NBA Owners Reject Relocation Of The Sacramento Kings
The Board voted 22-8, and all they needed was a majority.
So, while the Kings won’t be leaving their city, and Seattle won’t be getting a team, there are still a lot of loose ends.
The first is who will be the owner of the team.
Currently the Maloof family owns it, but Chris Hansen and Steve Ballmer, who led the Seattle group, have told the Maloofs that they’ll buy 20 percent of the team, and retain the ability to purchase the majority in two years.
Also, if the Maloofs remain the owners, this doesn’t solve the issue of building a new stadium.
There’s also the group led by Vivek Ranadive who have put an offer on the table to buy the team and build a new stadium downtown.
It’s been reported that after this defeat, Hansen and Ballmer want an expansion team in Seattle, however, the NBA has said no new teams will be created until it’s time to renegotiate a new TV deal.
This situation is odd for a couple of reasons.
The first is that the NBA is essentially turning down money for themselves and preventing the Maloofs from making a significant profit by selling to the Seattle group. Currently, Sacramento collects money from the league’s revenue sharing system, but Hansen said if they were the owners, in Seattle, they would pay money to the NBA.
So, this is basically a terrible business decision for everyone.
The second thing is that there is no conclusion of ownership and therefore no solution to the issue of getting a new stadium. It’s like the league just made a problematic situation worse.
Likely more details will come out soon because there are still too many questions and not enough answers.