Joe Maloof interview on 1140 - 8/22/05 at 4:20 pm

[Warhawk]

Highlights (I type slow, so not word for word)

GP wanted Bonzi and Shareef beginning this offseason

Very excited to get both

Emphasize defense with some of the moves

Brought in exciting players, including the backups

Bonzi and Peja in a contract year - need to play well

Credits Stern for improving the league as well as some of the new players

Still trying to get arena deal done

County is going to sit down with the Maloofs to try to work something out

No short-term answers

Spoke about public-private partnerships and the need to watch the revenue streams

Issues:
Time is an issue - rising costs
Build something that will last for generations

Still excited about being owners, really want that title

Getting right back into the fray this year

Stay injury free - always been snakebit

Amnesty - a one-year break for owners

No reason to drop Kings, everyone still productive and not too expensive

Wants competitive teams in NY and Chicago - big cities

Owners will save lots of $$$ on the reduced-year deals (6 vs. 7) for players past their prime

Casinos (Palms, etc.) and NBA are 2 separate businesses - each has to stand on it's own, can't rob one to help the other

 

[NoBonus]

I wish they would do more of this kind of broadcast interview during the offseason; sure gives the fans a better perspective regarding how ownership sees things.

 

[BigWaxer]

Casinos (Palms, etc.) and NBA are 2 separate businesses - each has to stand on it's own, can't rob one to help the other

That is the KEY statment and I hope a lot of fans soak this one in. Just because the Maloofs make zillions from the Palms and from family doesn't mean they should put that money back into the Kings. Sure they had an initial investment that was from profits in other areas. They lost money for years with the Kings and I am not sure of the latest finanical news, but I assume all the lux tax payments they may still be negative (mainly because of the loan good ole Thomas stuck them with). At some point they have to say losing money is not a good idea and try to turn a profit. I would assume the Arena has to be #1 on that list to increasing revenues.

 

[DocHolliday]

Wants competitive teams in NY and Chicago - big cities

Are they saying they want to buy teams in these cities??

 

[JB_kings]

Are they saying they want to buy teams in these cities??

No that wasn't what he said. He said it was good for the league for New York to have a good team. This was a response to Napear critcizing teams like the Knicks that spent wildly over the salary cap. Joe was saying that in order for them to spend money on players, they need to be in a competitive situation with the arena. That means putting revenue towards the team instead of retiring debt for a new building. Mike Lam used the Giants as an example of a team that payed for a lot of their ballpark, however they now have little revenue to spend on improving the team. The money doesn't flow from the casino to the Kings because each business is managed on it's own.

 

[macadocious]

I would assume that he meant quality teams in large markets like Chicago and NY help the overall game. When you have small market team that they majority of the NBA fans do not care about winning, (unless they are exciting ie Kings, Phoenix) then less people watch the playoffs and it hurts the overall revenues for league. Primarily the TV contracts, that, beside gate reciepts and luxury boxes is where the NBA gets its revenue from.

So when NY is good and plays a team like the Kings they get more media exposure and it promotes their team and the league in a more positive manner.

Nobody care about Jazz vs. Bobcats, and they never will.

 

[Warhawk]

JB - mac's answer was closer to the feeling I got about his response as well. He wants to see competitive teams in the large markets as it is good for the league in general.

Wasn't in the interview, but I recall the Kings were losing $$$ for years and only recently have been brealing even in the regular season. The team actually does best (financially) in the post-season.

 

[6th]

Warhawk! Thanks for bringing us the interview. I appreciate the time you spent.

 

[Folsom Al]

Thanks for the recap Warhawk !!!

 

[love_them_kings]

Thanks for the interview! I liked the part about Bonzi & Peja having a contract year & needing to play well.... hopefully it will motivate them!

 

[Kings113]

I would assume that he meant quality teams in large markets like Chicago and NY help the overall game. When you have small market team that they majority of the NBA fans do not care about winning, (unless they are exciting ie Kings, Phoenix) then less people watch the playoffs and it hurts the overall revenues for league. Primarily the TV contracts, that, beside gate reciepts and luxury boxes is where the NBA gets its revenue from.

So when NY is good and plays a team like the Kings they get more media exposure and it promotes their team and the league in a more positive manner.

Nobody care about Jazz vs. Bobcats, and they never will.

I think Bobcats will attract more people into the league. Because of the UNC boys now, and Okafor. Their new arena in Charlotte and the UNC connection will help them with business.

 

[Bricklayer]

Thanks for the interview! I liked the part about Bonzi & Peja having a contract year & needing to play well.... hopefully it will motivate them!

Of course the flipside of that remark is that means it seems we're going to let them play out their final season of their contracts without extensions...at which point next summer they can walk away ala Mobley and there's nothing we will be able to do to stop it. Nor will we be far enough under the cap, even without their salaries, to replace players of that caliber on the open market.

 

[captain bill]

I think Bobcats will attract more people into the league. Because of the UNC boys now, and Okafor. Their new arena in Charlotte and the UNC connection will help them with business.

The fact that Charlotte is attempting to tie its fate to that of UNC is rather indicative of the poor state of that franchise. People in NC are nuts about college basketball, not the NBA team that supposes to represent them. If they continue to suck people will just not care, same as with the Hornets.

 

[Kings113]

I don't think they'll suck this year. They'll be better, but not in the thick of things.

 

[VF21]

Of course the flipside of that remark is that means it seems we're going to let them play out their final season of their contracts without extensions...at which point next summer they can walk away ala Mobley and there's nothing we will be able to do to stop it. Nor will we be far enough under the cap, even without their salaries, to replace players of that caliber on the open market.

Well, if it doesn't work out, we'll just trade them right before the deadline.

 

[captain bill]

I don't think they'll suck this year. They'll be better, but not in the thick of things.

That leaves a lot of room to suck.

 

[Warhawk]

Well, if it doesn't work out, we'll just trade them right before the deadline.

Or work a S&T, or wait until the deadline and see how they are performing then and look at an extension.....

 

[Venom]

The fact that Charlotte is attempting to tie its fate to that of UNC is rather indicative of the poor state of that franchise. People in NC are nuts about college basketball, not the NBA team that supposes to represent them. If they continue to suck people will just not care, same as with the Hornets.

Huh? The poor state of a team that has been around all of 2 years? Felton and May were solid picks, they also happen to have played for UNC. Using that as a marketing strategy is a no-brainer. I like Charlotte's plan so far. They are going to be in the lottery (and under the cap) for a while anyway, so they might as well load up on solid NBA players now and swing for the fences on a superstar in a couple years time before Okafor's, Felton's, and May's rookie deals are up.

 

[VF21]

Or work a S&T, or wait until the deadline and see how they are performing then and look at an extension.....

Sorry.

I guess I should have included a [/end dripping sarcasm] at the end...

 

[Ryan]

They lost money for years with the Kings

They did? In what way? We still sold out games (when we were bad) and we made and still make more on parking than any other arena. I'm not arguing, I'm just curious to where you got that.

 

[Kings113]

That leaves a lot of room to suck.

I don't see them sucking like last year, but in their terms, I'd say 30 win area. That wouldn't be bad for them.

 

[ReinadelosReys]

I missed it.

I know, I know guys I'm slacking! Things have sort of gone back to normal for me, so I think I am good for some transcritps from here on out

Thanks Warhawk for the recap

 

[captain bill]

Huh? The poor state of a team that has been around all of 2 years? Felton and May were solid picks, they also happen to have played for UNC. Using that as a marketing strategy is a no-brainer. I like Charlotte's plan so far. They are going to be in the lottery (and under the cap) for a while anyway, so they might as well load up on solid NBA players now and swing for the fences on a superstar in a couple years time before Okafor's, Felton's, and May's rookie deals are up.

well, just a continuation of what happened with the Hornets. I think the Cats can do well, it's just that it will take a long time, and they are unproven, and could easily never become a serious contender. and if they don't do something big to get them noticed, people in NC won't care. i spent some time in winston-salem in the waning days of the hornets franchise, and no one seemed to blink at the passing of the franchise. they have their college ball to turn to. so if the cats are great and give people something nice to watch, they'll watch. but the franchise will be cut no slack, and if they don't put a great product on the floor, no one at all will care what happens to them. they have to work twice as hard as any other franchise in the league to gain a fan base, which for a young franchise spells bad things in the future. right now they are on a sort of five year plan, if everything goes right and clicks perfectly, in some years they will be good. but they haven't come out swinging to look like a good franchise, so unless that changes, this franchise will simply fall off the map and suffer the same fate that the hornets did (and continue to)

 

[SDKing]

Expansion teams generally take a long time to build. Look at the freakin Raptors.....

 

[love_them_kings]

Of course the flipside of that remark is that means it seems we're going to let them play out their final season of their contracts without extensions...at which point next summer they can walk away ala Mobley and there's nothing we will be able to do to stop it. Nor will we be far enough under the cap, even without their salaries, to replace players of that caliber on the open market.

Yeah, that's what it sounds like, but I can't imagine that would be the plan. I'm sure that they'll have to decide at some point in the season what their action plan is, and go from there. I would be really disgusted if we let those two go without getting something in return, that would cripple our team for years to come.

 

[piksi]

Well, if it doesn't work out, we'll just trade them right before the deadline.

Might not be that easy. They have to find a team that players like because both of them will be in the driver seat. All they have to say to the "new" team is - "I will not extend here." It will be pretty hard to get any decent value in return is something like that happens.

 

[Warhawk]

They did? In what way? We still sold out games (when we were bad) and we made and still make more on parking than any other arena. I'm not arguing, I'm just curious to where you got that.

They used to run articles in the Sac Bee every year or so detailing the only local pro franchise and talked about whether they were making or losing $$$. The biggest problems have been TV/radio deals and lack of luxury boxes, IIRC, since those make big $$$ compared to the vast majority of the cheaper seats sold.

Here's a quote from a couple years ago:

[font=Arial, Helvetica]Thankfully, most owners seem to look at the long-term. Sacramento Kings co-owner Joe Maloof looks at his $5 million-$9 million fiscal year loss this way:

"When you're trying to build the asset value of your franchise, it is more important to look at a five- to 10-year plan, rather than their profit and loss every year."

http://cbs.sportsline.com/general/story/64085

[/font]

 

[kennadog]

The Maloofs opened up the accounting books for the Bee to scrutinize a couple of times. Lousy TV deal which the Maloofs inherited...the new one should help. Lack of luxury boxes and a basic lack of any corporate base in the Sacramento region. Unfortunately, Arco needs moere and more repairs which will also drain off money. I think I read that the whole roof needs to be redone.

There's a reason they've been cutting down on the excessive player salaries the last couple of years. The truth is that most owners will only make big money off of team when they sell the team. Sort of like you have a lot of money in your house that you will only access when you sell. Of course, when team owners do sell, they make huge profits.