The fate of NBA franchise, the Sacramento Kings, is still in limbo, as everyone awaits a decision: Seattle, or stay in Sacramento?
the Maloof family recently sent a letter to the league asking to approve the sale of the Kings to a Seattle group, saying there is "significant distance between us and the Sacramento group."
Sent to the NBA's relocation and finance committee, which the Associated Press obtained Friday (April 19), the Maloof's letter 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 also 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.
NBA Commissioner David Stern said earlier this week that the joint committee assigned to issue a recommendation on the issue has not made a decision and no vote is expected until at least May.
The Maloofs reached an agreement in January to sell a 65% controlling interest in the Kings to Hansen's group at a total franchise valuation of $525 million, an NBA record. With pressure mounting from Sacramento's counteroffer to keep the team, Hansen announced last week he would "voluntarily" raise the valuation to $550 million.
Stay tuned...
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