclined to sell for less than that, because they just want the big pay day.

The only way I see this working in Sacramento's favor is if Stern believes in someone like Burkle, who will pay the fair market value, and sort out an arena deal and have it in place (as in, bulldozers can start bulldozing tomorrow...proverbially, of course). Then Stern can tell the BoG to deny a sale to Hansen's group.

Please correct me if I'm wrong on any of this analysis of the situation (I'm a communications major, not a lawyer lol).

Who says it isn't valued that high? While there are different ways to value companies, if an investor is willing to pay an amount for something, then that's its value. Also, the Maloofs haven't invested that much into the Kings in the past 5 years. Look at their merchandise. I would MUCH prefer black be the main color instead of purple. That's why I haven't bought much in the past 7-8 years

Keep in mind several factors: 1) The Kings don't have to match. There is a relocation fee assessed as well as a loan to Sacramento that must be repaid if they move. 2) There are 21 other local investors willing to put up at least $1MM each to keep the in Sacramento. This way the risk is being spread out and if necessary, they can pitch in more if necessary. 3) The Kings (Kansas City), Hornets, Sonics, Grizzlies, & Nets have all relocated under Stern's watch. In the case of the Sonics & Hornets, they both had solid fan bases who were screwed by their owners. If Seattle took the Kings with the justification that Sacramento would get an expansion team, that would be a big black mark on Stern's legacy since the history has been to take a team from one loyal fan base only to replace it with a team that had been taken to another city.

 

[frink85]

Ok I understand it now...so the buyer would be paying 65% of 525 mil, along with the relocation fee. Thanks everyone for clearing that up.

Man this whole thing is a mess

 

[dmbrhs]

Didn't realize BoG sometimes meets during All-Star break. They're not this year, but if they did, they could have voted on approving a sale then. Have to wait until April for everything to go to a vote.

 

[senorroboto2k5]

That's what some of us are thinking. Why sell to a Seattle based group when you know you have interested investors local? And even if Hansen and co set the number at $525 mil why not see if anyone else local would match or outbid? A lot of us feel it was their two middle fingers up to Sacramento.

The big mystery.

Same could be said for Howard Schultz back in the day. Everyone knew if Schultz told Steve Ballmer that he was selling, Ballmer would have stepped in. In the end, it's a money grab for a malcontent owner (in this case, a family of owners), and definitely a double-bird to the city.

That being said, the problem with "matching" the $525 million figure is the fact the franchise isn't valued that high in Sacramento. If a local owner matched dollar-for-dollar (because that's all the Maloofs care about), it'd be a boondoggle, financially. They'd be civic heroes, but at a cost they'd never recoup. Therein lies the juxtaposition: nobody will match Hansen, dollar-for-dollar, based on the valuation. Because of that, the Maloofs won't be inclined to sell for less than that, because they just want the big pay day.

The only way I see this working in Sacramento's favor is if Stern believes in someone like Burkle, who will pay the fair market value, and sort out an arena deal and have it in place (as in, bulldozers can start bulldozing tomorrow...proverbially, of course). Then Stern can tell the BoG to deny a sale to Hansen's group.

Please correct me if I'm wrong on any of this analysis of the situation (I'm a communications major, not a lawyer lol).

Probably the best reasoning for it based on what we know.

 

[senorroboto2k5]

Didn't realize BoG sometimes meets during All-Star break. They're not this year, but if they did, they could have voted on approving a sale then. Have to wait until April for everything to go to a vote.

So what's the timeline looking like if the deadline to file for relocation is in March? Is it possible for them to file for relocation but have the BoG meeting where something could reverse that sale?

Or will the fact that the BoG meeting occurs in April (after the deadline) mean that the Kings would be "stuck" in Sac with another year of unknowns?

Unless Sac investors get to match the offer and buy the team in April, which would render that question moot.

 

[Deleted member 38182]

^I'm going off on a whim, but I think if and when the sale is finalized so will the relocation. 

 

[dmbrhs]

^I'm going off on a whim, but I think if and when the sale is finalized so will the relocation. 

They kind of go hand-in-hand. They won't approve a sale unless they know they're approving relocation as well. Also, a sale requires 3/4ths majority approval, relocation is only a simple majority. If they deny the sale outright, then a relocation vote is rendered moot.

One question: do the Maloofs file for relocation on behalf of Hansen's group? They're still technically the owners, pending approval. I'd imagine filing a request is a requirement of their deal agreement.

 

[Deleted member 38182]

^I'm going off on a whim, but I think if and when the sale is finalized so will the relocation. 

They kind of go hand-in-hand. They won't approve a sale unless they know they're approving relocation as well. Also, a sale requires 3/4ths majority approval, relocation is only a simple majority. If they deny the sale outright, then a relocation vote is rendered moot.

One question: do the Maloofs file for relocation on behalf of Hansen's group? They're still technically the owners, pending approval. I'd imagine filing a request is a requirement of their deal agreement.

Exactly (to your first point)

IDK if the Maloofs can... I have a feeling they probably thought the sale would go smoothly and Hansen would be in control of the team by the time the relocation deadline hit

 

[dmbrhs]

I can't imagine them not being able to file for relocation. And Hansen probably knew a vote wasn't happening until April anyway. They don't vote to approve these things until after the season anyway. Oh well. Wake me when it's over, either way.

 

[Deleted member 38182]

I could see them asking for an extension, like they did in 2011 as well

 

[lightweight champion]

I can't imagine the Maloofs file (can they even?) for relocation if the minority owners plan to buy the team.

 

[crcballer55]

One question: do the Maloofs file for relocation on behalf of Hansen's group? They're still technically the owners, pending approval. I'd imagine filing a request is a requirement of their deal agreement.

The problem with this is that if the Kings move, the owners will owe the city $70MM as repayment for a bond issued on behalf of the city for the Kings shortly before the Maloofs bought the team in '97. I believe one of the main reasons why they are selling the team is because they are not solvent and need the cash in order to meet other expenses in addition to the Kings not being a money maker for them anymore since the fans no longer support them or sell out Arco Arena (Sleeptrain Arena)

 

[dmbrhs]

The problem with this is that if the Kings move, the owners will owe the city $70MM as repayment for a bond issued on behalf of the city for the Kings shortly before the Maloofs bought the team in '97. I believe one of the main reasons why they are selling the team is because they are not solvent and need the cash in order to meet other expenses in addition to the Kings not being a money maker for them anymore since the fans no longer support them or sell out Arco Arena (Sleeptrain Arena)

Right. But that money doesn't need to be handed over until the team actually moves (which is approval from the league). The BoG approves a sale, Hansen is immediately the owner. The BoG approves relocation, Hansen pays that debt off to Sacramento (Clay Bennett did a similar thing in Seattle). It sort of feels like we're dealing with an order of operations here, of some sort.

 

[dmbrhs]

I can't imagine the Maloofs file (can they even?) for relocation if the minority owners plan to buy the team.

There's nothing stopping them from filing by March 1st. If the minority owners come through with some miracle money on their own, then all the BoG has to do is say no to relocation. as it stands, Hansen can't file for relocation. Which i why I'm convinced there's something that allows the Maloofs to file, and it's written into that deal they've hammered out. I just know someone like Hansen has covered his bases to the extent that he can.

 

[Deleted member 38182]

For every reason I think of that Hansen will get this deal done because of an ironclad, fool Maloof-proof agreement.

I think of Burkle, Mastrov, and possibly Ellison, and how those 3 businessmen wouldn't be digging this deep if they didn't think they or Sacramento/KJ don't have a chance here to do something amazing for the city of Sacramento.

Especially with the experience Mastrov had of bidding on the W's and Burkle as the shroudest of businessmen, I feel like they wouldn't be in it if it was a losing fight, ya know what I mean?

 

[va757va]

Why isn't Hansen even mentioning Seattle

is this the same chris hansen that did the pedo show???

didint know that show made enough money to buy a pro franchise 

putting down pervs is quite the lucrative business i see

 

[dmbrhs]

is this the same chris hansen that did the pedo show???




didint know that show made enough money to buy a pro franchise 

putting down pervs is quite the lucrative business i see

You're about a year late on this joke.

 

[dmbrhs]

Probably not significant, but worth mentioning.

Chris Daniels ‏@ChrisDaniels5
Minor update on #NBAKings-to-Seattle...I continue to hear no BOG meeting planned at NBA ASG weekend...but.... #NBASeattle

Chris Daniels ‏@ChrisDaniels5
...that may be a moot issue. NBA Owners can vote on major transactions via email. Don't need to meet in person. #NBASeattle #NBAKings

Chris Daniels ‏@ChrisDaniels5
So in theory Kings SALE could be voted on sooner rather than later. As one highranking NBA person told me owners "can do whatever they want"

 

[dmbrhs]

Chris Daniels ‏@ChrisDaniels5
BREAKING: NBA Commish David Stern says Hansen group has filed formal notice to relocate Kings franchise. #NBASeattle

Chris Daniels ‏@ChrisDaniels5
BREAKING: Stern calls Hansen/Ballmer group “very strong”. #NBASeattle

 

[two.oh.6]

http://espn.go.com/nba/story/_/id/8...e-group-bid-sacramento-kings-filed-relocation