ESPN LA - Kings' future still uncertain

[Section 101]

http://sports.espn.go.com/los-angeles/nba/news/story?id=6557927

Once again lots of mis information, but I found a very interesting part.

Perhaps the biggest roadblock to a new Sacramento arena outside of the short time frame the city has to get a plan in place is that the Maloofs do not want to own and operate the arena as they currently do with Power Balance Pavilion, formerly known as Arco Arena. They simply want to be tenants in the facility, which would have been the case in Anaheim. While they will certainly contribute to the financing of a new arena, as Maloof said, "We are not going into this with a big checkbook."

So they dont want to run the arena? Seems to me they would be missing out on a lot of revenue. This also makes it easier to negotiate a lease since there is already a guideline for what is acceptable to them in the anaheim lease.

 

[sk4ever]

http://sports.espn.go.com/los-angeles/nba/news/story?id=6557927

Once again lots of mis information, but I found a very interesting part.



So they dont want to run the arena? Seems to me they would be missing out on a lot of revenue. This also makes it easier to negotiate a lease since there is already a guideline for what is acceptable to them in the anaheim lease.

I agree. LA spin, show me something Sam Amick writes and I'll put the salt shaker down

 

[kennadog]

I'm not so sure that they don't want to manage the arena, like Samueli's business does for the Honda Center. I can imagine they don't want to own the arena.

Yes, there was misinformation in there. I thought the lease said the Maloofs would get no revenue from the luxury suites? If so, so what if the Honda Center has more.

Obiously, the Maloofs wouldn't want to burn any bridges in Anaheim, so they are saying the right things down there. One thing is true. Geeting a new arena in Sacramento is going to be very difficult.

 

[bajaden]

I have a suggestion for George Maloof. Shut your pie hole! Your two brothers are in sacramento trying to mend fences, and your not helping.

 

[Mike0476]

George also said the Honda Center is "an NBA-ready facility."

Sounds like sour grapes to me and I'm not worried about this article.

May 26th couldn't come any sooner.

 

[RookieOfTheDay]

I don't see how the Maloofs not wanting to run it is a roadblock. If anything, it may be an advantage for Sacramento.

 

[kennadog]

I don't see how the Maloofs not wanting to run it is a roadblock. If anything, it may be an advantage for Sacramento.

It's not a road block. There are businesses that specialize in arena management. The city would just contract such a company.

 

[Mike0476]

I don't see how the Maloofs not wanting to run it is a roadblock. If anything, it may be an advantage for Sacramento.

Agreed. They put their cards on the table and it's to our advantage now.

 

[Mike0476]

It's not a road block. There are businesses that specialize in arena management. The city would just contract such a company.

This could help with public perception that this is not an arena built for the Maloofs to make all the profits.

 

[Section 101]

George also said the Honda Center is "an NBA-ready facility."

Sounds like sour grapes to me and I'm not worried about this article.

May 26th couldn't come any sooner.

Ya if it's NBA ready then why did it need $25 million in upgrades then $70 million.

 

[Purple Reign]

I am confused about a couple of things:

1. Why would they not want to operate the arena as Maloofs Sports and Entertainment. The money that they would be paying out in rent, they probably would get back two or three times with "in the arena" advertising and sponsorship. To me that is stupid.

2. The Commissioner in his editorial piece Sunday said that "The Maloof Family was overwhelmed by the community's display of dedication and loyalty and has committed support to an arena project". Joe Maloof says that it was the support of the fans that brought them back. And then this jackass says "We felt staying another year in the arena without a clear path to a new facility was NOT FAIR to us or the fans, but the timing is what it is".

I mean at this point it does not matter how or why they stayed, but my concern is can we trust this family to do right by this process. That has always been my biggest concern. I never thought I would hear myself say this, but Thank God for David Stern, because without him holding the Maloofs feet to the fire, i don't know if this thing will get done.

 

[Glenn]

The Maloofs have proven incompetent in managing an arena if managing means getting advertisers, selling suites, and even determining the price of beer. They were in over their head when they tried to run all aspects of an NBA team. I think it is just good judgment to farm it out to a company that does this for a businesss and has been successful. I suspect this was a strong recommendation by the NBA.

They have also learned that this area will go for a snooze if a gun is not put to their head.

George is a bit of a jackass isn't he?

Now I wish they'd let Petrie do his job.

 

[sk4ever]

This could help with public perception that this is not an arena built for the Maloofs to make all the profits.

I was thinking the same thing

 

[rainmaker]

I am confused about a couple of things:

1. Why would they not want to operate the arena as Maloofs Sports and Entertainment. The money that they would be paying out in rent, they probably would get back two or three times with "in the arena" advertising and sponsorship. To me that is stupid.

2. The Commissioner in his editorial piece Sunday said that "The Maloof Family was overwhelmed by the community's display of dedication and loyalty and has committed support to an arena project". Joe Maloof says that it was the support of the fans that brought them back. And then this jackass says "We felt staying another year in the arena without a clear path to a new facility was NOT FAIR to us or the fans, but the timing is what it is".

I mean at this point it does not matter how or why they stayed, but my concern is can we trust this family to do right by this process. That has always been my biggest concern. I never thought I would hear myself say this, but Thank God for David Stern, because without him holding the Maloofs feet to the fire, i don't know if this thing will get done.

There have been rumors that others have brought up, that Joe and Gavin were inclined to keep the team here another year, and wanted to see if an arena can be built, and it was George who was against staying, no matter what. Basically Anaheim or bust.

Joe and Gavin have always seemed passionate, and have had a connection with the fans, even if it isn't what it once was. Seeing them at the rally last week, and hearing what they've said since deciding not to file has given me hope. Not just with an arena, but that they as owners can reconnect with fans. It was going well, especially after the rally and having KJ reperesent us tonight.

But here comes George basically contradicting everything Joe/Gavin have said in the past week or two, as well as Stern. Wouldn't be surprsied of Joe/Gavin, and Stern, all tell him to STFU. He's not helping at all. He shouldn't be part of the picture. When most think Maloofs, and owners of the Kings, they think Joe and Gavin. Not George. If I were Joe and Gavin, I'd seriously consider not including the family in on decisions, and keep George and Colleen and their mom out of it.

 

[Livinthedream]

I don't see how the Maloofs not wanting to run it is a roadblock. If anything, it may be an advantage for Sacramento.

It's not. The roadblock is the Maloofs being so negative about the situation and telling everyone what they won't do or why it won't work. The roadblock is the Maloofs still going to the LA media and telling them how great Samueli is, while also telling them how terrible the situation in Sacramento is. Yet, George says they will give it an "honest" shot in Sacramento. Not possible when your focus and energy has not left the LA area. Unfortunately, George is the brother in charge of helping to get the arena deal done in Sacramento

 

[Glenn]

This is bizarre. The one outspoken anti Sacramento member of the family is the one in charge of cooperating with Sacramento to get an arena built. Who picked him? The Maloofs are not a single entity, of course, and the most negative is "helping" the area. Leaves me a bit uneasy.

 

[pdxKingsFan]

Someone once said here a few months ago that George was the biggest supporter of Sacramento but I find it hard to believe every time he is quoted. He is the business savvy one, since he actually made something out of nothing before he turned it into less than nothing.

 

[kennadog]

Someone once said here a few months ago that George was the biggest supporter of Sacramento but I find it hard to believe every time he is quoted. He is the business savvy one, since he actually made something out of nothing before he turned it into less than nothing.

No George was supposedly the one most against staying in Sac. That's why I, too, was not happy that he was made the point man on the arena by the Maloof family.

It may be because he has the better financial/business mind. Still wasn't happy about it, but its probably also so Gavin and Joe can focus on the team and the fans and be less of a lightening rod than George who really has no ties to this region.

 

[Section 101]

Someone once said here a few months ago that George was the biggest supporter of Sacramento but I find it hard to believe every time he is quoted. He is the business savvy one, since he actually made something out of nothing before he turned it into less than nothing.

I remember that too. But think about it. The Kings are just a way to advertise for the Palms to him. He's looking at it like Anaheim will bring more customers to the palms than Sacramento.

 

[Section 101]

The Maloofs have proven incompetent in managing an arena if managing means getting advertisers, selling suites, and even determining the price of beer. They were in over their head when they tried to run all aspects of an NBA team. I think it is just good judgment to farm it out to a company that does this for a businesss and has been successful. I suspect this was a strong recommendation by the NBA.

They have also learned that this area will go for a snooze if a gun is not put to their head.

George is a bit of a jackass isn't he?

Now I wish they'd let Petrie do his job.

And yet isn't running a hotel/casino basically doing the same thing? Isn't their strength supposed to be customer service?

 

[kennadog]

Managing an arena is manging and booking all the events at the arena, not just basketball. Seems to me the Maloofs might like to just pay a lease payment and not have to deal with all that and also deal with maintenance and capitol improvements over the years. Then they could just have their basketball team without all of the other headaches involved in managing and owning an arena.

 

[Capt. Factorial]

"We felt that staying another year in that arena and not having a clear path to a new arena wasn't fair to us or fair to our fans in Sacramento"

Hey George, I've got an idea. How about you go stuff it?

How in the world you get the idea that the team staying in Sacramento is not fair to the fans in Sacramento is beyond me. You can go cry to ESPNLA all you want but the facts remain:

1. You desperately wanted to move the team to Anaheim without giving Sacramento fair notice that you would do so - your brothers publicly insisted just 6 months before the news broke that they were not interested in moving the team
2. Kevin Johnson spent less than two weeks drumming up $10M+ in new corporate support that you and your brothers somehow ignored, leading to very strong suspicions that you were sandbagging the team to make a move to Anaheim more necessary
3. You defied the league's wishes in your attempt to relocate the team, not only requesting (and being granted) two extensions to get it right (which you didn't), but openly defying the Commissioner in a conference call after the league recommended you not file, saying "We're moving to Anaheim!" You even sought out advice from anti-trust lawyers on the subject of suing the league.
4. All of these actions caused Commissioner Stern to bring a major-league smackdown on you in a private phone conversation after the league conference call. Stern informed you that you were about to get the horns. Only when the horns looked too sharp did you back off and start the PR spin.
5. As a result of your stupidity, you've now got a team of NBA employees watching over your shoulder every move you make. You don't get to sandbag the team. You don't get to hamper the arena process. You don't get to take one step off the straight-and-narrow path that the NBA is leading you down - a path that the City of Sacramento hopes results in an arena plan within the next year - because there's a Burklebomb sitting right beside you. Your only hope is that the city can't get it done, because if they do, you're stuck in Sacramento FOREVER. Or until you sell, whichever comes first.

So go ahead, try to speak for the fans of Sacramento. Try to tell the world that it was fairer to us that our team leave. Sit there and spit your invective while knowing full well you are one sneeze away from being an ex-NBA owner, and it's your own fault. All the while I'll sit here smiling in a near-irrational schadenfreude while I watch your ship sink. Couldn't have happened to a worthier person. (No, literally. A worthier person would have dealt with the entire situation above-board and with class, unlike you, and they'd never have gotten themselves into the mess you're in. Enjoy.)

 

[Section 101]

Managing an arena is manging and booking all the events at the arena, not just basketball. Seems to me the Maloofs might like to just pay a lease payment and not have to deal with all that and also deal with maintenance and capitol improvements over the years. Then they could just have their basketball team without all of the other headaches involved in managing and owning an arena.

Like I said. How is that any different than booking events at a Vegas Hotel? How is it different than promoting music or the Maloof money cup?

 

[CruzDude]

Managing an arena is manging and booking all the events at the arena, not just basketball. Seems to me the Maloofs might like to just pay a lease payment and not have to deal with all that and also deal with maintenance and capitol improvements over the years. Then they could just have their basketball team without all of the other headaches involved in managing and owning an arena.

George Maloof is the bean counter, the finance guy of the Maloofs. Joe and Gavin are managers, operations types, marketing, sales, etc. The whole NBA thing is a business, an entertainment business. Arco Arena is an albatross around the Maloofs neck and a huge money sucker. I agree with Kennadog that leasing and being a tenant and getting game related advertising and TV revenue is the smart business solution that stops the money drain they are in now. Even with a new arena, the Maloofs would not own it any more, a piece of it maybe, but a tenant for the most part. Just like in Anaheim. That is the rub. Who builds a new arena in SacTown would have to own and operate it, the really big expense. The Kings/Maloofs would be tenants just like the rodeo, WWE and Garth Brooks when those events come to town. In the business climate now and for the next 4-5 years, tenancy is the smart business solution.

 

[JB_kings]

I think we can assume they were told to stay. They don't like that at all. I never got the illusion we are singing Kum Ba Yah here. So it's fair to classify them as reluctant to be in Sacramento. But they did help prove one thing, it's still the NBA who holds all the power in this matter. At the end of the day, if the city comes up with a plan to build a new facility, they pretty much have to stay. They don't have to continue to own the team if they don't like being here, but the team stays here.

 

[Section 101]

George Maloof is the bean counter, the finance guy of the Maloofs. Joe and Gavin are managers, operations types, marketing, sales, etc. The whole NBA thing is a business, an entertainment business. Arco Arena is an albatross around the Maloofs neck and a huge money sucker. I agree with Kennadog that leasing and being a tenant and getting game related advertising and TV revenue is the smart business solution that stops the money drain they are in now. Even with a new arena, the Maloofs would not own it any more, a piece of it maybe, but a tenant for the most part. Just like in Anaheim. That is the rub. Who builds a new arena in SacTown would have to own and operate it, the really big expense. The Kings/Maloofs would be tenants just like the rodeo, WWE and Garth Brooks when those events come to town. In the business climate now and for the next 4-5 years, tenancy is the smart business solution.

Uh, lots of cities do ! KC makes money on their arena having someone manage it ! Most of the arena's are owned by the cities and managed by a business.

 

[Bricklayer]

I've mentioned before that George Maloof is not Sacramento's friend, and if you think its accident that he is granting interviews and dropping soundbytes that would threaten to put a damper on things, you are kidding yourselves. The Kings were never his half of the empire. His half collapsed. He needs the money the Anaheim deal would have provided for his own purposes.

 

[asakkings]

Neither of the maloofs sound very intelligent when they speak, especially George. Also if the city owns and manages the arena will they keep all the money from parking and concession sales?

 

[RookieOfTheDay]

One other thing I notice is that they're portraying it as if Anaheim is a sure thing after this year. With the opposition from Buss, even if they got approval to move there would they be able to afford the relocation fees? The Maloofs may not be financial geniuses but I doubt they're dumb enough to pay 100-150 million dollar fee just to make a few million more a year. It'd take them a few decades in Anaheim just to break even on the relocation fees.

 

[Section 101]

Neither of the maloofs sound very intelligent when they speak, especially George. Also if the city owns and manages the arena will they keep all the money from parking and concession sales?

That's all part of the lease agreement. In anaheim there were splitting parking 50/50 for NBA games only.