Concerning the Kings' debt to the city

[Emma]

And here is an article of use to those concerned about the team's debt to the city. Kind of a "financing 1" lesson:

http://www.sacbee.com/kings/story/2483266.html

Points of interest:

So the city is going to get its money back, no matter what?
That's one of the big misconceptions about this loan. The loan money never came out of city coffers in the first place. The city merely has been acting as an intermediary between the Kings and private bond holders.

But if the Kings fail to make payments, the city is still on the hook to pay those investors, right?
Yes. So far, the Kings have made every payment, on time, city officials said. If the team defaults, the agreement says the city takes ownership of Arco Arena and gets a $35 million share of the team. If the team is in bankruptcy court, the city is first in line for its $35 million, Fehr said.

 

[Capt. Factorial]

Good article. Fills in quite a few of the knowledge gaps as far as the loan to Jim Thomas goes.

Of course, you'd never know it by reading the C.A.V.E.man comments...

 

[6th]

Good article. Fills in quite a few of the knowledge gaps as far as the loan to Jim Thomas goes.

Of course, you'd never know it by reading the C.A.V.E.man comments...

Agreed that it was a good article. It had me talking to my computer with, "No kidding? I didn't know that." It seems I had more knowledge gaps than I realized.