NEWS10: New documents detail failed Sacramento arena negotiations

[JB_kings]

http://www.news10.net/news/article/1...a-negotiations

In the emails, Harvey Benjamin, a league executive negotiating on behalf of the Kings, responded to Maloof's concerns.

"I thought you understood in Orlando that there's no way of avoiding (collateral)," Benjamin said in an email.

As for game day expenses, Benjamin wrote, "every team pays game day expenses. You pay them now."

Also, the NBA was looking at other California cities to see what municipal service payments were normal, as opposed to the Maloof's idea of not paying at all.

The NBA also said a 30 year lease for a building that is built mainly with public funds is completely normal.

However, the Maloof Family submitted a term sheet to the City of Sacramento with revisions the NBA advised against.

Well this clears up the ambiguous statements made by Stern on the back and forth between the NBA and George Maloof. Sort of what we always knew, the NBA was 100% behind the deal and George negotiated in bad faith.

[rainmaker]

Thanks for posting JB. Since I'm not a lawyer, I'm having trouble recognizing what more exactly is needed to prove the Maloofs didn't negotiate in good faith. Something which has crossed my mind, is that there is a paper trail of evidence proving just that, and the NBA/KJ/Sac knows it's there and are waiting for it all to surface to build an even stronger case. I'd think there already would be enough for a case showing they didn't negotiate in good faith, but if there's more which is yet to surface I can understand the wait.

[Livinthedream]

Thanks for posting JB. Since I'm not a lawyer, I'm having trouble recognizing what more exactly is needed to prove the Maloofs didn't negotiate in good faith. Something which has crossed my mind, is that there is a paper trail of evidence proving just that, and the NBA/KJ/Sac knows it's there and are waiting for it all to surface to build an even stronger case. I'd think there already would be enough for a case showing they didn't negotiate in good faith, but if there's more which is yet to surface I can understand the wait.

IF the NBA is on the verge of taking some action against the Maloofs, they will not do it during the playoffs. So, I wouldn't even worry about anything happening until after that time. But, getting these little bits of information leaked along the way is great.

[JB_kings]

"I thought you understood in Orlando that there's no way of avoiding (collateral)," Benjamin said in an email.

This sounds like George may have backtracked on something agreed to in Orlando. The Maloofs let this email go out because they think it shows that they have had issues all along. It can be read both ways I think.

[Gary]

So, basically the Magoofs wanted a deal better than what everyone else in the league gets because they think this team which has been at minimum salary is worth it somehow? They have their heads in the cloud and this almost validates that they are using this team to make money rather than actually compete. The maloofs are broke

[kennadog]

Further proof that the Maloofs are stupid and broke.

So they think they proved something about issues they had? They proved that they cannot possibly function in any normal publicly-funded arena, anywhere in the country. And they obviously can't afford to build an arena themselves.

Crap, if they think Van Dusen's $100 million cosmetic makeover of the current arena to gain 10 more years is so great, then let them pay for it themselves.

I am so sick of the Maloofs.

[The Hammer]

Despite the "balanced" view trying to be presented by Montacelli, this story does much more to make the Maloofs look like the were trying to blow up the deal.

If a certain party claims to be "committed to Sacramento" and "trying hard to get something done", they don't make certain things that every other team does/pays for "non-negotiables". (The game day expenses come to mind.) You just don't. You only do that if you DON'T want a deal to happen. And the collateral really was the ultimate deal killer. There's no way they can, in good faith, think they should get away with not putting up adequate collateral, and then go on and pretend that it was Mayor Johnson who killed the deal (yes, George actually said in his press conference that it was Mayor Johnson who killed the deal). It's absurdity to the max. Never seen anything like this.

No judge, no jury, no court of law will ever rule in favor of the Maloofs on anything given even what has happened so far, let alone how they might self destruct even further in the near future. And if the Maloofs don't take it to court, as another poster mentioned, the Lakers and Clippers damn sure will.

I'm still a little curious as to why some of you still think there's a possibility they will eventually move (and get away with it?). Would you mind elaborating for me/us? LD?

[Kingsfan23]

And the collateral really was the ultimate deal killer. There's no way they can, in good faith, think they should get away with not putting up adequate collateral, and then go on and pretend that it was Mayor Johnson who killed the deal (yes, George actually said in his press conference that it was Mayor Johnson who killed the deal)

Well, to me thats the issue, can they put up collateral? No one can answer that?

It's obvious and apparent to anyone with above a 10 IQ that the Maloofs intentionally threw wrenches into the deal to make it not come to fruition. The question is why>

1. Maliciously hellbent on relocating the team to another market

2. They simply can't afford to leverage themselves out economically on this deal.

Whether or not it is 1 or 2 no one can say yet?

[Čarolija]

Well, to me thats the issue, can they put up collateral? No one can answer that?

It's obvious and apparent to anyone with above a 10 IQ that the Maloofs intentionally threw wrenches into the deal to make it not come to fruition. The question is why>

1. Maliciously hellbent on relocating the team to another market

2. They simply can't afford to leverage themselves out economically on this deal.

Whether or not it is 1 or 2 no one can say yet?

Or most like both of the above!

They can't leverage themselves economically so for them, the only sick and twisted way they can see themselves keeping the team, or selling at a profit is to move the team to a bigger market and rely on the TV revenue, or increase in team's value just by simply moving to a bigger market.

[Uk kings fan]

Why cant they leave us all alone I dont get why three fat, thick brothers want to destroy the heartbeat of sacremento

[JB_kings]

It would have worked if the Maloofs would have put up the same collateral as they would have for the Samueli loan. Just sayin...

[Section 101]

It would have worked if the Maloofs would have put up the same collateral as they would have for the Samueli loan. Just sayin...

I think they already did with Samueli, it would have just been on paper.

[JB_kings]

I think they already did with Samueli, it would have just been on paper.

Samueli is not a pushover. I'm sure if the team had defaulted on their Anaheim lease, the Maloofs would have lost the team. They probably left out that specific language in the Honda Center contract so that the NBA would not, in effect, have to also approve Samueli taking the team if they defaulted. There was probably going to be a private side agreement with the Maloofs team ownership used as collateral.

[The Hammer]

Samueli is not a pushover. I'm sure if the team had defaulted on their Anaheim lease, the Maloofs would have lost the team. They probably left out that specific language in the Honda Center contract so that the NBA would not, in effect, have to also approve Samueli taking the team if they defaulted. There was probably going to be a private side agreement with the Maloofs team ownership used as collateral.

Which is COMPLETELY against NBA rules, and never would have happened, which is why I'm convinced Anaheim is a pipe dream for them, and that they really are just totally flailing, and broke. But mostly flailing.

[Jose]

The evil part of me thinks they were trying to con Sameli:

- Take the loans, move to Anaheim; increase the value of the team
- Default on the Sac loan, stick the city with the debt & arena
- After a year or so in Anaheim, file for bankrupcy
- Default on the Samueli loan (no collateral, protected by bankrupcy)
- Sell the team at a value higher than what they could have sold it in Sac

Seems like a good way to pocket a lot of cash. Now, I'm not sure what kind of protections they would get from filing for bankrupcy, but I'm sure some variation of the above plan would net them some good cash and protect their "assets" while screwing the other parties involved (very Donald Trump-esque).

[Kingster]

http://www.sacbee.com/2012/02/29/429...tory-mood.html


Remember this? Joe and Gavin at center stage rejoicing about the deal.

Something major happened after this point. I don't think it was deceit when Joe and Gavin celebrated. I think they got a call from their accountant, banker, or both, who informed them that they couldn't take on the additional debt without having other loans called in. I really think these guys didn't know the extent of their financial difficulties before this point. They've been unraveling ever since.

[bajaden]

The irony of this, is that obviously the Maloofs are leaking this information in an attempt to show that they did have issues with the original deal, right after it was agreed to, and that they had informed the league of that. Some of the letters to the league are dated just 2 days after the original agreement. The letters themselves, and the dates may validate what they say, but unfortunately for them, the content of the letters is quite condeming, and shows that they had no real interest in helping build a new arena. Either that, or they're the stupidest people in the world, thinking that anyone, much less the NBA would agree to any of their demands.

[kennadog]

Either that, or they're the stupidest people in the world, thinking that anyone, much less the NBA would agree to any of their demands.

I vote for this one.

[VF21]

http://www.sacbee.com/2012/02/29/429...tory-mood.html


Remember this? Joe and Gavin at center stage rejoicing about the deal.

Something major happened after this point. I don't think it was deceit when Joe and Gavin celebrated. I think they got a call from their accountant, banker, or both, who informed them that they couldn't take on the additional debt without having other loans called in. I really think these guys didn't know the extent of their financial difficulties before this point. They've been unraveling ever since.

This makes sense. I think they may have other loans out there that we know nothing about ... loans that required collateral that actually precludes them from getting to some of all that so-called wealth they still have. For example, they kept talking about how much Wells Fargo stock they own. What if, for example, that stock is currently tied up as collateral for a loan they were going to repay with money they hoped to get from Samueli when they moved? I honestly think if/when their financial picture is really made public that it will make some of the bank shenanigans of recent history look like child's play.

[Kingsfan23]

As I think about it, I think they are going through A LOT - the smearing of their name, vrs David Stern and the other owners, backlash of their existing fanbase just for the right to attempt to relocate the team a few years from now.. meaning, at this point I believe something else as well has to be behind why they can't come aboard this arena deal (like economic reasons not made public)