HoopsHype Ron Burkle rumors

April 12, 2013 Updates

The duration of the process – coupled with the fluidity of the Sacramento group that includes Vivek Ranadive, Mark Mastrov, Paul Jacobs and Mark Friedman that has yet to deliver a formal bid – prompted the Maloofs on Wednesday to leak the ultimatum about today's deadline. On Thursday, the sources said: • An agreement that keeps the Kings in Sacramento must include reimbursement to Hansen for his $30 million nonrefundable deposit. • Before being completely surprised by the size of the Hansen/Ballmer offer, the Maloofs had rejected overtures from Ron Burkle and Larry Ellison. Ellison would have attempted to relocate the Kings to San Jose. Sacramento Bee

April 10, 2013 Updates

Sacramento Mayor Kevin Johnson has announced a new investor to help fill the role vacated by billionaire Ron Burkle in the city's bid to keep the Kings from moving to Seattle. Johnson said at his weekly news conference Tuesday that Sacramento developer Mark Friedman has joined the group. The announcement comes a day after Burkle backed out because of a conflict of interest stemming from his ownership stake in Relativity Sports, which manages some NBA players' careers. USA Today Sports

Following the announcement of the Seattle deal, they were first to step up publicly in the effort to keep the Kings in Sacramento. Now a group of local investors is seeing its role change in the capital city’s fight to retain its only major pro franchise. The group of 20-plus local investors assembled by mayor Kevin Johnson back in January is now part of the major bid led by Vivek Ranadivé to purchase the team from the Maloofs. “We are now part of the general partnership,” said real estate executive Phil Oates, one of the investors pledging $1 million each in the effort to buy the Kings. “The percentages still have to be worked out. But we share, on a much smaller level, in their (the major equity investor’s) profits.” Cowbell Kingdom

Structural changes to the group intending to purchase and keep the Kings in Sacramento won’t affect the city’s non- binding contract to build a new arena. That according to city manager John Shirey, who spoke to reporters at city hall today following the introduction of Mark Friedman to the prospective ownership team led by Vivek Ranadivé. Shirey says he consulted with city attorney James Sanchez on the matter. According to the city manager, Sanchez explained to him that the term sheet city council approved two weeks ago with a 7-2 vote doesn’t need to be adjusted because “the fundamental issues, all the terms, they don’t change.” Cowbell Kingdom

April 9, 2013 Updates

Friedman's emergence comes one day after Mayor Kevin Johnson revealed that Southern California billionaire Ron Burkle had to reduce his role in the project because of a conflict of interest. Johnson hinted at a press conference Monday that there might be additional changes in the ownership structure. But Friedman said he's been contemplating jumping into the Kings bid for a while. "I've been talking to Vivek (Ranadive) and Mark Mastrov for a couple of months," Friedman said, referring to the lead investors in the bid for the Kings. Sacramento Bee

Speaking at a press event at the Downtown Plaza this afternoon, Johnson stated that Burkle’s changing role has no effect on the structure of the deal to build a new arena at the mall. “We knew that this was flagged early,” Johnson said. ”We were trying to work our way through it in New York when we spoke to the NBA owners. We addressed this issue. They felt very comfortable with our answer. “One of the issues was if Ron could stay in – great, we’ll move forward,” he continued. ”If he can’t, then Vivek (Ranadivé) is going to lead that charge both on team and the arena and we won’t miss a beat. And they were comfortable with that.” Cowbell Kingdom

April 8, 2013 Updates

With the fate of the Sacramento Kings remaining uncertain and 10 days left before NBA officials meet in New York yet again to deliberate on Seattle's bid to buy and relocate the team, there has been a change to the incumbent city's plan to keep its team. NBA spokesman Mike Bass confirmed that supermarket mogul and part owner of the NHL's Pittsburgh Penguins, Ron Burkle, is no longer part of the group that is attempting to buy the team and keep it in Sacramento because of a conflict of interest. "Ron Burkle is no longer part of the Sacramento group because his ownership interest in Relativity Media, which has a division that represents NBA players, would violate NBA rules," Bass said. USA Today Sports

April 4, 2013 Updates

In a contrast of post-presentation news conferences, the Seattle group was subdued and the Sacramento group was fired up. "The NBA does not want to move a team from one market to another, period. We already know that," said Sacramento Mayor and former NBA player Kevin Johnson, who represented the Sacramento group along with Sen. Darrell Steinberg and financial backers Vivek Ranadive, Mark Mastrov and Ron Burkle. "They normally move a team from one market to another when the fans don't support it or you can't build a building. That's not the case in Sacramento." USA Today Sports

March 26, 2013 Updates

There was supposed to be a Ron Burkle sighting at The Bee on Monday, and then there wasn't. The mystery man canceled his appearance a few hours before the 2 p.m. tipoff, offered no reasons and remained true to his reputation within the arena of professional sports. The Pittsburgh Penguins' billionaire co-owner – one of four investors involved in the proposed $447.7 million downtown entertainment complex and attempts to purchase majority interest in the Kings – is only occasionally seen and rarely speaks. Sacramento Bee

March 24, 2013 Updates

The City of Sacramento checked off a major box in its fight to keep the Kings today. Sacramento Mayor Kevin Johnson announced via Twitter that an agreement has been reached with the Ron Burkle/Mark Mastrov/Vivek Ranadivé group to build a new downtown arena. “It’s a great day in Sacramento!!!!!,” Johnson said, beginning a string of tweets. “I’m pleased to announce an agreement w/ Burkle-Mastrov-(Ranadivé) group on a public-private partnership to build a new ESC at (Downtown) Plaza Mall. Consistent (with) our core tenets, the deal avoids new taxes, protects the City on the Kings loan, and ensures no net impact to the general fund” Cowbell Kingdom

According to Johnson’s tweets, the new ownership group is ready to invest up to a billion dollars in the region in the transaction, which includes a deal to purchase the Kings, build a new entertainment and sports center and lock into a new 35-year agreement to keep the team in Sacramento. According to multiple reports, the new deal is for an estimated $448 million and includes a private investment by the Burkle/Mastrov/Ranadivé group of $190 million for the arena in the Downtown Plaza. The City of Sacramento is putting up an estimated $258 million by leasing its downtown parking assets to a private operator and selling city owned land parcels as well as an arena surcharge for users. Cowbell Kingdom

Between the proposed purchase of the team, the investment in the downtown plaza arena and related real estate development around the site, Ranadive, Mastrov and Burkle will be investing nearly a billion dollars. While the specific figure of the offer for the team is not yet known, $190 million of the investment is in the arena. That sum is $58 million more than the $132 million put forth by the NBA and the Maloof family that owns the team in a 2012 arena deal that would have put the arena in the city's railyards but fell apart when the Maloofs were no longer comfortable with the handshake agreement. USA Today Sports

March 22, 2013 Updates

Vivek Ranadive, an Indian-born software tycoon who lives in Silicon Valley, was unveiled as the man who will lead the bid for the team itself. Already a part owner of the Golden State Warriors, he takes the reins from East Bay health-club financier Mark Mastrov. A source familiar with the situation said Mastrov – whose initial bid was described as inadequate by the NBA – will remain a major partner in the bid. The third investor in the Sacramento effort, Beverly Hills billionaire Ron Burkle, was continuing to negotiate a deal with city officials on a new arena at Downtown Plaza. But in a somewhat unsettling development for the city, officials were unable Thursday to complete the so-called term sheet outlining the city's subsidy and other elements of the deal. The document was supposed to be released to the public in the afternoon. Sacramento Bee

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