OT Sacramento looking to finance new arena; UPD NBA rejects relocation to Seattle bid
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03-02-2013, 11:00 AM
Join Date: Jun 2002
Location: Seattle, WA
Originally Posted by
The reason they have a lower offer is because they don't need t pay the 30 million relocation fee or the 77 million loan back to Sac.
The relocation fee is paid to the NBA and is not part of the overall franchise evaluation. The loan is also not part of the purchase price, it is either assumed or paid to the lender. Think of it this way ... Hansen is not paying $341MM all in. He is paying $341MM for the team, $77MM to retire the debt and another $30MM to move it.
So yeah, any offer needs to be for the team alone and if they have a chance it has to be the same, IMO (and reports are it isn't). Then, they need to demonstrate why Sac is better for the league in terms of corp money, regional TV deals, national TV deal, owernship spending up to or past the luxury tax threshold (vs. taking from rev sharing), etc.
Then, they need to come up with legal justification to unwind a legally binding PSA (to a group Stern himself called strong and well financed). They can't deny relocation ... just because.
its a tall order which is why almost any journalist not tied to Sac has said this is a longshot at best.
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