New Arena update

[slugking50]

Slims favorite on air personality just gave an update on the arena situation. He talked to Joe Maloof around 8pm off the air.


1. The Arena looks to cost $400 - $450 Million.

2 County and City will own the arena.

3 The Maloofs will run it and pay the bills.

4 Maloofs will keep the profits.

They have agreed on these 4 so far. Joe said they were all working very hard and committed to get something done for the November ballot.

 

[Warhawk]

Thanks!

Graet news that things are moving toward putting something together for a vote.

 

[Circa_1985_Fan]

Slims favorite on air personality just gave an update on the arena situation. He talked to Joe Maloof around 8pm off the air.


1. The Arena looks to cost $400 - $450 Million.

2 County and City will own the arena.

3 The Maloofs will run it and pay the bills.

4 Maloofs will keep the profits.

They have agreed on these 4 so far. Joe said they were all working very hard and committed to get something done for the November ballot.

ok...well I wonder if their Thursday deadline will get extended?? Interesting proposal, though. If anything it looks like the Maloofs are sinking their teeth into the Sacramento region even more with this. It's going to take ALOT of educating to get this thing passed, though.

 

[DocHolliday]

Slims favorite on air personality just gave an update on the arena situation. He talked to Joe Maloof around 8pm off the air.


1. The Arena looks to cost $400 - $450 Million.

2 County and City will own the arena.

3 The Maloofs will run it and pay the bills.

4 Maloofs will keep the profits.

They have agreed on these 4 so far. Joe said they were all working very hard and committed to get something done for the November ballot.

If these are terms so far, the bill will not pass. All the fence sitters and the undecided are waiting to hear if the city and or county gets any of the revenues. If the Maloofs get it all they aren't going to be happy with that. You are hearing that time and time again from callers. Unfortunate but true.

I'll still vote for it, but I don't think the majority will.

 

[VF21]

Well, four points of agreement is certainly a step in the right direction.

 

[JB_kings]

Before anyone gets their panties in a bunch over #4, please consider this:
You REALLY don't want the city operating the arena. That includes hiring staff and event planning and scheduling. Government types have a hard enough time running what they have. Because MS&E is going to operate the arena, they should expect to handle the revenue. It's just like any other business that leases a building from an owner, they pay a lease as part of their operating expenses. It's kind of hard to run a business when you have expenses and your revenue goes somewhere else.

 

[d0rkus]

i just heard this from fox40/jim crandell from 2 sources, but both are not confirmed yet

it's going to be 80%-20% (city/maloofs)
it'll cost the city $400million
maloofs will pay $100
1/4% tax increase

and the maloofs will rent/sign to lease the arena for something like $3mil a yr for 30 years

 

[slugking50]

^^^^


What he said.

 

[JB_kings]

There goes the opposition gripe that they'll get a $1 a year lease agreement. The city is actually getting a better deal than Memphis made with the Grizz. According to Eric Hasseltine, the Grizz put up zip-zero-nada, 1-1=0. Take the 20% and don't look back. 10 years from now a new arena will cost nearly a billion and the taxpayers will pick up the whole thing.

 

[thelonegunman]

i just heard this from fox40/jim crandell from 2 sources, but both are not confirmed yet

it's going to be 80%-20% (city/maloofs)
it'll cost the city $400million
maloofs will pay $100
1/4% tax increase

and the maloofs will rent/sign to lease the arena for something like $3mil a yr for 30 years

I saw the same report.

The City/County will reportedly own the Arena and the Maloofs will sign a 30-yr lease for $3 Mil per year and run the day-to-day operations.

 

[VF21]

That is GOOD news. It would sure be nice if Ch. 3 had even a hint of it.

 

[kingsfan916]

That is GOOD news. It would sure be nice if Ch. 3 had even a hint of it.

seriously its like they dont even know

 

[VF21]

Well, it also could mean that Jim Crandall jumped the gun. He did that before...

We'll just have to wait and see what happens.

 

[thelonegunman]

That is GOOD news. It would sure be nice if Ch. 3 had even a hint of it.

So when should we expect the compulsory response from Arena Skeptic and Wert? Any idea? You know it's coming.

 

[thelonegunman]

Well, it also could mean that Jim Crandall jumped the gun. He did that before...

We'll just have to wait and see what happens.

Crandell prefaced his report by stating that you wouldn't see this story anywhere else. He didn't give names but said the information was confirmed by 2 sources.

Like you said, we'll see,

 

[VF21]

The 20% figure will make the proposal unacceptable to Arena Skeptic. We already know that.

I have no idea what Wert's comment will be...

 

[Bricklayer]

20% of $500 million is $100 million dollars. From one private investor. Does anybody truly comprehend how much money that is? If you were a BILLIONAIRE, of which Forbes says there are all of 243 in America, that would still be 10% of your wealth. For a building you don't own.

 

[VF21]

^^And that should better put it into perspective.

If these figures are anywhere near accurate, it sure looks like maybe the Maloofs were being honest all along about their willingness to pony up to get the deal done.

 

[ShatteredVision]

I wonder how does the NHL expanding/awarding a team to Sac fits into all of this?!?!

 

[Circa_1985_Fan]

Crandell prefaced his report by stating that you wouldn't see this story anywhere else. He didn't give names but said the information was confirmed by 2 sources.

Like you said, we'll see,

IF this...and this is a BIG IF...if it is the deal, this is about a good a deal as the city/county could have dreamt of...and the Maloofs, as well. Its money for both sides...now...did they say who controls the revenues? Or is that another part of the 'rental' thing, that they get all revenues because they pay rent? This thing has to REALLY be sold in the right way, if they even want to THINK about this thing passing...education, education, education. Oh, and btw, I was thinking $100mill from the Maloofs was going to be the number in the end for the most part, and I'm glad my hunch was right.

 

[Circa_1985_Fan]

I wonder how does the NHL expanding/awarding a team to Sac fits into all of this?!?!

frankly...I'm not even thinking about that right now, we still have to get this thing to pass, and get a new arena, before we can think about going from point A to point C. It's all about the Kings, the city.

 

[Circa_1985_Fan]

The 20% figure will make the proposal unacceptable to Arena Skeptic. We already know that.

I have no idea what Wert's comment will be...

20% PLUS $3million X 30 years=$190million, plus ownership of this new arena. And thats not to say that they wont do anything else to invest in our fine city in the process of all that...hell, $100million is $100million dammit...and annual rent, + re-imbursement of the Jim Thomas loan(which they had nothing to do with, and I have a hunch that if they had bought the team from Lukenbill instead of Thomas, there wouldnt even needed to be a loan for that)

 

[Wert]

So when should we expect the compulsory response from Arena Skeptic and Wert? Any idea? You know it's coming.

Sure, why not?

I think it's great that something solid seems to be coming together.

However, until I've seen the whole proposal in detail (not just fragmentary rumors) , and have hopefully had some good debate on it, I figure it's prudent to reserve final judgment.

I'm in strong agreement with the Maloof's stated goal of "letting the voters decide", and look forward to voting on whatever final plan (hopefully) makes the ballot in November.

 

[Warhawk]

In addition to the +/- $190 million from the Maloofs over the course of the 30 years, please remember the following (first mentioned, at least partly, by someone else on the radio yesterday and expanded here):

Don't forget the tax revenues the city/county will collect from the following sources (some new, some existing that would have been lost) if this passes.

Player salaries totalling about $60 mil/year
Organizational salaries
Construction materials, etc, relating to arena construction
Team store sales
etc, etc.

There are a lot of tax benefits to the government from construction projects in addition to the ongoing income from salaries, etc.

I think that the Maloofs, by paying $3 million per year, will get to be responsible for scheduling events and keeping the proceeds.

As Wert said, let's see what the final proposal is, but I am very excited that something seems to be coming together and we will have something concrete to discuss soon.

 

[CruzDude]

What sticks in my craw about those opposing the arena is that the Kings would only occupy the new arena some 55 dates a year, assuming 12 playoff games, 41 home games and 2 preseason. That is 15% of the days in a year. Yet the Maloofs appear willing to finance 25% of a new arena.

The remaining 310 days a year would provide concert opportunities, rodeos, exhibitions, and other sporting events crossing a very broad sedment of the area population. And with a Top-of-the-Line arena.

Seems to me that major entertainers would much prefer booking into a state-of-the-art arena providing possibilities of much bigger attendance than that with old Arco Arena.

Plus 1/2 of the 1/4 cent tax would go to those very projects the opposers want. Without the arena they don't get one penny for their "other" projects. Seems to me it is a Win-Win situation pure and simple.

 

[Warhawk]

What sticks in my craw about those opposing the arena is that the Kings would only occupy the new arena some 55 dates a year, assuming 12 playoff games, 41 home games and 2 preseason. That is 15% of the days in a year. Yet the Maloofs appear willing to finance 25% of a new arena.

Don't forget Monarchs events and other Kings events like Fandemonium, etc. May not add up to much, but they add up.

And it's 20% ($100 million out of $500 million).

But I agree. There is a lot of additional "good" that will come out of this if it passes.

It would be nice to have a shining jewel of a facility to be able to host more events and maybe bring in things like hockey, etc. I have never been to another pro NBA arena, so I can only imagine the niceties we're missing here....

 

[JB_kings]

So far we know a few myths are going to bite the dust. There will be a significant contribution from the Maloofs. More than a good number previous deals in other cities. There will be no sweetheart 1$ a year lease payment. We also know that the tax has a retirement date. Which means it will take another vote by the public to extend this tax beyond the retirement date. So it's temporary unless the public votes to not make it temporary.

So the city is the landlord collecting lease payments from the Kings who run the arena business. If I go out and purchase my own McDonalds franchise and lease store space in my local mall. I do the hiring, pay the benefits, pay the franchise fee and buy all the product. So after expenses I make a profit. Somebody explain why this model should be that I have to give the profit back to my landlord. That's not running a business, it's being an employee. So the Maloofs are running the arena. They hire the staff and supply the pro teams, book the events, maintain the building and contribute 20% of the cost to build the thing. We know that their payroll for the Kings alone ranges in the 55-60 million range and they make lease payments to the city of 3 million a year and the city gets a nice new tax revenue stream.
So the public gets screwed? Well if you go down to Best Buy and buy a new TV for $300, you'll pay an extra 75 cents in tax. I lose more change than that in my couch. My kids throw more quarters into the gumball machine at my local Round Table Pizza joint. And in return the public gets a state of the art arena located in among a nice resturants, retail, rail museum and maybe even a nice San Antonio'esque river walk. We get that to replace dirt piles and railroad tracks in the next 3-5 years instead of the next 15-20 years.
It's a no-brainer in my book.

 

[kupman]

3 The Maloofs will run it and pay the bills.

4 Maloofs will keep the profits.

Here is a tough question - I think. Does anyone have an idea of what the profit margin might be for the Maloofs once they have paid all the bills to run the joint? This would be a good number to have for all who will yell "the Maloofs get all the profits."

 

[LPKingsFan]

So far we know a few myths are going to bite the dust. There will be a significant contribution from the Maloofs. More than a good number previous deals in other cities. There will be no sweetheart 1$ a year lease payment. We also know that the tax has a retirement date. Which means it will take another vote by the public to extend this tax beyond the retirement date. So it's temporary unless the public votes to not make it temporary.

So the city is the landlord collecting lease payments from the Kings who run the arena business. If I go out and purchase my own McDonalds franchise and lease store space in my local mall. I do the hiring, pay the benefits, pay the franchise fee and buy all the product. So after expenses I make a profit. Somebody explain why this model should be that I have to give the profit back to my landlord. That's not running a business, it's being an employee. So the Maloofs are running the arena. They hire the staff and supply the pro teams, book the events, maintain the building and contribute 20% of the cost to build the thing. We know that their payroll for the Kings alone ranges in the 55-60 million range and they make lease payments to the city of 3 million a year and the city gets a nice new tax revenue stream.
So the public gets screwed? Well if you go down to Best Buy and buy a new TV for $300, you'll pay an extra 75 cents in tax. I lose more change than that in my couch. My kids throw more quarters into the gumball machine at my local Round Table Pizza joint. And in return the public gets a state of the art arena located in among a nice resturants, retail, rail museum and maybe even a nice San Antonio'esque river walk. We get that to replace dirt piles and railroad tracks in the next 3-5 years instead of the next 15-20 years.
It's a no-brainer in my book.

Great post. I agree 100%. And if your tax figures are correct, those opposed are really just engaging to a knee-jerk reaction to anything that says "new tax" without looking at the actual numbers.

 

[kupman]

Before anyone gets their panties in a bunch over #4, please consider this:
You REALLY don't want the city operating the arena. That includes hiring staff and event planning and scheduling. Government types have a hard enough time running what they have. Because MS&E is going to operate the arena, they should expect to handle the revenue.

Not only that...is there a group of people west of the Mississippi who could do a better job running and promoting the place better than the Maloofs? I doubt it.