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Maloofs agree on deal to sell Kings
Updated: January 21, 2013, 10:52 AM ET
By Marc Stein | ESPN.com
The Maloof family that owns the Sacramento Kings has reached an agreement to sell the controlling interest in the franchise to a Seattle group intent on moving it in time for next season.
Sources told ESPN.com that NBA teams were formally notified Sunday night that the Kings have been valued at $525 million and that the Maloofs and a group led by hedge-fund manager Chris Hansen have executed a purchase and sale agreement, which the NBA confirmed through a statement Monday morning.
The Seattle group intends to file for relocation by the league's March 1 deadline.
Although the sale still requires formal league approval, ownership transfers typically go through when they reach this phase.
The agreement to transfer the 65 percent majority stake in the Kings to the Seattle group headed by Hansen and Microsoft CEO Steve Ballmer represents the 53 percent owned by the Maloofs and an additional 12 percent from minority owner Bob Hernreich.
The NBA announced Monday: "The proposed transaction is subject to the approval of the NBA Board of Governors and has been referred to the Board's committee process for review."
Sources said that there has not yet been an agreement submitted on the remaining 35 percent of the franchise, which is held by minority shareholders, not the Maloofs.
"We have always appreciated and treasured our ownership of the Kings and have had a great admiration for the fans and our team members," Kings co-owner Gavin Maloof said in a statement on behalf of the family. "We would also like to thank Chris Hansen for his professionalism during our negotiation. Chris will be a great steward for the franchise."
One source close to the process told ESPN.com's J.A. Adande that the Maloof family, as it was hoping, will retain a "small piece" of minority interest in the franchise after its expected relocation to Seattle and renaming as the SuperSonics for next season. It's believed, though, that the Maloofs will hold no decision-making power once control of the franchise is transferred.
The deal, according to sources familiar with the specifics, calls for the Maloofs to receive a non-refundable $30 million deposit from the Seattle group by Feb. 1. The NBA, furthermore, is fully expecting Hansen to apply for relocation to Seattle for the 2013-14 season by the league's March 1 deadline, enabling the league's board of governors to vote on the application at their annual April meeting.
Clockwise from top left: Chris Hansen, Steve Ballmer, Erik Nordstrom and Peter Nordstrom.
Gary Bettman, NHL Commissioner, on the NHL and Seattle in light of the NBA possibly moving back their soon:
"It's not something we're focussed on and considering right now."
Although I'm still not sold on that arena rendering....
Ignore the colors in the rendering. The volcano roof will look cool all lit up in team colors. It will have millions of LED lights and will be capable of an unimaginable amount of color schemes. It sounds like it will be first class. A lot of thought and design is being put into the arena. Hansen has invested in land for the arena and adjacent parcels to create a first class neighborhood and experience.
I don't like the design at all. It's just odd looking and blends in with the neighborhood too much. It's a bland structure to me. It could be anything. My first impression would be not be sports arena.
I don't like the design at all. It's just odd looking and blends in with the neighborhood too much. It's a bland structure to me. It could be anything. My first impression would be not be sports arena.
Isn't that what people usually go for? Toyota, for example, made their company gym in Cambridge look like a barn from the outside so that it would blend in with the surroundings at the time.
California state Senate President Pro Tem*Darrell Steinburg isn’t happy about that — not one bit.
He’s so angry that the 53-year-old*addressed a letter to California Department of General Services director Fred Klass asking why Microsoft and Ballmer are “engaging in activities which are clearly measurably detrimental to our State’s job and revenue base —*not to mention use profits earned through business with our State to appropriate a California-based asset.”
Yep, the sparks are a-flyin’. Steinburg, a former Sacramento City Council member who was heavily involved in keeping the Kings in Sacramento two years ago, also asks Klass to provide several bits of information relating to how much money Redmond-based Microsoft has earned from the State of California over the past decade.
Levin says 'To my knowledge, there are no teams available'.
Check back in 10 days
Unlike some other prospective Seattle NHL owners, Levin is not in the know, and likely lacks the deep relationships within the highest levels of the NBA & NHL. In that article though, Don Levin was able to confirm something we've known for a while:
"I have had no (recent) contact with Chris. He has probably worked with some other people ... When I spoke to him at some point in the past, he said there were other people interested, so I'm sure he is (pursuing a team with other owners)."
I previously speculated on the identity of our mystery Seattle NHL prospective owner here (link), and it looks as though Seattle PI blogger Nick Eaton, on February 19, 2012, also considers this family a standing member in the usual suspects:
When you think of local multimillionaires who might put up the cash to fund a new NBA and NHL arena in Seattle, a few names come to mind: Microsoft CEO Steve Ballmer, Microsoft co-founder Paul Allen, cellular mogul Craig McCaw. So, who the heck is (this Pacific Northwest native & and Bay Area resident) Chris Hansen?
Though I've yet to find a smoking gun, my suspicion is that another Pacific Northwest native & and Bay Area resident, Greg Jamison, who has his own deep ties to the NHL & NBA, is somehow directly or indirectly in on it.
Last edited by JawandaPuck: 01-22-2013 at 11:30 AM.
California state Senate President Pro Tem*Darrell Steinburg isn’t happy about that — not one bit.
He’s so angry that the 53-year-old*addressed a letter to California Department of General Services director Fred Klass asking why Microsoft and Ballmer are “engaging in activities which are clearly measurably detrimental to our State’s job and revenue base —*not to mention use profits earned through business with our State to appropriate a California-based asset.”
Yep, the sparks are a-flyin’. Steinburg, a former Sacramento City Council member who was heavily involved in keeping the Kings in Sacramento two years ago, also asks Klass to provide several bits of information relating to how much money Redmond-based Microsoft has earned from the State of California over the past decade.
So I guess Ballmer is not allowed to spend money anywhere in the world where he made profits. I am pretty sure he can say he is only using those profits he earned from other states/countries but not Callifornia.
So I guess Ballmer is not allowed to spend money anywhere in the world where he made profits. I am pretty sure he can say he is only using those profits he earned from other states/countries but not Callifornia.
Empty threat. He ought to really be careful when making these threats or he may be in legal hot water. Plus microsoft isn't buying the kings.
Last edited by gstommylee: 01-22-2013 at 02:25 PM.
Kypreos on hockey central at noon today said its a lot more realistic in the last little while than it was 6 months ago in relation to an NHL team in Seattle.
Kypreos on hockey central at noon today said its a lot more realistic in the last little while than it was 6 months ago in relation to an NHL team in Seattle.
only problem is, cheswick, once Phoenix is settled, what franchise is in trouble that it needs new ownership
only problem is, cheswick, once Phoenix is settled, what franchise is in trouble that it needs new ownership
The NHL, in my opinion, does not need to be done at same speed as NBA. Once an NBA team is here then that guarantees an NHL ready arena and when a team comes available (relocation, expansion) Seattle will be ready. If Phoenix deal falls apart Seattle is close to being ready. Otherwise no hurry because the building will be here.
The NHL, in my opinion, does not need to be done at same speed as NBA. Once an NBA team is here then that guarantees an NHL ready arena and when a team comes available (relocation, expansion) Seattle will be ready. If Phoenix deal falls apart Seattle is close to being ready. Otherwise no hurry because the building will be here.
I agree. Given the weakness of the Key as a hockey venue, it might be best to wait until the new arena is built and then have a NHL team arrive, whether a team moving from elsewhere or an expansion team.
@JasonPuckettKJR
From Mayor McGinn’s office: Economic impact study on arena to be released in mid April. Environmental impact study to b released May/June.
This is huge. When the NBA approves sale/relocation of the Kings to Seattle. The new arena construction will essential start this fall once the city/county gives its final approval.
I agree. Given the weakness of the Key as a hockey venue, it might be best to wait until the new arena is built and then have a NHL team arrive, whether a team moving from elsewhere or an expansion team.
Expansion in time for 15-16 season? Or will another bad market move.
@JasonPuckettKJR
From Mayor McGinn’s office: Economic impact study on arena to be released in mid April. Environmental impact study to b released May/June.
This is huge. When the NBA approves sale/relocation of the Kings to Seattle. The new arena construction will essential start this fall once the city/county gives its final approval.
Na too early. My bet is September-October. City/county have to go over the reviews and make a final determination if they want to move foward or not. There COULD be potential challenging of the results of the studies.
Another arena design review meeting was tonight and there were a few issues about the grand plaza and members have asked that the plaza/stairs be redesigned.
