NBA Commissioner David Stern says the counteroffer to keep the Sacramento Kings from moving to Seattle needs to be increased financially before the league's owners can consider it.
Stern said Friday night that the Sacramento group's bid has some "very strong financial people behind it but it is not quite there."
He said "unless it increases, it doesn't get to the state of consideration."
Stern also said there will be a meeting April 3 in New York to avoid rushing debate on the issue at the NBA Board of Governors meeting April 18.
A group led by 24 Hour Fitness founder Mark Mastrov and billionaire Ron Burkle submitted a counteroffer for the Kings last month.
They are hoping to block a bid by a Seattle group headed by hedge fund manager Chris Hansen and Microsoft CEO Steve Ballmer, which has a signed agreement to acquire 65 per cent of the franchise from the Maloof family for about $341 million.
Stern spoke before the Golden State Warriors hosted the Houston Rockets in Oakland, which is about a 90-minute drive from Sacramento.