George Maloof on KHTK @ 3PM

[Gary]

Maybe, but obviously the City Council does not think it's being stupid over nothing. http://www.sacbee.com/2012/03/30/4380095/city-puts-off-spending-money-on.html

I don't bother reading the bee.. Bottom line is that the pre-development has NOT been negotiated yet as Stern said in the interview a couple weeks ago. To chastise the Maloofs over something that has not been negotiated (even though they said they weren't going to pay the cost) is just dumb. I bet there is a deal or something which will be dome where someone gets paid back at one time or another down the road.

 

[rainmaker]

I don't bother reading the bee.. Bottom line is that the pre-development has NOT been negotiated yet as Stern said in the interview a couple weeks ago. To chastise the Maloofs over something that has not been negotiated (even though they said they weren't going to pay the cost) is just dumb. I bet there is a deal or something which will be dome where someone gets paid back at one time or another down the road.

It was clearly negotiated on the term sheet, as was the just over 6M the city just came up with. I doubt the city forks over that money if none of this has been negotiated. Are you also saying KJ is a liar? That's what George said on Grants show.

 

[Gary]

Well then Stern, and George are liars... George even told Grant to take a loot at the terms sheet and see that there was nothing worked out with the Maloofs paying the pre-development costs.

 

[rainmaker]

Well then Stern, and George are liars... George even told Grant to take a loot at the terms sheet and see that there was nothing worked out with the Maloofs paying the pre-development costs.

Term sheet is public. People have already seen it in writing. George is just saying whatever is on the term sheet isn't final, while everyone else, Stern included is going ahead with it. Are you taking George's word for that, because it is in the term sheet. Stern stepped up and paid because it had been agreed upon.

 

[jpsls]

I believe we are giving the Maloofs a hard time here.. It's a negotiation. Nothing was signed yet people. If they said they weren't going to pay the pre-development, and Stern comes out before this came up and said they still had to negotiate then why is everyone so up in arms over it!?

Who cares!!!! It's going to get done, and people are being stupid over nothing.

Because it points to a larger problem that the Kings are run by broke owners. They're committing 70 million to the arena, which means 70 million less spent on the team.

 

[Gary]

Term sheet is public. People have already seen it in writing. George is just saying whatever is on the term sheet isn't final, while everyone else, Stern included is going ahead with it. Are you taking George's word for that, because it is in the term sheet. Stern stepped up and paid because it had been agreed upon.

I just think people are making a mountain out of a molehill. Like Grant said this deal is not going to get screwed by 3.2 mil or whatever.

And I thought Stern said there were aspects of the deal (including the pre-development) that still have to be negotiated. Which is exactly what people are complaining about. I am not a Maloof fan, but I think they are being beaten to death over nothing right now.

 

[Gary]

Because it points to a larger problem that the Kings are run by broke owners. They're committing 70 million to the arena, which means 70 million less spent on the team.

You do not know this. You can speculate all you want but unless their books are open you do not know specifics on their financial situation, and you do not know that they are going to spend less on the team because of the money they are putting into the arena.

I like to bash the Maloofs as much as anyone here but I think this bashing right now is unjust when you don't even have a signed deal yet.

 

[JB_kings]

The City shall fund 50% and the Kings and AEG shall each fund 25% of predevelopment expenses. The identification and schedule for pre-development expenses shall be determined in the pre-development agreement to be entered
into by the parties by April 3, 2012. In the event the ESC is not developed for any reason other than the fault of AEG, the Kings shall reimburse AEG for its pre-development expense payments on a schedule to be determined.

http://sacramento.granicus.com/MetaViewer.php?meta_id=380725&view=&showpdf=1

This is the term sheet that came out of Orlando and got voted on by the council. Seems to be pretty cut and dried.
They are balking at putting in their 25% now. And you can guess all you want on why they refuse this. If your guess is that they have "principles", you might be in a small minority there.

 

[rainmaker]

I just think people are making a mountain out of a molehill. Like Grant said this deal is not going to get screwed by 3.2 mil or whatever.

And I thought Stern said there were aspects of the deal (including the pre-development) that still have to be negotiated. Which is exactly what people are complaining about. I am not a Maloof fan, but I think they are being beaten to death over nothing right now.

Grant was quite off on his facts today, and kept playing that Stern soundbite repeatedly. Yet it's clear as day in the term sheet, the city made a 6M payment to get things going, and as soon as it was the Maloofs turn they tried to get out of it some way. Stern would not have come in so quickly and made his statement that this is money the Maloofs owe unless he was certain that is the case. It's not like some of the term sheet applies and some doesn't. Grant kept saying the Maloofs agreed to pay 73M so this shouldn't matter, yet that 73M is from the same term sheet that this 3.6M apparently doesn't matter statements came from. Grant is a Maloof mouthpiece and proved it today more than any other time I've heard his show.

BTW, did you here what the Maloofs newly hired PR man said yesterday?

 

[Gary]

http://sacramento.granicus.com/MetaViewer.php?meta_id=380725&view=&showpdf=1

This is the term sheet that came out of Orlando and got voted on by the council. Seems to be pretty cut and dried.
They are balking at putting in their 25% now. And you can guess all you want on why they refuse this. If your guess is that they have "principles", you might be in a small minority there.

So there is a blank spot for that last 25%? I don't see the Maloof name in there saying they would pay it. I believe that it might be implied but I believe it when George stated they were against paying the pre-development costs since they started negotiating.

 

[Gary]

Grant was quite off on his facts today, and kept playing that Stern soundbite repeatedly. Yet it's clear as day in the term sheet, the city made a 6M payment to get things going, and as soon as it was the Maloofs turn they tried to get out of it some way. Stern would not have come in so quickly and made his statement that this is money the Maloofs owe unless he was certain that is the case. It's not like some of the term sheet applies and some doesn't. Grant kept saying the Maloofs agreed to pay 73M so this shouldn't matter, yet that 73M is from the same term sheet that this 3.6M apparently doesn't matter statements came from. Grant is a Maloof mouthpiece and proved it today more than any other time I've heard his show.

BTW, did you here what the Maloofs newly hired PR man said yesterday?

If part of that 73mil was for the pre-development cost and they agreed to that then it's on them. If they are pissed off because the city wants the money up front and the Maloofs wanted it as part of the loan then it's on them to pay it.

Meaning you said you would pay me $100 to write you a poem, but then later that day I said that I needed $10 of that $100 for paper and all that in which you would owe me the rest of the $90 when complete.

If that's what's happening then I don't know what to think. There would have had to be a timeline on when they would have wanted the cash or part of it. If that's not what's happening then my bad. I am no financial guru so I am trying to understand it as I go and from what I read so far it looks pretty cut and dry.

 

[jpsls]

So there is a blank spot for that last 25%? I don't see the Maloof name in there saying they would pay it. I believe that it might be implied but I believe it when George stated they were against paying the pre-development costs since they started negotiating.

It clearly says Sacramento Kings - 73.25 million. How is that implied?

 

[JB_kings]

So there is a blank spot for that last 25%? I don't see the Maloof name in there saying they would pay it. I believe that it might be implied but I believe it when George stated they were against paying the pre-development costs since they started negotiating.

No blank spot... 50% from the city. 25% from AEG and 25% from the Kings. It's all over the document. Read it.

 

[Gary]

It clearly says Sacramento Kings - 73.25 million. How is that implied?

I knew they were putting that amount towards the arena..

"The City shall fund 50% and the Kings and AEG shall each fund 25% of predevelopment
expenses. The identification and schedule for pre-development
expenses shall be determined in the pre-development agreement to be entered
into by the parties by April 3, 2012. In the event the ESC is not developed for
any reason other than the fault of AEG, the Kings shall reimburse AEG for its pre-development expense payments on a schedule to be determined."

OK so the sheet says that so the Maloofs must have known this. I was wrong. I was looking for "Maloof" instead of Kings and like I said before I am not in finances. I work in probably the furthest job from finances. So since the deal isn't signed or finalized is it still fair to call them out for what amounts to basic negotiation tactics?

 

[rainmaker]

If part of that 73mil was for the pre-development cost and they agreed to that then it's on them. If they are pissed off because the city wants the money up front and the Maloofs wanted it as part of the loan then it's on them to pay it.

Meaning you said you would pay me $100 to write you a poem, but then later that day I said that I needed $10 of that $100 for paper and all that in which you would owe me the rest of the $90 when complete.

If that's what's happening then I don't know what to think. There would have had to be a timeline on when they would have wanted the cash or part of it. If that's not what's happening then my bad. I am no financial guru so I am trying to understand it as I go and from what I read so far it looks pretty cut and dry.

Both Stern and KJ immediately came out with some strong language, which leads me to believe the money was expected, expected now and it had been agreed upon.

Either KJ/Stern is lying, or Grant/George is lying. Who has the better track record? It's incredibly disappointing imo and I seriously question if the Maloofs have 73M, When Gratn asked George is he has that money, he said we have "that commitment". What does that mean? Other issue is that paying the 200K, part of the 3.6M, puts everything in motion and they are then on the hook for the 73M. If you don't have that money, then you might stall, which I think is a distinct possibility.

 

[Gary]

Both Stern and KJ immediately came out with some strong language, which leads me to believe the money was expected, expected now and it had been agreed upon.

Either KJ/Stern is lying, or Grant/George is lying. Who has the better track record? It's incredibly disappointing imo and I seriously question if the Maloofs have 73M, When Gratn asked George is he has that money, he said we have "that commitment". What does that mean? Other issue is that paying the 200K, part of the 3.6M, puts everything in motion and they are then on the hook for the 73M. If you don't have that money, then you might stall, which I think is a distinct possibility.

It's still too early (at least for me) to get disappointed in this. There are many parts of the deal that need to be negotiated, signed and delivered. It's just food for the CAVE trolls to feed on imo. I am sure they are having a field day on the bee comment section. But since I have ZERO experience in financial situations other than my own bank accounts I can't really put anything other than what I see or hear in the media and react based on the emotion behind those reports.

It just seemed to me that people were getting bent out of shape for something that doesn't amount to much in the greater scheme of things.

 

[JB_kings]

In order to meet the 2015 NBA season which is something the Maloofs insisted must happen, they need to fund the pre-dev stuff in the next few weeks - period. That means all parties need to pony up or they just flat run out of time for 2015. This has been known for a very long time. Without the Maloofs putting in their share, it falls apart. There is NO wiggle room for the city. They have just enough to fulfill their part. AEG is in for their share. The tenant ploy is just George's way of saying they either don't have the money or don't mind the deal falling apart. It's pretty blatant to most people here that probably both excuses are probably #1 & #1A on their list.

 

[BMiller52]

Grant was quite off on his facts today, and kept playing that Stern soundbite repeatedly. Yet it's clear as day in the term sheet, the city made a 6M payment to get things going, and as soon as it was the Maloofs turn they tried to get out of it some way. Stern would not have come in so quickly and made his statement that this is money the Maloofs owe unless he was certain that is the case. It's not like some of the term sheet applies and some doesn't. Grant kept saying the Maloofs agreed to pay 73M so this shouldn't matter, yet that 73M is from the same term sheet that this 3.6M apparently doesn't matter statements came from. Grant is a Maloof mouthpiece and proved it today more than any other time I've heard his show.

BTW, did you here what the Maloofs newly hired PR man said yesterday?

Agreed. And that Rose guy the Maloofs hired is a jerk, I don't like him. It feels more like these guys are gearing up for war rather than trying to help get this done.

 

[PurpleHaze]

Imagine NBA looking at this after all that everyone has gone through just to get to this launching point. Maloofs balk at very beginning of the process and immediately hire a PR rep to explain. Commissioner Stern probably smelling a stinking rat immediately alloctates $200K. In 10 days following owners meeting NBA surely will have more to say - or they better. Meanwhile, city council has to wonder just how "committed" (George Maloofs favorite word) the family really is or if they truely have $73.25 million to close the deal. For me that's the elephant in the room - do they have the funds?! Otherwise, I can visualize this playing out (as I saw a comment elsewhere tongue-in-cheek):
Kings end up like the New Orleans Hornets, taken over by the league because the owners are flat broke. The Kings will stay in Sacramento and have a new arena, but the Maloofs will not be a part of it. Joe and Gavin will end up at Denios on the weekends selling old Power Balance bracelets (that's all they'll get out of Power Balance's bankruptcy liquidation) and trying to make ends meet

 

[upinsmoke]

George Maloof has his reasons to be against all of this close to the top is they honestly don't have that huge lump of money and most likely can't finance it either. It's looking positive on the city's part + AEG so when it's the moment of truth comes they can't pony up and their family is going to be embarrassed with shallow pockets and no hope to relocate and being backed into a corner forced to sell low. OUCH sucks for them then BURKLE makes the call.

 

[Kingsguy881]

George Maloof is a ****ing snake *****. I HATE that guy with a passion. If I saw that guy on the street it would take a lot for me not to go up to him and beat the **** out of him.

Whew, glad I got that off my chest. Did I mention I hate that snake?

 

[swisshh]

I was a little concerned by the fact that when Grant asked George a straight forward question about whether the fans should be worried that the Kings don't have the 73 million that George did not answer "No." He avoided directly answering the question which was rather strange as Grant had given him an easy setup to calm fans down with a straight answer.

 

[Spike]

George Maloof is a ****ing snake *****. I HATE that guy with a passion. If I saw that guy on the street it would take a lot for me not to go up to him and beat the **** out of him.

Whew, glad I got that off my chest. Did I mention I hate that snake?

Don't hold back. Tell us how you really feel.

 

[kupman]

I am really with Gary. We might be the only two who think that this has been blown way out of proportion. It might become a bigger deal if the pre-development costs cannot be negotiated, but they are currently working on a deal for these costs.

There will be many other bumps in the road, so I think it would be best if all were ready for the bumpy ride. The term sheet is a strong framework, but it has been told many times since the All-Star break that many details were left to sort out.

While it might be a bumpy ride, the good news is that all passengers are in the same vehicle and all agree on the destination. If the Maloofs really wanted out of Sacramento, they would have already left I think.

It does not help to make George or any Maloof the villain. We are in business with him (as part of the public) and it would be best to understand his perspective and work with it. If people become villains we will lose our chance to get this thing built.