Bee: Voisin - Kings Face Mounting Losses

[kennadog]

http://www.sacbee.com/voisin/story/1612400.html

It's not losses on the court. This is about financial losses. The estimate here is that MSE may be facing a $25 million loss this season.

For the first time, I'm feeling pessimistic about the Kings staying in Sacramento. Let's face it, no matter how much the Maloofs would like to stay in Sacramento, and I believe they do, they can't commit to continued cash hemorrhaging. Worst attendance, a regional economy in the tank, combined with no economically viable arena plan even close may doom us.

This article says that Anaheim and San Jose are the most aggressive pursuers of a franchise. Ultimately we can't compete with either for market size, corporate base or TV rights. The attendance puts us as the worst fan base in the league, formerly our main attraction. It's still hard to imagine that Warriors, Lakers or Clippers will won't fight a franchise going to either of those locations.

What sells us to the franchise as a place to stay at this point?

 

[VF21]

The economy is bad all over. Those touted corporate partners in San Jose are suffering horrific downturns. There is no reason for anyone to assume, at this point in time, that attendance would miraculously improve elsewhere... In additiion, rebuilding teams almost always have horrible attendance. It's one of the bad things of getting bad enough to get good.

The cash hemorrhage is because of bloated contracts that are finally going to be disappearing.

JOE MALOOF REITERATED THE FAMILY'S COMMITMENT TO THE COMMUNITY.

I put that all in caps so people would see it. All the talk of moving the team has consistently come from sources other than the Maloofs. And I cannot help but be very irritated at it. At some point, if the Maloofs truly start to believe we do not want them here or don't have faith that they want to be here, then they will, in fact, start considering those other offers.

Voisin also said that Joe Maloof was "clearly agitated by the question."

He replied:

"We've been approached constantly since we bought the team, and we're still here," he said. "We've never wavered. We've always kept our word. We didn't try one (failed arena deal) and split. Our goal and objective is to get something done here..."

I believe him. And I strongly wish others would, too...

/soapbox rant

 

[Circa_1985_Fan]

Believe me VF, I couldn't be more with you about this! People are so quick to believe petty rumors about the Maloofs wanting to hurry up and get out of little ole Sacramento... but I hate to disappoint those people when I say: 11 years have passed since they bought the team and they haven't bolted to Las Vegas, Anahiem, Timbuktu and where ever else city can so easily provide more prosperity...or a fan base that could even amount to 10% of the rabidness we provide as fans...and the Maloofs realize that they have that something special here and have to be patient through the most frustrating of times...much like San Antonio was durum their years of rebuilding, and look at the fruits if their labor, a new arena and 4 championships...not too shabby if you ask me.

 

[kennadog]

Whoa, I never said the Maloofs are looking to move. Never even hinted at that. Sorry, if it seemed like that is what I was saying. All I'm saying is the economic situation may force them to move.

Yes the economy is bad, but it is much worse in some parts of the country, including California and especially Sacramento. Why? Because the regional housing market took one of the biggest hits of any market in the country. We had one of the most over-inflated housing markets anywhere. That has a ripple effect. Also, any financial problems the State has will hit the Sacramento region especially hard, because it's the biggest employer in the region.

We can't just ignore those facts. When you add in the clear lack of butts in the seats at Arco and the fact that a new arena is likely a long way away, under the most optimistic spin, things are not looking so hot. It may be too long for the franchise to wait, if a better, modern, higher income-producing arena is available or much closer to reality, than an arena here.

They were talking to the Mavericks announcer last night and he was saying ticket sales were okay and a big part of that is that the housing market hasn't dropped as much as many other areas and their economy isn't as bad as some areas. That's true in a lot of areas. Everyone is suffering economically, but the suffering is definitely not equal.

I sincerely believe the Maloofs want to stay and I do not believe they are planning to move as we speak. I'm just beginning to believe that it may not be economically feasible for them to stay much longer.

I've been one of the most optimistic people around here. There comes a time, though, when cold hard facts start to hit. I'll see what happens when the Cal Expo plan is revealed, but even with a plan, the current economy may mean it can't move forward for years. We'll have to wait for the Cal Expo folks to do their own fiscal analysis after that, anyway. My guess is they will be very conservative, though, which won't help.

I'm not giving up hope completely. I'm sure the Maloofs will stay put, if there's any chance at all. It's just we have managed to to hit a perfect storm of bad economic circumstances all around (team, city, region, State).

 

[VF21]

If it's not economically feasible here, it's not going to be economically feasible anywhere... Sorry, kenna, but I refuse to buy into the idea that they might have to leave. And I'll keep on refusing to buy into it even if I'm left alone waving at the moving trucks...

Hope springs eternal for me. The alternative is quite frankly just too depressing to even think about. If/when the time comes, then I'll have to figure out a way to deal with it then. I guess I just don't believe in what my grandmother used to call "borrowing trouble."

 

[vikinginferno]

I would die without the Kings in this city. I mean what would we have then? The Rivercats, The Monarchs??? Pshh....

 

[kupman]

All I ever heard when the Kings were winning and the franchise was making money was - "the Maloofs are moving to Vegas." Now the team is losing and the Maloofs are losing money and all I ever hear is - "the Maloofs are moving to Vegas."

It gets really old.

 

[kennadog]

All I ever heard when the Kings were winning and the franchise was making money was - "the Maloofs are moving to Vegas." Now the team is losing and the Maloofs are losing money and all I ever hear is - "the Maloofs are moving to Vegas."

It gets really old.

There is no scintilla of evidence that they are planning a move, just to be clear. At some point they might have to consider it, but that day isn't here yet. I just wish we could get some actual good news, I guess. Some days it's just hard for me to keep my hopes up and hard to see how an arena will ever happen in time.

Guess it was my turn to be the dark cloud. I haven't done it before on this issue. Sorry folks.

 

[Circa_1985_Fan]

All I ever heard when the Kings were winning and the franchise was making money was - "the Maloofs are moving to Vegas." Now the team is losing and the Maloofs are losing money and all I ever hear is - "the Maloofs are moving to Vegas."

It gets really old.

Who are you telling! lol Having lived in Vegas for a couple years during a couple of our good years(1999-2001), and having ran the LV radio affiliate for the Kings as well during those years as well...I got so tired of hearing that from not only the media outside Sacramento, but the pessamists WITHIN Sacramento...'Oh, all the billionaire boys want to do is move the team to their home town, Vegas Baby!' That's been a mantra that has sounded like an old, creaky record...and I've always reminded everyone: No professional sports team within the 4 major leagues(MLB, NHL, NBA, NFL)can ever move there until the city abolishes gaming on whatever sport wants to move there...and that means getting the over 500 casinos to give up BILLIONS of dollars...not gonna happen! The Kings own two of the longest sellout streaks in history, and I'm sure both the Maloofs and Mr. Stern are WELL aware of our fan base given a competitive product to watch on the floor...or NOT competitive for that matter, for the first 14 years of the franchise's exsistance in Sacramento. I have confidence that the team will get a shiny new arena after a long, hard process...it will pay off in the end, where ever that is in the city.

 

[kennadog]

Thanks you Circa_1985_Fan, for the pep talk to bolster my flagging spirits.

 

[kupman]

There is no scintilla of evidence that they are planning a move, just to be clear. At some point they might have to consider it, but that day isn't here yet. I just wish we could get some actual good news, I guess. Some days it's just hard for me to keep my hopes up and hard to see how an arena will ever happen in time.

Guess it was my turn to be the dark cloud. I haven't done it before on this issue. Sorry folks.

No worries - it was not directed at you. It was directed at all the naysayers of Sactown who would like to see the Kings move, K Street crumble, rail yards never be developed etc.

I really need to stop reading the comments section on sacbee.com LOL

 

[hrdboild]

Yeah, just to add to what others are saying, I've questioned a lot of the personnel decisions and basketball related decisions by the Maloofs over the years, but I've never questioned their commitment to keeping the Kings in Sacramento. That's one issue on which they've been very consistent. Even in a really bad fiscal year, I don't get the impression that moving the team is even under consideration right now. Maybe in 10 years if nothing changes, but I'm pretty confident some kind of arena plan will come to pass before that. The sky isn't falling. I think everyone is just taking their time at this point in trying to make the best possible investment for all people involved. And there's nowhere to go but up for the team on the floor. Up is a good feeling. I'm looking forward to up.

 

[kennadog]

And there's nowhere to go but up for the team on the floor. Up is a good feeling. I'm looking forward to up.

AMEN!

I think they are just being careful on the plan. I'm sure they won't come up with something to announce without being reasonably sure its a solid, viable plan, with a good chance of success. At least viable when the economy starts to turn.

 

[hoopsfan]

I would die without the Kings in this city. I mean what would we have then? The Rivercats, The Monarchs??? Pshh....

Ummm...if the Kings were to ever move, AND I'M NOT SAYING THEY WILL, I think the Monarchs would be going with them.


(Please don't hurt me.)

 

[Circa_1985_Fan]

Ummm...if the Kings were to ever move, AND I'M NOT SAYING THEY WILL, I think the Monarchs would be going with them.


(Please don't hurt me.)

Yup, I meant to mention this earlier...after all the Maloofs DO own the Monarchs too. BUT...dont start talking about moving until after another COUPLE if not FEW ill fated arena attempts. I think we'll get one in the end...and I'm a pessimist too.