Pinoy offered royal NBA entry
SPORTING CHANCE By Joaquin Henson The Philippine Star
There’s a firm offer on the table for a Filipino businessman to take over the Sacramento Kings franchise in the NBA and the word is the reported $250 Million deal is seriously being considered.
Two weeks ago, two high-caliber financial consultants quietly arrived in Manila to explore a possible purchase of the NBA team with the businessman whose interests are in telecommunications, energy, infrastructure, finance, food, public utilities and more. One of the consultants was a Filipina. Apparently, the trip was made known to Sacramento City Mayor Kevin Johnson, a former NBA player who visited Manila on a Converse promotional tour in 1986. Johnson is spearheading a campaign to keep the Kings in Sacramento after the franchise owner, the Maloof family, announced a plan to relocate the team to Anaheim.
Buying and selling NBA franchises is nothing new. Last year, Chris Cohan sold the Golden State Warriors to Joe Lacob for $450 Million. The Maloofs were given a deadline of April 18 to request the NBA for approval to relocate to Anaheim. A source said an NBA team owners meeting is set April 16 and Los Angeles Lakers owner Jerry Buss is rumored to file an objection to the relocation on the grounds that Anaheim encroaches on his territorial rights.
The Maloofs, who are of Lebanese descent, bought the Kings franchise in 1998. Brothers Joe and Gavin Maloof manage the team. Dwindling attendance and poor performance drove John Thomas to resign as the Kings president last year. But business observers said the Maloofs buried themselves in a heap of debt that reversed their fortunes.
The Maloofs are burdened by a loan of at least $750 Million that was used to build the Palms, a Las Vegas hotel and casino. Additionally, they owe the Sacramento City government $77 Million to operate the Kings. The Maloofs attempted to reenergize the sagging franchise by proposing to build a new arena, financed by taxpayers, but were rebuffed. To save a deteriorating situation, the Maloofs thought of relocating to Anaheim, possibly hoping to lure new investors in the process.
But NBA lawyer Richard Buchanan said a relocation will mean the Maloofs settling their Sacramento City debt in full.
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With Buss expected to roadblock the relocation, the Maloofs are supposedly exploring the option of selling out. They were once in the pink of financial health. In 1994, the family bought the Fiesta Hotel in Las Vegas for $8 Million and less than 10 years later, it was resold for $185 Million. Part of the proceeds went into setting up the Palms.
When Thomas resigned, the Maloofs said they were taking hands-on control of the franchise. They were reportedly “stunned by the lack of an innovative business and marketing model” that was cited as a cause for the disenchantment with Thomas.
No details were available as to the terms of negotiation with the Filipino businessman but the source said whatever happens, it will be a win-win situation for all parties concerned. It’s not certain if the asking price of $250 Million will include the assumption of the Maloofs’ astronomical debts.
Unlike in the PBA, the NBA disapproves the use of corporate names or nicknames to identify a franchise. For instance, when the Vancouver Grizzlies were relocated to Memphis in 2001, there was an attempt to use the moniker “Express” because Federal Express, which is based in Memphis, was a substantial sponsor. But the NBA rejected the change of moniker. So the only business justification for owning an NBA team is it must be self-sustaining. However, the arena where it hosts home games may carry a sponsor name such as the Staples Center in Los Angeles or the Power Balance Pavilion in Sacramento.
Before the Vancouver Grizzlies were sold to Michael Heisley in 2000, the team was offered for sale to a Filipino businessman. But the deal never got off the ground because the franchise was bogged down in debt and management problems.
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There were reports that the Sacramento franchise is losing an average of $25 to 28 Million a year. It’s no joke to pay multi-million dollar salaries to top players even with a cap in place. To be financially viable, a franchise must be at least a playoff contender – meaning it must have a competent coach, top-notch players and a solid management team that is creative, market-sensitive and productive.
Unfortunately, Sacramento is one of the NBA’s lowliest performers. The Kings are second to last place in the 15-team Western Conference with a 23-56 record at presstime. Overall, they are ranked 26th of 30 teams. Coach Paul Westphal’s lineup isn’t exactly the most exciting or explosive in the league although there are some pieces worth mentioning, like 6-11 rookie DeMarcus Cousins, 6-9 Omri Casspi of Israel, 6-6 Tyreke Evans and 6-4 Marcus Thornton. But it’s not likely that the Kings can make waves with Francisco Garcia of the Dominican Reublic, Beno Udrih of Slovenia, Sam Dalembert of Haiti and veteran Marquis Daniels.
Mayor Johnson is supposedly upbeat on the possibility of a Filipino taking over the Kings franchise. No other Asian was offered team ownership, placing the Filipino businessman in an elite short list.
Imagine a Filipino businessman rubbing elbows in an NBA team owners meeting with Buss, Russian billionaire Mikhail Prokhorov of the New Jersey Nets, Jerry Reinsdorf of the Chicago Bulls, Donald Sterling of the Los Angeles Clippers, Mark Cuban of the Dallas Mavericks, Micky Arison of the Miami Heat (where Julio Iglesias is a minority owner) and Michael Jordan of the Charlotte Bobcats.
If the Filipino ownership pushes through, perhaps the franchise can bring in the first and only Filipino-American to play in the NBA - Raymond Townsend who suited up for the Warriors and the Indiana Pacers - to join the front office even in an honorary capacity. Then, the team can hire Fil-Am coach Erik Spoelstra from Miami and enlist the first pure-blooded Filipino ever to play in the NBA - maybe, Jimmy Alapag or James Yap or L. A. Tenorio.
We can dream, can’t we?
Sacramento franchise offered to MVP
Originally Posted by endlessknight
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