A team of lawyers at Milbank, Tweed, Hadley & McCloy has represented the Maloof family, owners of the NBA’s Sacramento Kings and their home court Sleep Train Arena, in the sale of a 65% controlling interest in the team to a Sacramento-based investor group. The transaction valued the Kings at $534 million, a record price for an NBA franchise.

The investor group is led by software entrepreneur Vivek Ranadive, CEO of TIBCO Software, along with Mark Mastrov, the founder of 24 Hour Fitness. The new owners have agreed to keep the Kings in Sacramento. The parties struck a definitive purchase agreement on May 17 and closed the sale on May 31.

The Milbank team was led by Los Angeles corporate partner Adam Moses, and also included associates Joseph Teltserand Peter Wang. Tax advice was provided by New York partner Russell Kestenbaum.

The remaining 35% ownership interest in the Kings not sold in the current transaction is held by a group of limited partners, including one that is the subject of a bankruptcy case. A separate team of Milbank restructuring and litigation lawyers led by partners Paul Aronzon and Linda Dakin-Grimm advised in connection with the bankruptcy case and its implications for the sale of the team.

“We’re pleased to have worked with the Maloof family in the transition of their longtime ownership of the Sacramento Kings to a new ownership group,” said Milbank’s Mr. Moses. “The record-setting value of the franchise in this transaction is a testament to the successful stewardship of the team by the Maloofs for nearly 15 years. We wish the new owners good fortune in authoring the next chapter of the team’s history.”

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