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Friday, May 10, 2013

Hansen Ups Offer for Sacramento Kings. Again.

Posted by on Fri, May 10, 2013 at 1:54 PM

Would be Sonics owner Chris Hansen announced today that he has upped his valuation of the Sacramento Kings by another $75 million, bringing the total franchise value to an unprecedented $625 million. The previous NBA record was the sale of the Golden State Warriors for $450 million just a few years back in 2010.

This new move raises his offer for the Maloof family's 65 percent share of the Kings by $49 million to over $406 million. "While we appreciate that this is a very difficult decision for the league and owners, we hope it is understood that we really believe the time is now to bring the NBA back to Seattle," Hansen wrote in a post to his website.

The Maloofs were already being leaned on by the league to accept a lower offer from a Sacramento investment group. Passing up an additional $49 million makes that an even tougher ask.

This all raises the possibility that Hansen could end up owning the team, but without permission from the league to move it to Seattle. Awkward. But also interesting, in that it would put the Kings in the same sort of limbo the Sonics were in immediately after Clay Bennett purchased the team.

Remember, the Sacramento arena deal is awfully tenuous, and with the proposed local ownership group out of the picture, doesn't really even exist. If Hansen purchases the team—with or without the league's blessing—it could kill the arena deal. And without an arena, there's no reason for keeping the Kings in Sacramento.

It's a pretty ballsy move on Hansen's part.


Comments (41) RSS

Oldest First Unregistered On Registered On Add a comment
WOW, 625 mill for bread and circuses...... while education, transportation and health care suck massive vacuums. Must be a hella business plan to be able to drop 75 mill and still keep the bottom line.. Suckers, you deserve two fucking new arenas and a tunnel...
Posted by pupuguru on May 10, 2013 at 2:04 PM · Report this
Mike Force 2
Dear The NBA,
The state of Washington has about 7 million people. The state of Oklahoma has almost 4 million. This is why you owe us the return of our franchise.
Also of note, a few miles down the road from Sacramento there is this team called the Golden State Warriors. They are currently participating in something called the playoffs.
Posted by Mike Force on May 10, 2013 at 2:08 PM · Report this
It's a win win for Hansen. It makes it harder for the owners to accept the lower offer. Every owner just had the value of their team go up from this offer. It also leaves the NBA open for a huge lawsuit if they force the Maloofs to take a lower offer. The NBA does not want to try to defend their anti trust exemption in court.
Posted by arbeck on May 10, 2013 at 2:16 PM · Report this
Sir Vic 4
Most importantly, Hansen matched the Sacto's group pledge to forgo any revenue sharing income, which they thought was going to be a poison pill for him.
It's a terrible precedent for the league, as it undermines their CBA with the union and weakens them in the anti-trust lawsuit Hansen will bring if his bid is again denied.
Posted by Sir Vic on May 10, 2013 at 2:18 PM · Report this
@3: The NBA doesn't have an anti-trust exemption.
Posted by bigyaz on May 10, 2013 at 2:21 PM · Report this
Gern Blanston 7
In related news, I will give you a thousand dollars for your pea crops, Goldy.
Posted by Gern Blanston on May 10, 2013 at 2:28 PM · Report this
Joe Szilagyi 8
To Chris Hansen: Shove all $75,000,000 right up David Stern's ass with enough force to have him reach escape velocity.
Posted by Joe Szilagyi on May 10, 2013 at 2:31 PM · Report this
Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn 9

"Owe" They owe us a team?

It never was our team. This is what sports fans will never get. It's their property. The owner's property. Not ours. We never won any games. They won. We never lost. They lost. We are not them. We are not the players. We are not the owners. Never were. Never will be, at this rate.

And that is why it's so asinine to give these rich fuckers tax breaks and sweetheart bond deals with shell game payments and all that other crap that picks our pocket and lines their wallet. When all is said and done, it's their property, not ours. They own it. They owe us nothing.

If we want a team, we should buy a team. If we're not willing to buy a team, then what the owners of teams do with their property has nothing to do with us.

"Owe us." My God, where to these kids come up with this shit?

Posted by Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn on May 10, 2013 at 2:38 PM · Report this
Goldy 10
@7 Deal! You can buy my peas. I just can't guarantee approving the transfer of my peas to your mouth.
Posted by Goldy on May 10, 2013 at 2:38 PM · Report this
Ever been to an elementary school auction? This is similar to the "bidding war" that arises for, say, a weekend in a Leavenworth cabin or something. Except there are many other zeros added, and the money goes to a bunch of super wealthy egomaniacs and super tall people who are really good at throwing a ball through a hoop. And those citizens who can afford to spend $50+ a ticket can watch these tall people throw the ball through a hoop. At least with the school auction, a bunch of kids get, oh, let's say some more classroom supplies, or perhaps a part-time art teacher.

It should be part of the constitution that we never get involved in the pissing matches of the super wealthy. We should, however, force them to resolve their issues in a reality TV show that is available on over-the-air television networks. It's the only true enjoyment most of us will ever get from this spectacle.
Posted by Sterno on May 10, 2013 at 2:40 PM · Report this
seandr 12
Nicely done - this should reveal whether Stern rejected the move because he hates Seattle.
Posted by seandr on May 10, 2013 at 2:41 PM · Report this
biffp 13
Only baseball has an antitrust exemption based on it being America's game.

In NHL news:…

Posted by biffp on May 10, 2013 at 2:46 PM · Report this
You all keep talking like this is Hansen's money. Let's not forget that he has a little friend named Steve Ballmer who has a coupla extra dollars laying around.

This is an extremely savvy move on their part. Do the owners want to set a precedent that the league can make them take $65 million less for their team? (The original offer was for $525 mil., 65% of the difference is...). They might hate the precedent of an arena deal that doesn't rake the public over the coals, but I think they're gonna hate more setting a precedent to allow the other owners to determine how much they can sell their team for.

Not to mention the clear collusion that doing that would indicate, although I'm not sure what laws the owners are subject to in that area.

@4-- As I read it, they're not forgoing revenue sharing like the Sacramento group was offering. They're just guaranteeing that they will be a net payer into the revenue sharing pool.
Posted by lopes on May 10, 2013 at 2:48 PM · Report this
Just Jeff 15
If this Hansen asshole has that much cash to throw around, why doesn't he find something better to do with it? Sheesh. That amount would solve Seattle's homeless problem overnight.
Posted by Just Jeff on May 10, 2013 at 3:02 PM · Report this
@15-- I always love that ridiculous argument. "If they would only take this money and put it toward (insert noble thing here)!" It's like when people complain that Obama shouldn't focus on one topic when this other one is so important! Newsflash: people can do more than one thing at a time...

"That Bill Gates! Did you see all that money he spent on that house! If only he'd put that money to good use helping people!"

Posted by lopes on May 10, 2013 at 3:08 PM · Report this
Max Solomon 17
he must know they won't let the maloofs take it.

Posted by Max Solomon on May 10, 2013 at 3:12 PM · Report this
@ 15 Private money he can do what he wants, don't be such an idealist.
Posted by Seattle14 on May 10, 2013 at 3:13 PM · Report this
Will in Seattle 19
Rule 1. Never fight a land war in Asia, or get involved in the Middle East.

Rule 2. Don't try to defeat a billionaire when he can drop a billion and not miss it.

Actually, Bill G is sinking his money in global health, even though the real risk is the increase in infectious diseases due to global warming, but hey, who's counting.
Posted by Will in Seattle on May 10, 2013 at 3:14 PM · Report this
Dougsf 20
Dude needs to give it up. A new franchise needs to start with a bang, not with an uneasy sense of guilt.
Posted by Dougsf on May 10, 2013 at 3:14 PM · Report this
@19-- you know what "global health" is? 'Cause it doesn't seem like you do.
Posted by lopes on May 10, 2013 at 3:19 PM · Report this
Goldy 22
@20 Yeah, look at how that uneasy sense of guilt destroyed the morale of the Oklahoma City Thunder.
Posted by Goldy on May 10, 2013 at 3:19 PM · Report this
Just Jeff 23
@18 of course he can do what he wants. What he wants is corrupt inhumane bullshit. Worth pointing out.
Posted by Just Jeff on May 10, 2013 at 3:26 PM · Report this

The money offered here is private money, not public money. It is not relevant to bring in education etc. into this debate. But, since you bring it up, this does bring a massive amount of new jobs in construction, stadium employment, restaurants, merchandise, design, professional athletes. Not to mention the incredible amount of new tax revenue brought into the city from people residing elsewhere, that would otherwise be spent elsewhere, will be spent in Seattle, benefiting our local economy, and therefore, every other item you mention needing funding.

Take a fucking economics class, for christ sakes, it is not that difficult.

My guess is that Hanson previously anticipated this and built in the additional monies needed to up his offer, multiple times, if necessary. It is what I would have done.
Posted by scratchmaster joe on May 10, 2013 at 3:36 PM · Report this

He has created a business, it is not charity. And besides, this arena and team will bring tremendous ammounts of money, jobs and tax revenue to our city. It is a godsend, and we need this right now.

As Goldy rightfully pointed out, this arena deal is the only deal of its kind to take place in this country in decades. The arena is paying paid for with private funds, that has not happened in my entire lifetime, anywhere in this country. IT is a phenomenally good deal for the city.

What is wrong with all the idiots today, do your fucking homework and like I said earlier, take a fucking economics class and learn how a local economy works! This deal will net the city tons of money over the next decade, while costing it virtually nothing.

And BTW, I don't give a flying fuck about basketball.
Posted by scratchmaster joe on May 10, 2013 at 3:41 PM · Report this
Dougsf 26
@22 - Oklahomans are honey badgers. Seattleites are not.
Posted by Dougsf on May 10, 2013 at 3:43 PM · Report this
mikethehammer 27
I bought the Jason Collins issue of Sports Illustrated to check out the feature piece (which is incredibly well written and worth reading if you've not already done so.) That issue also included a commentary arguing to leave the Kings be. Essentially based on them being the only game in town to appeal to a passionate fan base that, it's worth noting, was consistently outdrawing the Sonics over the past 20 years (even when Seattle was playing well and Sacramento was crap.) NBA should really force Donald Sterling to sell the Clippers to be relocated northward, which would remove a shitty ownership contingent without depriving a fanbase of its rooting interest.
Posted by mikethehammer on May 10, 2013 at 3:43 PM · Report this
merry 28
This is a most interesting chess match, and I have every confidence in Mr Hansen as a chess master.

@ 24, 25 - Thank you! The stupid was getting kinda thick in this here thread....
Posted by merry on May 10, 2013 at 4:20 PM · Report this
@25 I generally support this arena deal, but it is simply not true that no arenas have been built with private funding. The Pepsi Center in Denver and Staples Center in LA were both privately financed. And people who are in favor of massive arena subsidies consistently overstate the benefits to a city in terms of new jobs and tax revenues. There is an impact, but it's not as phenomenal as you're making it out to be.
Posted by mge on May 10, 2013 at 4:30 PM · Report this
DOUG. 31
This makes expansion even more likely.
Posted by DOUG. on May 10, 2013 at 4:37 PM · Report this
Also @25, re. "take a fucking economics class:"

"empirical evidence suggests quite strongly that sports do not create many jobs or generate much economic growth. And such evidence has proven to be quite persuasive. In fact, a survey of economists by Gregory Mankiw noted that 85% of economists agree that local and state governments should not subsidize professional sports." (source)

Posted by mge on May 10, 2013 at 4:44 PM · Report this
Will in Seattle 33
@21 read what I said.

Basically, they all get to choose where they spend it. It's their choice - basketball, health, or literally buying solar and wind power systems worldwide before the East Coast and Florida go under the waves in a couple of decades.
Posted by Will in Seattle on May 10, 2013 at 4:56 PM · Report this
south downtown 34
why can't Hansen put money into the arena instead of asking Seattle to contribute $260M to the project and its financing. what a fuckwit...
Posted by south downtown on May 10, 2013 at 5:12 PM · Report this
Sean Kinney 35
Build a dodgeball arena with beer, child care, and hot yoga.
Posted by Sean Kinney http:// on May 10, 2013 at 5:32 PM · Report this
Economics? How about the maritime industrial activity this town was built on? Screw the arena deal! And how is it supposed to generate tax income for the city when all the property tax goes towards the publicly financed building loan. Sheesh, I wish my property taxes went towards the principal on my mortgage... Construction jobs? They'll last about 9-12 months. While we piss away good jobs that have been here for 9-12 decades. Idiots!
Posted by Upchuck on May 10, 2013 at 6:54 PM · Report this
Will in Seattle 37
I kind of like @35's idea.
Posted by Will in Seattle on May 10, 2013 at 6:57 PM · Report this
He needs to find some other way of extending his penis. This is just sad.
Posted by treehugger on May 10, 2013 at 6:59 PM · Report this
He owns a lot of Apple and Facebook…

(How did he ever make money on Facebook though...)
Posted by Supreme Ruler Of The Universe http://_ on May 10, 2013 at 9:18 PM · Report this
Posted by hmmmmm on May 10, 2013 at 9:52 PM · Report this
Yay! Hope Mr Hansen makes David Stern look like an idiot! And I know folks who worked at Key Arena - who were laid off after the Sonics left. The new arena will create a lot of jobs - not necessarily full time, but the part time work to supplement regular incomes is VERY much appreciated by lots of workers!
Posted by pat L on May 10, 2013 at 9:58 PM · Report this
Hansen does remember that his MOU requires that they get a 30 year non-relocate agreement and the NBA franchise has to maintain their good standing with the NBA during the 30 year term. Doing ish like this isn't exactly kosher, and he certainly can't abscond with the team and wait for the NBA to "come around".
Posted by ChefJoe on May 10, 2013 at 11:09 PM · Report this
kk in seattle 43
Let's see, $175 million premium over the last sale times 30 teams . . . the owners are about to flush over $5 billion down the toilet if they don't approve a sale to Hansen. It's not often that you see a bunch of rich guys voluntarily throw away $5 billion.
Posted by kk in seattle on May 10, 2013 at 11:41 PM · Report this

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