RANDALL BENTON / rbenton@sacbee.com

A crowd of supporters react to Sacramento Mayor Kevin Johnson during a news conference announcing the purchase of the Maloof's ownership of the Sacramento Kings at City Hall in Sacramento onFriday, May 17, 2013.

Deal to sell Kings to Sacramento group sealed in Dallas as NBA debated relocation

Published: Friday, May. 17, 2013 - 12:14 pm
Last Modified: Wednesday, Oct. 30, 2013 - 11:09 am

The Maloofs' agreement to sell the Kings to a Sacramento investor group was essentially sealed late Wednesday in Dallas, after the Sacramentans agreed to sweeten the pot.

A source familiar with the deal said the two sides had spent the day in Dallas - while the NBA board of governors debated whether the Kings should stay put or move to Seattle - discussing the Maloofs' request for another $6.5 million.

This source said the Sacramento group, led by tech entrepreneur Vivek Ranadive, agreed through its lawyers to the Maloofs' request shortly after the NBA board voted to reject the Seattle move.

Read more: Mayor announces rally, headlined by Cake, to celebrate sale

Word of the accord leaked out late Thursday and was confirmed today by Mayor Kevin Johnson. Co-owner George Maloof said the paperwork has been signed and the Ranadive group has wired a nonrefundable deposit to his family.

Illustration: See who's who among the new owners

On its face, the Sacramento deal, at $347 million, is still well short of the $406 million sale the Maloofs were pursuing with Seattle investors Chris Hansen and Steve Ballmer.

But in terms of the amount of cash the Maloofs will get from the Sacramento group, it's only about $11 million short of the Seattle deal.

The source , who wasn't authorized to discuss the details of the deal publicly, said the Maloofs get to keep the $30 million nonrefundable deposit they received from Hansen in early February. So their total payout, including the purchase price from Sacramento, grows to $377 million.

In addition, the purchase price from Seattle would have included $25 million that the Maloofs would have contributed to the relocation fee paid to the NBA, this source said. That would have been part of the $116 million relocation fee the Hansen group offered the league if the team had moved.

Each deal included $140 million in debt assumption, including loans from the city and the NBA, that is deducted from the sum the Maloofs take away from the purchase.

Bottom line, the Maloofs and their partner Bob Hernreich would have made $241 million if the Hansen deal had been completed. They'll make about $236 million from the Sacramento deal.

The Maloofs paid roughly $66 million for their initial 43 percent stake in the Kings in 1997. They later grew their stake to 65 percent along with Hernreich.

Call The Bee's Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.

© Copyright The Sacramento Bee. All rights reserved.





Sacramento Bee Job listing powered by Careerbuilder.com
Quick Job Search
Sacramento Bee Jobs »
Buy
Used Cars
Dealer and private-party ads
Make:

Model:

Price Range:
to
Search within:
miles of ZIP

Advanced Search | 1982 & Older

TODAY'S CIRCULARS