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A Sacramento lawyer insisted Thursday the minority owners of the Kings have the first right of refusal to buy the team, while new reports say Billionaire Larry Ellison is now interested in helping keep the team in Sacramento. (AP image)

More twists, potential roadblocks emerge in Sacramento Kings saga

BY Josh Kerns  on January 24, 2013 @ 10:14 am (Updated: 5:28 pm - 1/24/13 )

The twists and turns of the Sacramento Kings saga continued Thursday, as a minority owner insisted his group has right of first refusal to match an offer for the team, while reports late afternoon claimed Billionaire Larry Ellison, one of the world's richest men, is now potentially getting in the mix

The Sacramento Bee reports trustee David Flemmer, who controls 7 percent of the team, says the teams minority owners "are being denied their legal right to match a Seattle investment group's purchase offer for the team."

Flemmer is overseeing the 7 percent share of the Kings owned by minority owner Bob Cook. He told the Bee the limited partners are guaranteed the "first right of refusal" to buy the Kings in their agreements with the Maloofs.

NBA insider Aaron Bruski with NBC's Pro Basketball Talk reported Wednesday the site "can confirm that the 1991 Kings agreement contains a right of first refusal for minority owners."

Spokespeople for both the Maloofs and Hansen declined to comment Thursday. But the Bee said a source close to the Maloofs recently told them the family doesn't believe the minority owners have rights to match an offer for their 65 percent majority share of the team.

The Bee said Flemmer plans to "assert the limited partner's rights" at a hearing in U.S. Bankruptcy Court in Sacramento. But he wouldn't discuss his legal strategy.

There is precedent. Former NBA great Michael Jordan executed his first right of refusal as a minority owner of the Charlotte Bobcats to purchase the majority share of the team in 2010.

Meantime, Cook also told The Sacramento Bee Thursday he's asked a Bay Area sports attorney to set up a meeting with Ellison, the Oracle founder, and Sacramento Mayor Kevin Johnson. He said he believes a meeting will happen toward the end of this week.

Ellison lost out in a bid to buy the NBA's Golden State Warriors two years ago. Numerous reports said while the billionaire outbid the ultimate winners, his final offer was rejected because it came in too late.

Neither Johnson nor representatives for Ellison would comment.

Johnson has said he hopes to announce several major equity partners by the end of next week to lead an effort to counter Hansen's deal with the Maloofs.

Hansen and the NBA announced earlier this week an agreement on the sale of the majority stake in the Kings. The deal reportedly values the team at $525 million, with Hansen paying an estimated $340 million to buy controlling interest in the franchise.

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Josh Kerns, MyNorthwest.com Reporter
Josh Kerns is co-host of KIRO Radio's Seattle Sounds (Saturday nights 7-8) and a digital content producer for MyNorthwest.com.
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Comments (13)


  • Add A Comment

  • Fuego wrote...
    I didn't know
    January 24, 2013 9:55 am
    the Kings are in Bankruptcy. If the minority owner is in bankruptcy how could he get the money to buy out the Maloofs?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • marshawnsgrillz wrote...
    They aren't
    January 24, 2013 10:21 am
    He is a bankruptcy trustee.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • doublej wrote...
    Because
    January 24, 2013 10:25 am
    He's rich, which means he can declare bankruptcy and default all of his creditors without paying them. Now he has a bunch of free'd up money he can spend. Look at K-Mart. They declared bankruptcy and as soon as they came clear of the bankruptcy, they bought Sears.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Newton wrote...
    Larry if You step up and Help Sacramento out!.
    January 24, 2013 8:20 pm
    I will buy all your software.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Rangerhawk wrote...
    We'll see your Larry Ellison,
    January 25, 2013 1:22 am
    And raise you one Bill Gates! (come on Bill, it'll be a way cool to rival your old buddy Paul)
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • jstumbo wrote...
    Sure, the minority owners can buy the team...
    January 25, 2013 5:30 am
    Do they have 300+ million dollars? Dont think so. Bringing in someone else to purchase the team is not them exercising a right of first refusal.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • freeloader wrote...
    Don't worry too much...
    January 25, 2013 9:51 am
    I would assume that Chris Hansen's legal team are well aware of that clause and I'm also assuming that they are not worried about it. The wording is apparently pretty ambiguous and it is just the start of a list of things that will probably come up. Don't get too caught up in stories that come out. They are just trying to find news and find some way to cling to hope.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HLC wrote...
    I seriously doubt Ch has ever held a job.
    January 25, 2013 11:23 am
    No taxpayer there. Go back to class your fourth grade teacher is looking for you. Maybe you'll make it to high school by the time your 30.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }