CNBC: One on One with Joe Maloof

#1
http://www.cnbc.com/id/37447169

Darren: Speaking of the building, you guys have been lobbying to get out of Arco, which was built in 1988, for a long time. But things have changed in the business landscape. The reason for wanting to get out of Arco was to enjoy all the luxury suite revenue that all the new arenas provided teams. That revenue isn't what it used to be. Does that change things?

Maloof: That's true. It's a lot different from two or three years ago when franchises were depending on selling out those suites or club suites or bunker suites. So the truth is that we don't need a new building as much as we did a couple years ago. If we can't fill the suites now, what's a new arena going to do? They won't automatically fill up. We have to go back to customer, we have to do a great job with group ticketing and we have build a team that will win.

Darren: Vegas has had a hard couple years. A couple years ago, a lot of people were saying we'd see a pro franchise in Vegas. Still true today?

Maloof: I just don't see it. What is someone going to build an arena for $600 million and pay $400 million for a franchise? I just don't see that.

its interesting that he would say something like that given the current situation. i wonder if its just a misunderstanding or if they actually believe its not really necessary right now...
 
#2
I think they are probably willing to weather two or three more years of this storm. Of course, I just got the itis from a bunch of pizza, so I'm just nonsensically optimistic right now. :D
 
#3
That's a polite way of saying that they are having a hard time filling suites. If you can't fill 32 of them, what makes anyone think we can fill 60 or 70 that a new building would have?

I think they are just trying their best not to alienate the fan base right now. Anything construed as a hint that they are considering relocation again will be looked at as a bad move so they have to choose their words carefully. They know that they need a new building and that it would be easier to sell suites in a building that could hold more events. With Arco, ice shows are rare, the NCAA doesn't want to go there and concert acts are going away. Therefore, the businesses that purchase suites are limited to just the Kings and a few MMA matches and that makes it a bad buy right now.
 
#5
Dear Joe,

When you need the state legislature to pass a bill a bill that will downgrade a public asset that belongs to the entire state (its cash value to the state, not functionality) and the legislature is facing such an enormous financial hole that: (1) one side is proposing completely eliminating welfare and shifting most basic services the state currently provides to the counties; and (2) the other side is contemplating shutting down the state government during August, September, and as long as it takes thereafter to get additional taxes passed, maybe – just maybe - it’s not a good idea to say you don’t need the arena as much as you used to. I’m just throwing that out there. You might want to consider that it’s something an opposition assemblyman might say over and over again before a vote – if you can even get this to a vote – which is no lock.

This is sorta like running an ad where you wash down a burger with a $6,000 bottle of wine, while asking the public to raise their taxes.

Maybe you should realize that you’re more than a little tone deaf on this issue and refer reporters to John Moag, or KJ, or your new president, or just about anybody else in the organization.

I’m not sure your quotes are helping. A few years ago, you claimed luxury boxes and packed concourses were the grounds for a new arena. Now, you are saying luxury boxes aren’t a problem and the last time I saw the concourse, it wasn’t nearly as busy. The fact is you need an arena to generate more money and remain competitive, but you’ve been dancing around that fact for so long that your justifications are starting to sound inconsistent. That doesn’t help your case. You should let the people doing the heavy lifting do the talking. Just an idea.
 
#6
Well said Larry David. In fact, I retract what I said 2 posts above. The arena issue won't alienate the fan base. Bad trades and a bad draft pick will. So in a sense, they are right when they talk about the important thing being the need to get the fans back but they took a step back by bringing the arena issue into the equation.
 
#8
And I'm SO glad I read the wonderful comments below the article...gotta love the NIMBY island that these people live on.:D
I hope my comments get to be excluded. I shouldn't even try, though. No matter how many studies are done, people are still ignorant, but like to rant. Like the person that says to remodel Arco. Hello...that was considered, but engineers have already determined its not possible. :rolleyes:
 
Last edited: