Just yesterday NBA owners rejected a bid from a group of buyers in Seattle looking to purchase and move the Sacramento Kings, and today team owners agree to sell the troubled franchise to another group of buyers based out of Sacramento.
Software billionaire Vivek Ranadive stepped up and purchased 65 percent of the Kings from the Maloof Family for $348 million. The total valuation from this sale is an NBA record at $535 million and will the NBA will officially announce the sale on Friday.
The Maloof family have owned the Kings since 1998 and were hoping to sell their stake to the Seattle-based group for $406 million, but changed their minds and later wanted to keep controlling interest of the team but sell off a 20 percent stake.
NBA commissioner David Stern said Wednesday that he expects the deal to be signed and finalized no later than the end of this current week. Stern said Ranadive already had put more than $200 million in an escrow account in anticipation of the purchase. Including a $60 million debt to the city of Sacramento plus money owed to the NBA, the Maloofs are expected to clear a little more than $200 million from the sale. When they bought the team, they paid the valuation of $156 million.