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 Linda Thomas
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Kings.jpg
While Sonics fans believe Kings will be playing in Seattle after the sale is complete to Chris Hansen and Steve Ballmer, Kings fans in Sacramento believe they have a shot at keeping the team they've had for 28 years. (Kelly L. Cox photo)

Microsoft wants nothing to do with the Sacramento Kings sale

January 29, 2013 @ 2:31 am (Updated: 1:03 pm - 1/29/13 )

In case California politicians are wondering - and they are according to a terse letter sent last week - Microsoft has nothing to do with the possible purchase of the Sacramento Kings NBA team.

Last week a California politician called for a review of the company's technology contracts with his state.

California Senate President Pro Tem Darrell Steinberg raised concerns last week about Microsoft CEO Steve Ballmer's involvement in the proposed purchase of the Kings.

"I cannot stand idly by while a prominent out-of-state company that has significantly profited from business with the State of California actively attempts to acquire and remove one of my State and my region's leading private assets," Steinberg wrote.

Ballmer is part of investor Chris Hansen's proposed agreement with the team's owners to buy a majority stake in the Kings for $341 million, based on a franchise valuation of $525 million.

Microsoft wants to make it clear that Ballmer's investment in the NBA team has nothing to do with the software company.

"The effort to build a new professional sports arena in Seattle was initiated and is led by San Francisco-based developer, Chris Hansen, who has announced a number of investors, including Steve Ballmer. Microsoft Corporation is not involved in the effort," Microsoft says in a statement to The Sacramento Bee newspaper.

Here is the full letter from the state senator to the head of the California Department of General Services:

I read with distress recent media accounts reporting that Steve Ballmer, CEO of Microsoft Corporation, is actively engaged in discussions and may now have a general agreement to purchase NBA's Sacramento Kings -- a franchise which has generated significant jobs and revenue for both our region and the State of California for 27 years -- and move it to another state.

If true, I am troubled that a company and a CEO that has for so long enjoyed a prosperous and beneficial working relationship with the State of California and its taxpayers would blatantly engage in activities which are clearly and measurably detrimental to our State's job and revenue base - not to mention use profits earned through business with our State to appropriate a California-based asset.

As a legislative leader with direct budget authority, I'm obviously concerned about what impact these events might have on state and regional revenue, as well as our recovering economy.

I would appreciate your help - as the director of the department in charge of most state procurement - in obtaining some information that in light of these reports is certainly relevant to California taxpayers, particularly those in the Sacramento region. Specifically:

- How many technology contracts and at what total cost to state taxpayers does Microsoft Corporation currently have with the State of California?

-In total dollars, how much has the State of California paid Microsoft Corporation for its products and services over the last 10 years?

- Can you send my office terms of contracts and representations made by Microsoft Corporation regarding their contracts with the State?

-To your knowledge, does any other state in the United States pay more annually to Microsoft Corporation for products and services than the State of California?

- What is Microsoft Corporation's record of performance with the State of California?

As a state legislator, I am well aware that I have no direct role in the day-to-day management of the State's technology procurement processes, but I cannot stand idly by while a prominent out-of-state company that has significantly profited from business with the State of California actively attempts to acquire and remove one of my State and my region's leading private assets.

Thank you in advance for your time and assistance in responding to this information request. Please do not hesitate to contact my office to discuss this issue in more detail.

Sincerely,

DARRELL STEINBERG Senate President pro Tempore State of California 6th Senate District cc: Governor Edmund G. Brown, Jr. Secretary Anna Caballero, State and Consumer Services Agency

There are more signs deep-pocketed investors are getting behind Sacramento's efforts to stop the sale of the Sacramento Kings to Chris Hansen, after fitness magnate Mark Mastrov met Monday with Sacramento business leaders and the city's Mayor, Kevin Johnson.

By LINDA THOMAS

More from Linda Thomas

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Comments (52)


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  • Roark wrote...
    I think this borders on blackmail by this CA politician
    January 29, 2013 9:32 am
    He's threatening use of his power as a CA office holder, to cause a private individual to change his private business dealings by withholding business form the company where that private individual works. I'm pretty sure that's at the very least unethical, if not outright illegal.
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  • messiah101 wrote...
    Roark
    January 29, 2013 9:40 am
    Someone using POWER (money or political) to get something they want? Why thats UNHEARD OF.(and Roark the problem is that you DON'T think)
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • ToldYa wrote...
    pro sports rip off tax payers
    January 29, 2013 9:40 am
    enuff already! If its such a good thing, let them pay their own way!!! The tax payers are fleeced again by the compulsive sports nuts. Play an instrument, read a book, turn off the TV and say no to pro sports.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • awbitf wrote...
    Isn't it more likely that this guy in California
    January 29, 2013 9:56 am
    is pandering to the Apple and Google minions in the state?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • BryanH wrote...
    KOMO 4 hahaha
    January 29, 2013 11:00 am
    So all this cracks me up Microsoft, Even KOMO 4 news said they have decided to "Follow" The Kings and was showing clips of last nights game? I mean all this is so funny we dont have the Kings and i agree with most if our " So called Politicans" would have done anything when This went down in Seattle we would have thanked them but yet we are Knocking people of Sac. town and California politicans for doing what we only whished our people in Seattle would have done which was NOTHING!
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  • Str8Thinking wrote...
    What a moron,
    January 29, 2013 11:07 am
    This politician might actually want to look further before firing off a typical feelings based rant against an "out of state business." Microsoft does have a physical presence in CA. Ultimately if the guy wants to be an jerk MS can offer to start moving all those jobs to somewhere more friendly like TX or NC.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • CH wrote...
    FormerMarineSgt and Rayvensdad
    January 29, 2013 11:22 am
    Linda Thomas story - "Microsoft_ wants nothing to do with the Sacramento Kings sale". you have a problem with my comment take up with the News Chick.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Citizen of Krazy Town wrote...
    does any other state in the United States pay more annually to Microsoft Corporation for products and services than the State of California?
    January 29, 2013 11:50 am
    This one line, suggests that Steinberg fully expects a quid pro quo relationship with a publicly held corporation. This establishes a very scary precedent, and if it is indicative of the culture that all California lawmakers, I am extremely concerned. Clearly, at the very least, Steinberg expects a publicly traded multi-national corporation to change their operational standards based on how much money his state has spent on it's products. And the overall tone of the letter suggests that he would further like to punish the company if they do not do as he wishes. It is completely irrelevant that Steinberg does not comprehend the separation of relationship between Microsoft and it's CEO's private dealings. The fact that he thinks he can act this way, as a legislator is wholly unacceptable. I hope that he is removed from office soon or at least harshly censured.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Lillyrose125 wrote...
    Blah, Blah, Blah
    January 29, 2013 2:15 pm
    Get the facts before you run off a stupid letter to Microsoft. Steinberg is just trying to show his constituents he is "on the job." He should pay more attention to the immigration issues CA has and the money problems.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • GoldFish wrote...
    California-"Recovering Economy"
    January 29, 2013 3:08 pm
    Laughing my a@% off, more like dying economy due to morons like this guy running the show. Our Democrats are way smarter than theirs and that's saying something. According to the IRS from 1995 to 2010 Sacramento lost $32 million dollars in AGI to King county, we also received $98 million form Orange county, and a whopping $313 million from Los Angelas county. And this guy is worried about a struggling basketball team, what an idiot.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • messiah101 wrote...
    G-FISH
    January 29, 2013 3:36 pm
    I was just visiting LA as well as Orange AND San Diego counties and they seem to be booming.I bet most of the Counties in the USA would trade economy's with them in a New York minute.Drive the Freeways and you will see vehicles you see no where else.The Harley D franchise in Venice Beach or Marina Del Rey ( not sure what city I was in) might be the most incredible M/C dealership Ive ever seen.Someones got money down there.Everyone keeps talking about Texas but they are not even close to California not even close
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Rangerhawk wrote...
    Predictable
    January 29, 2013 3:17 pm
    It's not the fans and owners fault in Sacramento, it's the evil 1 Percenters up in Seattle that are to blame! In liberal/OWS - think, it would also make since to prohibit any Boeing aircraft produced in Renton to use their runways and airspace too.
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