The Maloofs Prefer Seattle’s Offer for the Sacramento Kings

The Maloof family, owners of the Sacramento Kings, have informed the NBA that they prefer the offer from the folks in Seattle. The Maloofs claims that there is a “significant distance between us and the Sacramento group.” A date for a vote on the Kings’ fate by the League’s board of governors has yet to be determined: “In a letter sent to the NBA’s relocation and finance committee, and obtained by The Associated Press on Friday, the Maloof family said the Sacramento group originally matched the $525 million valuation for the franchise negotiated by Chris Hansen, who is heading the Seattle group. Hansen then increased the valuation offer to $550 million last week. The Maloofs said the Sacramento group has asked not to enter into a binding agreement until the Seattle deal is terminated. The Maloofs said that would be a breach of contract and cost them the ‘leverage to aggressively renegotiate terms in the event the existing agreement is terminated.’ The Maloofs said, under terms of the Hansen deal, they were allowed to enter into binding “back-up” offers until owners approve the agreement, according to the letter. The family said it would breach its contract with Hansen if it terminated the deal but that the Sacramento group continues to insist it do so. ‘Based on these factors … we and our advisors see no reason to continue any dialogue with the Sacramento group or to give any further consideration to negotiating back-up offers based on its latest non-binding proposal,’ the letter said. […] The Maloofs also had other concerns with Sacramento’s offer. The family said the Sacramento group refused requests to make sure Kings employees’ contracts were not terminated for 18 months after closing the deal. The Maloofs said Hansen’s group agreed to this suggestion ‘without hesitation,’ according to the letter. The Maloofs said important financial information on the Sacramento investors has not been disclosed, and also said Sacramento is ‘significantly behind in its efforts to develop an arena.'”