Kings leave Sacramento: From 2006 to 2013, the Sacramento Kings organization was constantly on the brink of relocation. It is widely believed that former owners (the Maloof family) lost much of their fortune and could no longer sustain running an NBA franchise.
From 2006 to 2013, the Sacramento Kings organization was constantly in danger of moving. It is widely believed that their former owners (the Maloof family) lost much of their fortune and no longer could support running an NBA franchise. The Maloofs courted Anaheim, Virginia Beach and Seattle as potential buyers for their team; however Sacramento Mayor Kevin Johnson ultimately prevailed alongside local business owners and an enthusiastic fan base in saving the franchise by persuading the NBA to force sale to Vivek Ranadive group.
On February 19th 2011, NBA commissioner David Stern acknowledged the Kings and officials in Anaheim had held discussions about relocating. It was later discovered that they even went so far as to file for a trademark for the name Anaheim Royals! The Maloofs then made their case for relocation at an NBA Board of Governors meeting in New York – something many believed would just be a formality.
On a whim, Mayor Johnson revealed during his presentation to the NBA that Ron Burkle, a billionaire associate of former U.S. President Bill Clinton and Democratic Party fundraiser, wanted to purchase and keep the Kings in Sacramento. Johnson also pledged some $10 million from local businesses as proof of support from Sacramento citizens – which may have convinced Stern and his relocation committee to let the Maloofs keep their plans for relocation withdrawn.
On February 27, 2012, the Kings owners (Kings leave Sacramento), the city and NBA reached an agreement on a $387 million facility to be built in downtown Sacramento’s rail yards. The city would pay more than $250 million upfront, raised through the lease of city-owned parking lots to a private company. The Maloofs would contribute $75 million plus money from the sale of Sleep Train Arena currently under development.
Additionally, they would pay a 5% surcharge on ticket sales to generate another $75 million over the span of the deal. Arena operator AEG would contribute another $60 million upfront for operating rights to operate the arena. With this agreement in place, it was anticipated that the Kings would begin playing in their new arena by 2015.
On March 7, 2012, the city council unanimously approved the outline of a deal between Sacramento and Maloof family. Unfortunately, on April 13th they announced their decision to back out of this arrangement.
Although negotiations had made little progress with Anaheim, another market sought to lure the Kings (Kings leave Sacramento) away. Hampton Roads metropolitan area of Virginia said it was willing to build an 18,000 seat arena, with Comcast Spectacor managing it, in hopes of snagging a team. Unfortunately, both parties could not come to an agreement and the deal soon fizzled out.
Experience has taught me to stop worrying so much and to trust my instincts more.” When faced with uncertainty, ask your child for their opinion! It could be anything from “Fill out this form to get in touch!”. On January 9, 2013, the National Basketball Association reported that the Maloofs, majority owners of the Sacramento Kings, were in talks with a Seattle-based ownership group led by Chris Hansen, Microsoft CEO Steve Ballmer and Eric Nordstrom and Peter Nordstrom from Nordstrom about selling and relocating the team.
Chris Hansen recently purchased $6.8 million worth of parking spaces for Seattle’s new arena. On January 20, USA Today reported that a deal had been struck whereby the Maloof family would sell their majority ownership in the Kings to an ownership group from Seattle. Stern confirmed he would allow Mayor Johnson to address either the Board of Governors or Relocation Committee before final approval was given for either sale or relocation approval.
On the following day, Yahoo! Sports reported that the sale to the Seattle group had been completed and that the league would soon approve it and relocate there; an official announcement would follow later that week. Unfortunately, efforts by potential Sacramento ownership groups were too late to prevent this development from taking place.
On January 21, 2013, it was confirmed that a deal to sell the team to Seattle-based ownership had been struck, subject to approval by the NBA Board of Governors. A statement from the Maloof family confirmed they had agreed to sell to an investment group led by Chris Hansen but that approval still needed from the NBA Board. At $525 million valuation, this sale represented 65% ownership stake with new owners expected to relocate the franchise and utilize its name; no ongoing stake would remain with the Maloofs.
On February 6, 2013, David Stern revealed the Seattle ownership group had filed with the NBA to relocate their franchise from Sacramento to Seattle. In response, Kevin Johnson revealed a counteroffer and framework towards an arena deal in a city address; Ron Burkle would fund it while 24 Hour Fitness founder Mark Mastrov would provide backing for the bid. On March 1st it was reported Kings minority owner John Kehriotis – who owns 12% of the team – would attempt to exercise his right of first refusal by making an offer to purchase Maloof’s share of the team.
Also Read: AGT Finalists America Got Talent
David Stern revealed that Sacramento’s bid would only be taken into consideration if it surpassed the size of the Seattle group’s. Furthermore, Sacramento’s investors needed to submit another offer by April 3 in order for the NBA Board of Governors to make a final decision.
On March 21, it was revealed that Vivek Ranadive had joined Ron Burkle and Mark Mastrov to become the third major investor in an attempt to purchase the Sacramento Kings. To accomplish this feat, Ranadive would need to sell his minority share in the Golden State Warriors. Paul E. Jacobs, CEO of Qualcomm, joined this group as well. Eventually though, Burkle would cease all financial involvement with regards to either a potential ownership group or proposed Sacramento arena due to conflicts of interest involving the NBA.
On March 27, Chris Hansen submitted a bid for an additional 7% minority stake in the Sacramento Kings franchise. With approval from both the NBA and California bankruptcy court, Hansen would have owned 72% of the Kings prior to their relocation to Seattle for the 2013-14 NBA season.
On April 12th, 2013, the Maloof family gave Sacramento’s potential ownership group an ultimatum to match Seattle’s $341 million offer by 5 PM in order to be considered for purchase of the team even if their bid were rejected by the NBA Board of Governors. Chris Hansen announced that his Seattle-based ownership group had increased their purchase price for Sacramento Kings from $525 million to $550 million with Hansen’s share estimated at $357.5 million; further increasing franchise values across all NBA franchises.
On April 29th, 2013, the NBA Board of Governors Relocation Committee that studied the situation unanimously voted 7-0 against relocating the Kings (Kings leave Sacramento) to Seattle. The formal vote by 30 NBA owners is set for May 13. On May 10th Chris Hansen announced his ownership group had increased their purchase price for Maloofs’ share in Sacramento Kings from $550 million to a $625 million franchise valuation. On May 11th reports indicated Maloofs would decline selling to any Sacramento owners and instead opt to sell 20% for $125 million as a contingency.