Modifying profit sharing key in Sacramento’s bid
SEATTLE – The Seattle/Sacramento battle for the Kings will end in Dallas.
It was confirmed Monday that the NBA Board of Governors will meet in Dallas on May 15 to make a final vote on the proposed sale of the Kings to a Seattle group led by Chris Hansen and Microsoft CEO Steve Ballmer.
The NBA’s Relocation Committee last week voted 7-0 not to allow the team to relocate to Seattle, which seemed to indicate that the sale of the team will also not be approved.
A group from Sacramento is in line to make a backup bid if the Seattle offer is not approved.
It was revealed Monday by the SportsBusiness Journal the great lengths to which the Sacramento group went to win the favor of the NBA.
The SBJ reported the investors made a promise to limit the amount of revenue sharing it would accept. It was reported the group said it would take less money than it was due while the team is still playing at its current home, and would take none once it moved into a new downtown arena, which is expected to open in 2016.
The Kings are expected to take in about $18 million this year under the new revenue-sharing plan, which was a key part of the league’s new Collective Bargaining Agreement made last year. The plan is designed to help franchises that don’t make as much money still be able to compete.
Seattle, as a larger market, had generally been considered as a franchise that would likely have paid into the plan. Sacramento’s compromise surely helped win over NBA owners concerned about paying out money to Sacramento.
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