On the drive to keep the Kings, Sacramento had a bad news/good news day Thursday.
The bad news was the arena portion of the project was set back when City Manager John Shirey failed to meet a self-imposed deadline of Thursday for public disclosure of a term sheet that would have details of the private and public financing.
The good news was that a third major investor was identified that would improve the cash backing for the team purchase. Vivek Ranadive, 55, the India-born chairman and CEO of a $1 billion-a-year Silicon Valley software company. He is also a minority partner and vice chairman of the Golden State Warriors, the team that Mark Mastrov, the Sacramento businessman who would be the lead owner of the Kings, tried to buy in 2010.
The Sacramento Bee first reported both developments.
Shirey said negotiations on the arena deal are continuing with representatives of billionaire Ron Burkle and remains optimistic a deal will be struck. But the disclosure won’t happen in time for a scheduled meeting of the city council Tuesday, because the members would need more time to study the deal.
“I’m still optimistic that we’re going to get the (sticking) points resolved,” Shirey said. “I do not have that feeling that we’re not going to come together.
“The City Council needs to be able to read and study the term sheet (before voting).”
But the NBA has asked for a meeting April 3 with the Sacramento bidders as well as Seattle native Chris Hansen, who already has in hand a sale agreement with the Kings owners to buy 65 percent of the franchise for $341 million, including a $30 million nonrefundable deposit. Hansen has plans for a $490 million arena in SoDo, and has asked the franchise be relocated to KeyArena while the new building goes up.
Partly because Hansen is backed by Microsoft CEO Steve Ballmer, NBA Commissioner David Stern warned Sacramento two weeks ago that its effort was well behind the Seattle bid.
If there is no vote Tuesday, the next meeting is April 2, which Shirey said “is not preferable” because it is so close to the NBA meeting in New York.
The Bee reported that a source sold the newspaper that Ranadive had been talking with Mastrov for several months about joining the bid. His company, TIBCO Software, makes programs used in automation, data analysis and e-commerce. Its customers have included Yahoo, Sun Microsystems and CBS Sportsline. He owns eight percent, valued at $318 million.
Ranadive is a Harvard and MIT grad who has written three books on business in the past 14 years, including a New York Times bestseller. His 2011 book, “The Two-Second Advantage,” released in 2011, has a publicity blurb by Stern, who wrote that the book “artfully explores how having the right information . . . can place you ahead of the game.”