Agreement for new Seattle arena reached

[UWfan206]

Re: Agreement for new Seattle arena reached

Though Seattle isn't a big city like NY, LA, CHI, or MIA, he certainly will care for it more than SAC since its a more appealing city because of the tourism and other sports around Seattle...

Seattle is a bigger city and bigger market than Miami.

[ProfessaPackMan]

Re: Agreement for new Seattle arena reached

I don't think there will be expansion, just if there is, I think that's the most likely option.

I think the odds are higher for the Bucks or Pacers to relocate before the league expands.

Why the Bucks or Pacers? Or were they just two random teams you threw out there?

[Coug00]

Why the Bucks or Pacers? Or were they just two random teams you threw out there?

There are still rumors about Kohl selling the Bucks due to his age and the Pacers continually bleeding money from their lease. I doubt either move happens anytime soon, if at all, but they are probably the most available.

[WTF]

Re: Agreement for new Seattle arena reached

Move the Pacers to Louisville, rename them the Racers (Kentucky Derby), play at the KFC Yum center. Revise U of L's lease on the KFC Yum center, make it profitable for everyone instead of the bonds being downgraded to junk status... Win/Win. Sorry Indy

[Coug00]

Re: Agreement for new Seattle arena reached

Whoa!!!

http://www.king5.com/news/Growing-rift-between-NBA-commish-and-league-owners-202429701.html

Growing rift between Stern, league over Kings future?

SEATTLE – NBA Commissioner David Stern, widely thought to be a strong supporter of moving the Sacramento Kings to Seattle, has been working to bolster efforts to keep the Kings in place.

Multiple sources suggested Wednesday that a split has emerged between Stern and team owners over the fate of the Kings. Those sources, spanning the league and governments in Sacramento and Seattle, said Stern has been quietly maneuvering behind the scenes to propel a Sacramento counter bid. They said he has been personally seeking investors to join a new Kings ownership group -- even after several NBA team owners last week indicated their willingness to move the franchise to Seattle.

Seattle investors Chris Hansen, Steve Ballmer, and Pete and Erik Nordstrom have a signed purchase agreement for 65 percent of the Kings franchise, which would be revalued at $525 million dollars.

Sacramento has scrambled since the Seattle deal was announced in January to put together a term sheet for an arena deal and investor group to counter the Hansen-led bid. Billionaire Ron Burkle was expected to join the Sacramento effort but dropped out of the investment group this week, citing a business conflict. Burkle has an ownership stake in Relativity Media, which has a division representing NBA players.

A league source told KING 5 that the conflict was just one factor in Burkle's decision. Burkle “wasn’t all that fired up about this deal," the source said.

On Tuesday, Sacramento Mayor Kevin Johnson introduced developer Mark Friedman as Burkle's replacement, and said the league was OK with the recent developments in Sacramento's evolving counter-proposal.

Both sides made formal presentations to a select group of NBA owners last week in New York City. Sources with knowledge of both presentations said the second half of the Sacramento presentation was “poor" -- based more on “vision than fact.” Burkle was in the room for the Sacramento presentation, and Johnson said questions were asked about Burkle’s potential conflict.

A key source indicates Hansen told owners he has an agreement, as of last month, with the City of Seattle to operate Key Arena. That deal would have to be approved by the city council if league owners sign off on Hansen’s purchase of the Kings.

Sources also said Hansen has now put a price tag on potential Regional Television Network revenues in Seattle – more than $40 million dollars a year, or more than 80 percent more than what was estimated for Sacramento in a like deal. The number was used to illustrate the support for an NBA franchise and potential to pay down debt associated with construction of a new arena.

Hansen’s team told NBA owners that is believes construction of a new arena in Seattle is further along than Sacramento's, and that there are still many unanswered questions with the Sacramento plan, according to sources. They include questions about land acquisition, financing, and the impact of California Assembly Bill 900.
An Alameda County Judge struck down the bill last week, and declared it unconstitutional. Sacramento Arena supporters suggested the law, which deals with streamlining environmental reviews of major projects, would give Sacramento an edge over Seattle.
King County Executive Dow Constantine said last week this was a key point in the presentation. Hansen told owners he believed a new Seattle arena could open in September 2015, according to those people with knowledge of the presentation. That would be earlier than previously expected. A source said a Master Use Permit could be filed as early as next week.

Several people with knowledge of the process said Wednesday that owners were impressed by the scope of the presentation, and several appeared to be leaning Seattle’s way.

However, the Sacramento Bee reported Wednesday that the Maloofs had given the competing group until Friday to come up with a matching, binding, “back-up offer." A source with knowledge of the negotiations told KING 5 there is “no matching offer” and the numbers are still “way off."

A NBA spokesperson did not respond to a request for comment on today’s developments.

Both Johnson and sources close to the Seattle group said earlier this week that a league vote could come as early as next week. However, multiple people with knowledge of the negotiations said Wednesday it is still unclear whether a vote will be taken. A simple majority is needed to approve relocation, but at least 23 owners need to vote to approve the deal.

[MarvinOida]

Whoa!!!

http://www.king5.com/news/Growing-ri...202429701.html

Need 23 owners to vote Seattle... That's gonna be hard... this one is gonna be a tough one for both cities.

[Caveman24]

Re: Agreement for new Seattle arena reached

Can we just give the team to Seattle already?Enough with the delay lets be honest there dragging this out to see who's the highest bidder.Honestly though get Seattle there team they already got robbed for it.

I understand the Kings etc but will bringing them back garner more fan support?No nada I'm not to keen on the NBA trying expand either soon or later will be doing March Madness brackets for NBA if this keeps up.I get the whole who has the most leverage but don't string the King fans along like they did to Seattle.

[Coug00]

Re: Agreement for new Seattle arena reached

Two additional days were just added to the BOG meetings scheduled for next week. You don't need 2 additional days to discuss and decide upon these 2 bids for the Kings, which have already been vetted.

Stern wants to keep the Kings in Sacramento and has helped assemble a group that has potential, but simply needs more time to solidify and eliminate way too many risks that exist at the moment. The Seattle group has presented a deal (team+arena + RSN) that has minimal risk, would be a major financial opportunity for the NBA, and will be ready at least 12-18 months before the Kings group would. I think expansion might be closer to reality.

[WTF]

Re: Agreement for new Seattle arena reached

Louisville is READY! C'mon, make it happen, lol. 1 West Coast, 1 East Coast Team. Sounds good to me.

[MarvinOida]

I rather see Seattle Expansion, Kings stay, and Memphis moves to the Eastern conf. And Thunder replaces the Griz in Southwest... NBA played 29 teams before 02-03 or 03-04 I think, so what's wrong with 1 more team. Still the 8 team per conference playoff wouldn't effect any1...

Edit: Griz don't need to move, but the location is more Eastern than Western...

I think every1 wins in this.

[Coug00]

I rather see Seattle Expansion, Kings stay, and Memphis moves to the Eastern conf. And Thunder replaces the Griz in Southwest... NBA played 29 teams before 02-03 or 03-04 I think, so what's wrong with 1 more team. Still the 8 team per conference playoff wouldn't effect any1...

Edit: Griz don't need to move, but the location is more Eastern than Western...

I think every1 wins in this.

The problem with giving Seattle the expansion is that there are rumors the current Sac group doesn't have the funds to purchase the Kings yet. The Maloofs are going to expect a dollar for dollar match of the Hansen/Ballmer group. They had an opportunity to buy 7% of the Kings in bankruptcy court today by matching Hansen's $15m bid and send a message to the BOG that they are serious, but after weeks of Kevin Johnson claiming it theirs they couldn't find the funds.

If the Sac group kept the Kings, they would need the funds to operate the team while bleeding funds in Sleep Train for 3-5 years before a new arena is available. Where would those funds come from?

If there's expansion, outside of Stern being corrupt, I don't see how it doesn't go to Sacramento. Seattle will be ready sooner. They own the land, the final opposition lawsuit was dismissed today, and they will likely break ground in November and be ready for the '15-16 season opener.

[greenegt]

Re: Agreement for new Seattle arena reached

Forgive me if this has been spelled out already, but if the Seattle group has a signed agreement, why is there still a bidding war?

[MarvinOida]

Forgive me if this has been spelled out already, but if the Seattle group has a signed agreement, why is there still a bidding war?

I think Stern allowed a counter offer from Sactowns group, and if Sactown wins, Seattle still has to pay a couple million dollars since there was something saying that if they lost, they would have to pay some fee or something... Not 100% sure

[Coug00]

Re: Agreement for new Seattle arena reached

Forgive me if this has been spelled out already, but if the Seattle group has a signed agreement, why is there still a bidding war?

I'd love to know this too. It screams anti-trust lawsuit to me.

Hansen/Ballmer/Nordstroms just raised their bid to a valuation of $550m (increase of $25m).

[DonkeyJote]

Re: Agreement for new Seattle arena reached

I think Stern allowed a counter offer from Sactowns group, and if Sactown wins, Seattle still has to pay a couple million dollars since there was something saying that if they lost, they would have to pay some fee or something... Not 100% sure

And there's talk that Hansen may take legal action to regain his $30 million deposit if his group isn't awarded the team. I honestly don't see how the NBA can go with Sacramento at this point. They don't even have a concrete ownership group yet. The only person really pushing for Sacramento is Stern, it seems. It's probably better for the NBA as a whole to be in Seattle.

If this falls through, and Seattle isn't given the Kings or promised an expansion team, I doubt the NBA returns to Seattle in the next 20 years, if ever. They'd have screwed over most of the richest people in Seattle, and lawmakers. It'd be a slap in the face for the second time in 6 years, and I bet they'd have a hard time getting cooperation from anyone in the region again.