Just thinking out loud

[Trueblood]

I'm hearing that the All-star game, when it comes to Orlando's new arena, will generate around $100 million in revenue for the 3 or 4 day weekend.

If those numbers are legit, is there any way that Stern, since he claims to be on Sacramento's side in it's pursuit of a new arena, give the city a bulk of ASG games. Maybe something like 1 game every 2 or 3 years. Then, would it be possible to divert some of the generated revenue towards paying off the arena?

Of course, bonds would have to be issued and the arena would have to be paid off already but maybe banks would be more willing to lend if they know that there is a guarantee of ASG games in the future.

Also, the ASG money wouldn't be able to pay the whole thing but it could be an added source of financing to go with tourist taxes, developer money and things of that nature.

 

[VF21]

IF we get a new arena, I'm almost willing to bet the farm - so to speak - that it will be the host for the ASG at the earliest possible time if for no other reason than to show it off. But there's no guarantee involved...nor should there be.

 

[kennadog]

I'm hearing that the All-star game, when it comes to Orlando's new arena, will generate around $100 million in revenue for the 3 or 4 day weekend.

If those numbers are legit, is there any way that Stern, since he claims to be on Sacramento's side in it's pursuit of a new arena, give the city a bulk of ASG games. Maybe something like 1 game every 2 or 3 years. Then, would it be possible to divert some of the generated revenue towards paying off the arena?

Of course, bonds would have to be issued and the arena would have to be paid off already but maybe banks would be more willing to lend if they know that there is a guarantee of ASG games in the future.

Also, the ASG money wouldn't be able to pay the whole thing but it could be an added source of financing to go with tourist taxes, developer money and things of that nature.

When they talk about generating $100 million in revenue that is for all the business in the area, not the arena, which only has a finite number of seats to sell, anyway. They are talking about the revenue to local restaurants, hotels, stores, rental cars, etc.

Those businesses aren't going to give up that revenue. If you tax them for it, then they'll just pass on that cost to the consumers. Of course, that's why so many cities do tax things that out-of-towners are far more likley to spend money on, like hotel taxes.

The NBA has turned down Sacramento for the ASG for many years due to the lack of enough upscale hotel rooms. While Sacramento has added rooms, I'm not sure we have enough yet to meet the NBA's requirements.

Unfortunately (or fortunately), Sacramento is not a huge tourist attraction. Travelers that come here in numbers are here on business, generally, since this is the state capitol. The city provided public subsidies to help build Hyatt, Sheraton and Embassy Suites downtown.

To get Hyatt in here first a number of years ago, the city subsidized their cash flow shortgages for quite a few years. Hyatt wouldn't have built here otherwise at the time, because they knew they would have trouble cash-flowing.

 

[Trueblood]

When they talk about generating $100 million in revenue that is for all the business in the area, not the arena, which only has a finite number of seats to sell, anyway. They are talking about the revenue to local restaurants, hotels, stores, rental cars, etc.

Those businesses aren't going to give up that revenue. If you tax them for it, then they'll just pass on that cost to the consumers. Of course, that's why so many cities do tax things that out-of-towners are far more likley to spend money on, like hotel taxes.

The NBA has turned down Sacramento for the ASG for many years due to the lack of enough upscale hotel rooms. While Sacramento has added rooms, I'm not sure we have enough yet to meet the NBA's requirements.

Unfortunately (or fortunately), Sacramento is not a huge tourist attraction. Travelers that come here in numbers are here on business, generally, since this is the state capitol. The city provided public subsidies to help build Hyatt, Sheraton and Embassy Suites downtown.

To get Hyatt in here first a number of years ago, the city subsidized their cash flow shortgages for quite a few years. Hyatt wouldn't have built here otherwise at the time, because they knew they would have trouble cash-flowing.

Absolutely. No doubt about it, an 18,500 seat arena can't come close to generating $100 million for 41 games much less one ASG. I realize it would have to come from the business sector and I was just thinking in terms of taxes and added taxation that could be tacked on to an obviously much larger chunk that will have to come from developer subsidies. But as I crunch the numbers and take into account that Sacramento doesn't have what Orlando has in terms of space and retail outlets, the numbers would be so small that it wouldn't make much of a dent. Oh well.

 

[kennadog]

Absolutely. No doubt about it, an 18,500 seat arena can't come close to generating $100 million for 41 games much less one ASG. I realize it would have to come from the business sector and I was just thinking in terms of taxes and added taxation that could be tacked on to an obviously much larger chunk that will have to come from developer subsidies. But as I crunch the numbers and take into account that Sacramento doesn't have what Orlando has in terms of space and retail outlets, the numbers would be so small that it wouldn't make much of a dent. Oh well.

Orlando's already a big tourist draw with all the hotel rooms, restaurants to handle tons of tourists. The ASG is gravy for them.

 

[Trueblood]

Orlando's already a big tourist draw with all the hotel rooms, restaurants to handle tons of tourists. The ASG is gravy for them.

FWIW, I've seen pics of what their arena will look like when it's done and it looks awesome. It's a similar sized market to Sacramento so I'm wondering if that could be used as a model of sorts in the event that we finally do get terms for a new crib.

 

[kennadog]

FWIW, I've seen pics of what their arena will look like when it's done and it looks awesome. It's a similar sized market to Sacramento so I'm wondering if that could be used as a model of sorts in the event that we finally do get terms for a new crib.

There's absolutely no comparison between Sacramento and Orlando, though. Orlando is a gigantic tourist attraction of of a city. And public financial option possibilities are quite different, too.

It's so hard here in California to do anything. Unless you have a city council who rams through an arena project despite huge public opposition to it. (Of course, most people think its great now that its done.)

Cripes, Kansas City built a brand new arena with public money with no pro team as a part of the deal at all.

 

[Trueblood]

There's absolutely no comparison between Sacramento and Orlando, though. Orlando is a gigantic tourist attraction of of a city. And public financial option possibilities are quite different, too.

It's so hard here in California to do anything. Unless you have a city council who rams through an arena project despite huge public opposition to it. (Of course, most people think its great now that its done.)

Cripes, Kansas City built a brand new arena with public money with no pro team as a part of the deal at all.

Yeah, if it was as easy here as it is in Florida then it would be done by now. What I'm basically getting at is IF we get to the point where we find a financing mechanism to get things going, the Orlando ARENA model, not financing model, would look like one to follow. Despite not being a similar tourist attraction, I have to think that an 18,500 seat arena with 60 some odd suites and multiple concourses would fit in Sacramento. I'm in relatively good shape but I find myself huffing a bit when I get to the top of the upper deck at Arco due to the lack of escalators and the fact that there is only one major concourse.

 

[VF21]

There are a couple of really interesting arenas out there. If memory serves, the one in Cleveland is also pretty impressive.

 

[PurpleHaze]

Conseco Field House (aka: Conseco Arena) home of the Indiana Pacers has been touted for a number of years as one of the two or three most impressive venues in the NBA. As far as one lone city getting NBA All-Star game "every 2 or 3 years" as some kind of bail out - not going to happen.

 

[Section 101]

The Kings basically had an all star game. It was in Vegas.

 

[kennadog]

The Kings basically had an all star game. It was in Vegas.

And it was an utter disaster as far as the NBA was concerned.

I think a good arena would be a benefit to Sacramento. If the Kings are forced to leave, Arco will be razed and Sacramento will have no arena. They'll keep intact their history of complete inability to ever get a decent arena or stadium or any big entertainment venue built.

The point isn't the new arena or its design. It's the unavailability of feasible financing. (And no, the Maloofs don't have a wad of cash around to build an arena, nor will coventional lenders lend the whole amount.)

There are lots of private projects that have been subsidized by the city, but this seems to be the hot button around here. All the big hotels downtown were subsidized and how many Sacramentans get a direct benefit from that? The railyards are slated to get $1 billion over time from the city.

 

[dbfish]

And it was an utter disaster as far as the NBA was concerned.

I think a good arena would be a benefit to Sacramento. If the Kings are forced to leave, Arco will be razed and Sacramento will have no arena. They'll keep intact their histroy of complete inability to ever get a decent arena or stadium or any big entertainment venue built.

The point isn't the new arena or its design. It's the unavailability of feasible financing. (And no, the Maloofs don't have a wad of cash around to build an arena, not will coventional lenders lend the whole amount.)
There are lots of private projects that have been subsidized by the city, but this seems to be the hot button around here. All the big hotels downtown were subsidized and how many Sacramentans get a direct benefit from that? The railyards are slated to get $1 billion over time from the city.

Remember the old Joni Mitchell song, Pave paradise, put up a parking lot.

 

[KingsFan54]

IF we get a new arena, I'm almost willing to bet the farm - so to speak - that it will be the host for the ASG at the earliest possible time if for no other reason than to show it off. But there's no guarantee involved...nor should there be.

I have read that the reason that Sacramento will not get a ASG, or someother big event is due to the lack of Hotel/Motel rooms.

 

[KingsFan54]

IMHO, if the kings leave, Sacramento will not ger a major league sports team for a very long time. It will set the City back decades. The arena is not just for the Kings. Its an entertainment venue. You will be driving to the bay area for ever to see a concert or sporting event.

 

[VF21]

I have read that the reason that Sacramento will not get a ASG, or someother big event is due to the lack of Hotel/Motel rooms.

True, but I strongly suspect that if Sacramento manages to get a new arena, David Stern - who has supported the project all along - will smile down upon us and grant us the ASG.

 

[KingsFan54]

True, but I strongly suspect that if Sacramento manages to get a new arena, David Stern - who has supported the project all along - will smile down upon us and grant us the ASG.

I truly hope your right VF21. Right now, I would just like to hear that there is a plan on the table for a new arena.

 

[PurpleHaze]

There are lots of arena plans on the table, including the massive Cal Expo renovation, a detailed plan to build out downtown rail yards and even tear down Arco and build a new facility right next to it.

The issue is getting that first shovel in the ground and unless the economy dramatically improves moving that dirt is a LONG way off - with no developer willing or able to commit financing.