Arena deal dead

[Letsgokings13]

David Sterns comments (4/27/12) on failed Arena deal

We are disappointed for the city, its businesses and the supportive fans of the Kings, as well as team ownership , that this transaction, which we thought was fair has been abandoned. The Kings had the right to do that, as well as the right to continue at Power Balance Arena.

Interesting choice of words. "thought was fair", "supportive fans" "continue at power balance arena"

Make what you want of it

https://twitter.com/#!/jmikenbausat writes for USA today

 

[VF21]

Yep, especially way it is carefully worded in sequence. City, businesses, supportive fans - and last on list, the "onerouship."

I see what you did there.

 

[JB_kings]

Call me biased, but I read that as Stern saying the Kings had/have two choices: Take a fair deal approved by the NBA or stay at PBP. Both Stern and George have been circling this choice and I bet I wouldn't be smoking crack to guess George thinks he has earned a third option to relocate as he was "promised" last year. Stern obviously sees things differently.

In a nutshell.

 

[Kingsfan23]

I was thinking of making it its own topic, but do the Maloofs have the financial wherewithall to post collateral and actually making this deal happen? If this deal wasn't getting done because the Maloofs flat out can't afford it, I would have a little more understanding than I do when I believe that they flat out just want to relocate the franchise

 

[VF21]

I was thinking of making it its own topic, but do the Maloofs have the financial wherewithall to post collateral and actually making this deal happen? If this deal wasn't getting done because the Maloofs flat out can't afford it, I would have a little more understanding than I do when I believe that they flat out just want to relocate the franchise

This has been discussed in various other threads, but the gist of the matter is that we don't know their full financial picture. It is known that they are majority stockholders in Wells Fargo, for example, a fact that George has mentioned frequently of late. But I don't think we have any way of knowing if those stocks are already listed as collateral for something else.

 

[Kingsfan23]

This has been discussed in various other threads, but the gist of the matter is that we don't know their full financial picture. It is known that they are majority stockholders in Wells Fargo, for example, a fact that George has mentioned frequently of late. But I don't think we have any way of knowing if those stocks are already listed as collateral for something else.

It would go a long way in determining how I feel about them.. right now I just have the picturethat everyone else does - conniving, heartless bastids determined to relocated a team despite the best intentions of the city.. if in fact they were too destitute to complete this deal, although I would still want them out as owners immediately, I could feel an ounce of empathy. I guess we'll see how it unfolds

 

[VF21]

I do not believe they are still going to try to relocate. The new CBA changed revenue sharing and the Maloofs, provided they keep the salary close to the bottom of the scale, should actually make money on the team. If I had to make a best guess, it would be that George - since he seems to be the one really calling the shots - is hoping they can keep the Kings going on the cheap until the economy turns around or they find another way to move the team. They won't move next year and I strongly suspect they won't be allowed to relocate until the stink has gone away, which might be several years - if then. If anything, I think they might well end up selling the team if someone (think Burkle or someone else with deep pockets) makes them an offer they cannot refuse.

It's not over yet. The current arena deal might be dead, but the railyards are still there as an attractive option for someone with the vision and financial resources necessary to get it done.

 

[JB_kings]

First rule of being an ex-millionaire - never admit you are broke! They take away your membership card and stop inviting you to all the cool parties. So just act like you still have money and hope like heck you fool at least one person not on your payroll.

 

[Tetsujin]

Call me biased, but I read that as Stern saying the Kings had/have two choices: Take a fair deal approved by the NBA or stay at PBP. Both Stern and George have been circling this choice and I bet I wouldn't be smoking crack to guess George thinks he has earned a third option to relocate as he was "promised" last year. Stern obviously sees things differently.

In a nutshell.

George Maloof and smoking crack in the same sentence? How dare you denigrate hardcore drugs good name by including their presence with such scum.

 

[Tetsujin]

I do not believe they are still going to try to relocate. The new CBA changed revenue sharing and the Maloofs, provided they keep the salary close to the bottom of the scale, should actually make money on the team. If I had to make a best guess, it would be that George - since he seems to be the one really calling the shots - is hoping they can keep the Kings going on the cheap until the economy turns around or they find another way to move the team. They won't move next year and I strongly suspect they won't be allowed to relocate until the stink has gone away, which might be several years - if then. If anything, I think they might well end up selling the team if someone (think Burkle or someone else with deep pockets) makes them an offer they cannot refuse.

It's not over yet. The current arena deal might be dead, but the railyards are still there as an attractive option for someone with the vision and financial resources necessary to get it done.

Yeah, it's beginning to become abundantly clear that George is content with following the Oakland A's business model of pinching pennies and making a profit until everyone stops about your team enough to move it without an uproar.

 

[JB_kings]

I do not believe they are still going to try to relocate. The new CBA changed revenue sharing and the Maloofs, provided they keep the salary close to the bottom of the scale, should actually make money on the team. If I had to make a best guess, it would be that George - since he seems to be the one really calling the shots - is hoping they can keep the Kings going on the cheap until the economy turns around or they find another way to move the team. They won't move next year and I strongly suspect they won't be allowed to relocate until the stink has gone away, which might be several years - if then. If anything, I think they might well end up selling the team if someone (think Burkle or someone else with deep pockets) makes them an offer they cannot refuse.

It's not over yet. The current arena deal might be dead, but the railyards are still there as an attractive option for someone with the vision and financial resources necessary to get it done.

Well they don't have unlimited time to sit on the stay in Arco plan. Their loan with the city has only been paying back interest only type payments so far. Sometime in the near future, 2-3 years I think, those payments are supposed to skyrocket. So for example, they may be making yearly payments of perhaps 2-3 million up to now. But in a few short years they might be 5-7 million a year payments.

Given George's approach of giving the middle finger to an entire fan base, town and putting a marginal product on the floor (think weak TV revenues in next contract). He might also have a little cash flow from his Kings cash cow in the future.

 

[Glenn]

I do not believe they are still going to try to relocate. The new CBA changed revenue sharing and the Maloofs, provided they keep the salary close to the bottom of the scale, should actually make money on the team. If I had to make a best guess, it would be that George - since he seems to be the one really calling the shots - is hoping they can keep the Kings going on the cheap until the economy turns around or they find another way to move the team. They won't move next year and I strongly suspect they won't be allowed to relocate until the stink has gone away, which might be several years - if then. If anything, I think they might well end up selling the team if someone (think Burkle or someone else with deep pockets) makes them an offer they cannot refuse.

It's not over yet. The current arena deal might be dead, but the railyards are still there as an attractive option for someone with the vision and financial resources necessary to get it done.

I agree with this totally. As to the stock in Wells Fargo, this would be a bad time to sell as bank stocks have taken a huge hit. I know BofA dropped 40% but is probably inching back. Point being, if they need collateral or actual cash money, the Wells Fargo stock isn't worth much to them at this moment. I have always doubted they had enough money to do anything and they are leveraged to the hilt just by what we know of their finances. In the next year or two that could change substantially.

They must have no faith in the recovery of their stocks as I suspect the NBA's offer of $70 mil to help them with the arena would normally look like a great deal unless there was fear that it could never be paid back.

Just a bunch of guessing but probably as accurate as anyone's guess. As much as we vilify the Maloofs, no one, including the Maloofs who until now at least seemed to be decent people, wants their reputation trashed the way theirs has been trashed.

 

[Glenn]

Well they don't have unlimited time to sit on the stay in Arco plan. Their loan with the city has only been paying back interest only type payments so far. Sometime in the near future, 2-3 years I think, those payments are supposed to skyrocket. So for example, they may be making yearly payments of perhaps 2-3 million up to now. But in a few short years they might be 5-7 million a year payments.

But delaying a few years may change their finances. They have to hope that the economy recovers.

 

[kennadog]

I am so depressed about this outcome, when everything looked like a go. Playing at PBP Pavilion for super cheap owners is going to make it very difficult to for this team to ever be any good. Other players won't want to come here, won't be offered enough to come here and our better players will likely leave as the first chance.

And that doesn't begin to take into account all the other events/performers who will increasingly pass by Sacramento. This just sucks.

 

[Glenn]

Will some one explain to me why the Maloofs weren't involved in the negotiations. It seems (insert bad word or two) that many people can negotiate for a year and within a few weeks time the Maloof come in and kill it.

 

[The Hammer]

Will some one explain to me why the Maloofs weren't involved in the negotiations. It seems (insert bad word or two) that many people can negotiate for a year and within a few weeks time the Maloof come in and kill it.

Short answer: they asked the NBA to do so.

Long answer: They proved themselves to be sabotaging the market and not capable of having even basic relations with their sponsors who were purposely neglected so the NBA said **** these bozos we're taking over but we'll make it look like they are "requesting" us to do so, but really we need to do this to show that a viable deal can get done and if they sabotage it after it's negotiated then we'll never let them leave for lack of an arena and they'll eventually be forced to sell cause we can't stand these jerks.

 

[fansinceday1]

As a LONG TIME A's fan I can attest to how bad A's fans have been jerked around. You can look at darn near every ML team and see an ex A's player on their roster. The A's are the triple AAA affiliate of the whole darn league. Oh my God I couldnt think of anything worse than if the Kings follow the A's lead into how to destroy a fanbase. As soon as the A's start coming out of the shadows management has a fire sale and gets rid of every good player on the roster and brings up another set of prospects from AAA. Their stadium is a cemetery. They do the least amount possible to make the coliseum serviceable. It's pretty darn depressing to attend and Oakland A's game.

If this is the route the maloofs are gonna take then we are in for a long horrible ride. This is not good.................not good at all.

 

[JB_kings]

But delaying a few years may change their finances. They have to hope that the economy recovers.

After Stern's comments in the Bee about voting to deny the Kings their revenue sharing in the future, I think the squeeze is definitely going to be on the Maloofs.

 

[VF21]

These threads keep overlapping each other. I merged the stuff on the Bee article into the "Stern pulls no punches" thread so we don't keep duplicating comments. I'm going to close this thread now in favor of the newer discussions.