Credit: Brett Davis-USA TODAY Sports

David Stern on the Sacramento Bid

While Commissioner David Stern didn’t ride into California on a white stallion wearing a cowboy hat, it was pretty clear he is calling the shots insofar as to the Sacramento investor group looking to buy the Sacramento Kings and keep the team in town.

Stern made it very clear the Sacramento bid for the Sacramento Kings is low in its current state if it hopes to be considered next month at the Board of Governors meeting.

Speaking last night in Oakland the commissioner offered these snippets:

The counter bid, if you call it that…is not quite there.

(The bid) needs a little work…

Unless it increases it doesn’t get to the state of consideration based upon the owners.

It is pretty clear from his statements that the commissioner would like to see a bigger dollar amount on the offer, if the bid hopes to get beyond go.

The Sacramento Bee’s, Tony Bizjak, Dale Kasler and Ryan Lillis reported:

The commissioner declined to say how far short the Sacramento bid fell of the reported $341 million Seattle offer for a 65 percent share of the team.

A little math $525 million = $341 million/.65, which gets us to one critical aspect of the bid, namely $525 million. This is an important number to Stern and NBA franchise owners. I think it fair to say that Stern likes this number because it increases the valuation of NBA franchises across the board.

Just as in real estate, if someone comes into your neighborhood and pays $525 thousand dollars for a home everyone assumed was worth around $325 thousand dollars, everyone in the neighborhood benefits with an increase in the value of their home due to this sale.

This is what the franchise owners are going to be thinking about when they have to decide whether the team relocates to Seattle or remains in Sacramento. They aren’t going to be thinking about the Sacramento Kings fans. They are going to be thinking about the sales price of the team and how it affects the value of their own franchise.

No one, other than the Maloof family is going to give a rat’s ass behind what the Maloofs net out of the deal.

Unfortunately, neither Kevin Johnson nor the Sacramento group, consisting of Mark Mastrov and Ron Burkle, have the luxury of knowing how the Seattle group put their offer together for the team.

Stern’s words last night do provide Sacramento with the information they need to increase their offer, at least dollar-wise, to meet the approval of owners. That does not have to mean, however, that increased money necessarily has to increase the net to the Maloofs.

The idea was kicked around for sometime that Sacramento could offer less money than Seattle for the team, since there was no relocation costs or payoff of the loan to Sacramento to be considered in any offer for the team. It isn’t clear whether there is any provision in the Seattle offer whether it includes a payoff to Sacramento.

There is always the possibility Sacramento could include some measure of paying off the loan to the City in the offer, or another option which would not net the Maloofs any additional money, but would increase the amount of the offer to satisfy the NBA.

This is not over.

Tags: Commentary David Stern Mayor Kevin Johnson NBA Sacramento Sacramento Kings

  • A Royal Pain

    Stern essentially provided them with the proper GPS route to do what they needed to do. He could’ve just did nothing and let it be.

    Good piece, M.

  • Leatherneck44

    It still is amusing to me that Seattle fans, who despise Stern and NBA for taking their beloved Sonics, want so desperately back into the league! You realize that Hansen is overpaying for a horrible franchise that he wouldn’t be paying if he waited for an expansion team. An expansion team is coming. Maybe not next year but soon. Also the jacked up ticket prices you are going to pay in order for Hansen/Balmer to recoup their investment for this overpriced franchise is comical. The money paid for those shiny new Sonics jersey’s is money going right into Bennett’s greedy pockets as well! Ever heard of revenue sharing? Dumb arsses!!!!!!

    You should dedicate your hard earned money to leagues that are not lying, thieving, scumbags like the NFL and MLB. Sacramento should keep their team not because I support the NBA, but because it is their only team. But since it appears that all of you in Seattle seem to know what the tea leaves are saying then enjoy getting screwed again by the very people you so despise. Oh, you can add the Maloofs to that group as well!

    Maybe the Maloofs are not so stupid! They are getting more money than they should for the team they ran into the ground and screwed a city and its loyal fans yet again! The Maloofs, Magoofed, Hansen and the loyal Sonics fans get bent over yet again.

    Come to think of it, maybe Kevin Johnson IS the smartest of the whole group, because the arena plan will go through and Sacramento will get a new franchise for a fraction of the price with expansion! Sacramento, KJ, Mastrov/Burkle, and loyal Kings fans may end up thanking the morons, AKA the Maloofs. Oh and lastly the relocation fee, yeah the one Hansen/Balmer will be paying, is going to Sterns retirement bonus and Bennett’s bank account! I wonder how much two tickets, parking, two dogs, and two beers will be in Seattle next year? You get what you wish for! Idiots! Good luck Sacramento!