Napear on 1140

[rainmaker]

Pretty busy now so didn't catch the beginning. But he said from what I heard, that he expects the Maloofs to make a presentation at the BOG meeting to all the owners, which will be detailed and indepth, will make their case and then ask all the owners if they would take this deal.

Almost certain they don't want to be here(me, not Grant) and that they will go to the BOG meeting to make their case to all the owners in an attempt to garner support to leave.

Anyone else here this? I'll check back in later.

 

[Section 101]

Pretty busy now so didn't catch the beginning. But he said from what I heard, that he expects the Maloofs to make a presentation at the BOG meeting to all the owners, which will be detailed and indepth, will make their case and then ask all the owners if they would take this deal.

Almost certain they don't want to be here(me, not Grant) and that they will go to the BOG meeting to make their case to all the owners in an attempt to garner support to leave.

Anyone else here this? I'll check back in later.

Just started listening.

 

[upinsmoke]

Stern is no fool he knows the family only wants to move to sell high and declare bankruptcy leaving Sac high and dry. Biggest problem for them is "they got Burkle".

 

[Kingsfan23]

I'm not an expert on this but do tenants usually cover these pre-development costs and offer to reimburse other parties as well? Gavin said a couple of weeks ago http://espn.go.com/blog/truehoop/post/_/id/39126/kings-crossing-agendas-help-sacramento-keep-team, "We’ve signed a non-binding term sheet; the whole deal has to be negotiated,”. David Stern, when he came on with Grant a couple of weeks ago, specifically stated, "I would just add that there is a third point and there’s a lot of heavy lifting left to be done. We have the general outline of a term sheet. There’s a pre-development agreement that has to be worked out. There’s arrangements between the city and AEG about the building." http://sportsradiointerviews.com/2012/03/09/david-stern-sacramento-kings-new-arena-nba/. David Stern believed the pre-development issue "still needed to be worked out".

 

[The Hammer]

I'm not an expert on this but do tenants usually cover these pre-development costs and offer to reimburse other parties as well? Gavin said a couple of weeks ago http://espn.go.com/blog/truehoop/post/_/id/39126/kings-crossing-agendas-help-sacramento-keep-team, "We’ve signed a non-binding term sheet; the whole deal has to be negotiated,”. David Stern, when he came on with Grant a couple of weeks ago, specifically stated, "I would just add that there is a third point and there’s a lot of heavy lifting left to be done. We have the general outline of a term sheet. There’s a pre-development agreement that has to be worked out. There’s arrangements between the city and AEG about the building." http://sportsradiointerviews.com/2012/03/09/david-stern-sacramento-kings-new-arena-nba/. David Stern believed the pre-development issue "still needed to be worked out".

Tenants usually don't get 50% of the naming rights revenue.

And yes, the Magic paid some part (we don't know) of the pre dev costs for their arena.

 

[Glenn]

I'm not an expert on this but do tenants usually cover these pre-development costs and offer to reimburse other parties as well? Gavin said a couple of weeks ago http://espn.go.com/blog/truehoop/post/_/id/39126/kings-crossing-agendas-help-sacramento-keep-team, "We’ve signed a non-binding term sheet; the whole deal has to be negotiated,”. David Stern, when he came on with Grant a couple of weeks ago, specifically stated, "I would just add that there is a third point and there’s a lot of heavy lifting left to be done. We have the general outline of a term sheet. There’s a pre-development agreement that has to be worked out. There’s arrangements between the city and AEG about the building." http://sportsradiointerviews.com/2012/03/09/david-stern-sacramento-kings-new-arena-nba/. David Stern believed the pre-development issue "still needed to be worked out".

Most tenants do not receive income from signage either. Perhaps the Maloofs would prefer if the city got the signage fees and didn't pay any pre-development costs. I don't know what signing something that is non-binding means but they did it. I don't know why Gavin cried when the deal was signed. I don't know why the Maloofs took center court to receive the adulation of the fans if they had not intention of following the agreement they signed.

All their behavior was of people that believed an agreement was in place. If nothing is in place, they can STFU and tell the fans they have no intention of following the terms and never did. After telling the fans that the terms meant nothing, let them stand at center court and receive the fans reaction.

The arena in Orlando included a clause where the team paid a portion of pre-development fees. The team paid it. Therefore, there already is a precedent for the team paying so why should the Maloofs be any different unless they are broke, of course?

 

[The Hammer]

Most tenants do not receive income from signage either. Perhaps the Maloofs would prefer if the city got the signage fees and didn't pay any pre-development costs. I don't know what signing something that is non-binding means but they did it. I don't know why Gavin cried when the deal was signed. I don't know why the Maloofs took center court to receive the adulation of the fans if they had not intention of following the agreement they signed.

All their behavior was of people that believed an agreement was in place. If nothing is in place, they can STFU and tell the fans they have no intention of following the terms and never did. After telling the fans that the terms meant nothing, let them stand at center court and receive the fans reaction.

The arena in Orlando included a clause where the team paid a portion of pre-development fees. The team paid it. Therefore, there already is a precedent for the team paying so why should the Maloofs be any different unless they are broke, of course?

This is why we love you, Glenn.

 

[Kingsfan23]

Most tenants do not receive income from signage either. Perhaps the Maloofs would prefer if the city got the signage fees and didn't pay any pre-development costs. I don't know what signing something that is non-binding means but they did it. I don't know why Gavin cried when the deal was signed. I don't know why the Maloofs took center court to receive the adulation of the fans if they had not intention of following the agreement they signed.

All their behavior was of people that believed an agreement was in place. If nothing is in place, they can STFU and tell the fans they have no intention of following the terms and never did. After telling the fans that the terms meant nothing, let them stand at center court and receive the fans reaction.

The arena in Orlando included a clause where the team paid a portion of pre-development fees. The team paid it. Therefore, there already is a precedent for the team paying so why should the Maloofs be any different unless they are broke, of course?

They were given the term sheet on short notice, very shortly before Orlando. Would it have been better for them to have halted The NBA/City/AEG's momentum and said there was no deal at all in Orlando, instead of worked earnestly towards this good faith non-binding agreement? I don't know. In a situation as emotional as this, it is hard to take a step back and try to see where the Maloofs are coming from

 

[jpsls]

They were given the term sheet on short notice, very shortly before Orlando. Would it have been better for them to have halted The NBA/City/AEG's momentum and said there was no deal at all in Orlando, instead of worked earnestly towards this good faith non-binding agreement? I don't know. In a situation as emotional as this, it is hard to take a step back and try to see where the Maloofs are coming from

Wouldn't the Maloofs have information on the term sheet in advance of the meetings in Orlando since the NBA is negotiating on their behalf, and as such, have powers only to the extent the imposed by the Maloofs? I find it hard to believe the NBA can throw out figures without consulting the Maloofs.

 

[Kingsfan23]

Wouldn't the Maloofs have information on the term sheet in advance of the meetings in Orlando since the NBA is negotiating on their behalf, and as such, have powers only to the extent the imposed by the Maloofs? I find it hard to believe the NBA can throw out figures without consulting the Maloofs.

Well, yes I'm sure they were privy to a large part of the information but, from what I've read at least, the final terms came together rather hurriedly in the last few days of that imposed deadline. So that weekend you had a new sheet, the Maloofs who had the pressure from the City/Aeg/NBA/ and the fanbase to agree to something before that weekend was over..

 

[BMiller52]

Well, yes I'm sure they were privy to a large part of the information but, from what I've read at least, the final terms came together rather hurriedly in the last few days of that imposed deadline. So that weekend you had a new sheet, the Maloofs who had the pressure from the City/Aeg/NBA/ and the fanbase to agree to something before that weekend was over..

lol it was in the term sheet dude, they signed and agreed to it. The Magic paid pre-dev costs for their arena. The Maloofs are also getting part of the naming rights which are going to be more than the pre dev costs. It's 3 mill, they agreed to pay 73, I'm assuming this was part of the 73 mill, it shouldn't be a big deal. Now they are having their PR man Eric Rose go on the assault and retained a lawyer to express reservations about why this supposedly won't work. Come on bro read the tea leaves here, they are trying to get out of this so they can move to Anaheim.

 

[Tetsujin]

Most tenants do not receive income from signage either. Perhaps the Maloofs would prefer if the city got the signage fees and didn't pay any pre-development costs. I don't know what signing something that is non-binding means but they did it. I don't know why Gavin cried when the deal was signed. I don't know why the Maloofs took center court to receive the adulation of the fans if they had not intention of following the agreement they signed.

All their behavior was of people that believed an agreement was in place. If nothing is in place, they can STFU and tell the fans they have no intention of following the terms and never did. After telling the fans that the terms meant nothing, let them stand at center court and receive the fans reaction.

The arena in Orlando included a clause where the team paid a portion of pre-development fees. The team paid it. Therefore, there already is a precedent for the team paying so why should the Maloofs be any different unless they are broke, of course?

By a lot of accounts, Gavin has been the one Maloof actually wanting to stay in Sacramento (Hell, he's usually the only one who bothers coming to games). I honestly believe that Gavin's tears were real there, as was George's indignation behind him at the same time.

 

[Warhawk]

One thing being lost here is that the parts they are disagreeing to were actually made as CONCESSIONS to the Kings!

Originally the predevelopment costs were to be split 50-50 between the City and the Kings. $6.5 million apiece. Then the Kings balked at that, so AEG stepped up with more $$$ to cover half the predevelopment costs that the Kings were supposed to cover (so now $3.25 million each to Kings and AEG), with the stipulation that if the arena deal didn't go through because of actions outside those of AEG (for instance, the Kings or the City), then the Kings would reimburse AEG for those predevelopment costs (AEG's $3.25 million). This was all agreed to BEFORE going to Orlando, according to the City.

So, in a concession to the Kings financial situation or demands, AEG agreed to cover half the predevelopment costs that the Kings were originally slated to cover. The only reason the Kings would be balking now is if they don't intend to follow through with getting the arena built (funding on their side) and DON'T want to have to reimburse AEG for AEG's part of the predevelopment costs. That, or they are broke and can't (or don't want to make Herculean efforts to) cover the costs to begin with.

 

[jpsls]

One thing being lost here is that the parts they are disagreeing to were actually made as CONCESSIONS to the Kings!

Originally the predevelopment costs were to be split 50-50 between the City and the Kings. $6.5 million apiece. Then the Kings balked at that, so AEG stepped up with more $$$ to cover half the predevelopment costs that the Kings were supposed to cover (so now $3.25 million each to Kings and AEG), with the stipulation that if the arena deal didn't go through because of actions outside those of AEG (for instance, the Kings or the City), then the Kings would reimburse AEG for those predevelopment costs (AEG's $3.25 million). This was all agreed to BEFORE going to Orlando, according to the City.

So, in a concession to the Kings financial situation or demands, AEG agreed to cover half the predevelopment costs that the Kings were originally slated to cover. The only reason the Kings would be balking now is if they don't intend to follow through with getting the arena built (funding on their side) and DON'T want to have to reimburse AEG for AEG's part of the predevelopment costs. That, or they are broke and can't (or don't want to make Herculean efforts to) cover the costs to begin with.

They only have to reimburse AEG if the deal falls through right?

Honestly, $3M should be chump change for them. They haven't spent a nickel more than is required to satisfy salary cap needs, and they have hired coaches on the cheap the past 5 years. Once again, the NBA has to step in and save these bottom feeders. The city and NBA know the Maloofs are incompetent, which is why they had to negotiate on their behalf.

I wonder how the Maloofs would feel if we reneged on the agreement that they get a 50/50 split of naming rights for the arena. AEG certainly had no problems pitching in for pre-development costs considering they are only operating the arena.

I really hope the Maloofs sue the league so that they go broke from legal fees and or forced to sell.

 

[Warhawk]

They only have to reimburse AEG if the deal falls through right?

Correct. AEG jumped in to help to save the deal and they just want to be covered if the deal falls through. If the deal moves forward, AEG covers 1/4 of the predevelopment costs and the Kings 1/4, wht the rest covered by the City, largely through use of redevelopment dollars allocated to fixing up the downtown area (IIRC). These funds were agreed to be moved from other Taylor redevelopment projects to this one by both Taylor and the City.

 

[jpsls]

Correct. AEG jumped in to help to save the deal and they just want to be covered if the deal falls through. If the deal moves forward, AEG covers 1/4 of the predevelopment costs and the Kings 1/4, wht the rest covered by the City, largely through use of redevelopment dollars allocated to fixing up the downtown area (IIRC). These funds were agreed to be moved from other Taylor redevelopment projects to this one by both Taylor and the City.

So the Maloofs are potentially complaining about nothing, unless of course they are certain the deal will fall through i.e. the Maloofs are broke and can't fulfill their end of the bargain. 3M is a lot for broke owners. I guess I can't blame them for their actions.

 

[Capt. Factorial]

So the Maloofs are potentially complaining about nothing, unless of course they are certain the deal will fall through i.e. the Maloofs are broke and can't fulfill their end of the bargain. 3M is a lot for broke owners. I guess I can't blame them for their actions.

I can blame them. They agreed to $73M. They knew they agreed to $73M. And when the first $3M and change came due, they lawyered up.

Honestly, I would have more respect for them if they went to Orlando and said, "Nope, we don't like this deal. We don't even want to stay in Sacramento. We don't believe we can succeed in Sacramento and we want out, period. NO DEAL." But I know we can't expect snakes like them to actually exhibit any honesty.

 

[Warhawk]

So the Maloofs are potentially complaining about nothing, unless of course they are certain the deal will fall through i.e. the Maloofs are broke and can't fulfill their end of the bargain. 3M is a lot for broke owners. I guess I can't blame them for their actions.

Uh, if you don't have the money, don't agree to the deal to begin with! Right now it is all on them, as everyone else is fulfilling their ends of the bargain. And I agree wholeheartedly with the Captain on this one.

 

[bajaden]

I can blame them. They agreed to $73M. They knew they agreed to $73M. And when the first $3M and change came due, they lawyered up.

Honestly, I would have more respect for them if they went to Orlando and said, "Nope, we don't like this deal. We don't even want to stay in Sacramento. We don't believe we can succeed in Sacramento and we want out, period. NO DEAL." But I know we can't expect snakes like them to actually exhibit any honesty.

I agree 100%. Of course, then the problem would have been lousey ticket sales, and an empty arena. So why not wait till the last possible minute before pulling the rug. I can't honestly say that they bargined in bad faith. Maybe they did want to get a deal done, and the after looking at it, decided that they couldn't live up to the deal. I personally don't believe that. But I can't prove otherwise. But anyway you cut it, they come out as the bad guys. I only hope the league see's it that way as well.

 

[sidney]

Well it didn't go so well the last time the Maloofs went in front of the board of governors. In the last year all Sacramento has done is jump through all the hoops and show leadership to get it done. If the Maloofs expect sympathy from other wealthy owners for moving because of 3M while maintaining the lowest salary in the league year after year I think they have another thing coming. Time to get out of the basketball business boys.

 

[Circa_1985_Fan]

I do believe Stern is growing tired of Maloof games, and next week this time next week they might be staring at a Burkle Bomb that's locked and loaded.

 

[Warhawk]

I do believe Stern is growing tired of Maloof games, and next week this time next week they might be staring at a Burkle Bomb that's locked and loaded.

Oh, man, if that could only come true. That would be awesome. Signing a 30-year lease first, of course.

 

[kingjatt]

Carmichael Dave got heated when someone called peeches a mouthpiece, but then went on to say he's got a family to feed. They are all biased at the station, they try to spin things to give the maloofs the benefit of the doubt its so annoying. technically they're all on the payroll because the kings radio deal pretty much keeps them afloat. It would suck to have grants job right about now.

 

[swisshh]

The Don & Mike show gave the station ratings without having to appease the Maloofs. I thought bringing on Don was an attempt by the station to not be so dependent on MSE. If they are bowing like this then they're still pretty tied to Maloof money. Of course, just saying Kings every hour gets you ratings in Sacramento, but it's not the only way. I know a lot of people get upset at the "non-sports talk", but as you can see, becoming dependent on local sports and their affiliated ownership is an ethical problem. And when that ownership is attempting to leave town, it's a business problem.

It's hard on Grant, but I don't respect people who really stand for nothing but their paycheck. It hurts everybody to be that way.

As for the BOG meeting, I would like to think Stern is fed up with and worried about the Maloofs becoming an embarrassment, but on a national level, this hasn't gotten as much attention as it likely deserves. I also don't trust Stern much. If the other big city owners weren't upset at this move to Anaheim as setting a precedent that could hurt them down the line, I doubt Stern would be giving this much effort to stop it.

 

[kennadog]

What's stupid is they supposedly agreed to $73.5 million. I assume they want to reduce that amount by the $3.25 in pre-development costs to only $70 million. Otherwise this makes no sense. If you agreed to put it $73,5 million, it doesn't matter whether its spent of pre-development costs or construction costs or whatever piece of the whole development package.

I suppose that's why they are also arguing that the city can't get the arena done on time. That throws the whole agreement in to question. Well, the city can't get it done in time, if they have to re-negotiate everything in the outlined agreement. So if the Maloofs don't want to be here, it's no wonder they are trying so hard to sabotage the city's efforts and likely will be obstructionists at every stage, unless the other owners come down hard on them.

I don't have much faith in other owners setting what they may think is a bad precedent for the future by coming down too hard on fellow owners. I hope I'm wrong.

 

[Livinthedream]

What's stupid is they supposedly agreed to $73.5 million. I assume they want to reduce that amount by the $3.25 in pre-development costs to only $70 million. Otherwise this makes no sense. If you agreed to put it $73,5 million, it doesn't matter whether its spent of pre-development costs or construction costs or whatever piece of the whole development package.

It matters if the Maloofs have no intentions of helping to get an arena built in the first place. If no arena gets built, they lose their $3.25 mil and have to pay AEG $3.25 mil. Maloofs are trying to kill the deal, and don't want to lose $6 mill in the process.

 

[kennadog]

It matters if the Maloofs have no intentions of helping to get an arena built in the first place. If no arena gets built, they lose their $3.25 mil and have to pay AEG $3.25 mil. Maloofs are trying to kill the deal, and don't want to lose $6 mill in the process.

Withholding the $3.25 million is the surest way to keep things from getting done. If their intention was to never get a deal done in Sacramento, then your right, pre-development is the riskiest money in the deal, and would be lost. That just supports my conclusion that the Maloofs, for at least the last few years have never had any intention of staying in Sacramento. They are going to make sure this deal never happens by dragging their feet (re-negotiating) every step of the way.

If they didn't like the general outline of the deal, they should never have signed the term sheet. It's not binding, but the major terms weren't meant to be re-negotiated in their entirety. It's a bald-faced stab in the back. They've proven to me once and for all that they can't be trusted an inch and have absolutely no idea what the word honor means.

I support my team and I want them to be in Sacramento, but I'll never have a good word to say about the Maloofs ever again. They don't deserve my support, except to the extent it supports my team. Screw the Maloofs. They are vile and venal traitors to this region. We deserve better.

 

[Glenn]

I support my team and I want them to be in Sacramento, but I'll never have a good word to say about the Maloofs ever again. They don't deserve my support, except to the extent it supports my team. Screw the Maloofs. They are vile and venal traitors to this region. We deserve better.

Now tell us how you really feel. There were better ways of handling this, weren't there? No common sense in the group.

Why was $200,000 so damn important especially when they had a couple weeks to negotiate until the next installment was due? Why not keep good public relations and carry on the acrimony in the background? I guess maybe they don't give a rip, huh? It's a puzzling way of doing business.



Edit: Let me add that the only time I would create a public stink is if I thought the public was behind me. Well, they aren't and I have to assume that by going public with their pig headedness they thought there was something to gain. It's like if I had a $1000 project going on with bajaden and the first payment of $25 was due. I'd pay it and then get on the phone to him and voice my displeasure with whatever I thought was wrong.

This idea they don't think that the city can honor it's committments means nothing. If that is the fear, there must be protections for the Maloofs. The thing is, the City Council voted 7-2 and KJ is the driving force along with many others. The last people to come up short is the city. I think most of us if polled would have said that the Maloofs would be the first to be unable to go along with the agreement. No poll was taken and the Maloofs have taken all the mystery out of it. They are the weakest link.

I am curious if anyone thinks the BOG will support the Maloofs. It would be an unpopular stance as all the verbal people think Stern et. al will support the city but there must be a contrary opinion. At the least there must be a theory as to why the Maloofs would take such a stance. To me it makes no sense unless in the end they know they must sell and they are hoping to hold the City and NBA hostage to drive up the price.

It DID cross my mind that Burkle might buy the Kings at a fair market value but that the Maloofs would demand a certain amount from the NBA to sweeten the pot. The NBA might be willing to pay extra just to get rid of them.

IT MAKES NO SENSE.

 

[Warhawk]

I am curious if anyone thinks the BOG will support the Maloofs. It would be an unpopular stance as all the verbal people think Stern et. al will support the city but there must be a contrary opinion. At the least there must be a theory as to why the Maloofs would take such a stance. To me it makes no sense unless in the end they know they must sell and they are hoping to hold the City and NBA hostage to drive up the price.

I don't see how.

The NBA was the lead negotiator of the deal on the Kings side. The Kings said it was a deal that they could be competitive with.

George Maloof called the deal "fair" and said that a new arena will make the team more competitive in the future.

Read more: http://www.kcra.com/sports/30546818/detail.html#ixzz1rKU1U2fw

The Black Prince of Darkness for Stealing Teams, a Mr. Bennett (chair of the NBA's relocation committee, heard of him?) was directly involved. There is NO way the NBA would give him free reign to work on this project and then let a team bail when the City has upheld ALL of it's obligations. That is a black eye that would keep ANY City from EVER helping with an arena deal, and that is the last thing the NBA wants.

The NBA’s relocation committee, headed by Oklahoma City owner Clay Bennett, who moved the team now known as the Thunder from Seattle in 2008, recommended that the league give the city a shot to follow through— and handed down a March 1 deadline to come up with a plan to help finance an arena.

In the end, the deal was strong enough to convince the Maloofs to stay — pending the City Council’s approval.

“This is a great day for Sacramento, a great day for the Maloof family, a great day for the NBA’’ Joe Maloof said. “I’d like to thank the mayor for all of his hard work and efforts throughout the years and, of course, the commissioner for all of his support and everything he’s done for the NBA. Our family is just so excited that we have the framework for a deal. We’ve always said we wanted to stay in Sacramento and now here’s our opportunity.’’

http://articles.boston.com/2012-02-...ena-plan-tentative-arena-deal-maloof-family/2

And this is the point of view I have taken, but it is more eloquently stated here:

Look at the wording in Stern's statement:

"Those discussions have stalled, but I have advised Mayor Johnson that the NBA will advance pre-development expenses on behalf of the Kings pending our report to the NBA Board of Governors at its meeting on April 12-13."

The league advanced the funds on behalf of the Kings. He didn't say that the NBA is providing $200,000 to cover the disputed fees while the Maloofs and city continue negotiations. He said they are advancing the funds on behalf of the Kings. It seems pretty clear that, barring sloppiness (something Stern's office is rarely accused of), the commissioner is suggesting that the Maloofs are de facto on the hook for these fees on account of, you know, agreeing to them a month ago.

http://www.sactownroyalty.com/2012/3/30/2913472/maloofs-david-stern-nba-sacramento-kings-arena