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Friday, May 17th, 2013 at 11:55 am  |  35 responses

Maloofs Sold the Sacramento Kings for a NBA Record $535 Million


At long last, the Maloof family’s death grip on the Sacramento Kings has been vanquished. And it was a very expensive break-up. According to multiple reports, the Maloofs made off with an NBA record $535 million for the franchise, which will stay in Sacramento. Per the Sac Bee: “The Maloof era in Sacramento, at times spirited and uplifting, at times dismal, appears to have come to an end. A Sacramento investors group has reached a deal with the Maloof family to buy its controlling stake in the Kings. The deal is expected to be unveiled today. ‘It’s the start of a new era,’ said Silicon Valley tech entrepreneur Vivek Ranadive, leader of the Sacramento investor group, speaking to reporters after the Warriors game Thursday night. Ranadive added, ‘We just need to sign some papers and finalize everything.’ If the NBA approves the deal, a source said, escrow is expected to close at the end of May. The source, a stakeholder close to the deal, said the Maloof family was eager to “turn the page” and was pleased it was able to sell to a group that will keep the team in Sacramento. The deal would set the team’s overall value at $535 million, an NBA record. The source did not say why the price values the team at $535 million, rather than the $525 million figure the local group had offered. The sale price translates into $347 million for the 65 percent of the team controlled by the Maloofs and their business partner, Robert Hernreich. Ranadive confirmed that the reported price was ‘about right.’ [...] Mayor Kevin Johnson said this morning that the deal by a Sacramento group to buy the Kings from the Maloof family ‘has been signed on both ends’ and that ‘the money has been wired.’ Johnson, speaking at midtown’s Bacon & Butter following a morning segment with News 10, said the deal still has to close, but that he doesn’t see any roadblocks holding up the transfer of the team ownership to a group led by Silicon Valley executive Vivek Ranadive. ‘We’re hoping to get it all done within the next week or so and the (NBA) Board of Governors will vote and I don’t anticipate any surprises,’ the mayor said.”

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  • AlbertBarr

    Stunned that it is finally over. We Kings fans likely know more about local government and NBA bylaws than any other teams fanbase at this point. Now we have to go back to discussing basketball. It is weird…and joyous. We haven’t had good management for 7 years or more and that is why we have stunk so bad for so long. A new era…

  • i_ball

    Those poor owners of small market teams can’t make revenue…

  • http://twitter.com/sooperfadeaway nbk

    disgusting.

  • http://twitter.com/sooperfadeaway nbk

    who knows how much they lost over the last 5 years. The profit of sales is misleading.

  • http://twitter.com/Victori56928710 Victoria Russell

    іf yоυ tհіոĸ реtеr`s stоry іs аmаzіոg…,  fіvе wееĸs аgо my brоtհеrs mоtհеr іո-lw bаsісаlly rесіеvеd а сհесĸ fоr $4268  grаftіոg а sеvеոtееո հоυr wееĸ аո tհеіr հоυsе аոd tհеrе rооmаtе’s sіstеr-іո-lаw`s ոеіgհbоυr dоոе tհіs fоr 10-mоոtհs аոd gоt а сհеqυе fоr оvеr  $4268 іո tհеіr sраrе tіmе аt Tհеrе  lарtор. fоllоw tհе gυіdеlіոеs аvаіlаblе аt tհіs lіոĸ. ..Fox83.com

  • AlbertBarr

    What is disgusting? The sale price?

  • http://twitter.com/sooperfadeaway nbk

    the Maloofs just put 0 effort into improving the Kings situation for the last 5 years, and were rewarded for it.
    .
    they gave away the #4 pick in the draft for $1million dollars this season. That’s how cheap they were. And now they just got all the money they lost back….plus some.

  • AlbertBarr

    Yes. That is disgusting. They don’t actually walk away with all the money though…they owe the league 150 million dollars so that will come out of the payment from Ranadive. Still, 200 million dollars for being horrible people and terrible owners is disgusting.

  • http://twitter.com/sooperfadeaway nbk

    i didn’t know that about the league, what is the deal with that, why they owe them $150M?

  • AlbertBarr

    I can’t find hard reasons why but many reports have said they owe the league 150 million…I think they were loans just to keep the team operating. Probably one reason they had leverage to ensure they sold to Ranadive. Lower half of this article has a bit about it. http://www.cowbellkingdom.com/2013/05/13/there-is-still-a-way-in-which-sacramento-seattle-the-nba-and-the-maloofs-can-come-away-victorious/

  • AlbertBarr

    Basically, Maloofs are/were broke and are terrible at business…$200 mil is worth it just to get them out of the league.

  • AlbertBarr

    They owed Sacramento $75 million as well but that will be transferred and refinanced to the new ownership group. Hansen/Ballmer probably would have just defaulted and let Sac keep Arco. Which is not worth $75

  • i_ball

    Actually according to the internet the made a hell lot of money with this deal.

    $156,000,000 in 1998 are worth $222,545,006.13 today.

    And according to Forbes they didn’t lose a how lot of money if any ($25,000,000 revenue for the last 10 years):
    http://www.forbes.com/teams/sacramento-kings/

    That might not be the full picture of course. But still making 120 something million from deal itself (with the inflation adjustment) should cover for all their losses and leave them with a revenue from it all

  • http://twitter.com/sooperfadeaway nbk

    i know they made money. i mean we don’t know how much they made. or if it’s much of a profit at all if their other business ventures had to suffer in order to cover the cost of owning the Kings.
    .
    There are just a ton of costs none of us understand or see. Which includes Forbes, whose numbers are literally based on speculation. That’s my point, it seems like these small market owners always come out on top, but there is no way for us to really know.

  • http://twitter.com/sooperfadeaway nbk

    i wish someone would pay me $200 million dollars to go away.

  • KingBenjamin

    Seattle the city that got robbed, twice.

  • AlbertBarr

    How did they get robbed this time King? Explain it to me, because you can’t get robbed, from my understanding, of something that isn’t yours. More appropriate would be “robbed once, prevented from stealing once”

  • KingBenjamin

    They reached a deal with the Maloofs to buy the Kings, they had an agreement, it was there’s. If someone owns a team and agrees with another group to sell it to them that should be the end of the story, it’s your team you should have the right to sell it to the buyer of YOUR choice, NOT the NBA’s choice. That’s exactly what happened here, the city of Seattle got robbed twice.

  • spit hot fiyah

    we might start a collection ;)

  • http://twitter.com/sooperfadeaway nbk

    i hope so!

  • AlbertBarr

    By your logic, it wasn’t being robbed when Clay Bennet bought the team and moved it. Howard Schultz had the right to sell to anyone he wanted and they could do with the team what they wanted…even move it to OKC. But you say you were robbed twice. You are essentially saying that if it happens to Seattle it isn’t OK. But if Seattle does it another it is ok? This is why Seattle fans and media have tweaked me during this whole saga: you are intellectual dishonest. You feel like you have been robbed when you were the burglars.

  • spit hot fiyah

    i don’t think u could stay away

  • Junior Taylor

    So much for all the “NBA teams/owners are bleeding money” crap I heard all throughout the Lockout.

  • KingBenjamin

    I’m not from nor am I a Seattle fan, I’m just stating the obvious, if you own a franchise you should have the right to sell it to whoever you want and they should have the right to do whatever they want with the team.

  • http://twitter.com/sooperfadeaway nbk

    i wouldn’t be working. so i wouldn’t be commenting. when i’m not working, i’m only reading articles and replying. staying away would come naturally with all that money.

  • Dnub

    The sad thing in this whole deal is Seattle has been Magoofed, you fans in Seattle have been taken by the Magoofs just as we Sacramento fans have for the past five years or so. They never had any intentions of selling to H/B…… they would have had everything gone their way but they knew Seattle was desperate to get a team and would pay anything especially with H/B having deep pockets. Sacramento was desperate to keep the one professional franchise they have and would try and do anything to keep them. With that being said it was the perfect senerio for the Magoofs to strike it rich either way. They played Sacramento againist Seattle meanwhile H/B drove the price up to record proportions and Sacramento assembled investors from accross the state to compete with the H/B offer. The Magoofs could have sold the frachise to Ron Burkle who wanted to keep the team in Sacramento but it wouldn’t have been for the kind of money they netted on this deal. The Magoofs are great PR people and they know what to say and when to say it! I wouldn’t let any of the 3 stooges balance my checkbook but you have to give it to them they are crafty. I’m sorry that with as good as intentions as Chris Hansen had for Seattle the Magoofs always knew that he was not part of their back up plan. The Magoofs speak out of both mouthes and you never know which side to believe. I’m glad we were able to keep our team and I wish Seattle the on the purchase of another team or a possible expansion, because truely deserve to have a franchise up north and should have never lost the one you did …..good luck H/B!

  • AlbertBarr

    If it should be the right of owners to sell to whom they want and do whatever they want with a team then Seattle can’t have been robbed twice. That is what is stupid about what you are saying. The first “robbing” you are mentioning was the move to OKC in 2008. That is an example of an owner selling to who they want and doing with the team what they want. So your statement and logic do not agree with each other. It doesn’t matter if you are a Seattle fan or native or not.

  • AlbertBarr

    Well said, but I think the Maloofs DID want to sell to Hansen. I think they had been blinded by spite and blamed KJ for preventing them from getting to Anaheim and would have relished “getting back” at those who messed with their machinations.

  • AlbertBarr

    The rest of their businesses suffered a lot in the lost 8-10 years: Sold their beer distributorship (All southwest region of Budweiser) to pay for the Palms Casino that was hemorrhaging money and spent whatever else they had left to create red velvet cake flavored vodka and bedazzled cases for iphones…they shut down the on court successful monarchs because they couldnt afford it. These guys were tapped out. They are also terrible at business.

  • AlbertBarr

    The rest of their businesses suffered a lot in the lost 8-10 years: Sold their beer distributorship (All southwest region of Budweiser) to pay for the Palms Casino that was hemorrhaging money and spent whatever else they had left to create red velvet cake flavored vodka and bedazzled cases for iphones…they shut down the on court successful monarchs because they couldnt afford it. These guys were tapped out. They are also terrible at business.

  • http://twitter.com/sooperfadeaway nbk

    “spent whatever else they had left to create red velvet cake flavored vodka and bedazzled cases for iphones…”
    .
    This is the equivalent of signing Fransisco Garcia and trading for John Salmons, combining to pay them a max contract…..in the same summer.

  • http://twitter.com/sooperfadeaway nbk

    “spent whatever else they had left to create red velvet cake flavored vodka and bedazzled cases for iphones…”
    .
    This is the equivalent of signing Fransisco Garcia and trading for John Salmons, combining to pay them a max contract…..in the same summer.

  • KingBenjamin

    I’m not even going to argue with you anymore, you’re clearly not smart enough to understand. You just wrote “That is an example of an owner selling to who they want and doing with the team what they want”, exactly he sold the team to who he wanted, and that’s what the Maloof family has the right to do, sell the team to whom ever they want. But Clay Bennett didn’t tell anyone he was going to move the team to OKC. With that being said the Maloofs (Owners of the Kings) wanted to sell to who they wanted (Seattle Group) but weren’t allowed to do so because the NBA didn’t let them. Ballmer and Hansen are the good guys and were up front from the start stating that they want to move the franchise to Seattle. Maybe if they didn’t say anything about moving the team to Seattle and got the deal approved this team would now be moving to Seattle.

    Point is Seattle got screwed, not once, but twice. First, by that coward Clay Bennett, and second by that Jew David Stern.

  • jking

    Obama should be happy they need to give all that money to him for taxes

  • SLAMFAN_NZ

    Who the F**K evaluated the Kings to be worth $535 Mil?

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