Napear/Vandusen interview

[Circa_1985_Fan]

Knock yourself out. But this plan is going nowhere. Who in their right mind is going to front 125 million for 10 years of service? Not the City and certainly not anyone with the name Maloof.
It's another Maloof red herring to show that they tried to make it work in Sacramento and the mean old city turned their backs. It's pig slop, but some judge might not look into it deeper and agree with their anti-trust suit.

Oh, don't think for one minute I don't know this too...that's why I want to ask legit questions to everyone who says this is viable. I want to expose the pig slop being slung around.

Edit: I think a couple of names might come into play in favor of the pig slop...one is Chris Webber, the other is former sheriff Lou Blanas. Should be a circus before too much longer.

 

[kennadog]

I can't find the reference at the moment, but it was structural engineers who did a report for the city regarding the cheap foundation at Arco that could not support the needed remodel (upper/lower concourses; more suites/seats; more than one kitchen; more loading docks; larger marshalling area; etc.) The improvements weren't just for basketball, but were supposed to accomodate other events, too.

I don't see doing a remodel because:

1) Only 10 more years of use for $100 million is much too expensive. It would be a complete waste of money for the city. I wouldn't put another dime into PBP. It was built cheaply to begin with and it isn't worth helping it limp along for 10 more years. Besides, where do the Maloofs suppose the city is going to get $100 million to loan them?

2) The Maloofs already owe $65 million and PBP + the land aren't enough collateral for that. No way an investment of an extra $100 million brings the value up to enough to make it adequate collateral for $165 million. Not even close. The city can't be blamed for the inadequate collateral for $65 million, but they would be beyond stupid to throw $100 million into a deal without adequate collateral to cover it. The $100,000 wouldn't even result in $100,000 extra value to the property. Rehab dollars almost never increase value as much as is spent.

I hadn't thought about it, but I can see now why the Maloofs didn't want to provide adequate collateral for the $65 million if it was refinanced. Its because they don't have adequate collateral for the $65 million now and it isn't their fault that the value has dropped. They are wrong, though, to expect a new $65 million loan refinance from the city without providing adequate collateral. Also, just because the city's collateral isn't worth the $65 million currently owed, the Maloofs are not relieved of the paying the debt.

Collateral is last resort repayment in the event of a default. Hopefully, the Maloofs don't intend to default, but maybe they are. Then the city would be stuck repaying any of the $65 million not repaid by the Maloofs. That would be devastating to the city.

Have I said how much I hate the Maloofs? Van Dusen is cracked if he thinks $100 million city investment for only 10 more years of use is a good investment of city dollars.

 

[Larry David]

This seems to be where things are heading. All this stuff by the Maloofs seems to to be directed by their anti-trust lawyer, who is trying to create a set of events that can bolster a future anti-trust case. Hopefully, since it would be his job, a judge exactly would look into it deeper. Or at least be requested to by the opposition's legal team. It wouldn't take that deep of a look to find the pig-slop layer underneath.

Yep. Dog and pony show. This has nothing to do with the team saying here or redoing Arco. It's just stuff the Maloofs are throwing at the wall so they can claim they kept trying to make a deal work here and the city turned its back on the team. They also want suckers to keep coming to games. That's it.

 

[Section 101]

I can't find the reference at the moment, but it was structural engineers who did a report for the city regarding the cheap foundation at Arco that could not support the needed remodel (upper/lower concourses; more suites/seats; more than one kitchen; more loading docks; larger marshalling area; etc.) The improvements weren't just for basketball, but were supposed to accomodate other events, too.

From what I took from the interview they would be expanding out from the current structure. So you take say the east entrance and build a new structure out. You add concourse food/drinks/restaurants/kitchen areas/merchandise etc in the new areas.

 

[kennadog]

From what I took from the interview they would be expanding out from the current structure. So you take say the east entrance and build a new structure out. You add concourse food/drinks/restaurants/kitchen areas/merchandise etc in the new areas.

It still takes an adequate existing foundation. And it wouldn't allow for a second story concourse, which is really needed for adequate egress, especially during fire or disaster.

 

[JB_kings]

Like many things, it likely is possible to do an extreme renovation. Anything is possible. The question that fails is it a wise use of money to do this? The answer is a flat no way. It's like building a new bigger house around the outside of smaller old house. You still have the old house in the middle with the old infrastructure. And if you start renovating all the inside stuff as well, then it really skyrockets. I would love to see where Van Dusen got his numbers because I think they are very low compared to what he's describing.

I would rather build a new arena downtown with that money and take my chances on what that can do for the city.

 

[Larry David]

If they want to own the arena again, we can just flip some of the disputed terms of the last deal around. They city will pay $30 million of the remodel costs. The Maloofs will need to pay the remaining $70 million and be liable for any overages. We’ll get to make input on the design and make some changes but we won’t pay for them. The team signs a lease that ends in 2027. If the team breaks the lease to move, they have to pay the balance of the outstanding loan plus the new $30 million under a liquidated damages clause. We pay no predevelopment costs. When the shoe was on the other foot those terms were good with the Maloofs, who wanted to chip in 70 million (of the NBA’s money) to get this done.

It will never happen, but it would ensure team couldn’t afford to leave for a very long while. Whenever the team does leave, the city will own Arco free and clear to use initially and help finance a new facility going forward.

That should be KJ’s offer. They can’t afforded to say yes, so why not hurt their lawsuit. The Maloofs actually want us to fund all $100 million, in an effort to hand us a facility worth roughly the same as the $150 in debt on it (some paid down).

 

[Larry David]

The arena is underwater. The team is obligated to keep paying on the debt until 2027.

Per the Maloofs, NBA, and NCAA, the current arena is already obsolete. The Maloofs are now saying it will cost another $100 million to squeeze another 10 years out of the facility. Therefore, without a new arena or a city funded remodel, I think it’s pretty clear they have no intention of paying to play in that facility for another 15 years.

The Maloofs have delayed a lot of maintenance on the facility for a long time, which lowers the value of the facility.

When they were still tying to make a deal, they expected the loan to be deducted from their contribution. Now they want to leave, they are clearly contemplating using their legal right to dump the arena back onto the city. You can already hear George and Grant saying the Maloofs are trying to do what’s best for Sacramento because otherwise we wouldn’t have any place for concerts or the circus.

 

[JB_kings]

Just a reminder:

If Tulsa, OK can do this without an NBA team on board. Then it can be done without 75 million from the Maloofs(NBA).

http://en.wikipedia.org/wiki/BOK_Center

 

[jpsls]

Napear is a such a tool.

 

[VF21]

Some ways to finally-hopefully run Peaches out of town:

1.) Do not buy any products/services from advertisers Napear promotes on his sports radio show. Major Sacramento sponsers of note are Petkus Brothers Home Improvement, VSP Vision Care, etc.

2.) Demand KHTK-AM 1140 fire him NOW! I believe his boss at the station is Jodie Bacon.

3.) BOO HIM LOUDLY! and make signs denouncing the pathetic, arrogant twit at Kings games or anywhere he appears in public.

4.) Contact MSE and encourage them to dump him AND boycott all Kings sponsers, advertisers, refusing to purchase any merchandise or refeshments at games.

I respect your right to your opinions but I vehemently disagree with the idea of boycotting ANY of the King or Napear sponsors. These are not bad guys. They're good folks who love the city of Sacramento and the Sacramento Kings and are not to blame for the present situation. They're trying hard to stay afloat in a bad economy.

 

[PurpleHaze]

I respect your right to your opinions but I vehemently disagree with the idea of boycotting ANY of the King or Napear sponsors. These are not bad guys. They're good folks who love the city of Sacramento and the Sacramento Kings and are not to blame for the present situation. They're trying hard to stay afloat in a bad economy.

Maybe you misunderstand the intent. It's to pressure the advertisers to then pressure KHTK and/or Kings to fire Napear. You had previously said (as well as several others here) that not buying Kings merchandise and food/drinks at games was another good strategy to put some (any!) heat on the Maloofs. Later after the point is made or the result obtained we can all go back to purchasing the stuff. It's somewhat selective - obviously some advertisers are MSE long time sponsers and some are just on Napear's radio show.

 

[fansinceday1]

Just a reminder:

If Tulsa, OK can do this without an NBA team on board. Then it can be done without 75 million from the Maloofs(NBA).

http://en.wikipedia.org/wiki/BOK_Center

I understand you really like the railyard but that ship has sailed. It ain't gonna happen. Especially while the kings are here. The city cannot build a competing arena without voiding the current kings loan. Only way it has a chance of happening is if they find a way around the current loan.

 

[Circa_1985_Fan]

I understand you really like the railyard but that ship has sailed. It ain't gonna happen. Especially while the kings are here. The city cannot build a competing arena without voiding the current kings loan. Only way it has a chance of happening is if they find a way around the current loan.

You know what...you're absolutely right. But as of about a week ago...KJ has taken his gloves off and is going in for the knockout and is hungry for Maloof blood. Expect the unexpected.

 

[VF21]

Maybe you misunderstand the intent. It's to pressure the advertisers to then pressure KHTK and/or Kings to fire Napear. You had previously said (as well as several others here) that not buying Kings merchandise and food/drinks at games was another good strategy to put some (any!) heat on the Maloofs. Later after the point is made or the result obtained we can all go back to purchasing the stuff. It's somewhat selective - obviously some advertisers are MSE long time sponsers and some are just on Napear's radio show.

Not spending money at the team store primarily hurts the Maloofs. Not spending money at the advertisers hurts everybody.

 

[VF21]

I understand you really like the railyard but that ship has sailed. It ain't gonna happen. Especially while the kings are here. The city cannot build a competing arena without voiding the current kings loan. Only way it has a chance of happening is if they find a way around the current loan.

I think there's still wiggle room, based on the exact terms of the loan AND a comprehensive analysis of what the definition of "competing" is. If, for example, the Maloofs continue to allow PBP to deteriorate, then you cannot really compare a run-down PBP to a state of the art ESC. It's like the local Super 8 motel saying they're in competition with the Waldorf. At least I would suspect that might be an argument that could be brought forth.

 

[The Hammer]

You know what...you're absolutely right. But as of about a week ago...KJ has taken his gloves off and is going in for the knockout and is hungry for Maloof blood. Expect the unexpected.

You! Always with the leading statements! Dun dun dunnnnnnnn.

What do you know?!

 

[Circa_1985_Fan]

You! Always with the leading statements! Dun dun dunnnnnnnn.

What do you know?!

Hahaha...hey, I gots nuttin'! Lol I'm just trying to stay positive during all this. I do know KJ has a decent and deceiving poker face. I think at this point, he's probably done playing around with anyone named Maloof...and I'm sure he's got a lot more allies than those guys too. If I find anything juicy out as far as inside info I'll be sure to pass it on while the stove's still hot.

 

[The Hammer]

Hahaha...hey, I gots nuttin'! Lol I'm just trying to stay positive during all this. I do know KJ has a decent and deceiving poker face. I think at this point, he's probably done playing around with anyone named Maloof...and I'm sure he's got a lot more allies than those guys too. If I find anything juicy out as far as inside info I'll be sure to pass it on while the stove's still hot.

Good on ya.

 

[Hoovtrain]

I respect your right to your opinions but I vehemently disagree with the idea of boycotting ANY of the King or Napear sponsors. These are not bad guys. They're good folks who love the city of Sacramento and the Sacramento Kings and are not to blame for the present situation. They're trying hard to stay afloat in a bad economy.

In all fairness, the boycotts should have begun with the sheer awfulness of those commercials (VSP in particular).

 

[PurpleHaze]

Not spending money at the team store primarily hurts the Maloofs. Not spending money at the advertisers hurts everybody.

Life isn't always fair and some sacrifice for the greater good is often required. Continuing to let Maloofs and mouthpiece Napear think they can get away their big lie because they know better and Sactown is just a dumb Cowtown needs to be challenged. Not buying a beer or King Dog at the game can hurt a few small concessionaires but if the greater good results then it's worth the little temporary sacrifice. Calling advertisers and complaining about Napear or not having a new covered patio installed this time by Petkus Brothers doesn't put that local company around since 1980 out of biz - but sends direct message.

 

[Siranthony]

There's a lot of back and forth about the Arco loan being forgiven. Here's the applicable language from the Arco loan:



To read the entire loan yourself, use this website: http://www.records.cityofsacramento.org/index.aspx

and use these words in the search: Council Agenda 04_15_1997 Item 4.2- Arco Arena Loan Financing

I do not read this as an automatic loan forgiveness if a new arena is built. Under one reading, Sacramento could build an arena that's simply not capable of "being the home venue of a major league sports franchise" such as a pure concert venue with no locker rooms or practice facilities. This might be risky because there are many versions of major league franchises and each league might require less facilities. For a strange example, it might be the case that one league or franchise does not require locker rooms for its home venue, in which case the loan would be forgiven. Nevertheless, it's worth looking into because a pure concert hall would serve the purpose to bleed out the Maloofs from Arco's musical functions and perhaps force them to sell the Kings due to lack of Arco profits.

If that's the wrong reading, there are other ways to read it as well such as: The Maloof's would have the loan forgiven if they are not the prime user of a city arena that they agreed to use. That part is bad. But there's also the second clause which could make the sentence read like there is a second issue: The Maloof's would have the loan forgiven if they are not the prime user of a city arena that another major league franchise has a better deal offered to it than to the Maloofs. In this instance, the city could build an arena and simply offer the Maloofs a same or better deal than any other sports franchise that may use the arena and the Arco loan would not be forgiven. The Maloofs would not even have to accept the city's deal. They could reject the terms, still play in Arco, but the loan would not be forgiven because they were offered the same or better deal as another franchise.

Reading these clauses from the contract it becomes pretty clear what the Maloofs are trying to do. They have been, for some time trying to get out of paying the loan the city gave to them. That's why they went to So cal. It put the pressure on the city to come up with a better offer. The city did. The Maloofs wheren't expecting that.

The city has done a great job of holding off the Maloofs shenanigans. I fear that it's only a matter of time before the Maloofs find some other way out. It depends on the wording of the contract but we may have no other way to fight back other than not buying tickets. I would like someone who is a legal expert to advise the fans what is the best way to fight back.

It's one thing to get out of a lease when you have the legal right to do so. It's another thing to ask the city for a loan to help the franchise, then put all kinds of wording in the document to make it possible for you to wiggle your way out by playing all these games.

The city shouldn't be geting involved in these kinds of documents. They are made to be broken.

 

[Circa_1985_Fan]

Hmmm...so the Maloofs would still be on the hook if the city built an ENTERTAINMENT complex/arena?? Then after they bleed out all their finances, sell the team...the city could make necessary renovations to their arena for sporting events??

 

[Jose]

"under terms mutually agreed upon" ...

If we build it, they will NEVER agree to any terms.

 

[Section 101]

There's a lot of back and forth about the Arco loan being forgiven. Here's the applicable language from the Arco loan:

New Arena Right. Tenant shall have the right to terminate this Sublease without any further obligations hereunder if the Kings will not be the prime user in any new arena capable of being the home venue of a major league sports franchise which is approved, developed, or financed in whole or in part, directly or indirectly, by the City or the County of Sacramento, under terms mutually agreed upon but in any event no less favorable than terms offered other major league professional sports franchises playing or planning to play in home venues in the Sacramento Standard Metropolitan Statistical Area ("SMSA") or Yolo County.

To read the entire loan yourself, use this website: http://www.records.cityofsacramento.org/index.aspx

and use these words in the search: Council Agenda 04_15_1997 Item 4.2- Arco Arena Loan Financing

I do not read this as an automatic loan forgiveness if a new arena is built. Under one reading, Sacramento could build an arena that's simply not capable of "being the home venue of a major league sports franchise" such as a pure concert venue with no locker rooms or practice facilities. This might be risky because there are many versions of major league franchises and each league might require less facilities. For a strange example, it might be the case that one league or franchise does not require locker rooms for its home venue, in which case the loan would be forgiven. Nevertheless, it's worth looking into because a pure concert hall would serve the purpose to bleed out the Maloofs from Arco's musical functions and perhaps force them to sell the Kings due to lack of Arco profits.

If that's the wrong reading, there are other ways to read it as well such as: The Maloof's would have the loan forgiven if they are not the prime user of a city arena that they agreed to use. That part is bad. But there's also the second clause which could make the sentence read like there is a second issue: The Maloof's would have the loan forgiven if they are not the prime user of a city arena that another major league franchise has a better deal offered to it than to the Maloofs. In this instance, the city could build an arena and simply offer the Maloofs a same or better deal than any other sports franchise that may use the arena and the Arco loan would not be forgiven. The Maloofs would not even have to accept the city's deal. They could reject the terms, still play in Arco, but the loan would not be forgiven because they were offered the same or better deal as another franchise.

Interesting find. So as long as the new ESC is not the capable of being the home venue of a sports team they can build it. It doesn't say that the new ESC can't be made into a capable venue in the future.

So build one for concerts etc that is not able to house a major league sports team, but have it designed to host one in the future with little improvements needed. This way if the maloofs want to leave the city can say they have an ESC that can be ready in no time.

 

[JB_kings]

Just build it without locker rooms and training facilities. Of course have the square footage and utilities built in to add them quickly and easily. But the clubs, suites, ledge seating, party, VIP lounges, etc. all should be considered normal concert venue type stuff. Of course for Disney on Ice shows there will have to be an ice floor. Say one about the same size as an NHL rink without the lines, boards and stuff.

 

[Jose]

Need the locker rooms so it can accommodate NCAA games, just build it up to NCAA standards, with the infrastructure in place to build up to NBA standards. I wonder if an NBA-quality arena, but without a training facility makes it not suitable for an NBA team.... If so, it would be awesome if we could build it that way and have Stern let it host a future All-Star Game, even while the Kings play at PBP.... now THAT would make a statement!

 

[hoops4kings]

Pipe dream. But a good one at that.

 

[fansinceday1]

If the city could build a larger Mondavi center, which is a spectacular world class facility, I for one could overlook it not being able to house a sports franchise. Being able to attract top notch music and symphony almost makes it worth losing the kings.

 

[Circa_1985_Fan]

If the city could build a larger Mondavi center, which is a spectacular world class facility, I for one could overlook it not being able to house a sports franchise. Being able to attract top notch music and symphony almost makes it worth losing the kings.

Just as long as its big enough to draw the big concert tours...but yet again, I STILL don't think we should short change ourselves and not get March Madness back here(both mens and womens) and other sporting events that would bring TONS of money and life to our region.