Thursday, April 14, 2011

Billionaire Ron Burkle Surfaces As Possible "Savior" Of The Sacramento Kings; NBA Commish David Stern Intrigued

The drama involving the Sacramento Kings of the National Basketball Association took an interesting turn on April 14th, 2011, and it may result in the Kings staying put.

During the April 14th meeting with the NBA Board of Governors at the St. Regis Hotel in New York City, various parties made their respective pitches. The three Maloof brothers (George, Gavin, and Joe), the current co-owners of the Kings, made a pitch to their fellow owners about what's good and bad about Sacramento and Anaheim. George Maloof claimed they made progress, and are likely to seek formal seek permission to move the team, most likely to Anaheim, by the league-imposed deadline of Monday April 18th. However, he suggested that the Kings could stay in Sacramento if they sense that owners are opposed to the move.

Anaheim Mayor Tom Tait was also present, and later said that he made the case to the NBA that the Anaheim could support the team and that they are very excited. Tait also noted that he did not get questions from the NBA owners he met with. AP news video embedded below:



But overshadowing the Maloofs was the emergence of a possible buyer with serious financial stroke, who wants to keep the Kings in town. Sacramento lobbyist Darius Anderson, representing billionaire Ron Burkle, presented his principal's plan alongside Sacramento Mayor Kevin Johnson. Burkle, whose wealth is estimated at $3.2 billion, wants to buy the team and keep it in Sacramento. However, it appears he'll insist upon a new arena, although Anderson did not specify who would pay for it. Sacramento voters previously rejected an attempt to build a new arena with tax dollars.

The mere mention of Burkle's name clearly piqued the interest of the most influential voice in the NBA. When Kevin Johnson told Commissioner David Stern he might have a buyer for the Kings, Stern made a crack about it being a local car dealer. But when Johnson mentioned Burkle's name, Stern reportedly got real quiet and said, "You've got Burkle?" Burkle co-owns the NHL's Pittsburgh Penguins and was instrumental in getting a new arena built in Pittsburgh to keep the team from moving to Kansas City three years ago.

The Sacramento Bee reports that if Burkle is unsuccessful in his attempt to buy the Kings, and the Kings leave town, he's likely to try to buy another NBA franchise and relocate it to Sacramento. The New Orleans Hornets, a troubled franchise literally taken over by the league in 2010, would be the most likely candidate. Although the Maloofs have previously stated they don't want to sell the Kings, the team's value has steadily declined. According to Forbes, the team's value has dropped from $350 million in 2008 to $293 million this year, ranking the Kings at 24th in the NBA. The prospect of further decline might make an offer by Burkle more attractive.

The best-case scenario would be to keep the Kings in Sacramento. Despite the fact that they've fallen on hard times artistically during the past three years, the fans continue to support the team. Yahoo Sports details the top five moments in Kings' history HERE. Some indicate they'll continue to support the team even if it moves. There's also a potential legislative roadblock to an Anaheim move; the leader of the California state Senate, President Pro Tem Darrell Steinberg, has introduced a bill requiring the Maloofs to repay a $77 million loan to the city of Sacramento before they can move the club to Anaheim. The bill is broadly worded and would prohibit any professional sports club from relocating within California unless the franchise has paid off its existing debt.

Furthermore, as much as I would like to see Anaheim get an NBA team, the Kings are not the answer. SoCal already has two teams, the Lakers and the Clippers. While both share the Staples Arena, L.A. is Lakertown, and the Clippers will always be the "little brother". A move to Anaheim, preferably without Clippers owner Donald Sterling, would enable them to get a fresh start and develop a true identity of their own.

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