Sports-wristband maker Power Balance “expects to be sold soon, and court papers say the likely buyer doesn't plan to maintain the marketing deal that turned the former Arco Arena into Power Balance Pavilion,” according to Dale Kasler in a front-page piece for the SACRAMENTO BEE. That “could change between now and Dec. 20, when Power Balance's business is scheduled to be auctioned off.” The company last month stated that it would keep commitments a part of its deal with the NBA Kings despite the bankruptcy restructuring. Hanyang LLC, the Southern California company “in line to buy Power Balance, could choose to retain the contract with the Kings.” Someone could also “outbid Hanyang and decide to keep the Kings' deal.” Hanyang Principal Denny Barge: “Don't jump to any conclusions.” He indicated that the company “didn't have all the data it needed on the Kings deal when it made its bid for Power Balance.” Still, Kasler writes the bankruptcy filing “adds to the uncertainty about the Kings’ future.” Finding a new sponsor “wouldn’t be easy, given the economy and the possibility the Kings would leave.” The exact terms of the Kings’ deal with Power Balance “were never disclosed,” but team co-Owner Joe Maloof in January said that the deal “eventually would pay more than the prior contract with Arco.” Under bankruptcy laws, the buyer “would have the right to walk away from the Kings deal or any other contract.” Power Balance's $100,000 debt to the Kings “would still be in effect, and would have to be resolved from the proceeds of the sale of the company.” It is not clear if the sale “would generate enough cash to pay the Kings in full.” In its court filing, Power Balance said that it “has more than 150 contracts, including the Kings' arena deal and endorsements with multiple athletes,” including Kings G Tyreke Evans (SACRAMENTO BEE, 12/6).
