A copy of the letter obtained by the Associated Press says the Sacramento investors failed to submit a bid as a backup to the offer made by a group of Seattle investors.
The Maloofs, the majority owners of the Kings, complained that the Sacramento group is insisting the family commit a breach of contract by rescinding its deal with the Seattle group.
In the letter, the Kings' majority owners say Sacramento's down payment is half of the $30 million the Seattle group offered.
The letter also notes the Seattle group promised to pay the salaries of all Kings employees' in Sacramento for 18 months if a deal were completed. The Sacramento group failed to match that.
It's not clear that any Kings employees would lose their jobs if the team were sold to the Sacramento investors.