Marty Mac: No matter how you spell it, it means money

VF21

Super Moderator Emeritus
SME
#1
http://www.sacbee.com/content/sports/basketball/kings/story/13923959p-14760945c.html

Marty Mac's World: No matter how you spell it, it means money
By Martin McNeal -- Bee Sports Columnist
Published 2:15 am PST Thursday, December 1, 2005


I wish I knew how to settle this controversy between the Maloofs and Sacramento-region leaders on how to pay for a new arena.

Heck, I wish I knew how to spell Tsakopoulos (Angelo K., I've got) without looking it up. In fact, I have a much better chance of solving the latter dilemma than the first.

But I'll give it a shot:

Kings co-owners Joe and Gavin Maloof, no matter how many positive moves they've made in this community, are viewed as Las Vegas casino owners, Coors beer distributorship owners and mega-millionaires who hardly need financial help to build an arena.

So without public financial backing for a new arena, the city, county and/or region need to look at possible car rental and/or hotel taxes as a way of raising funds on their side and see if that concept is feasible with the Maloofs, who in return need to make it clear how much cheddar they're willing to spend and how long they'll wait.

This tax-for-arena deal is nothing new. It's how other regions/cities have raised capital to fund new arenas. And if it means putting a measure on a ballot with two-thirds needed to pass, let the people have their say.

Those who travel know they pay car rental tax almost everywhere they go. The Maloofs say there has been no discussion of this concept, and that's not good.

It seems as if revenue procurement should have been the first item on the docket. But if not before, certainly now.

The Maloofs swear they are not looking to move. As they have said since coming to Sacramento, they believe this is a fertile market, and as businessfolk, that's what always is sought. They might not be ready to move out of Sacramento, but that does not mean they will not.

The Maloofs are in a position of strength. They know the Kings would be welcomed by Anaheim, which probably would do anything to bring the team there, and that includes building an arena in the foreseeable future. The reality is there are many, many more dollars down south than there are here.

So, while life will go on in Sacramento if the Kings leave - and trust me, it will - is that the route the region's masses want to take? That's what politicians need to ascertain, at least from an idealistic viewpoint. They are here to serve.
 

VF21

Super Moderator Emeritus
SME
#2
Oh my... This is rich beyond words.

Kings co-owners Joe and Gavin Maloof, no matter how many positive moves they've made in this community, are viewed as Las Vegas casino owners, Coors beer distributorship owners and mega-millionaires who hardly need financial help to build an arena.
Hey, Marty? Just where do you think people got those impressions? Don't you think you might want to point the finger where it belongs? Maybe someone should mention how many time R.E. Graswich AND Marcos Breton have thoroughly trashed the Maloofs in the very publication printing your column.

Come on... If you're going to say people have a negative view about the Maloofs, I think it's only fair you acknowledge you're working for the very newspaper that was a major contributor to that impression.

:rolleyes:
 
#3
VF21 said:
This tax-for-arena deal is nothing new. It's how other regions/cities have raised capital to fund new arenas. And if it means putting a measure on a ballot with two-thirds needed to pass, let the people have their say.

Those who travel know they pay car rental tax almost everywhere they go. The Maloofs say there has been no discussion of this concept, and that's not good.
It's unbelievable that this avenue has not even been mention. Anyone who travels knows that in certain areas(Portland comes to mind) sees this on their bills and you know who is paying for it.....my boss!!! Same deal in San Antonio and INdiana.
 

VF21

Super Moderator Emeritus
SME
#4
I agree, Ryle... There are a LOT of things that it seems just haven't been addressed. The idea that there should be a front person, for example, would seem pretty elementary but it's been "catch as catch can" right from the beginning.

And, my comment about the Bee aside, at least they're now putting the information out that I think the public really needs to know.
 
#6
Nothing is easy when it comes to the arena issue. Just how is the city supposed to invoke a rental car tax when the bulk of the rental car activity is at the airport and under county control? The city can impose a tax on cars rented within the city, but how much is that really? The hotel tax and parking surcharge is a step in the right direction, but there's still a huge shortfall. The downtown arena proposal was largely based on the food and beverage surcharge which would have provided over half of what was needed to pay back the bonds for contsruction. Moving it out of downtown and the Sports and Entertainment District killed any hope of having that source.
So how does this get done in Natomas? I'm no finance wiz, but I'll take a shot:
1. Hotel tax for city & county.
2. Rental car tax for city & county
3. Food and beverage tax for city & county.
4. Parking surcharge for arena
5. ticket surcharge
6. Sale of existing arena property - both city & MS&E.
7. MS&E private contribution

I'm not going to put any percentages here, but there should be enough sources listed here to bridge the gap. You will note that the county is included here and they have been hanging back on this deal. Partly because the city doesn't want to introduce a new player that will surely want something in return for their participation. That means sharing some of the tax revenue from the new arena. But it's a deal that has to be made in order for the airport car rental tax and F&B tax to be of any substance. There are a lot of sacred cows here and differing agendas. Example: I'm sure the county wants to protect it's future tax sources for it's own uses in airport upgrades over the next few decades. But the rental tax isn't it's only source of tax revenue and it should bite the bullet for the good of the area's future. The other much debated tax is the food and beverage tax. It killed the downtown arena almost single handedly. However, I think it would go over much better if the percentage was slashed to much smaller number and then spread out over the city and county. That spreads the burden over a larger number of establishments with everyone contributing in smaller amounts.
I think the city has to take that first step and reach out to the county. They better be prepared to talk about tax revenue sharing and the like. The county also needs to feel that they have to step up and realize that they have an interest in getting an arena done that holds a number of events which brings dollars into the county and city.
 
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Fillmoe

Guest
#7
at the end of the day if the kings leave sacramento will lose alot of money....... so i dont know why they are so hesitant to help out....
 

Warhawk

The cake is a lie.
Staff member
#8
Someone on Sportsline (Mike?) suggested something like a "fan wall of fame", where you can pay, say, $250 or whatever, and have a brick with your name on it mounted in a wall at the new arena. Say they clear $200 per brick in profit (easy) after manufacturing and installation costs, and we have a wall of maybe 10,000 bricks, that's $2,000,000 towards the new arena right there. I know I would kick in that much for a "family" brick in a new arena for the Kings. Every extra 1,000 bricks is another $200,000 closer. That could be a pretty cool monument to the true 6th Man in Sacramento.

Now that isn't much when looking at a $300,000,000 arena (or whatever it would cost), but it might be a small step in the right direction. When added to JB's list it all adds up. JB is right that it will need to be a city/county deal. Parking is already $10 a car this year - I think that's enough. A ticket surcharge is a better idea, especially if they ever follow through with a light rail station near the arena in the future.

I guess bake sales and car washes are out? :)
 
#9
Fillmoe said:
at the end of the day if the kings leave sacramento will lose alot of money....... so i dont know why they are so hesitant to help out....
thats a great point.

you'd think it would be a no brainer to get a deal done
 
D

Danny Ocean

Guest
#10
When I drove up to the parking booth the first time and saw that $10 sign I just thought G-DAMN! And I thought paying $20 for parking at candlestick was a lot. Your only paying $20 for what, 5-6 home games? Basketball is 41 home games! Man, they are making a killing just off of parking.
 

Bricklayer

Don't Make Me Use The Bat
#11
Danny Ocean said:
When I drove up to the parking booth the first time and saw that $10 sign I just thought G-DAMN! And I thought paying $20 for parking at candlestick was a lot. Your only paying $20 for what, 5-6 home games? Basketball is 41 home games! Man, they are making a killing just off of parking.
8 games at the Stick. And why would you try to distort that?

Quick rough math:

10,000 cars per Kings game x $10 = $100,000 per game x 41 = $4.1mil

40,000 cars per 49ers game x $20 = $800,000 per game x 8 = $6.4mil


In both cases the # of cars probably equals a little less, but you get the idea.
 
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Danny Ocean

Guest
#13
Easy brick, I wasnt trying to distort anything. I don't have the EXACT # of home footballs games tucked away in my brain. No need to attack me. I am merely stating how the $10 kinda shocked me.