Sacremento to Seattle – but is it all that easy?

On January 9th 2013 it was reported that the owners of the Sacramento Kings- the infamous Maloof brothers- had sold the team to an ownership group led by Chris Hansen and Steve Ballmer. The Hansen-Ballmer group will purchase 65% of the Kings at a franchise valuation of $525m, meaning they pay $340m for their controlling interest. The intention of the new owners is to relocate the team to Seattle and rename the Kings to the Supersonics, as early as the 2013-14 season. This would require the newly named Supersonics to play in the old ‘Key Arena’ for two seasons, whilst a new $500m arena in downtown Seattle is planned for completion in 2015.

Seattle fans may rejoice at this news, however, things get a little complicated and uncertain when the matter is delved into deeper.

It appears Sacramento still has a chance to keep its team. The NBA will hold a meeting with Sacramento Mayor, Kevin Johnson, to hear the city’s case and allow Johnson to show the NBA why the Kings should remain in Sacramento. Local investors have grouped together in an effort to purchase the franchise, and to keep it in the California capital, providing the Mayor with the ammunition needed to persuade the NBA to keep the team in town. At the meeting, the Mayor will illustrate Sacramento’s strong and devoted fanbase. The Kings faithful are dedicated supporters, selling out 19 of 28 seasons, despite only one short period of quality basketball in the entire 28 years. Attendance numbers only dipped when in 2007 rumours began swirling around the city regarding a possible relocation for the team.

Another complication has risen. It has been reported that the minority owners of the Kings are being denied their legal right to match the Seattle offer. The Maloofs are unwilling to listen to any other offers to purchase the team, breaching their contract with the minority owners of the franchise. Michael MCann, a sports-law expert based in New Hampshire, stated that a legal challenge on behalf of the minority owners could drag out the King’s saga for an ‘unknown period of time’.

Furthermore, the third richest man in the United States, Larry Ellison, is meeting with the Sacramento Mayor with a view to possibly rivalling the Seattle based bidders in purchasing the franchise. Ellison, who is worth $41 billion, was in the bidding for the Golden State Warriors when they were recently for sale; clearly he is keen to own a basketball team in California. His net worth easily gives him the ability to match the offer from the Seattle group. Again, this is valuable material that the Mayor can use to plead his case to the NBA.

Ultimately, the NBA is a business. Greater money is to be had in Seattle, which is a larger city and has a more attractive media market for the NBA to be exposed to, resulting in greater profit for both the prospective owners and the NBA. The league’s commissioner, David Stern, promised the city of Seattle that he would get them another basketball team, after the Supersonics were controversially moved to Oklahoma in 2008. The odds seem to be stacked against Sacramento, despite local efforts, but that was also the case a year ago when there were concrete plans to move the Kings to Anaheim.

One thing is for sure, it’s time for the Maloofs to get out of Dodge.