Can the Maloof Family Be Trusted to Negotiate in Good Faith
- Thread starter Purple Reign
- Start date
RookieOfTheDay
Starter
What's SB652?
Aenadin
Starter
well i read that there's this senate bill going to be passed that would prohibit a sports team in california from moving unless they paid the debts to their existing city. something like that... if that passed then maloofs got to pay 77 million to sacramento on top of an insane relocation fee the line credit. loan to samueli and the upgrade for honda center and whatever deal they made. no way they can JUST move if that happens.. so hopefully it does..
from what i understand, my own interpretation of that bill.. then if it is passed the chances of going anywhere for the maloofs is slim because they have to pay the city loan.
they really need to sell. burkle is waiting
from what i understand, my own interpretation of that bill.. then if it is passed the chances of going anywhere for the maloofs is slim because they have to pay the city loan.
they really need to sell. burkle is waiting
RookieOfTheDay
Starter
well i read that there's this senate bill going to be passed that would prohibit a sports team in california from moving unless they paid the debts to their existing city. something like that... if that passed then maloofs got to pay 77 million to sacramento on top of an insane relocation fee the line credit. loan to samueli and the upgrade for honda center and whatever deal they made. no way they can JUST move if that happens.. so hopefully it does..
from what i understand, my own interpretation of that bill.. then if it is passed the chances of going anywhere for the maloofs is slim because they have to pay the city loan.
they really need to sell. burkle is waiting
Oh yeah, i heard about that. I just didn't know what it was called.
I've actually wondered about that myself. I will admit to not being a lawyer, but it seems that any lawsuit filed by the Kings would have to be on the basis of anti-trust, treating the league as a monopoly. If the league were to lose the lawsuit, or if the Kings were to move without permission, it would seems that the league's best recourse might be for each of the 29 remaining clubs to decline to schedule any games against the Kings. There are any number of professional clubs (be it the Harlem Globetrotters, be it D-League teams) that the NBA declines to schedule games against. One would guess that there's no anti-trust issue there. And naturally, the NBA, after severing its ties with the Anaheim Royals, could decide to start a new expansion franchise in Sacramento.
The Maloofs' nuclear option (moving without permission) is basically eliminated if the league adopts its own (excommunication) nuclear option. It's not mutually-assured destruction in this case - the destruction is completely one-sided. But there does have to pretty much be unanimity in order for the league to pull that one off.
The Hammer
All-Star
All y'all this is what Stienberg or Stienholz or whoever has been gathering signatures for I believe. This is the 11,000 signature thing in Anaheim, no? Or is this something different?
Glenn
Hall of Famer
An anti-trust law suit would have a bearing on all professional sports except baseball which is exempt because MLB as a league began under different rules. A law suit against the league is also against the NHL, NFL, MLS, and all the other leagues. They all operate as the NBA does. I doubt if the Maloofs want to go there. Nobody wants to go there because the leagues are functioning just fine and the Maloofs would become outcasts to all professional sports. Their reputation would be smeared and THAT is assuming they could finance a law suit that took on all the leagues.
There isn't even a guarantee they would win.
The idea of an anti-trust law suit is intellectually interesting but in the end I doubt if it will happen. Besides, when the Maloofs begin to add up the money, they may very well come out ahead in Sacramento.
There isn't even a guarantee they would win.
The idea of an anti-trust law suit is intellectually interesting but in the end I doubt if it will happen. Besides, when the Maloofs begin to add up the money, they may very well come out ahead in Sacramento.
RookieOfTheDay
Starter
I honestly don't. If they know they don't have the required votes, I think it's more likely they go along with what the league tells them or just forgo the league all together and try to take matters into their own hands.
It would have ramifications across all sports but each league would have to be taken on separately. The NFL lost its anti-trust suit but essentially went unpunished. The MLS has already survived an anti-trust suit from players. So winning is far from a given and the last entity to successfully sue and win went bankrupt as a result of "winning". The Maloofs would have to be stupid to take on the NBA by themselves.
Aenadin
Starter
can't believe how things turned in a matter of weeks, i just wonder how BAD the anaheim presentation was... did they all meet up onetime made a powerpoint saved it and just brought the flash drive come presentation time? the move was really not planned out well.. and so many issues
My guess is they expected to be rubber stamped and weren't prepared to answer any questions. Then you have KJ fighting for his life who went in armed to the teeth knowing he better have an answer for every question under the sun. It's like being in a fixed fight and finding out the other guy has no intention of going down.
Glenn
Hall of Famer
I think a major problem is that all the money that is supporting the move to Anaheim comes from one man, Samueli. It isn't as if the city itself is high on support.
Samueli would get rent from the Kings. Samueli's businesses bought up the bond issue. Samueli's TV station gives the Maloof's a contract. Samueli provides a personal loan to the Maloofs. In the end, how can Anaheim say that the area wants the Kings when only one man is driving the support?
Purple Reign
Starter
I am hoping any financial negotiation for a new sports and entertainment complex will include the following five things:
A REGIONAL HOTEL AND RENTAL CAR TAX
This is revenue that multiple counties (Sacramento, Yolo, El Dorado, Placer and San Joaquin) can participate. Hopefully a Joint Powers Authority can be formed and generate interest from all surrounding counties without a public ballot
RE-INVESTMENT OF THE LOAN BONDS
This is just my pie in the sky wishing. That the 70 plus millon dollar loan the Maloofs hold with the City can be absolved by finding another investor (Webber, Haight, Van Dusen) to pay those bonds off, then turn around and reissue the bonds with the proceeds going towards arena.
TICKET USER FEE
A 5 dollar surcharge for every ticket sold for the next ten years. Example - $5 times 18,000 tickets per event (assuming it sells out) equals 90,000 bucks per event x 200 events per year equals 18 million dollars per year times 10 years equals 180 million dollars.
NAMING RIGHTS FEE
This is where we all have been hoping that Comcast can step up and not only renegotiates the team’s TV rights deal, but that the new arena will be Comcast Arena. Competition with Direct TV and AT and T hopefully could drum up interest from Comcast that they could get their name on the outside of the building as well as broadcasting the team. It seems to be a natural fit. The naming rights fee would be owned by the City of Sacramento for them to make a small profit for their troubles as well as help finance the building.
MANAGEMENT AGREEMENT WITH MALOOF SPORTS AND ENTERTAINMENT
This is where negotiations get sticky and tricky. I say that the building owned by the City, would be completely managed by MS and E; which means that they would control 200 plus dates of promotions and advertising. There would be a shared (not 50/50, more 70/30, 80/20 to MS and E) concessions, parking, suites and box seats, in exchanged for rent of the building. Say 4-6 million per year for a 30 year lease with the first 2-3 years of no rent, which would allow the Maloofs to rebuild the basketball team. This type of agreement, would put the Maloofs in a position similar to Henry Samueli, to find a POSSIBLE second major tenant (NHL) for the building as well as other minor tenants (WNBA, Arena Football, Sac State, UC Davis, UOP) and other events (concerts, NCAA Hoops, shows, conventions, etc…). The Maloofs would completely control their revenue destiny while paying rent to the city towards the debt service of the building.
A person can dream can’t he? Ain't that enough to finance a building?
A REGIONAL HOTEL AND RENTAL CAR TAX
This is revenue that multiple counties (Sacramento, Yolo, El Dorado, Placer and San Joaquin) can participate. Hopefully a Joint Powers Authority can be formed and generate interest from all surrounding counties without a public ballot
RE-INVESTMENT OF THE LOAN BONDS
This is just my pie in the sky wishing. That the 70 plus millon dollar loan the Maloofs hold with the City can be absolved by finding another investor (Webber, Haight, Van Dusen) to pay those bonds off, then turn around and reissue the bonds with the proceeds going towards arena.
TICKET USER FEE
A 5 dollar surcharge for every ticket sold for the next ten years. Example - $5 times 18,000 tickets per event (assuming it sells out) equals 90,000 bucks per event x 200 events per year equals 18 million dollars per year times 10 years equals 180 million dollars.
NAMING RIGHTS FEE
This is where we all have been hoping that Comcast can step up and not only renegotiates the team’s TV rights deal, but that the new arena will be Comcast Arena. Competition with Direct TV and AT and T hopefully could drum up interest from Comcast that they could get their name on the outside of the building as well as broadcasting the team. It seems to be a natural fit. The naming rights fee would be owned by the City of Sacramento for them to make a small profit for their troubles as well as help finance the building.
MANAGEMENT AGREEMENT WITH MALOOF SPORTS AND ENTERTAINMENT
This is where negotiations get sticky and tricky. I say that the building owned by the City, would be completely managed by MS and E; which means that they would control 200 plus dates of promotions and advertising. There would be a shared (not 50/50, more 70/30, 80/20 to MS and E) concessions, parking, suites and box seats, in exchanged for rent of the building. Say 4-6 million per year for a 30 year lease with the first 2-3 years of no rent, which would allow the Maloofs to rebuild the basketball team. This type of agreement, would put the Maloofs in a position similar to Henry Samueli, to find a POSSIBLE second major tenant (NHL) for the building as well as other minor tenants (WNBA, Arena Football, Sac State, UC Davis, UOP) and other events (concerts, NCAA Hoops, shows, conventions, etc…). The Maloofs would completely control their revenue destiny while paying rent to the city towards the debt service of the building.
A person can dream can’t he? Ain't that enough to finance a building?
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That's about inline with what I am thinking, though I'm not sold that Comcast will be the naming rights sponsor, especially if Burkle is pushing this through. I think Comcast's main interest is keeping the tv deal from Time Warner which services most of Orange County. I am fairly certain the naming rights deal will be more lucrative than what Power Balance is paying whoever it is. It would be nice if it was someone with at least NorCal ties.
If the joint powers can't be worked out with all 4 counties hopefully they can at least get Sac County on board for the hotel and rental car tax since the airport is the biggie and then maybe they could make a small sales tax solely inside of the newly created entertainment district that would expire after everything was paid for.
If the joint powers can't be worked out with all 4 counties hopefully they can at least get Sac County on board for the hotel and rental car tax since the airport is the biggie and then maybe they could make a small sales tax solely inside of the newly created entertainment district that would expire after everything was paid for.
Section 101
All-Star
If Chevron was smart they would jump at it.
I would really like Intel but I am unsure of their interest, they have a huge base in Hillsboro outside Portland and haven't ever pursued naming rights to anything here despite speculation that they would. But maybe they were holding out for NorCal?
They have a five year contract with MSE, they somehow seem to think it extends past what used to be known as Arco, but I fail to see how that is possible with an arena that hasn't even been built yet. Certainly they would never have gotten in as cheap as they did if it would cover a property that wasn't close to being condemned.
That said I see lots of people wearing the dumb things (I guess my eye is much keener now that I know who/what they are). I don't see them as being any worse than the typical arena sponsors which seem to make up a who's who of hated corporations in America - when the airline companies are probably the least controversial that's saying something.
kennadog
Dog On It!
I don't know the details of the contract other than its for five years and includes more than arena naming rights. Depending on how its worded it could apply past the current arena.
Well I seem to recall reading that they were a bit irritated about the team moving to Anaheim and what that would do to their deal. Maybe they can have Power Balance Court at TBD Arena or something lame like that but it seems certain that the city or whoever is putting up the cash to get this thing built is going to get the say (and $$$) from the naming rights.
Wasn't there an opt-out?
kennadog
Dog On It!
Apparently it's more than a naming-rights contract. The Maloofs are tied into an overall marketing deal with Power Balance. I don't know if there's an opt-out. Since the Maloofs have been planning this move for awhile, I'd be ticked off, if I was the Power Balance people. Of course, even if they move, the Maloofs might still have owned "Power Balance Pavilion" in Sacramento.
Glenn
Hall of Famer
My desire is to get PBP off that arena as it is soooooooo 2nd rate. It'll probably be out of business within years and back to selling these things in infomercials at 2 AM. I'd rather have Burkle Arena or Penguins Arena. Comcast Arena sounds like a natural.
I just read the details just posted. Oh, my, aren't the Maloofs desperate/dumb. I think it ought to be required reading that every Kings fan know what Power Balance is. I wonder which wrist band or pendant works best for three point shooters.
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I don't understand why that is. Comcast owns the Penguins in-state rivals and are on the opposite side of the political spectrum as Burkle. Not that it rules it out, but it doesn't make it a natural fit either.
Glenn
Hall of Famer
The first sports team they broadcast was the Kings. I agree with rainmaker and, in fact, have a few other sponsors in mind.
Are you sure about this? The flagship for Comcast is the Philly network. Most of their networks have a long history under other names so it makes it hard to figure out what's what. Anyhow, I just don't see how they fit in with Burkle, regardless.
I don't like Power Balance one bit but when I go through the list of sponsors for arenas there aren't a lot that rank on my top list of companies to do business with either. The one thing I will say is that most people who buy their product understand it is fairy dust and like it anyways. Where many of the other sponsors serve markets where customers have little choice or pick the lesser of two evils.
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