KJ and maloofs meeting @ City Hall

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Hope George ain't there.
 
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PLEASE, PLEASE, PLEASE keep your comments civil. Threats, even supposedly in jest, are NOT appropriate.
 
If George wasn't there then there would be no point to meeting.
 
Meeting again tomorrow. They are continuing to work on things.

they both agreed to keep stuff out of the public. Called the meeting productive. Won't get into any details.
 
Section 101 said:
Meeting again tomorrow. They are continuing to work on things.

they both agreed to keep stuff out of the public. Called the meeting productive. Won't get into any details.
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That is huge. Things are starting to feel good again. Thanks for sharing.
 
VF21 said:
That is huge. Things are starting to feel good again. Thanks for sharing.
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Huge in a good or a bad way?

The optimist in me would like to think that they are truly trying to find a solution.

The pessimist in me thinks that they've managed to push things until AFTER the season ends and avoid any protests / demonstrations at the games... They can say / do whatever they want after tonight and not have to face any of the fans' wrath.

The doomsayer in me thinks that over the weekend they'll announce the can't come to an agreement and moving vans will pull up at PBP on Monday in a Sterling-like move.
 
Jose said:
Huge in a good or a bad way?

The optimist in me would like to think that they are truly trying to find a solution.

The pessimist in me thinks that they've managed to push things until AFTER the season ends and avoid any protests / demonstrations at the games... They can say / do whatever they want after tonight and not have to face any of the fans' wrath.

The doomsayer in me thinks that over the weekend they'll announce the can't come to an agreement and moving vans will pull up at PBP on Monday in a Sterling-like move.
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It's huge in a good way. I'm sorry but I refuse to buy into the doom and gloom scenario, especially with Kevin Johnson still engaged and involved in the process. He doesn't trust the Maloofs and I'm pretty certain he would not be participating unless he truly believes there's reason to do so. And they aren't going to move the team in the middle of the night. If they do so, I'm pretty sure the ramifications from the NBA would be swift and severe, with the Maloofs bearing the brunt of most of the negative fallout. After all, if they go against the NBA and move, I don't see the NBA being forced to include them in a 2012-2013 season, since the Maloofs will have already breached the agreement with the NBA. People keep talking about the Maloofs sneaking out of town but I honestly think that's the very least of our worries.
 
VF21 said:
It's huge in a good way. I'm sorry but I refuse to buy into the doom and gloom scenario, especially with Kevin Johnson still engaged and involved in the process. He doesn't trust the Maloofs and I'm pretty certain he would not be participating unless he truly believes there's reason to do so. And they aren't going to move the team in the middle of the night. If they do so, I'm pretty sure the ramifications from the NBA would be swift and severe, with the Maloofs bearing the brunt of most of the negative fallout. After all, if they go against the NBA and move, I don't see the NBA being forced to include them in a 2012-2013 season, since the Maloofs will have already breached the agreement with the NBA. People keep talking about the Maloofs sneaking out of town but I honestly think that's the very least of our worries.
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I'm starting to think that no matter the good intentions, no matter the goodwill on both sides, the numbers just don't pan out for them. They may have panned out for the NBA negotiators, but for the financially destitute Maloofs it just doesn't work. I hope I'm wrong.
 
Kingster said:
I'm starting to think that no matter the good intentions, no matter the goodwill on both sides, the numbers just don't pan out for them. They may have panned out for the NBA negotiators, but for the financially destitute Maloofs it just doesn't work. I hope I'm wrong.
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We'll just have to agree that we disagree on how we look at things.
 
Kingster said:
I'm starting to think that no matter the good intentions, no matter the goodwill on both sides, the numbers just don't pan out for them. They may have panned out for the NBA negotiators, but for the financially destitute Maloofs it just doesn't work. I hope I'm wrong.
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Simply because of the increased debt load? If the numbers don't work for this deal, then they don't work for any deal.

What I'm guessing George is going to try to chip away at are various ways to increase his bottom line in the deal: revenue streams, yes the taxes and police thing, gameday arena worker wages, etc. Of course, they're totally unreasonable, but that's what I think he's going for. Because, if the numbers don't work in this deal, they won't work in any deal. I can't emphasize enough how strongly I think all exits out of town have closed for the Maloofs since the NBA negotiated what was agreed to in Orlando. Folks, they're just simply not moving. It's pretty simple.

Maybe, MAYBE George is realizing that. And if he does, chipping away at getting more of the various revenue streams, and lowering his operating overhead is the way he'll go I think... to try to make it "work" for him. :rolleyes:
 
I agree with The Hammer. A lot of George's "concerns" have already been addressed. At this point, I strongly suspect the Maloofs are trying to squeeze every possible penny they can out of the deal knowing full well at the end of the day that it's this deal or no deal. Knowing the bookings of PBP are at what might be an all-time low, they have to do something.
 
I hope the meeting had potential to finally get this thing sorted out between the Maloof family and the other parties. I know George is negotiating to lower his out-of-pocket costs but how low can he go? Not wanting to pay for arena worker wages during Kings games is extreme. We're just going to have to wait and see what develops and hope for the best.
 
ArcoKings said:
I hope the meeting had potential to finally get this thing sorted out between the Maloof family and the other parties. I know George is negotiating to lower his out-of-pocket costs but how low can he go? Not wanting to pay for arena worker wages during Kings games is extreme. We're just going to have to wait and see what develops and hope for the best.
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They had no out of pocket costs. That's why them rejecting it was so bizarre. The NBA was going to pay $7 mill and loan the Maloofs $67 mil.

The only thing the Maloofs needed to do was put a winner on the court and fans in the seats. AEG would have been responsible for the rest of the ESC events.
 
Section 101 said:
They had no out of pocket costs. That's why them rejecting it was so bizarre. The NBA was going to pay $7 mill and loan the Maloofs $67 mil.

The only thing the Maloofs needed to do was put a winner on the court and fans in the seats. AEG would have been responsible for the rest of the ESC events.
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I think they just can't take on anymore debt because with them basically liquidating all of their cash producing assets they see the kings as their only "cash cow". they simply refuse to put it at even more risk since they do not have the cash on hand in case its needed. And if they take the nba's loan thats even less personal income for them every month(or however the terms are). They see this as a deal thats a money making type deal not a hobby deal like most owners would.

Although sports franchises arent intended to be much of a profit producing venture if run at minimum payroll with regards to the roster and bare bones in regards to everything else the new CBA has been structured to increase revenue sharing thus allowing the maloofs to possibly walk away with a significant profit. Being an accountant I know they have ways to show losses against income i.e their own salaries, having family on the payroll etc that arent "real" losses. So those of us who think they will default or not make payroll shouldnt get to excited about that.

The funny thing is is that revenue sharing wasn't necessarily put in to allow owners to walk away with more money, it was put in so they could spend more on players and be able to compete on the court with bigger markets. The maloofs, being broke, have twisted this and are using those revenue sharing checks to live off of. Dont think for a second that Stern and his finance guys, or even the other owners who write those checks, arent pissed about it. They meet the minimum, and walk away with the rest.
 
kingjatt said:
I think they just can't take on anymore debt because with them basically liquidating all of their cash producing assets they see the kings as their only "cash cow". they simply refuse to put it at even more risk since they do not have the cash on hand in case its needed. And if they take the nba's loan thats even less personal income for them every month(or however the terms are). They see this as a deal thats a money making type deal not a hobby deal like most owners would.

Although sports franchises arent intended to be much of a profit producing venture if run at minimum payroll with regards to the roster and bare bones in regards to everything else the new CBA has been structured to increase revenue sharing thus allowing the maloofs to possibly walk away with a significant profit. Being an accountant I know they have ways to show losses against income i.e their own salaries, having family on the payroll etc that arent "real" losses. So those of us who think they will default or not make payroll shouldnt get to excited about that.

The funny thing is is that revenue sharing wasn't necessarily put in to allow owners to walk away with more money, it was put in so they could spend more on players and be able to compete on the court with bigger markets. The maloofs, being broke, have twisted this and are using those revenue sharing checks to live off of. Dont think for a second that Stern and his finance guys, or even the other owners who write those checks, arent pissed about it. They meet the minimum, and walk away with the rest.
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For the players sake they need to up the minimum closer to the cap, and allow 1 more player, and call it a practice squad roster spot who could be brought in to replace an injured player if needed. Teams should be able to have a minimum of 1 practice squad spot and a max of 3, and on the road trips where the team does not practice the players should go to the D-League and play with the respective teams they would have been assigned to. (I see a lot of players in the INTL league, and in the D-Leagues that deserve NBA spots)
 
kingjatt said:
I think they just can't take on anymore debt because with them basically liquidating all of their cash producing assets they see the kings as their only "cash cow". they simply refuse to put it at even more risk since they do not have the cash on hand in case its needed. And if they take the nba's loan thats even less personal income for them every month(or however the terms are). They see this as a deal thats a money making type deal not a hobby deal like most owners would.

Although sports franchises arent intended to be much of a profit producing venture if run at minimum payroll with regards to the roster and bare bones in regards to everything else the new CBA has been structured to increase revenue sharing thus allowing the maloofs to possibly walk away with a significant profit. Being an accountant I know they have ways to show losses against income i.e their own salaries, having family on the payroll etc that arent "real" losses. So those of us who think they will default or not make payroll shouldnt get to excited about that.

The funny thing is is that revenue sharing wasn't necessarily put in to allow owners to walk away with more money, it was put in so they could spend more on players and be able to compete on the court with bigger markets. The maloofs, being broke, have twisted this and are using those revenue sharing checks to live off of. Dont think for a second that Stern and his finance guys, or even the other owners who write those checks, arent pissed about it. They meet the minimum, and walk away with the rest.
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That's one reason why the minimum will be rising.
 
FWIW, the minimum did rise from 75% of the cap to 85% of the cap in the new cba that started this season and will be at 90% in a year or 2.
 
Trueblood said:
FWIW, the minimum did rise from 75% of the cap to 85% of the cap in the new cba that started this season and will be at 90% in a year or 2.
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the amount shared in revenue (the money pool) is also set to triple in size thus compensating and i would even say more than compensating for the increase in minimum salary levels for teams like the kings. of course this is all speculation based on the broad layout set forth by the nba to the public, but in my opinion this new revenue sharing model will greatly help the maloofs stay afloat (of course fan support and fans patronizing their product is more important) and continue to torture us die hard fans.
 
Seems the Maloofs insisted on not putting up collateral.

Upsetting....

"Maloofs are operating under a different model than the rest of the team in the league, that's what makes it tough".
 
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