NBA Relocation Committee recommends keeping Kings Franchise in Sacramento

It seems the Sacramento Kings are staying in California’s capital city after all. A few months after unveiling a plan to buy 65% of the Sacramento Kings and relocate the team to Seattle, the Maloof family, current owners of the NBA franchise, and members of the Hansen Group, a team of investors lead by Chris Hansen and Microsoft CEO Steve Ballmer, suffered a setback yesterday when an NBA relocation committee studying the agreement to acquire the team recommended that Seattle’s bid to buy the Kings and relocate them to a new home in Seattle should be denied.

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Even when the final vote involving the league’s 30 owners won’t be held until May 13th, the recommendation made by league’s owners is likely to set the tone for the final voting. The relocation committee is headed by Oklahoma Thunder owner Clay Bennett, Miami’s Micky Arison, Washington’s Ted Leonsis, Utah’s Greg Miller, Indiana’s Herbert Simon, Minnesota’s Glen Taylor and San Antonio’s Peter Holt, who’s also the chairman of the Board of Governors.

The decision was well received by former NBA player and Sacramento mayor Kevin Johnson, who has strongly opposed to any plans involving the relocation of his home team.
Since 2011, Mayor Johnson has rejected the idea of moving the team outside Sacramento. Two years ago, the Maloofs informed the media about a plan to relocate the Kings to Anaheim. However, the NBA granted Johnson the time to present a counter plan that included the construction of a new city arena. But before the season ended, the Maloofs rejected this possibility.

But the problems didn’t end there for Johnson. Again this January, members of Hansen Group announced a new plan to buy the Kings, move them to Seattle and build a $500 million arena. The announcement didn’t stop Mayor Johnson’s battle to keep the franchise in Sacramento. In a matter of weeks, Johnson put together a group of investors that includes 24 Hour Fitness founder Mark Mastrov, TIBCO chairman Vivek Ranadive and Qualcomm QCOM CEO Paul Jacobs. It’s rumored that the group led by Ranadive, who currently is a part-owner of the Golden State Warriors, is ready to file an offer to buy 65% of the Kings for $341 million.

Despite the committee’s recommendation, Hansen says he and his investors are ready to finalize the deal he signed with the Maloof family and continue with their relocation plans, but they have to wait a few months before that happens. The purchase has to be approved by 75% of NBA team owners, but for many of the parts involved in this process, the committee’s decision will aid Mayor Johnson in his mission to keep the Kings in Sacramento.

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