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Sacramento group makes major concession
Posted By HOOPSWORLD On May 6, 2013 @ 7:05 pm In Wirenews | Comments Disabled
by Adi Joseph, USA TODAY Sports
If Sacramento keeps its NBA team, it won’t be without a big concession.
The group bidding against Seattle for ownership of the Sacramento Kings made several major concessions before the NBA’s relocation committee voted in its favor last week, SportsBusiness Journal and The Sacramento Bee reported Monday. The Journal and Bee each cited unnamed sources close to the deal.
The big takeaway: The Kings would forgo the NBA’s revenue sharing, meant to balance finances for less wealthy franchises, once their new arena was finished.
The Journal projected that concession to be worth about $18 million a year, a hefty chunk of change for a small-market team. The team would take a smaller share from the revenue pool while playing in Sleep Train Arena. The move is anticipated to come in 2016.
The concession may have been important in the relocation committee’s 7-0 vote to keep the team in Sacramento. The boost came after software tycoon Vivek Ranadive took the helm for Sacramento, which also has strong support from Mayor Kevin Johnson, a former NBA All-Star.
Entering the negotiating sessions, Seattle’s group led by hedge fund manager Chris Hansen and Microsoft CEO Steve Ballmer had a higher bid. Conceding revenue potentially is one strategy for Sacramento to avoid as much paying up front.
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