The "long-awaited" sale of the L.A. Kings was completed last
night, after the team declared Chapter 11 to allow the deal to be
finished. The team was sold by LAK Acquisition Corp. -- headed
by Jeffrey Sudikoff and Joseph Cohen -- to Majectic Anshutz
Venture, a partnership of Denver-based Philip Anshutz and L.A.
developer Edward Roski, Jr. The bankruptcy move "helped the
parties reach a definitive sale agreement for $114 million,
including a binding agreement with Laker and Forum owner Jerry
Buss that could move the team into a new arena yet to be built."
There is an "approval hearing" scheduled for October 5 in U.S.
Bankruptcy Court in L.A., and the sale also needs approval from
the NHL Board of Governors. Anschutz and Roski also "have the
option to purchase a minority interest in the Lakers." NHL
officials had viewed bankruptcy as a final option, but "almost
everyone involved recognized the neccessity of running the Kings
through a cleansing process of bankruptcy, protecting the
potential purchasers from unseen potential future liabilities."
NHL General Counsel Jeffrey Pash said "the bankruptcy filing will
have no effect on the club's operations" (L.A. TIMES, 9/21).
MN Gov. Arne Carlson said yesterday that he still supports a
plan to help the prospective owners of the Jets hockey team if
they move them to Minnesota, according to Jay Weiner of the
Minneapolis STAR-TRIBUNE. Carlson said he didn't want any
assistance "sold as a subsidy," reportedly referring of "a tax-
rebate concept that received limited support in the Legislature
in May." Under that plan, prospective owners Richard Burke and
Steve Gluckstern "would have been given the income taxes Jets'
players would have paid to the state" (Minneapolis STAR TRIBUNE,
In a presentation yesterday, the Spurs projected a $3.26M
loss of '95-96 while reporting earnings of $4.51M for the '94-95
season (which includes more than $4M from the playoff alone),
according to this morning's SAN ANTONIO EXPRESS-NEWS. The
projected loss is based on the team not making the playoffs.
Spurs President & CEO Jack Diller: "Somehow, we've got to work
with the city to obtain a revenue stream to make this viable."
Diller was referring to contracts with the city involving
concessions, parking, luxury boxes, rent, and other costs at the
Alamodome. San Antonio Mayor Bill Thornton opposes any changes
in the Spurs' lease, but is open to adding new seating and
portable luxury suites. EXPRESS-NEWS business columnist David
Hendricks writes, "City Hall would be smart to start
renegotiating its Alamodome contract." He points out the Spurs
are limited in areas of broadcast revenues and the lack of a
corporate presence in San Antonio. The city is the NBA's
smallest TV market, but the fact the Spurs get only 24% in
revenue from corporate accounts "remains the most threatening."
NBA teams average 76% of revenue from corporations. The team is
now targeting "corporate-rich" and "high-tech" Austin (SAN
ANTONIO EXPRESS-NEWS, 9/21).