With Kings Deal Dead, Does Hansen Have A Shot?

May 1 2012 | 3:06am ET

Two months after his top target appeared to escape his grasp, Valiant Capital Management's Chris Hansen may get another chance to lure the Sacramento Kings basketball team to his hometown of Seattle.

At the end of February, the Kings' owners and the California capital struck a deal to build a new $400 million arena in downtown Sacramento. But despite the much-ballyhooed agreement, city said on Friday that it had fallen apart.

"It became clear today our differences are irreconcilable," Mayor Kevin Johnson said. "This deal is not happening as we know it."

Both Johnson and National Basketball Association Commissioner David Stern—whose league pledged to cover the Kings' owners portion of the new arena—lay the blame squarely with the Maloof family, which has owned the team since 1996. Stern, who isn't exactly known for taking his owners to task publicly, lamented, "We had come up with a scenario where the Kings could move into the building without putting a dollar of cash down. We were not attempting to induce them to make a deal that would be unprofitable for them."

The Maloofs reportedly refused to put up any collateral or cover any pre-development fees. They also did not want to commit to Sacramento with the 30-year lease sought by the city, seeking just 15 years.

Whether the deal's failure reopens the door for Hansen to buy the Kings and move them north is anything but clear. Hansen's planned Seattle arena remains just that for the time being, a plan, one that has not been finalized. And while Johnson and Stern sound downcast, George Maloof offered a positive spin, telling the Sacramento Bee, "We’re not going anywhere."

"The way I look at negotiations is it can always come back. You never say never," Maloof told USA Today. "I've been around enough negotiating over the last 30 years of my life to know that deals die and they come back. Somebody sleeps on it, they take a break and they say, 'You know what, maybe we consider this.'"

"We'll never give up," he added.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of