Potential Anaheim Lease For Sacramento Kings Released; Centerpiece Is $50 Million Loa

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JB_kings

Starter
#6
#6
Not really detailed enough. But if all this applies to NBA events only as suspected, then I think the ongoing revenue stream is on the weak side. They are splitting too much with arena management and grabbing bulk monies up front like the Honda naming rights and the 50 million. Remember all those things they say a new arena would give them? They aren't getting much of it there. Long term I think they are going to be sorry they sacrificed ongoing revenue for lump sum money up front. Depends on the media contracts at this point whether or not they will be flush with cash.
 
hrdboild

hrdboild

Moloch in whom I dream Angels!
Staff member
#7
#7
Well in any case, it seems that the gauntlet has now been thrown down for any competing Sacramento arena deals. This is what they have to beat -- and it's probably less than most of us would have expected. Pretty much any new arena deal in Sacramento would beat this deal. I still think it's in the Maloof's best interest to wait another year and see if the arena can happen in Sacramento before they throw away half their rights to move to Anaheim, but maybe they know something I don't.
 
Section 101

Section 101

All-Star
#8
#8
JB_kings said:
Not really detailed enough. But if all this applies to NBA events only as suspected, then I think the ongoing revenue stream is on the weak side. They are splitting too much with arena management and grabbing bulk monies up front like the Honda naming rights and the 50 million. Remember all those things they say a new arena would give them? They aren't getting much of it there. Long term I think they are going to be sorry they sacrificed ongoing revenue for lump sum money up front. Depends on the media contracts at this point whether or not they will be flush with cash.
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http://www.anaheim.net/docs_agend/questys_pub/MG34583/AS34622/AS34625/AI34638/DO34643/DO_34643.pdf

Was a link in the article of the actual lease.
 
J

JB_kings

Starter
#9
#9
Section 101 said:
http://www.anaheim.net/docs_agend/questys_pub/MG34583/AS34622/AS34625/AI34638/DO34643/DO_34643.pdf

Was a link in the article of the actual lease.
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I'm reading it now... looks like Samueli gets first crack at scheduling dates. Within some guidelines he has to offer up some prime nights and normal NBA starting times, but hockey gets first pick of dates and make reasonable efforts to give better dates if the NBA does not like them. All nice words, but NHL first priority and NBA is second during regular season and playoffs.

Page 13 is the language for the VCAP or 50 million dollar advance payment. It looks like it's the responsibility of the team to pay this back. Missing payments accelerates the schedule, but see nothing of note to be concerned about if I was the team owner. It's really iron clad and the obligation to pay back survives any conceivable situation. Which in the absense of actual words, the Maloofs miss a payment and they could be up a creek with Samueli holding all the paddles. I'm not a lawyer, but but perhaps Samueli can sue the Maloofs if they miss payments and lose the team this way?
 
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Section 101

Section 101

All-Star
#10
#10
JB_kings said:
I'm reading it now... looks like Samueli gets first crack at scheduling dates. Within some guidelines he has to offer up some prime nights and normal NBA starting times, but hockey gets first pick of dates and make reasonable efforts to give better dates if the NBA does not like them. All nice words, but NHL first priority and NBA is second during regular season and playoffs.

Page 13 is the language for the VCAP or 50 million dollar advance payment. It looks like it's the responsibility of the team to pay this back. Missing payments accelerates the schedule, but see nothing of note to be concerned about if I was the team owner.
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I skimmed it and saw that too.
 
J

JB_kings

Starter
#12
#12
One thing is for sure. If the Maloofs sign these documents and agree to the payback terms of the VCAP, they better not miss a payment. It basically says under any conditon you can imagine, there better be prompt payments made. I'm guessing short of the arena falling to the ground in a disaster of course. Nice touch by putting it all in bold lettering too. Just kind of seems ominous.
 
RookieOfTheDay

RookieOfTheDay

Starter
#14
#14
That doesn't exactly sound like the "sweetheart deal" The Maloofs were reportedly looking for. Let's just hope it isn't to the point where they consider any deal better than staying in Sacramento.
 
P

Peter_Gibbons

Starter
#15
#15
One key source of income would be from the 84 luxury suite boxes. Even in this econoy, there are still many corporations in the OC thats thriving. The boxes should sell easily. Whether these OC folks are like the Kings or not, big companies buy up suites to entertain their clients and for employees to share year round as a reward.

The only way the Maloofs would go for this lease is that they figure that they would at least be able to pay the bills in the worse case scenario.
 
Section 101

Section 101

All-Star
#16
#16
Peter_Gibbons said:
One key source of income would be from the 84 luxury suite boxes. Even in this econoy, there are still many corporations in the OC thats thriving. The boxes should sell easily. Whether these OC folks are like the Kings or not, big companies buy up suites to entertain their clients and for employees to share year round as a reward.

The only way the Maloofs would go for this lease is that they figure that they would at least be able to pay the bills in the worse case scenario.
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Did you read the lease agreement? The maloofs dont sell the luxury seats. They have to sell those game tickets to the management group. Those tickets are included in the suite packages.

They also from what I can tell have to pay the management group 7.5% of every non premium ticket sold.
 
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Section 101

Section 101

All-Star
#17
#17
It's a 15 year lease. After 10 years they can opt out at $20 million. If the new location is within 125 miles add andother $30 million.

So it seems to me they just sort of set a relocation fee within the same market. So if it's worth $30 million to Anaheim then it must be worth $30 million to the Lakers and Clippers EACH to have the Kings move there.
 
RookieOfTheDay

RookieOfTheDay

Starter
#18
#18
Wasn't there a story about a month ago that if The Maloofs moved they wouldn't take a loan, it'd be on their own money? They have rocks in their head in they take this deal right now. I'm no expert on the matter but i don't see one thing about it that says...offer you can't refuse.
 
Glenn

Glenn

Hall of Famer
#19
#19
My memory is occasionally foggy in my declining years but I believe somewhere in the last week is a note or article saying something to the effect that the Maloofs defaulted or missed payment or something of that nature on the Palms. I know people have a general sense that things aren't well at the Palms but this was specific. The Maloofs have tried hard to tell people that what happens at the Palms is completely separated from what happens with the Kings. I've heard it a couple times. Why the need to say that?

Because it is not true!

It is their credit history that is on the line and Samueli is not the tooth fairy. The fact that this is bold faced is an out and out threat to people who just might fail. Sweetheart deal? I've had sweethearts like Samueli and our relationships ended badly.
 
P

Peter_Gibbons

Starter
#20
#20
Section 101 said:
Did you read the lease agreement? The maloofs dont sell the luxury seats. They have to sell those game tickets to the management group. Those tickets are included in the suite packages.

They also from what I can tell have to pay the management group 7.5% of every non premium ticket sold.
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I read it before you, I posted this. Do you understand the contract wording? The Maloofs will sell to Samueli and he will market and sell. The key word is SELL, not give away for free. Basically they both get a cut. There are 84 suites, a big increase from Arco. Its a big source of income, no doubt about it.
 
Glenn

Glenn

Hall of Famer
#21
#21
Peter_Gibbons said:
I read it before you, I posted this. Do you understand the contract wording? The Maloofs will sell to Samueli and he will market and sell. The key word is SELL, not give away for free. Basically they both get a cut. There are 84 suites, a big increase from Arco. Its a big source of income, no doubt about it.
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So it's similar to having 42 suites instead of the 30 at ARCO? Do I have the figures correct? Wow! Whatta deal. Is it worth spending over a $100 mil to get the extra profit from what is the equivalent of 12 suites? At $250,000 per suite per year, am I right, they will get an extra $3 mil per year or half of Cisco's salary. Either I am correct or missing something. Help me out.
 
RookieOfTheDay

RookieOfTheDay

Starter
#22
#22
Glenn said:
So it's similar to having 42 suites instead of the 30 at ARCO? Do I have the figures correct? Wow! Whatta deal. Is it worth spending over a $100 mil to get the extra profit from what is the equivalent of 12 suites?
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A few months ago I'd have said there's no way they'd go for that but I have a bad feeling that things may be to the point where that's all it will take to get them to move. It just seems like A they're financially desperate and B have no loyalty left for Sacramento.
 
P

Peter_Gibbons

Starter
#23
#23
Glenn said:
So it's similar to having 42 suites instead of the 30 at ARCO? Do I have the figures correct? Wow! Whatta deal. Is it worth spending over a $100 mil to get the extra profit from what is the equivalent of 12 suites? At $250,000 per suite per year, am I right, they will get an extra $3 mil per year or half of Cisco's salary. Either I am correct or missing something. Help me out.
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Well, we don't know what the share % are. It can be more or less. But I doubt it would be less than half. Where did you get the $250K a year number?
 
Section 101

Section 101

All-Star
#24
#24
Peter_Gibbons said:
I read it before you, I posted this. Do you understand the contract wording? The Maloofs will sell to Samueli and he will market and sell. The key word is SELL, not give away for free. Basically they both get a cut. There are 84 suites, a big increase from Arco. Its a big source of income, no doubt about it.
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Did you read that they sell the seats at face value? The suites are nothing but seats to the maloofs, the number of suites doesnt matter. The capacity of the arena is only a few hundred seats more. They get 50% of parking and consessions from NBA games only.
 
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Glenn

Glenn

Hall of Famer
#25
#25
RookieOfTheDay said:
A few months ago I'd have said there's no way they'd go for that but I have a bad feeling that things may be to the point where that's all it will take to get them to move. It just seems like A they're financially desperate and B have no loyalty left for Sacramento.
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They may not have a loyalty to Sacramento and if you are in Sacramento, I am sorry for you. I am a fan and there is absolutely nothing about the Maloofs that has made me think they have no loyalty if not gratitude for their fans. I am not playing with words. The people putting up the billboards are fans, the people going to the council meeting are fans, the people having rallies are fans, the Facebook pages are made by fans, we are fans. The don't dislike us.
 
Glenn

Glenn

Hall of Famer
#26
#26
Peter_Gibbons said:
Well, we don't know what the share % are. It can be more or less. But I doubt it would be less than half. Where did you get the $250K a year number?
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Somebody mentiond that on this forum although I might be wrong. The guy from OC maybe? Is there a way of searching? I'll see if I can find it. I don't make things up.
 
A

Arena Skeptic

Bench
#29
#29
This is just my opinion, but this lease deal is the one the Maloofs and the City of Anaheim negotiated. I don't believe Anaheim is ramming this down the Maloofs throats, or vice-versa. This is it, this is what the two sides had meetings about, agreed to in concept, had typed up, had lawyers vet, etc.

Maybe there's a 1 in 10 chance we get a chance to match, and maybe there isn't. But with the City of Anaheim scheduled to vote on bonds next week, that part looks like a 5-0 vote.

Just saying, there are only two outcomes here: Either the deal with Anaheim is done, or we get a chance to counter. And I think the chance to counter is very, very small.

I think this deal is very much done.

Also, don't compare the new lease with what they currently have; compare it with what they think they might get from Sac. If they came to us and gave us, in effect, ROFR, would we match? How you answer this determines what you think our chances are.

I give us less than a 1 in 10 shot. Doesn't mean the door is closed, but it's not swinging in the open direction, for sure.

Have the Maloofs given their info to Taylor-ICON yet? If not, it's no longer 1 in 10, it's 1 in 100, at best.
 
P

Peter_Gibbons

Starter
#30
#30
Section 101 said:
Did you read that they sell the seats at face value? The suites are nothing but seats to the maloofs. They get 50% of parking and consessions from NBA games only.
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Do you understand how the suites work? For each suite, you get X number of tickets. They don't sell the tickets individually, you buy it all together. The tickets allows each person to enter the suite. You don't buy the suite and then bring in as many people as you can fit. If you want to bring in more people, you will have to pay more for extra tickets. It says clearly that you need a ticket to enter the suite. The tickets are the revenue for the suites (+whatever food, drinks, service they order). And those tickets cost a lot of money and if the Maloofs get face value for every suite ticket, thats huge.
 
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