The owners of the Sacramento Kings have reached a deal to sell majority ownership in the franchise to a Seattle-based group led by hedge fund manager Chris Hansen and Microsoft CEO Steve Ballmer, ESPN’s Marc Stein reported late Sunday. The Maloof brothers’ proposed sale of 65 percent of the franchise would be worth about $340 million of the franchise’s $525 million valuation, Yahoo’s Adrian Wojnarowski reported.

But there is no agreement on the other 35 percent of shares, which are not owned by the Maloof brothers.

Stein reported that if the NBA approves the sale, the Seattle-based group will file for a bid for relocation by March 1. A rumored handshake deal between the groups has been rumored for much of the past week, but this is the first official word that a deal is imminent.

Just going online now: Maloofs have struck deal to sell 65 percent of Kings to Chris Hansen group in Seattle for $525 million, sources say

— Marc Stein (@ESPNSteinLine) January 21, 2013

Kings deal to Seattle group still requires formal NBA ratification but Hansen group intends to file for relocation by March 1 if approved

— Marc Stein (@ESPNSteinLine) January 21, 2013

ESPN sources say no agreement yet reached on remaining 35 percent of Kings shares, which are held by minority investors, NOT Maloofs

— Marc Stein (@ESPNSteinLine) January 21, 2013

The fate of the Kings and a potential move to Seattle still remains unclear. Sacramento Mayor Kevin Johnson said last week that he has received approval from NBA Commissioner David Stern to present a counteroffer to the league to keep the team in Sacramento.

He said that the city is in a “six-week sprint” to prepare a proposal for the NBA’s Board of Governors to consider against the Seattle group. If history is any indication, the former NBA star Johnson has a shot — he has successfully convinced the NBA that the city could provide long-term financial stability to the franchise, including the possibility of a new arena.

“We have a city and a community that have done every single thing that is required,” Johnson said. “I hope Seattle gets another team. They deserve another team. They didn’t deserve to lose a team in the first place. It just won’t be the Sacramento Kings if we have anything to do with it.’”

The biggest NBA stars were shocked by the amount of the deal. LeBron James tweeted a hint of angst at the owners over the lockout that canceled a portion of the 2011-12 season:

So the Kings getting sold for 525M!! And the owners ain’t making no money huh? What the hell we have a lookout for. Get the hell out of here

— LeBron James (@KingJames) January 21, 2013

The Maloof family reported to be negotiating a sale of the Sacramento Kings to a Seattle-based group wants to continue to have some say in running the team, an NBA source told The Seattle Times.

The source said the Maloofs, who have owned the Kings since 1998, want not only to retain a small percentage of the team in a sale to a group led by hedge fund manager Chris Hansen and Microsoft chairman Steve Ballmer, but also maintain a presence and some control over how the franchise will be run after it relocates to Seattle for the 2013-14 season.

The source told the Times that negotiations are going beyond a reported $500 million purchase price and could possibly be snagged by the family’s desire to remain involved with the franchise and the NBA.

Another sign that the sale may be stalling rose Thursday afternoon when Sacramento News 10 reporter Bryan May tweeted that George Maloof said a deal was not close.

George Maloof tells News10 a deal to sell the Kings to Seattle group is not close.—
Bryan May (@BMayNews10) January 10, 2013

The Maloof Brothers have pledged to contribute $150 million help build an arena in downtown Sacramento in an effort to keep the Kings in the state’s capital, according to the Sacramento Bee.

George Maloof told reporters Monday morning that the Maloof family would contribute close to $75 million right away to help build the stadium. According to the paper, they plan to contribute another $75 million over the course of the newly founded agreement.

“We got something worked out, tentative,” Maloof said. We’re all very excited about it. We were skeptical about whether or not something could happen.”

The NBA will also make a contribution to the project, however the size of that contribution is not yet known.