A Sacramento Kings move would prove costly/The Swarm: Mayor Johnson resigned on Kings

[Mike0476]

"Unfortunately, with the money the Kings owe Sacramento, a $50-million-plus NBA relocation fee and compensation for the Lakers and Clippers, that's not a pot of gold at the end of Interstate 5, it's a bridge loan."

http://www.latimes.com/la-sp-nba-coast-20110313,0,576704.story


"He told the Natomas Chamber of Commerce that the Kings have one foot "and three toes, maybe four" on the other foot out the door, despite his entreaties to the Kings owners, the Maloofs. Johnson said everyone should know for sure by the NBA owners meeting in mid-April, if not before."

Read more: http://blogs.sacbee.com/the_swarm/2011/03/mayor-johnson-resigned-on-king.html#ixzz1GcXPAG00
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[Az1atic]

so whats the status of right now, has KJ been talkin wih the maloofs? or is this just his gut feeling

 

[ParniValjak]

My question is where the hell do they get this ridicilous re-location fees from. The maximum relocation fee can be $30million and its not even madatory, so it could easily be that there is no re-location fee to start off with.

Secondly, I am not sure exactly what rights does the city have to request that the name stays in the city when the name is much older and was there before the team moved to Sacramento. I honestly don't like their chances because its a franchise brand that was part of the franchise well before the Kings moved to Sacramento. I don't think they can force the team to change the "theme" just because Sacramento happened to be one place that the team played in.

The situation with the Seatle was a little bit different.

 

[JB_kings]

My question is where the hell do they get this ridicilous re-location fees from. The maximum relocation fee can be $30million and its not even madatory, so it could easily be that there is no re-location fee to start off with.

Secondly, I am not sure exactly what rights does the city have to request that the name stays in the city when the name is much older and was there before the team moved to Sacramento. I honestly don't like their chances because its a franchise brand that was part of the franchise well before the Kings moved to Sacramento. I don't think they can force the team to change the "theme" just because Sacramento happened to be one place that the team played in.

The situation with the Seatle was a little bit different.

The relocation fees are discretionary. Which means your number of 30 is about as up in the air as their 50. They did make OKC pay more than 30 when they moved. But then again they didn't move to a market where there is two NBA teams already laying claim to the territory. So it could easily be 50 million with compensation for those teams. And before you laugh at that number, it could be higher because the Lakers media deals are on another planet. A 1 million dollar payoff would be a joke to them. Does this mean that the Lakers deserve nothing and the NBA board is ready to tell them that? How would you react if you were Jerry Buss? The answer might be closer to this LA Times report than what was agreed upon in OKC.

 

[ParniValjak]

The relocation fees are discretionary. Which means your number of 30 is about as up in the air as their 50. They did make OKC pay more than 30 when they moved. But then again they didn't move to a market where there is two NBA teams already laying claim to the territory. So it could easily be 50 million with compensation for those teams. And before you laugh at that number, it could be higher because the Lakers media deals are on another planet. A 1 million dollar payoff would be a joke to them. Does this mean that the Lakers deserve nothing and the NBA board is ready to tell them that? How would you react if you were Jerry Buss? The answer might be closer to this LA Times report than what was agreed upon in OKC.

You are assuming that Lakers have the greatest say here....they don't! Its 30 teams and not just 2 in LA. They slugged OKC because that was a much messier departure. Compensation fee is one thing, relocation fee is another. Relocation fee is applied on disgression by the NBA Board and it could range from anywhere between $0 to some ridicilous number which is split between the rest of the teams. On top of that you have a compensation fee for entering the market which would only go to Lakers and Clippers.

People are coming up with ridicilous numbers where it would be more financially feasable for Maloofs to sell the Kings and buy a new team in a bigger market.

 

[Glenn]

People are coming up with ridicilous numbers where it would be more financially feasable for Maloofs to sell the Kings and buy a new team in a bigger market.

Good idea. Tell the Maloofs.

There is no question that this is going to be expensive and unless they are assured of a very nice payback from the media and inflated ticket prices and don't have to pay pay extra rent for a renovation of an old arena or build of a new arena in the near future, it makes perfect sense. It will be expensive. $9 mil is nothing but that's just the penalty for paying off the bond on ARCO, or whatever the heck it is called, early. Didn't they default on some loans on the Palms? How can they float another loan? How much cash do they have laying around? How eager are the minority partners to help them.

I think KJ is playing a game with us. Not sure if he has good intentions or selfish intentions.

 

[JB_kings]

Still seems like some precedent setting is going to be played out. That's why I think it will be higher for this relocation fee than OKC. And with Larry Ellison looking to buy and move into San Jose, it's going to be tested again soon. Not quite the rubber stamp it has been in the past.

I know the Lakers and Clippers only have one vote each, but is that the only card they have to play in this game? If I were them and somebody moved into my market and started reaching in my pocket, I would be playing ball a little bit harder.

 

[Glenn]

Still seems like some precedent setting is going to be played out. That's why I think it will be higher for this relocation fee than OKC. And with Larry Ellison looking to buy and move into San Jose, it's going to be tested again soon. Not quite the rubber stamp it has been in the past.

I know the Lakers and Clippers only have one vote each, but is that the only card they have to play in this game? If I were them and somebody moved into my market and started reaching in my pocket, I would be playing ball a little bit harder.

I think this is an issue beyond our control of course but reason enough to keep up the energy. Do the Clippers and Lakers have a say in what kind of penalty the Kings will get for moving into their media area? That's what I understand but I don't know what is fact and what is wishful thinking. It could be an expensive move. Maybe the Maloofs can't afford it and are trapped with an ugly arena named for a scam product and a dream they can't finance.

 

[fansinceday1]

I think this is an issue beyond our control of course but reason enough to keep up the energy. Do the Clippers and Lakers have a say in what kind of penalty the Kings will get for moving into their media area? That's what I understand but I don't know what is fact and what is wishful thinking. It could be an expensive move. Maybe the Maloofs can't afford it and are trapped with an ugly arena named for a scam product and a dream they can't finance.

This is exactly what im starting to think. No particular reason, just my gut.

 

[kennadog]

And with Larry Ellison looking to buy and move into San Jose, it's going to be tested again soon. Not quite the rubber stamp it has been in the past.

Exactly why the Warriors have come out and said they are against a Kings move to Anaheim. They are afraid it will weaken their chance of keeping a team out of San Jose, currently part of the Warriors market.

I do think it will be hard to keep the Kings name, although the Kings have been in Sacramento longer than anywhere else in their history. The one thing that might help is that they probably don't want the team to still be called the Kings in Anaheim. Too confusuing with the long time LA Kings hockey team. (I went to some Kings hockey games as a child. We're talking 50 years ago. Yes, I'm old.)

 

[JB_kings]

Exectly why the Warriors have come out and said they aer against a Kings move to Anaheim. They are afraid it will weaken their chance of keeping a team out of San Jose, currently part of the Warriors market.

I do think it will be hard to keep the Kings name, although the Kings have been in Sacramento longer than anywhere else in their history. The one thing that might help is that they probably don't want the team to still be called the Lings in Anaheim. Too confusuing with the long time LA Kings hockey team. (I went to some Kings hockey games as a child. We're talking 50 years ago. Yes, I'm old.)

How about they rename them the Anaheim Wings? That way they can market them as the Anaheim Duck-Wings!

 

[Gary]

Personally I don't think it's even viable for the Kings to move. I think there is bad blood between some of the Sac politicians and the Maloofs and the Maloofs are off in a corner crying about how they don't care how much it will cost, they just want to move. Kind of like the little kid that cries in the corner and says "I don't care" to anything you say after you got him mad.

If the Maloofs are still content in leaving and paying out the nostril when they do then they never wanted to be here in the first place.

 

[JB_kings]

Personally I don't think it's even viable for the Kings to move. I think there is bad blood between some of the Sac politicians and the Maloofs and the Maloofs are off in a corner crying about how they don't care how much it will cost, they just want to move. Kind of like the little kid that cries in the corner and says "I don't care" to anything you say after you got him mad.

If the Maloofs are still content in leaving and paying out the nostril when they do then they never wanted to be here in the first place.

Somewhat simple situation really. Why don't I or many others here live in a several million dollar mansion in Granite Bay? Because none of us have the money to move there. I get the Maloofs getting all dreamy eyed over getting their status bumped up to SoCal players. But I'm not sure if the reality has set in yet that they may not have the money to move.

This still has me scratching my head how a team claiming to be poor and in need of a cash infusion can shell out what appears to be vast amounts of money to make such a move. They can line up sweetheart arena leases from Samueli all day long. But in the end, nothing in the way of a direct cash influx is coming in as anything other than a loan with options of buying the team out. Samueli has more on his agenda than filling the building. The media deal is not going to be that much more so as to offset the cost to move now. So where does all this cash come come from to pay off the city for the loan at approx 75 million, the relocation fee of anywhere from 30-50 million, the costs to physically move the organization and possible rights fees to the Lakers and Clippers for moving into their market?

 

[Glenn]

It is truly wonderful to see that the mourning over the loss of the Kings has shifted towards a more realistic outlook. Amazing, huh? If it buys a year, that's fine with me. If the city or developers can't get a plan together, then I hold no malice whatsoever towards the Maloofs. They can solve their own problems and the city will have lost a team because of its own inability to act to make us folks happy.

To tell you the truth (why wouldn't I?) I think KJ is playing a political game. I also think the Maloofs are, in part, playing a game. If they get a new arena they win but then don't we all?

 

[Section 101]

Somewhat simple situation really. Why don't I or many others here live in a several million dollar mansion in Granite Bay? Because none of us have the money to move there. I get the Maloofs getting all dreamy eyed over getting their status bumped up to SoCal players. But I'm not sure if the reality has set in yet that they may not have the money to move.

This still has me scratching my head how a team claiming to be poor and in need of a cash infusion can shell out what appears to be vast amounts of money to make such a move. They can line up sweetheart arena leases from Samueli all day long. But in the end, nothing in the way of a direct cash influx is coming in as anything other than a loan with options of buying the team out. Samueli has more on his agenda than filling the building. The media deal is not going to be that much more so as to offset the cost to move now. So where does all this cash come come from to pay off the city for the loan at approx 75 million, the relocation fee of anywhere from 30-50 million, the costs to physically move the organization and possible rights fees to the Lakers and Clippers for moving into their market?

Yep. If they move I see the Maloofs having to sell within 4 years because they dont have the money to keep the team a float. If they stay they would at least be able to maintain the status quo or even make more if the team gets better and they sell more tickets.

 

[Glenn]

Yep. If they move I see the Maloofs having to sell within 4 years because they dont have the money to keep the team a float. If they stay they would at least be able to maintain the status quo or even make more if the team gets better and they sell more tickets.

If??????

 

[Kingster]

It is truly wonderful to see that the mourning over the loss of the Kings has shifted towards a more realistic outlook. Amazing, huh? If it buys a year, that's fine with me. If the city or developers can't get a plan together, then I hold no malice whatsoever towards the Maloofs. They can solve their own problems and the city will have lost a team because of its own inability to act to make us folks happy.

To tell you the truth (why wouldn't I?) I think KJ is playing a political game. I also think the Maloofs are, in part, playing a game. If they get a new arena they win but then don't we all?

I think it's very possible that the Maloofs will get played - by Anaheim. The Maloofs have no cash to pay off the Arco loan, much less other cash that might be needed for relocation. In the meantime they have 9 toes out the door, except there's a teency weencie little problem - they don't have an agreement with Anaheim. So who has the leverage now? Anaheim, that's who. And the Anaheim folks are going to squeeze really hard on the Maloofs to extract every possible concession, including ownership interest, which is exactly what the Maloofs proclaim they don't want to give up. Despite what the Maloofs have declared, I think there's more of a likelihood the Maloofs sell this team rather than move it. Or maybe there's a combination of the two.