Recent Discussions between City and Maloofs

Kingsfan23

Kingsfan23

All-Star
KJ flew out to Vegas a few days back.. He was quoted after this most recent meeting today as being "more hopeful than confident" that something is going to get done. Apparently the meeting that is supposedly going down on thursday morning, featuring George and Gavin Maloof, Kings minority partner John Kehriotis, and the team's senior vice president for business operations, John Rinehart, as well as the mayor, is crucial to whether or not the arena deal is going to get back on track to meet the 2015-1016 projected opening

http://blogs.sacbee.com/city-beat/2...ng-out-on-reviving-sacramento-arena-deal.html

Personally, I don't feel good about this. It looks like a face-saving measure for the Maloofs, to make it appear as if they are earnestly trying to get something done, while still probably carrying on their deal nullifying demands. I don't know how much power KJ has to negotiate the terms further with them, and he is quoted as saying he doesn't intend to negotiate what he believed was a deal. So what will come of these meetings?
 
It doesn't hurt to get past the blaming and at least talk. But I don't have a good feeling either. Although I sure don't believe the talk of one economist who looked at the deal for one month over AEG, a wildly successful international operator of stadiums and arenas. Economists are no where near the same as successful business owners/operators. Not by a long shot. Economists study stuff (theorists/historical researchers), but rarely, if ever, have to actually put their money on the line running a business. I think the Maloofs are stupid to trust a single economist over AEG's projections.
 
Kingsfan23 -

We won't know what will come of the meetings until after they happen but one thing to consider is that because of all the media scrutiny, the PRA requests for tons of information from the City of Anaheim, the pressure by ThinkBigSacramento and who knows what other factors, the Maloofs are not faced with many more opportunities to do something to improve their current situation.

They cannot refurbish the PBP because of the building moratorium; they're facing a financial crunch with a lack of summer use contracts for the PBP; and it seems less and less likely the NBA Board of Governors will approve a relocation to Anaheim. And, as we've discussed many times, even if a relocation were to be approved, the amount of money the Maloofs would have to pay as compensation to Jerry Buss and Donald Sterling would be staggering.

One would hope that the Maloofs will realize their best possible choice is to go ahead with the deal, get a good draft pick which will help improve the value of the team, and then follow the NBA and AEG plans to make the team more profitable while the new arena is under construction. They'll still make their money, but I wish I could be more confident that George will ever see it that way.

I cannot explain why, but I still think Mayor Johnson has one more trick up his sleeve should the Maloofs not follow through. Is it being too optimistic? I hope not.
 
VF21 said:
Kingsfan23 -

We won't know what will come of the meetings until after they happen but one thing to consider is that because of all the media scrutiny, the PRA requests for tons of information from the City of Anaheim, the pressure by ThinkBigSacramento and who knows what other factors, the Maloofs are not faced with many more opportunities to do something to improve their current situation.

They cannot refurbish the PBP because of the building moratorium; they're facing a financial crunch with a lack of summer use contracts for the PBP; and it seems less and less likely the NBA Board of Governors will approve a relocation to Anaheim. And, as we've discussed many times, even if a relocation were to be approved, the amount of money the Maloofs would have to pay as compensation to Jerry Buss and Donald Sterling would be staggering.

One would hope that the Maloofs will realize their best possible choice is to go ahead with the deal, get a good draft pick which will help improve the value of the team, and then follow the NBA and AEG plans to make the team more profitable while the new arena is under construction. They'll still make their money, but I wish I could be more confident that George will ever see it that way.

I cannot explain why, but I still think Mayor Johnson has one more trick up his sleeve should the Maloofs not follow through. Is it being too optimistic? I hope not.
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You know....we have no way of knowing, but maybe Stern and or some of the other owners have put a bug in the Maloofs ear. Maybe they've been told that the owners will definitely not approve a relocation to Anaheim. Maybe somewhere else, but not Anaheim.
 
kennadog said:
You know....we have no way of knowing, but maybe Stern and or some of the other owners have put a bug in the Maloofs ear. Maybe they've been told that the owners will definitely not approve a relocation to Anaheim. Maybe somewhere else, but not Anaheim.
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I just don't see the league approving Anaheim at this point, especially not with the resurgence of the Clippers. They've got a nice little rivalry going there now and I could see the Clippers wanting to move into their own arena at some point.

Every instinct I have is telling me there's something we're all missing that is just below the surface. When you have heavyweights like Chris Lehane and Sen. Steinberg involved, you don't always know every move.

As far as somewhere else is concerned, how do you think poor George would feel about Kansas City...or New Jersey? Both have wonderful arenas but I'm pretty sure neither would cut a sweetheart deal with the Maloofs.

I sure wish I could read the last chapter of this book. I am not a patient person.
 
VF21 said:
I sure wish I could read the last chapter of this book. I am not a patient person.
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Me either. The main reason I can see Sterling staying put, is that Staples is shared, which reduces his team costs. Also, he supposedly didn't want to commute from Beverly Hills to Anaheim and I presume he wouldn't like it any better, the older he gets. Too cheap to use a helicopter like Kobe, I guess.)
 
mr. moustache said:
The Maloofs hired this "economist" to kill the deal. He's their shill. In no way are they trusting him, or taking his advice. This is politics, not science.
Click to expand...

Wouldn't it be cool if the city hired the Maloofs's economist?

"Upon further review I believe this is a great deal for all the parties involved."
 
mr. moustache said:
The Maloofs hired this "economist" to kill the deal. He's their shill. In no way are they trusting him, or taking his advice. This is politics, not science.
Click to expand...

Exactly. And just like Stern was quoted as saying, "They've got Burkle???" I'm sure the murmur this time around was "They've got Lehane????" Having Chris Lehane on our side is like bringing a rpg to a spitball competition. ;)
 
VF21 said:
I cannot explain why, but I still think Mayor Johnson has one more trick up his sleeve should the Maloofs not follow through. Is it being too optimistic? I hope not.
Click to expand...

I don't think so. I have the same feeling. In fact, while George may not be playing with a full deck, KJ may in fact be playing with a stacked deck.
 
Kansas City? Gotta deal with AEG all over again. They won't get the red carpet treatment there.

Seattle? Deal won't work unless they sell the team. Stern won't allow a sale unless there is no buyer to keep in the current city. We seem to have at least two parties ready to buy and keep the team here and work with city on the new ESC.
 
The Hammer said:
I don't think so. I have the same feeling. In fact, while George may not be playing with a full deck, KJ may in fact be playing with a stacked deck.
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Same here. KJ has always been ahead of the curve on everything he's done. Other than the Maloof hand grenade a couple weeks ago, this has been well thought out and planned on the City's side. KJ has some VERY good advisors. I think he still has a trick or two he's trying to pull off.
 
VF21 said:
I just don't see the league approving Anaheim at this point, especially not with the resurgence of the Clippers. They've got a nice little rivalry going there now and I could see the Clippers wanting to move into their own arena at some point.

As far as somewhere else is concerned, how do you think poor George would feel about Kansas City...or New Jersey? Both have wonderful arenas but I'm pretty sure neither would cut a sweetheart deal with the Maloofs.

I sure wish I could read the last chapter of this book. I am not a patient person.
Click to expand...


I don't think the Maloofs are interested in those cities. They are attention whores, and those cities just don't have the glamour.
 
ElRey said:
I don't think the Maloofs are interested in those cities. They are attention whores, and those cities just don't have the glamour.
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Exactly. And yet, those are the two cities with arenas just waiting for teams. If you saw Gov. Chris Christie of NJ on the news yesterday, he is more than willing to reach out a hand to the NBA to get a replacement team for the Nets.

The Maloofs had better be very careful what they wish for, you know?
 
Warhawk said:
Same here. KJ has always been ahead of the curve on everything he's done. Other than the Maloof hand grenade a couple weeks ago, this has been well thought out and planned on the City's side. KJ has some VERY good advisors. I think he still has a trick or two he's trying to pull off.
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I actually think he did see that coming, or at least was prepared for it. Of course he couldn't admit to that, and I do think he was still genuinely shocked/disappionted when it actually did happen. I think you can look back and see that there are things, safety precautions, put in place had it come to this. In fact, it seems that the whole way the negotiations played out was a kind of safety net to make the Maloofs unable to truly blow up the deal without consequences (those consequences basically being never approved for a move, and the NBA eventually shutting down ARCO). Also, since they likely heard wind of possible dealings with Anaheim over the past year, I think they were prepared to go the legal route if necessary, and closely kept tabs on who the city of Anaheim may have been talking to about the deal. The names on that PRA could not have been dug up and targeted only in the past couple weeks.
 
I think they've more than proven that, despite what they've been saying all these years, playing in a nice new arena isn't terribly important to them.
 
Dreamtiger said:
I think they've more than proven that, despite what they've been saying all these years, playing in a nice new arena isn't terribly important to them.
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Problem for them is that they've made so many public statements to the contrary, and their all on the record. When you do that, so much of your credibility is lost, both in the court of public opinion and very importantly if this ever goes to the actual courts. They've eroded their own power.
 
The Hammer said:
I actually think he did see that coming, or at least was prepared for it. Of course he couldn't admit to that, and I do think he was still genuinely shocked/disappionted when it actually did happen. I think you can look back and see that there are things, safety precautions, put in place had it come to this. In fact, it seems that the whole way the negotiations played out was a kind of safety net to make the Maloofs unable to truly blow up the deal without consequences (those consequences basically being never approved for a move, and the NBA eventually shutting down ARCO). Also, since they likely heard wind of possible dealings with Anaheim over the past year, I think they were prepared to go the legal route if necessary, and closely kept tabs on who the city of Anaheim may have been talking to about the deal. The names on that PRA could not have been dug up and targeted only in the past couple weeks.
Click to expand...

I agree, I think they conceptually knew it might happen but didn't think it actually would (or, the odds were pretty low, like 80-20 or something). I think they thought that MSE would agree after the Orlando meetings. Maybe not hapily, but would agree. I think the rejection itself truly was a bit of a surprise. And yes, they had somewhat prepared for that eventuality.
 
Dreamtiger said:
I think they've more than proven that, despite what they've been saying all these years, playing in a nice new arena isn't terribly important to them.
Click to expand...

Of course they want a new arena. KJ said it himself. They told him "they want to be the talk of the town..." These guys love the spotlight.
 
JB_kings said:
Kansas City? Gotta deal with AEG all over again. They won't get the red carpet treatment there.

Seattle? Deal won't work unless they sell the team. Stern won't allow a sale unless there is no buyer to keep in the current city. We seem to have at least two parties ready to buy and keep the team here and work with city on the new ESC.
Click to expand...

The NBA and Stern would be thrilled if the Maloofs sold the team. I doubt the NBA would block a sale to Seattle if the offering price was higher than Sacramento buyers. The owners care deeply about the franchise values and while they'd be burning bridges in Sac, they'd be repairing them in Seattle.

It will be interesting to see how this situation resolves itself. I wouldn't be surprised to see us get into a situation where the Maloofs can't pay their players.
 
mr. moustache said:
The Maloofs hired this "economist" to kill the deal. He's their shill. In no way are they trusting him, or taking his advice. This is politics, not science.
Click to expand...
Well, yes I knew that and apparently this guy is an economist for hire. But I also don't really think any of the Maloofs are all that bright.
 
I'm really not holding my breath today. I think it's just posturing on the Maloofs side to give the impression they are trying.
 
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