City of Sacramento directs Ahaheim to stop negotiations with Kings.
- Thread starter Hoovtrain
- Start date
So $10 million a year ratcheting up to 33 million a year over 30 years isn't reaping any rewards? That was the agreed upon lease payments in the previous plan that the City Council put forward (Convergence Plan). Per the Bee:
PLAYER: Maloof Sports & Entertainment, owner of Sacramento Kings.
WHAT THEY GIVE: They pay off a $69 million loan from the city. They pay for a 30-year lease for the new arena, starting at $10 million the first year, ratcheting up to $33 million in final lease year. They give up 85 acres at Arco site.
http://www.sacbee.com/2010/04/27/2707788/inside-the-arena-land-swap-plan.html
PLAYER: Maloof Sports & Entertainment, owner of Sacramento Kings.
WHAT THEY GIVE: They pay off a $69 million loan from the city. They pay for a 30-year lease for the new arena, starting at $10 million the first year, ratcheting up to $33 million in final lease year. They give up 85 acres at Arco site.
http://www.sacbee.com/2010/04/27/2707788/inside-the-arena-land-swap-plan.html
From my experience living in towns with highly accessible downtown arenas nearby businesses definitely thrive. Then there's Staples Center which was a ghetto when I moved to SoCal and now is actually a pretty decent place 10 years later thanks to the kickstart Staples provided. A huge key is making sure any new facility would also have some convention space. That is definitely a boon here in Portland with the Rose Quarter (Rose Garden, old Memorial Colliseum and Portland Convention Center) and Staples. It keeps those places booked year round.
In addition to the main lot set up some sattelite parking between restaurants/bars and the new arena and give them a cut.
In addition to the main lot set up some sattelite parking between restaurants/bars and the new arena and give them a cut.
Take a walk through the Gaslamp district in San Diego after a game. It really took off after the stadium went in. But don't listen to me... http://www.signonsandiego.com/news/2010/jul/14/ballparks-76-return-tops-forecasts/
Maybe this is a stupid question, but what exactly can the Maloof’s even contribute at this point? Even if Sacramento can get a proposal together along with the funding, how would the Maloofs even be able to contribute? I’m not privy to their financial situation, but it does not look all that great. They have to take a loan from Samueli just to move, renovate and possibly pay back bonds to Sacramento. That would total $150 roughly, which would be right around what their contribution to the new arena (maybe a little less). I don’t see how they could secure a loan from anyone in order to contribute to a new arena. The only reason they are getting this loan from Samueli is because it’s a win win for him. He brings in a team to Anaheim, they pay him rent, and they pay back the loan. If they default and don’t pay back the loan he is the proud new owner of an NBA team. It is a unique situation in that Samueli really has nothing to lose in loaning them this money.
Yeah, the success of a downtown arena in Sac would certainly hinge on the master plan with special attention paid to the surrounding areas that would see activity spill over from gameday and events, as well as transportation, shared spaces, proximity of programs, etc. This of course, would increase the scope of the project, but it would have to be sold to the public as an urban investment, with the arena only being a piece of a much larger effort. The design of the whole layout would be critical as to whether or not it would be a success, in my opinion.
Mason and Ireland had the mayor of Anaheim, Tom Tait, on the show just now. Their primary question was basically "what obligations do the taxpayers have for these bonds?" The basic answer is just what posters here have said. The bonds are backed by Samueli, and only in the event of a default on his part would the responsibility for them be put off on the city and taxpayers. Not traditional bonds, but privately backed by Samueli.
Also says that the funds generated by the bonds can be used for whatever purpose the Maloofs see fit, including paying off their Sacramento loan.
Also says that the funds generated by the bonds can be used for whatever purpose the Maloofs see fit, including paying off their Sacramento loan.
I am suprised know one has asked. But does anyone know if the relocation fees imposed on the Kings has to be paid in full before they move or can they pay the amount over say a 5 or 10 year period? If that is the case and they do not have pay the fee in full right away then I can see nothing stopping them from moving unfortunately.
I highly doubt the Maloofs have 77 million to pay off Sacramento. They had to borrow 50 just to pay for the move. I think it's pretty clear that the bond amount of 50 million was for paying off the NBA reloaction fees. And I would bet the farm that the number was not a wild guess on the Maloofs part. They got a max amount promise from David Stern himself I bet. And who names the people on this committee to study the move and make a recommendation? Stern of course.
Maybe not all the teams like this move, but it will pass and it will pass like 25-5 or 26-4 on the vote. The relocation fee will be 50 million max. Which is 30 million base move and 20 million to the LA teams for sharing. The NBA will be cashing a check long before the City of Sacramento will. That will be tied up in the courts for a long time. The Maloofs will probably run Arco through the few scheduled shows until the end of the year and then sell it off or try to pawn it off to the city to help pay back the debt.
Maybe not all the teams like this move, but it will pass and it will pass like 25-5 or 26-4 on the vote. The relocation fee will be 50 million max. Which is 30 million base move and 20 million to the LA teams for sharing. The NBA will be cashing a check long before the City of Sacramento will. That will be tied up in the courts for a long time. The Maloofs will probably run Arco through the few scheduled shows until the end of the year and then sell it off or try to pawn it off to the city to help pay back the debt.