As the Maloofs get ready to make their pitch to move the Kings to Southern California, the costs of relocation are beginning to add up. KFBK's Rob McAllister has learned that in addition to the outstanding $77-million debt to the city of Sacramento, they also owe the NBA $75-million.
Kings' spokesman Mitch Germann said the team used the line of credit. However he would not confirm nor deny the current balance. "As a privately held company, the team does not release specific financial figures."
This is not taking into account an expected steep relocation fee Los Angeles Lakers owner Jerry Buss hopes to impose. In contrast, the Oklahoma City Thunder paid a $30-million fee to the League when the franchise left the Pacific Northwest and a $45-million settlement with the city of Seattle according to Forbes.
Adding up the debts to the NBA, the city of Sacramento and a potential relocation fee, moving the Kings south could cost the Maloofs close to double it did Thunder owner Clay Bennett to relocate to Oklahoma City. The Maloofs will have $50-million to play with following Anaheim's $75-million bond issuance to pursue the Kings. But the overall question-marks regarding the Maloofs' financial viability (see here and here) could make fellow owners uneasy about approving a move. According to KFBK, this has raised some concern among the Kings owners and Honda Center manager Henry Samueli.
Those close to the negotiations say Samueli and the Maloofs are not sure they have enough support from the rest of the league's owners to approve the move. Kings officials have said all four Maloof brothers will be attending the NBA Board of Governors' meetings this week in New York City to try and convince at least 15 other teams to allow the Kings to relocate.
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