Possible alternative for Arena funding: Partner with the NBA?

Jose

Jose

Bench
Here's the thing... if the NBA was willing to advance the Maloofs $73M for the Arena. Would they be willing to partner with the city?

- NBA puts down the $73M
- City and AEG contribute as per term sheet
- Kings are TENANTS only - same deal they would get from Anaheim
- NBA receives proceeds from King's tenancy to pay their $73M investment

NBA would obviously commit to keeping a team in Sacramento for 30 years or forfeit their funds.

Would the numbers work? Maybe

Would the NBA do it? Probably not because they couldn't guarantee a team here

Somebody with better knowledge of the numbers (for our Arena and the Anaheim deal) should look into it.
 
Jose said:
Here's the thing... if the NBA was willing to advance the Maloofs $73M for the Arena. Would they be willing to partner with the city?

- NBA puts down the $73M
- City and AEG contribute as per term sheet
- Kings are TENANTS only - same deal they would get from Anaheim
- NBA receives proceeds from King's tenancy to pay their $73M investment

NBA would obviously commit to keeping a team in Sacramento for 30 years or forfeit their funds.

Would the numbers work? Maybe

Would the NBA do it? Probably not because they couldn't guarantee a team here

Somebody with better knowledge of the numbers (for our Arena and the Anaheim deal) should look into it.
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This sounds like exactly the deal that was agreed to in Orlando that the Maloofs subsequently backed out of, first because "it was bad for the city" then because "they didn't want to take on any more debt" and now because "KJ is a big meanie head". It looks like a perfectly fine deal to just about everyone except George Maloof, whatever his actual reasons may be. I wish there was a way for the NBA to just cut him out of the process, but I don't see how right now.
 
The NBA should purchase the Kings (just like they did the Hornets), and once they have acquired the team, start fielding suitable owners who are committed to winning...
 
hrdboild said:
This sounds like exactly the deal that was agreed to in Orlando that the Maloofs subsequently backed out of, first because "it was bad for the city" then because "they didn't want to take on any more debt" and now because "KJ is a big meanie head". It looks like a perfectly fine deal to just about everyone except George Maloof, whatever his actual reasons may be. I wish there was a way for the NBA to just cut him out of the process, but I don't see how right now.
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That's what I'm saying... the NBA thought it was financially feasible, let's do the theal with them. Kings can be just tenants, and the proceeds from their tenancy go to the NBA to pay them back for the $73M they would front.

Maloofs don't have to put down any money. Just sign the 30-year lease.
 
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There is ZERO chance the NBA goes into partnership with the city without the Kings involved. The only reason they were involved was because of the Kings. They work for the owners. If they start doing things that they know the owners did not agree to, even the other owners will be mad.
 
Peter_Gibbons said:
There is ZERO chance the NBA goes into partnership with the city without the Kings involved. The only reason they were involved was because of the Kings. They work for the owners. If they start doing things that they know the owners did not agree to, even the other owners will be mad.
Click to expand...

Exactly.
 
TyFreak Evans said:
The NBA should purchase the Kings (just like they did the Hornets), and once they have acquired the team, start fielding suitable owners who are committed to winning...
Click to expand...

That would be great but you have to have willing sellers for the NBA to purchase a team. When George Shinn was trying to sell the Hornets, he was only getting out of town offers from Vancouver and San Jose. The league wanted to keep the team in New Orleans so they purchased the team and then cleaned it up to make it more attractive to a local New Orleanian.

With the Kings, I don't think they would have to go through that same process since I'm pretty sure that Burkle is willing to buy the team and agree to the arena terms agreed to in Orlando.
 
Jose said:
Well, yeah... the Kings would have to agree to the 30-year lease as tenants.
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You said yourself "Would the NBA do it? Probably not because they couldn't guarantee a team here"

That means you were asking for this plan without the Kings committing. The NBA's money is really the money of the collective owners. There is no way they would agree to do something like that. Not to mention, you want the NBA to basically set up one of their own so the Maloofs get forced into doing it.
 
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