Sacramento Bee: Arena Plan Has Few Fans

#1
Arena plan has few fans

Most satisfied with Arco, survey shows

By Mary Lynne Vellinga -- Bee Staff Writer
Published 2:15 am PDT Friday, May 5, 2006


Inside Arco Arena, it may seem like Sacramento screams with one loud "Go, Kings!" voice.
But many of the fans glued to their seats or TV screens for tonight's playoff game are apparently far less gung-ho when it comes to the question of whether Sacramento should build the Kings a new arena.

While 53 percent of the region's residents consider themselves devotees of the Kings, according to a new poll, they still don't buy the owners' argument that Arco needs to be replaced.

"I don't see why they need a new arena; Arco is great," said Aldwyn Regadio, 23, as he worked the sales floor at Z Gallerie in Downtown Plaza Thursday.

Still, Regadio's mind is not closed on the subject. "If they gave me good reasons why they need a new arena, and they were valid, I'd consider it," he said.

A poll released today by California State University, Sacramento, shows just how much work the Kings must do to persuade people like Regadio they should help pay for a new arena.

A new arena plan being discussed with the Maloofs by Sacramento city and county leaders may include a quarter-cent sales tax increase. Details of the nascent strategy are being kept under wraps. So far, no elected official has offered a strategy for selling the plan to the public.

The Kings have a fan base that would be the envy of most sports franchises. But that hasn't translated into support for a new arena.

"It's very clear from our data that people in the region love the team. ... They'd be disappointed if they left, and they're worried they'll leave," said Amy Liu, associate professor of sociology at Sacramento State. "On the other hand, they really don't think there's a need for this (arena.)"

In its second annual poll on the topic, Sacramento State's Institute for Social Research found residents also are unwilling to spend public dollars on such a facility.

Of the 1,122 randomly selected adults surveyed by Liu and her students in Sacramento, Placer, El Dorado and Yolo counties, 27 percent said they thought the Kings needed a new arena, down from 33 percent a year ago.

If a new arena is built, just 1 percent of those polled thought government should shoulder the entire cost. More than half - 54 percent - said only private money should be used, while 34 percent favored a combination of private and public money.

Public opinion is not an unmovable boulder, however. Liu said support could grow significantly if the Kings make their case to the public.

She noted, for example, that public concern about flooding soared to second highest on a list of major issues after Gov. Arnold Schwarzenegger declared a state of emergency in late February. Before that, flooding ranked last on the list, after such issues as growth and traffic.

Efforts by the team, local government leaders and developers have thus far focused on how to pay for an arena and where it should go.
Liu said that approach is backward. The public must first be convinced that Arco needs to be replaced.

"If they have a vision, they need to communicate that vision to the public very clearly, and make their case, like the governor is doing about flood control issues," Liu said. "You need to translate the general passion for the team into general support for an arena."

The Maloof family, which owns the Kings, has repeatedly said that Arco, built with private money 18 years ago, is obsolete and fails to meet NBA standards.

Reached by telephone Thursday, Joe Maloof said he wants Sacramentans to go to the ballot box and decide whether they want a new arena.
"We're going to lay it all out and let the public decide," he said. "We'll show the positive, we'll show the negative. We'll be fair with them, and we'll show exactly what it means to the region. I think once people agree to it, you won't find anyone who was against it. That's how it happens in all these cities."

The unconvinced are people like Kevin Watkins, a state engineer who sat in Downtown Plaza sipping Jamba Juice Thursday.
"I consider myself to be a fan; I used to be a season ticket holder," Watkins said. "Now, some of the seats that used to be $15 cost $105. And they want us to pay for a stadium? Naw. The Maloofs have plenty of money."
Not everyone agrees. Even though they're still in the minority, some residents of the region like the idea of attending games and other events in a new, state-of-the-art venue - even if they have to help pay for it.

Gabe Gomez, 20, said a new arena could signal a new era for the Kings, as did the trade that brought Ron Artest to town.
"I think we should do it; I think it would be an awesome idea," said Gomez, a personal trainer and student at Sacramento State.

"If it was a new stadium it would be more classy and more fun to go to," agreed his friend, Mike Peterson, 20, a business major at Sacramento City College.

The Sacramento State survey was conducted Feb. 4 to March 5, when the Kings began to improve on the court. Of those who identified themselves as Kings fans, 60 percent said they were not satisfied with the team's performance this year.
But Liu said she doesn't think dissatisfaction affected the poll results, or that the Kings' subsequent run to reach the playoffs would substantially change public sentiment about an arena.

She noted roughly the same proportion of people - 32 percent to 33 percent - said they thought the Kings needed a new arena, regardless of whether they were satisfied or not satisfied, respectively, with the Kings' performance.

Still, Maloof figures winning can't hurt. "I think in January the franchise was dead," he said. "It was going nowhere; we didn't have an identity. We didn't have team chemistry. When we turned it around, all of the sudden there was new life. People are excited again."
 
#2
Let me just say that as of right NOW there is no plan.

I think they are working on something, from there we need a PR offensive.
 
#3
What a ridiculous poll. The City needs a new arena just as much as the Kings do or we will keep losing concerts/events to Fresno, Reno and now Stockton. They then quote a 23 year old guy who works in a stoor at the Galleria :rolleyes:
 
#4
While I realize this particular forum pretty much exists to cheerlead the idea of a new forum, that new poll is pretty indicative that a clear majority of folks don't support the "corporate welfare" that would be required to build the thing completely at the teat of the taxpayer.

Few of the more than 1,100 surveyed seem willing to foot the bill for a new arena: 54 percent want any new arena project to be paid for strictly with private funds. A combination of private and public funds is acceptable for 34 percent, while only 1 percent of respondents would approve of arena construction using solely public money.
I'm not one to disrespect copyright by posting full text of articles from the Bee or whatever, so folks will have to visit the following link to read the complete thing.

http://www.news10.net/storyfull2.aspx?storyid=17395

It would seem (from the Bee article) that the Maloofs have no problem with "letting the public decide" at the ballot box. Which I think is a fine idea.
 
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#5
No one has ever said the arena would be built 100% with public money. NEVER, NOT ONCE. And they have published plenty of information on why Arco needs replacing, including one of the articles I posted here, with a link. They have had more than one entity go out and examine the physical plant and so far every single one of them has said the building needs to be replaced, if it is to continue to be used for any kind of event. The idiot quoted obviously doesn't read.

So I guess they're right, there seeems to be a disconnect between people's perceptions of Arco and the physical reality of the structure.
 
#6
i think see it as just for the kings

when really the kings play 41 home games plus a maxium of 16 home playoff games

there are 300 other days in the year when other things would happen
 
#7
Questions can be loaded so that desired answers result. This issue is more complex than the questions asked.
So here are my questions, with some answers just be helpful.

1. Who currently holds the deed for Arco Arena?
Not Maloof Sports & Entertainment. It was transfered to the City of Sacramento in 1997 as part of the 73 million loan to Jim Thomas. MS&E pays "rent" under a sublease to the city in order to repay the bonds. The deed is valued at 50 million dollars. The City also has a 20 million lien on the franchise.

2. Do the Kings have an agreement to remain in Arco as part of the loan agreement?
Yes.

3. Can this be terminated early?
There were early termination clauses for meeting certain financial tests and full repayment of the City's obligation for the debt. This was for the period of 10 years, April 1997 - April 2007. After the 10 years is up, only the full repayment is required to terminate the sublease.

4. Will the Kings leave Sacramento if there is no scheduled replacement of Arco Arena.
Yes. Without a doubt.

5. Should a new arena be entirely private funded?
No. There are only a few cities in the US that can make a privately funded arena work. New York and LA are the best examples. The market conditions needed to make a private arena work in Sacramento are just not there. Paul Allen for example built the Rose Garden. It's been a disaster for him financially. He's currently trying to sell the team and arena.

6. If the Maloofs move the team, what becomes of Arco Arena?
We can only speculate, but I get the feeling they would not want to continue to own and operate Arco Arena after moving out the two largest tennants with the most event dates. So why pay off the debt to get the deed back? I would imagine they could pay off the lien against the franchise with little trouble. In fact that big check they wrote last year could have already been put towards that lien. Can they terminate that sublease and forfeit the deed? Only a roomful of lawyers can answer that question. My bet is no problemo.

7. Ok, so are you telling me that you think the City is going to end up owning Arco Arena after the Kings move?
Yes, it would seem likely.

8. Ok so we don't need a new arena, the City is going to have one in a few years. So we can go get a new team, right?
No for 2 reasons. David Stern already is on record saying that Arco Arena is nearing it's end of useful life. He's not going to allow another team to step right into the same situation the Maloofs would be leaving. Secondly, he's right. Arco is at the end of it's life. The building was built for 50% of the budget that was spent on other NBA arenas built at the same time. Some of it was built from materials moved over from Arco Arena I built in 1984-85. Only Madison Square Garden is older and it was already remodeled costing over 200 million.
That plywood you fans have been stomping your feet on for the last 18 years doesn't last as long as concrete you know.

9. What can the City do with Arco Arena then?
Well, it's already in need of a remodel within the next few years. The Kings moving doesn't change that. The plywood grandstands and narrow concourses need fixing and that takes money. It has some serious issues in case of an emergency evacuation. Any fan whose left a Kings game with all 17,000 people trying to leave all at the same time can attest to this. If a fire broke out in that place, thousands could be killed - no joke. Studies have been done for what it would take to totally remodel Arco. They have projected it would take several hundered million to renovate the entire arena. It might be financially better if they took a wrecking ball and knocked it down. Then sell off the land to repay the loan.

10. Ok, so the City has a big frigging problem no matter what?
Bingo. Pay me now - pay me later. Later is always more expensive.

So put those questions in your scientific poll and smoke it.
 
#8
^^^^Exactly! The arena has already needed a new roof for several years and that will cost millions alone. Who wants to keep pouring money into an obsolete arena? The city isn't going to want to if they end up owning that white elephant. So we end up with nothing at all.

And if we decide later we want an arena.....no Maloofs to help pay part of the cost and it will be even more expensive to build. Every day's delay means it costs more to build a new arena.

And they already discovered they can't do much in the way of remodeling anyway, because of the cheap foundation.

EDIT: And your right. Most poll questions I've seen are stated in a way almost guranteed to get a "no" from most people. I'd like to see them ask people about certain known facts about Arco to see if they were aware of them or not. I'd almost guarantee 90% of the poeple polled couldn't tell you any facts about the arena.
 
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#9
JB_kings said:
Questions can be loaded so that desired answers result. This issue is more complex than the questions asked.
So here are my questions, with some answers just be helpful.

1. Who currently holds the deed for Arco Arena?
Not Maloof Sports & Entertainment. It was transfered to the City of Sacramento in 1997 as part of the 73 million loan to Jim Thomas. MS&E pays "rent" under a sublease to the city in order to repay the bonds. The deed is valued at 50 million dollars. The City also has a 20 million lien on the franchise.

2. Do the Kings have an agreement to remain in Arco as part of the loan agreement?
Yes.

3. Can this be terminated early?
There were early termination clauses for meeting certain financial tests and full repayment of the City's obligation for the debt. This was for the period of 10 years, April 1997 - April 2007. After the 10 years is up, only the full repayment is required to terminate the sublease.

4. Will the Kings leave Sacramento if there is no scheduled replacement of Arco Arena.
Yes. Without a doubt.

5. Should a new arena be entirely private funded?
No. There are only a few cities in the US that can make a privately funded arena work. New York and LA are the best examples. The market conditions needed to make a private arena work in Sacramento are just not there. Paul Allen for example built the Rose Garden. It's been a disaster for him financially. He's currently trying to sell the team and arena.

6. If the Maloofs move the team, what becomes of Arco Arena?
We can only speculate, but I get the feeling they would not want to continue to own and operate Arco Arena after moving out the two largest tennants with the most event dates. So why pay off the debt to get the deed back? I would imagine they could pay off the lien against the franchise with little trouble. In fact that big check they wrote last year could have already been put towards that lien. Can they terminate that sublease and forfeit the deed? Only a roomful of lawyers can answer that question. My bet is no problemo.

7. Ok, so are you telling me that you think the City is going to end up owning Arco Arena after the Kings move?
Yes, it would seem likely.

8. Ok so we don't need a new arena, the City is going to have one in a few years. So we can go get a new team, right?
No for 2 reasons. David Stern already is on record saying that Arco Arena is nearing it's end of useful life. He's not going to allow another team to step right into the same situation the Maloofs would be leaving. Secondly, he's right. Arco is at the end of it's life. The building was built for 50% of the budget that was spent on other NBA arenas built at the same time. Some of it was built from materials moved over from Arco Arena I built in 1984-85. Only Madison Square Garden is older and it was already remodeled costing over 200 million.
That plywood you fans have been stomping your feet on for the last 18 years doesn't last as long as concrete you know.

9. What can the City do with Arco Arena then?
Well, it's already in need of a remodel within the next few years. The Kings moving doesn't change that. The plywood grandstands and narrow concourses need fixing and that takes money. It has some serious issues in case of an emergency evacuation. Any fan whose left a Kings game with all 17,000 people trying to leave all at the same time can attest to this. If a fire broke out in that place, thousands could be killed - no joke. Studies have been done for what it would take to totally remodel Arco. They have projected it would take several hundered million to renovate the entire arena. It might be financially better if they took a wrecking ball and knocked it down. Then sell off the land to repay the loan.

10. Ok, so the City has a big frigging problem no matter what?
Bingo. Pay me now - pay me later. Later is always more expensive.

So put those questions in your scientific poll and smoke it.
I think you have some very valid points.

to me, it's really pretty straightforward. We either want Sacramento to be the city it is now, or we want it to back to the oblivian it was before the Kings moved here. Those that wouldn't miss the basketball would probably miss the events, the concerts and shows, that come to Arco. Once the Kings left, and Arco continues to decline, how many of those things are going to come around?? Do we want to end up like Kansas City, wondering what could have been if we were smart enough to build a new arean BEFORE we lost our beloved team?

I get really tired of people who say they don't want to fund an arena because the Maloofs have enough money. The point is not how much money the Maloofs have, it is how they choose to spend it. Despite an incredible fan base (which is probably the only reason they have remained patient for so long) for the Maloofs to 100% fund a new arena would be a bad business decision. Why pay out of pocket for something that they can get for free?

Do they NEED a new arena? Maybe not from the real definition of the word need. But how many of us really "NEED" everything we have in life. A new car, a dinner out, new clothes... none of these are needs in the real sense of the word. But do they deserve an arena? I say yes. The have one of the highest payrolls in the NBA and they play in one of the most run down arenas. They constantly put good product on the floor, even when it means tough choices and unpopular decisions... I think the deserve an arena that fits the status of the team. Have you seen the visitor locker rooms at Arco? Most high schools have better facilities!

Season ticket holder renewal rates are down. Salaries are as high as ever and Arco isn't miraculously growing any more luxury boxes or the type of corporate sponsors to fund them. If we want to keep the Kings, we have to make this Arena happen.
 
#10
People should have a right to know what the impact of voting NO on a ballot really means. I only hope that when they do come up with a plan, it's something that more than 50% of the people would vote for if they are given ALL the facts. At some point, this region is going to need a public arena built. It's not a matter if - but when. Do you take advantage of the situation now or opt to pay much more later.
 
#14
D-Mass said:
...and I wouldn't blame the Maloofs a bit for that.
It's their team to do with as they want. They've said they want a vote, so I say let's do that.

I suspect many proponents of a new arena don't want a vote because as the poll has shown, it's not likely to go well for them. Hence the talk of "quietly" raising taxes without a vote.
 
#15
I was at Game 6 tonight and getting out of the Men's Restroom at halftime took forever. My seat was in a section right across from the restroom and I literally had to turn right and walk down a section and turn around and walk back in kind of a zig-zag pattern to get to my section because there were so many people in such a short space! Also, when I was at the season ticket holder Carnival event, I was waiting in line at one of the stations when I looked to my right and saw the side of a section about ready to fall apart. The wood on a corner of the section was becoming dislodged. The seats are falling apart and you're worried they might break and someone will get hurt.
 
#16
Wert said:
It's their team to do with as they want. They've said they want a vote, so I say let's do that.

I suspect many proponents of a new arena don't want a vote because as the poll has shown, it's not likely to go well for them. Hence the talk of "quietly" raising taxes without a vote.
Not at all. Other cities have gone to their voters and got approval. Only the 2/3 approval type of ballot vote was what nobody wanted. A simple majority vote has a much easier chance to pass. You couldn't get 2/3 of voters to agree that police and fire departments should be publicly funded.
 

Bricklayer

Don't Make Me Use The Bat
#17
If I had one bit of advice to give to the Maloofs if they do somehow manage to get the new areana -- in the future do not, under any circumstances, defiy the building the way you have done with Arco -- Arco thunder, loudest building etc. etc. I thinkpart of the problme here is that Arco has been so built up that people can't see around the hype and imagine the need for a new building. The old stadium itself is beloved, and people do not want to let go. Weird situation.
 
#18
Bricklayer said:
If I had one bit of advice to give to the Maloofs if they do somehow manage to get the new areana -- in the future do not, under any circumstances, defiy the building the way you have done with Arco -- Arco thunder, loudest building etc. etc. I thinkpart of the problme here is that Arco has been so built up that people can't see around the hype and imagine the need for a new building. The old stadium itself is beloved, and people do not want to let go. Weird situation.
I think you do have a good point there. I absolutely LOVE ARCO Arena, but after traveling to other cities- Portland & Minneapolis to name a few- a downtown area is just so cool. However, I hope the new Sacramento arena does keep ARCO in mind when creating a new one. For instance, the other 3 arenas I have been to- GS, Portland & Minn- all have uncomfortable seating, and it's a much different feel than ARCO. ARCO feels a lot more "homey" and it really does get louder there. However, some of the other amenities that the other arenas have would be nice to have. For example, Minneapolis has an NBA CITY restaurant attatched to the arena that is acccessible from the street. I thought that was pretty cool. And the Rose Garden has a lot of stuff built right around it, making for a pretty neat complex.

Anyway, what I am trying to say is that I hope the new arena doesn't just model after other cities arenas, but keeps the positives of ARCO and uses them to compliment the positives of other arenas.
 

VF21

Super Moderator Emeritus
SME
#20
Not all arenas. Conseco and Gund don't have the airplane hangar feel, from what I've heard.

I'm pretty sure they'll do everything they can to retain as much of the old flavor of Arco as possible. From what I understand, there are a couple of designs already drawn up, pretty much just waiting for the approval to build one of them...
 

6th

Homer Fan Since 1985
#21
I like Conseco FieldHouse, but it still does not compare to ARCO. It still feels closer to the action than many arenas though.
 
#22
Bricklayer said:
If I had one bit of advice to give to the Maloofs if they do somehow manage to get the new areana -- in the future do not, under any circumstances, defiy the building the way you have done with Arco -- Arco thunder, loudest building etc. etc. I thinkpart of the problme here is that Arco has been so built up that people can't see around the hype and imagine the need for a new building. The old stadium itself is beloved, and people do not want to let go. Weird situation.
Weird, I was just thinking about that last night. You always hear "Arco is the best place to play" or, "you have to experience a game at Arco, it is amazing". People assume that because it's an incredible experience to watch a game there, the building itself is fine.

In reality, the great fans the Kings have are what makes Arco so amazing, and those fans will be there when the new arena is built. Assuming, of course, that the new arena is not in, say, Anaheim or Vegas.