According to Dale Kasler of the Sacramento Bee, the Kings filed a claim against Power Balance this week as the magic bean manufacturer goes through Chapter 11 bankruptcy proceedings. The Kings are looking for $8.3 million in the claim. But the interesting part is that the claim included details about the specific annual terms of the naming rights deal, which Kasler pulled out.
All of that is, as of now, down the drain. (Even for Year 1, Kasler said the Kings claim that only $700,000 has been paid out.) So on paper the deal was a helluva lot more lucrative than the $750,000-per-year ARCO deal ... but in practice it didn't even pay out one of the years.
Just another little cash problem among mounting cash problems for the Maloofs and their budget basketball team.
0 recs | 37 comments
At least the Malindas still have 2% of the Palms
masawi44 - February 18, 2012
and still 100% of the facepalms
kinglet - February 18, 2012
Best thing we can do
…is wait for the vote on the 28th. If we wanted to get another sponsor, you might be able to sell them on the idea on naming rights should we get a new arena. Would be ideal, really.
KevinSalvadori - February 18, 2012
This was just the Maloofs looking to make friends in the OC
OC D-Riders
Allbenji - February 18, 2012 via mobile
Power Balance
Did this knowing that if maloofs moved to SoCal they would buy PB out of the agreement since the arena in anaheim already has Honda on it. Or if the maloofs didn’t move PB wouldn’t survive long enough to payout that agreement.
Get me Joe & Gavin, I have some snake oil to sell them.
ajd1083 - February 18, 2012 via mobile
Seriously,
What did they truly expect from a company, whose product was a complete scam?
Slam_Dunk - February 18, 2012
I think this goes to show how bad of businessmen they really are.
Honestly, I really wouldn’t be surprised if they thought the powerbands were legit.
It was probably the best offer they got. Legitimacy of the company or product meant nothing.
Crocoduck - February 18, 2012 via mobile
I'd be willing to bet they received better offers
But not in the form of $ promised. A more stable reputable company(ies) likely put in offers but they were for closer to what we thought PB agreement was before today.
Maloofs only saw $ signs
ajd1083 - February 18, 2012 via mobile
Yeah when I said I think it was the best offer, I was strictly talking dollars.
Crocoduck - February 18, 2012
Yes, that is how scam artists work. They use people's greed as leverage.
Putting all those bogus dollars in front of their eyes, the Maloofs ceased to use their common sense. If it sounds too good to be true, it probably is.
Honestly, I don’t think they believed those bands were truly effective. I just think they looked the other way because they are business men, feeling financially desperate and willing to take the risk. In short: They got conned, along with all the people who purchased one of those bands. Nothing will probably happen to the PB folks, because they probably have a good attorney. My personal feeling is that people like this should go to prison for fraud.
I had a similar personal experience.
Slam_Dunk - February 18, 2012
I'd actually disagree a little here
nobody was offering money for the naming rights to that arena. No chance because there was about to either be a new one or it was about to be empty. And on top of that it had the same name for over 20 years already. The Maloofs took the best offer they could get and already had the full intent to focus on relocating.
wallywagon11 - February 18, 2012
Agree with you. In their minds, they already had one foot at the door.
Slam_Dunk - February 18, 2012
^out the door
Slam_Dunk - February 18, 2012
Yes, both of those parties were desperate for any dance partner at that point.
kinglet - February 18, 2012
They found it fitting
HeuristicLineup - February 18, 2012
The Lords of the Bracelet Strike Again!
Natomaser - February 18, 2012
Holy heck Batman!
For that chunk of change, I’d also name my building after a fraudulently unlegitimate product!
No wonder they took on such a stupid name, that deal is ridiculous!
LightningStrike5 - February 18, 2012
Too good to be true...
Crocoduck - February 18, 2012
Coming soon: The Loreal Frosted Tip Center
Mike Garza - February 18, 2012
The Maloofs...
CowbellKings - February 18, 2012
kromeace - February 18, 2012
This is amazing. So, so, funny.
Slam_Dunk - February 18, 2012
George Maloof?..
or Andy Kaufman??? I can’t tell!!
Ryazilian - February 18, 2012
Hey kromeace, you're swiping my photoshop.
Bill2 - February 18, 2012
The stooges photo.
Bill2 - February 18, 2012
I just reposted someone's work that is outstanding...
I didn’t remember who’s it was so I could not give ya props… glad ya stepped up.
kromeace - February 18, 2012
No problem
Bill2 - February 18, 2012
Magoofs
You mean to tell me a fledgling rubber band company didn’t offer the sustainability of STAPLES or Oracle?
dspohn55 - February 18, 2012
are you telling me that Staples and Oracle offered the same amount of money?
wallywagon11 - February 18, 2012
Burkle Arena?
VenomySnicket - February 18, 2012
Ted Turner would approve
wallywagon11 - February 18, 2012
Ron Burkle,looking better all the time?
cowboyron96@yahoo.com - February 18, 2012
Loading a bulk of the payments on the back-end of a long deal is common in entertainment deals
A lot of studios will do the same thing when making contingent compensation contracts for writers/actors/directors. Its a way to protect your investment. From Power Balance’s perspective its less risky for them to pay less up front and more later on.
Disregarding Power Balance’s finances at the time, when it was negotiated, they probably weren’t exactly certain the Kings would be in Sacramento for the complete duration of the five year period. Without seeing the language of the contract, I would guess that the deal was contingent on the Kings staying in Sacramento. If PB had a good attorney, he would have negotiated for the agreement to include a provision whereby naming rights were tied to the Kings’ tenancy in Sac. That way, if the Kings did move to Anaheim, PB wouldn’t have to pay the remaining years, making it less risky to back-load the payment schedule.
zag392009 - February 18, 2012
A lot of companies and people tinger with the payout over time.
Slam_Dunk - February 18, 2012
The deal had a sponsorship deal for the Honda Center if the Kings moved.
jjham15 - February 19, 2012
andy sims - February 18, 2012
andy sims - February 18, 2012
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