Details Of Kings' Power Balance Naming Rights Deal Come Out In Bankruptcy Court Claim
by Tom Ziller on Feb 18, 2012 5:27 AM PST
in Arena
Email
PrintAccording to Dale Kasler of the Sacramento Bee, the Kings filed a claim against Power Balance this week as the magic bean manufacturer goes through Chapter 11 bankruptcy proceedings. The Kings are looking for $8.3 million in the claim. But the interesting part is that the claim included details about the specific annual terms of the naming rights deal, which Kasler pulled out.
- Year 1: $975,000
- Year 2: $1.53 million
- Year 3: $1.9 million
- Year 4: $2.25 million
- Year 5: $2.35 million
All of that is, as of now, down the drain. (Even for Year 1, Kasler said the Kings claim that only $700,000 has been paid out.) So on paper the deal was a helluva lot more lucrative than the $750,000-per-year ARCO deal ... but in practice it didn't even pay out one of the years.
Just another little cash problem among mounting cash problems for the Maloofs and their budget basketball team.
37 comments
|
0 recs |
Do you like this story?
Comments
Best thing we can do
…is wait for the vote on the 28th. If we wanted to get another sponsor, you might be able to sell them on the idea on naming rights should we get a new arena. Would be ideal, really.
by KevinSalvadori on Feb 18, 2012 7:29 AM PST reply actions 1 recs
This was just the Maloofs looking to make friends in the OC
OC D-Riders
by Allbenji on Feb 18, 2012 7:43 AM PST via mobile reply actions
Power Balance
Did this knowing that if maloofs moved to SoCal they would buy PB out of the agreement since the arena in anaheim already has Honda on it. Or if the maloofs didn’t move PB wouldn’t survive long enough to payout that agreement.
Get me Joe & Gavin, I have some snake oil to sell them.
Aaron "People's Champ" Rodgers
B.S. Replacing a Legend
PhD Becoming a Superbowl MVP
Butte Community College (Chico, CA)
(Brett Favre just registered for classes)
by ajd1083 on Feb 18, 2012 7:56 AM PST via mobile reply actions 1 recs
Seriously,
What did they truly expect from a company, whose product was a complete scam?
Asked if the Kings had any intention of trading Cousins, basketball president Geoff Petrie said, "No."
by Slam_Dunk on Feb 18, 2012 8:05 AM PST reply actions 2 recs
I think this goes to show how bad of businessmen they really are.
Honestly, I really wouldn’t be surprised if they thought the powerbands were legit.
It was probably the best offer they got. Legitimacy of the company or product meant nothing.
by Crocoduck on Feb 18, 2012 8:19 AM PST via mobile up reply actions 1 recs
I'd be willing to bet they received better offers
But not in the form of $ promised. A more stable reputable company(ies) likely put in offers but they were for closer to what we thought PB agreement was before today.
Maloofs only saw $ signs
Aaron "People's Champ" Rodgers
B.S. Replacing a Legend
PhD Becoming a Superbowl MVP
Butte Community College (Chico, CA)
(Brett Favre just registered for classes)
by ajd1083 on Feb 18, 2012 8:23 AM PST via mobile up reply actions 1 recs
Yes, that is how scam artists work. They use people's greed as leverage.
Putting all those bogus dollars in front of their eyes, the Maloofs ceased to use their common sense. If it sounds too good to be true, it probably is.
Honestly, I don’t think they believed those bands were truly effective. I just think they looked the other way because they are business men, feeling financially desperate and willing to take the risk. In short: They got conned, along with all the people who purchased one of those bands. Nothing will probably happen to the PB folks, because they probably have a good attorney. My personal feeling is that people like this should go to prison for fraud.
I had a similar personal experience.
Asked if the Kings had any intention of trading Cousins, basketball president Geoff Petrie said, "No."
by Slam_Dunk on Feb 18, 2012 9:19 AM PST up reply actions 2 recs
I'd actually disagree a little here
nobody was offering money for the naming rights to that arena. No chance because there was about to either be a new one or it was about to be empty. And on top of that it had the same name for over 20 years already. The Maloofs took the best offer they could get and already had the full intent to focus on relocating.
by wallywagon11 on Feb 18, 2012 9:15 AM PST up reply actions
Agree with you. In their minds, they already had one foot at the door.
Asked if the Kings had any intention of trading Cousins, basketball president Geoff Petrie said, "No."
by Slam_Dunk on Feb 18, 2012 9:40 AM PST up reply actions 1 recs
^out the door
Asked if the Kings had any intention of trading Cousins, basketball president Geoff Petrie said, "No."
The Lords of the Bracelet Strike Again!
Stay Thirsty My Friends
WONK
Etymology - origin unknown
Function - Noun
Definition - A person preoccuped with arcane details or procedures in a specialized field; broadly, NERD; especially someone young who focuses on one topic or subject to the near exclusion of all other topics.
Holy heck Batman!
For that chunk of change, I’d also name my building after a fraudulently unlegitimate product!
No wonder they took on such a stupid name, that deal is ridiculous!
by LightningStrike5 on Feb 18, 2012 8:32 AM PST reply actions
The Maloofs...
"I gotta have more cowbell"
by CowbellKings on Feb 18, 2012 9:01 AM PST reply actions 9 recs
This is amazing. So, so, funny.
Asked if the Kings had any intention of trading Cousins, basketball president Geoff Petrie said, "No."
I just reposted someone's work that is outstanding...
I didn’t remember who’s it was so I could not give ya props… glad ya stepped up.
Remember I don't give a flying fuck!
Magoofs
You mean to tell me a fledgling rubber band company didn’t offer the sustainability of STAPLES or Oracle?
I Came, I Saw, I Conquered.
Loading a bulk of the payments on the back-end of a long deal is common in entertainment deals
A lot of studios will do the same thing when making contingent compensation contracts for writers/actors/directors. Its a way to protect your investment. From Power Balance’s perspective its less risky for them to pay less up front and more later on.
Disregarding Power Balance’s finances at the time, when it was negotiated, they probably weren’t exactly certain the Kings would be in Sacramento for the complete duration of the five year period. Without seeing the language of the contract, I would guess that the deal was contingent on the Kings staying in Sacramento. If PB had a good attorney, he would have negotiated for the agreement to include a provision whereby naming rights were tied to the Kings’ tenancy in Sac. That way, if the Kings did move to Anaheim, PB wouldn’t have to pay the remaining years, making it less risky to back-load the payment schedule.
Gonzaga Bulldogs - 11 straight WCC regular-season championships. 13 straight NCAA tournament appearances.
A lot of companies and people tinger with the payout over time.
Asked if the Kings had any intention of trading Cousins, basketball president Geoff Petrie said, "No."
The deal had a sponsorship deal for the Honda Center if the Kings moved.
The world is not your Trade Machine.
-Ziller
@James_Ham
www.cowbellkingdom.com
I like your Jimmer very much. I do not like your JimmerJihadis™. - Ghandi Sims
Rocks are free, and slingshots easily stolen. And for a limited time, every third person who follows me on Twitter (andy_sims) gets a free ice cream cone.
Which I will eat.
by andy sims on Feb 18, 2012 2:34 PM PST reply actions 2 recs
Comments For This Post Are Closed
Secondary Sidebar
User Tools
NBA Playoffs Content Module
FanPosts
Community blog posts and discussion.
Recent FanPosts
In Association With
Ball Don't Lie - NBA - Yahoo! Sport
- Kendrick Perkins does not think much of Andrew Bynum’s relative intelligence
- Behind the Box Score, where the Boston Celtics are moving on to the conference finals
- NBA Playoffs Fan Fiction: San Antonio Spurs vs. Oklahoma City Thunder
- The Indiana Pacers? Gone till November
- Shaquille O’Neal is in a Chinese beer commercial, too (VIDEO)
