News from the NBA BOG meeting - April 2012

[Glenn]

Wouldn't a renovation paid for by the Maloofs cost more than their $73 million contribution to the new arena anyway?

I don't know as if they renovated they would own the property. part of their whining is because they won't own the arena. I have made a lot od changes to the original note so maybe re-reading wouold help. And then again, maybe it won't. BTW, I'm heading out of town to attend my oldest son't wedding and as angry as I am at the Maloofs, it has been tempered a lot by what is going to be a very fun week end.

Let me play devil's advocate though. I'll be set up with my computer by about 5.

 

[Circa_1985_Fan]

Yes, but they get to keep all the current revenue streams like parking, naming rights (that they screwed up), full ticket sales, etc.

Who's gonna want to do business locally with these snakes?

 

[TyFreak Evans]

Stern needs to hurry up....I wanna hear what he has to say...

 

[Glenn]

Right, which of course is a losing game only broke fools would endorse because it's perfectly plain to everyone else that any amount of money thrown into renovating PVP at this point is wasted money. If your car is in the shop every couple of months you scrap it and put that money towards a new car instead. There's no way in you know where that Stern is going to approve of that idea.

This is the kind of decision a businessman would make. Sometimes you lose and you have to cut your losses. These guys are not businessmen, unfortunately.

 

[Kingsguy881]

short answer:
They wont sell because they are spoiled d bags.

Long answer:
Same as the short answer but with a lot more profanity.

hahah, yes!!!

 

[hrdboild]

I don't know as if they renovated they would own the property. part of their whining is because they won't own the arena. I have made a lot od changes to the original note so maybe re-reading wouold help. And then again, maybe it won't. BTW, I'm heading out of town to attend my oldest son't wedding and as angry as I am at the Maloofs, it has been tempered a lot by what is going to be a very fun week end.

Let me play devil's advocate though. I'll be set up with my computer by about 5.

Technically they own the lease to PVP, but they still owe $70 million to the city on that don't they? The city is essentially restructuring that debt and putting it toward a new arena. If they want to own the new arena, they're going to have to pay a lot more than 20%, but that was the whole point of the negotiations in Orlando. All of this just points back to what we've suspected all along -- they can't afford to own an NBA team anymore.

 

[Glenn]

The maloofs have said that they're biggest regret was their family selling the Rockets. The maloofs will hold on to this team until they have no other options.

Yes, unfortunately, and that's beause they are basketball fans and not businessmen. Maybe George should have been in charge from day 1 as they might not have bought the Kings or built the Palms.

 

[ReinadelosReys]

Ken Berger ‏ @KBergCBS

Glen Taylor, chairman of Board of Governors, tells @CBSSports Maloofs did not explicitly tell board they will file for relocation.

Taylor: "I really wish they would've stayed and worked with the city ... to resolve their differences. It may be impossible to do that now."

Asked why it may be impossible for Maloofs and city to reach deal, Taylor said, "Now, you might have a gap of trust."

Asked about Maloofs' proposal to renovate existing arena, Taylor said, "We didn't think that was a viable thing in the first place."

 

[Larry David]

http://www.sacbee.com/2012/04/13/4411932/kings-arena-deal-concerns-range.html

What a list

 

[PurpleHaze]

The maloofs have said that they're biggest regret was their family selling the Rockets. The maloofs will hold on to this team until they have no other options.

Old man George, Sr. sold as his sons were in college at the time or just out. To George, Sr. his Houston Rockets were a fun play thing, a part-time hobby, not a serious business venture. Of course, the entire NBA was different back them but George Sr. was profiting very nicely from his New Mexico based beer distributorship and the Rockets were just an occassional diversion among his growing (at the time) empire.

 

[ReinadelosReys]

Bryan May ‏ @BMayNews10

For the record there are more NBA folks here in press conference than working media. Sacramento well represented in here

 

[Glenn]

My point is they know that renovation isn't an option either and this is just more posturing by the Maloofs to kill the downtown arena deal.

Why isn't it an option to the Maloofs? They don't care if the PBP is too small for major musical acts, Cirque de Soleil, or whatever. They just want a basketball arena. The court doesn't need to be bigger as they are standard size, etc. Their major problem is that the NBA sees the present arena as inadequate, isn't that true? Someone answer this one. If the NBA sees it as inadequate, their argument is with Stern and not KJ.

This is where they are stuck unless I am missing something. (Not unlikely )

Now there needs to be a Stern lecture on how the NBA sees PBP as inadequate. Then we have the face off. NBA sees PBP as inadequate and Maloofs can't afford anything else because they are not only broke but can't borrow a penny more. I hope there has been an open line to Burkle or the like as I see no other solution. Maybe the Maloofs had to go down fighting for their own personal reasons and needed to hear that every idea they had wouldn't fly. THEN and only THEN would they sell. That makes sense to me.

 

[ReinadelosReys]

Stern presser begins: In other news, the Hornets have an owner.

 

[fansinceday1]

http://www.sacbee.com/2012/04/13/4411932/kings-arena-deal-concerns-range.html

What a list

• Kings want to delete provision that says any new owner of team must assume obligations in term sheet.

Read more here: http://www.sacbee.com/2012/04/13/4411932/kings-arena-deal-concerns-range.html#storylink=cpy

Does this mean that the next owner wouldn't assume the debt owed to the city?

 

[Warhawk]

Why isn't it an option to the Maloofs? They don't care if the PBP is too small for major musical acts, Cirque de Soleil, or whatever. They just want a basketball arena. The court doesn't need to be bigger as they are standard size, etc. Their major problem is that the NBA sees the present arena as inadequate isn't that true? Someone answer this one. If the NBA sees it as inadequate, their argument is with Stern and not KJ.

This is where they are stuck unless I am missing something. (Not unlikely )

No, the facility is functionally obsolete. It is more and more lacking for major music events, etc. They can't just have the Kings play and ignore the rest; that doesn't come near to paying the bills. They need all the income from all these events to be able to cover their debts, etc.

 

[ReinadelosReys]

Why can't we get a new owner? A native to Sacramento! I'm jealous

 

[gunks]

Lucky Hornets...Where's our dottering old billionaire owner with 'chip expectations?

All we got are a gaggle of d-bags.

 

[Fireplug]

 

[OnYouLikeGlue]

Why isn't it an option to the Maloofs? They don't care if the PBP is too small for major musical acts, Cirque de Soleil, or whatever. They just want a basketball arena. The court doesn't need to be bigger as they are standard size, etc. Their major problem is that the NBA sees the present arena as inadequate isn't that true? Someone answer this one. If the NBA sees it as inadequate, their argument is with Stern and not KJ.

This is where they are stuck unless I am missing something. (Not unlikely )

No, they've also said in the past that THEY see the arena as inadequate. And you'd have to assume that an adequate renovation would cost at the minimum 200 million. There is no chance they come up with that money. The only way I think they would do a renovation is if the city put the $255 million they were gonna put to a downtown arena towards PBP renovations, which we know is not going to happen.

Renovation is completely unrealistic and all parties already know this.

 

[Glenn]

No, the facility is functionally obsolete. It is more and more lacking for major music events, etc. They can't just have the Kings play and ignore the rest; that doesn't come near to paying the bills. They need all the income from all these events to be able to cover their debts, etc.

This is the NBA's opinion, right? I think so but I just want reassurance as this pins the Maloofs against the wall.

 

[Glenn]

Why can't we get a new owner? A native to Sacramento! I'm jealous

I'm working out a deal with George right now.

 

[Glenn]

No, they've also said in the past that THEY see the arena as inadequate. And you'd have to assume that an adequate renovation would cost at the minimum 200 million. There is no chance they come up with that money. The only way I think the would do a renovation is if the city put the $255 million they were gonna put to a downtown arena towards PBP renovations, which we now is not going to happen.

Renovation is completely unrealistic and all parties already know this.

Gotcha. Thanks.

I REALLY don't understand why the Maloofs are going down this dead end trail.

 

[ReinadelosReys]

"But he got my money, though"

Haha! I love this guy! Happy for Hornet fans and New Orleans!

 

[Fireplug]

Well, I think it is time to go back to what KJ already said way back when the Maloofs already had two feet out the door... He said at that time that, although ideally we want to keep our relationship with the Kings, the city is prepared to build the arena with or without the Kings. I gotta believe that it wasn't all bravado and there must have been some contingency plans at that time if the team left and could still be in place if George has still mentally left. Basically all the Maloofs are contributing toward the arena is $70 mil or so. Chump change for a Burkle. Wonder if they might still build it somehow and let the Maloofs just stew in their old place until they beg to come over. Afterall, AEG built the arena in KC without a team.

 

[Tetsujin]

I'm working out a deal with George right now.

I'd even settle for a billionaire grocery store magnate and C-Webb

 

[Circa_1985_Fan]

Sooo...Crazy George wants the city to throw hundreds of millions to renovate HIS piece of **** arena???

 

[Warhawk]

This is the NBA's opinion, right? I think so but I just want reassurance as this pins the Maloofs against the wall.

No, the NBA has nothing to do with the concerts, Monster Trucks, etc. Those events are strictly up to the arena operator.

 

[Tetsujin]

I like how Stern is doing his best to avoid infecting the happiness of Hornets fans with the vitrol of the Maloof failure.

 

[Section 101]

Technically they own the lease to PVP, but they still owe $70 million to the city on that don't they? The city is essentially restructuring that debt and putting it toward a new arena. If they want to own the new arena, they're going to have to pay a lot more than 20%, but that was the whole point of the negotiations in Orlando. All of this just points back to what we've suspected all along -- they can't afford to own an NBA team anymore.

No. The team owes bond holders the money. The city is just a guarantor that the bond holders get paid. Think of the city as co signing on the bonds.

 

[Löwenherz]

Here we go ...