There has been a lot of speculation about the reported 30 million non-refundable deposit made by the Seattle Chris Hansen – Steve Ballmer group to the Maloofs in the purchase contract for the Sacramento Kings. Some concern has surrounded the possibility it may have been added to provide more teeth to the contract and as a possible strategy to file an anti-trust suit against the NBA, should the NBA fail to approve the sale of the team to the Seattle group.
According to Michael McCann, Sports Illustrated and SI.com Legal Analyst @McCannSportsLaw, it is possible the non-refundable deposit may not be non-refundable after all as the title would suggest. Here are his comments in response to the issue:
Mr. McCann also indicated there could be stipulations within the contract which could give conditions under which it would be non-refundable.
This suggests there could be stipulations written within the contract giving conditions as to terms of being non-refundable, as well as California law which could come into play in which buyers could get back their deposits.
In a nutshell, the non-refundable deposit put down by the Hansen-Ballmer group may not be non-refundable after all, in the strict sense of the word.