Kelley L Cox-US PRESSWIRE
Yahoo! Sports' Adrian Wojnarowski reports that the details of the Kings proposed sale to the Seattle-based Hansen-Ballmer group have been revealed to the NBA relocation committee in a call last week.
According to Adrian Wojnarowski of Yahoo! Sports, the "deal points" of the proposed sale of the Kings to Chris Hansen's Seattle-based investment group were reported to the NBA relocation committee last week. The timing is important to note. This meeting occurred last Tuesday, January 8th, prior to the initial report which generated our renewed fervor to keep the team. Additionally, Woj describes the deal as a "non-binding set of deal points."
There were some specifics nailed down from what we previously knew.
- The Kings will file for relocation before the March 1st deadline.
- The price would be $525, but that would be a valuation of the overall franchise. The Maloofs would receive a portion of that for their 53% stake.
- Minority owner Bob Hernreich would be selling his 12% stake to the Hansen-Ballmer group as well.
A little fun with math here. If the Maloofs are receiving a pro-rated portion of the $525 million, that means they would received $278 million. I'm not positive how the debt-settlement works (if the Maloofs own responsibility for the debt or if it is shared amongst all owners pro-rata), but let's assume for a moment the Maloofs are the ones on the hook. They owe the city $77 million, and the NBA another $125 million, based on various reports. That would leave the Maloofs with $76 million, before they paid any sort of capital gains taxes.
By comparison, let's say the Kings sold to a local owner for $450 million. 53% would be $238 million. The $77 to the city could roll to the new owners. The Maloofs pay back the NBA, and net $113 million. Regardless of how the debt is split or not split amongst the owners, selling to Sacramento for less still puts more in the Maloofs' pockets. This is how the city of Sacramento can make a competitive offer.
So, Seattle, a non-binding deal, huh? Good luck with that.