City, county call off arena talks with the Kings
- Thread starter G_M
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This is pathetic. Sacramento Kings are the biggest attraction in this city, and they can't come up with a plan. They need to look at the consequences of the Kings leaving the city, and realize that they need to get some sort of deal through before it's too late. Maloofs need to hustle a bit more themselves, because we all know they get a big cut from each and every sold-out home game in Sacramento. Let's see how many games they will sell out after moving to a different city.
It was totally paid for with private funds and is owned by MS & E. The loan everyone talks about was actually to bail out a team swimming in red ink. Part of the reason for the red ink?.....having to pay debt service on conventional financing for the arena.
The Kings have operated in the red for a lot of years after the Maloofs bought them. A new TV contract last year (Kings had the worst in the league for a long time) and making the playoffs has helped, but ownig a team is not a huge money maker. Hence, the inability to pay debt payments on large private loans.
Owners make their big money off a team when they sell it, even subtracting out years in the red and luxury tax payments. So basically the only way for the Maloofs to make any money out of the team is 1) sell the team, 2) move them to a place williing to help with a new arena or a city that already has built a new arena, or 3) have the city/county/region help the team build a new arena.
If the Maloofs have to pay too large a share of the arena financing. the team, as a business, won't be financially viable.
The Kings have operated in the red for a lot of years after the Maloofs bought them. A new TV contract last year (Kings had the worst in the league for a long time) and making the playoffs has helped, but ownig a team is not a huge money maker. Hence, the inability to pay debt payments on large private loans.
Owners make their big money off a team when they sell it, even subtracting out years in the red and luxury tax payments. So basically the only way for the Maloofs to make any money out of the team is 1) sell the team, 2) move them to a place williing to help with a new arena or a city that already has built a new arena, or 3) have the city/county/region help the team build a new arena.
If the Maloofs have to pay too large a share of the arena financing. the team, as a business, won't be financially viable.
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