Sacramento officials, NBA, arena developers to meet in Dallas

[JB_kings]

Interesting that Clay Bennett is actively involved. Why not George Maloof? I know this is the city in talks with ICON and AEG, but this is kind of interesting. And I also have read that the Maloofs have not been with other owners negotiating the CBA. Not jumping to conclusions here... just interesting that the Maloofs have been invisible lately.

Bee article below.

http://blogs.sacbee.com/city-beat/2...cials-arena-developers-to-meet-in-dallas.html

Officials with the city of Sacramento, the NBA, arena development group ICON/Taylor and arena operator AEG will hold their first key meeting in Dallas on Wednesday to discuss the construction of a new sports arena in the downtown railyard.
According to a memo written by City Manager John Shirey, the sides will have a "preliminary technical discussion."
"Following this discussion, we will lay out the process and timeline that formal discussions and negotiations will take place," Shirey wrote. "Our collective goal is to reach a definitive financing plan by the end of the year."


Leading the NBA's negotiating team is Clay Bennett, the owner of the Oklahoma City Thunder. Bennett also led an NBA contingent to Sacramento earlier this year that ultimately helped persuade the league to keep the Sacramento Kings in town for another year while an arena project was developed.
The sides will meet in Dallas because it is a "middle location that works for all parties, including Clay Bennett, who heads the NBA effort," said Joaquin McPeek, a mayoral spokesman.
AEG's role in the talks is also noteworthy. The firm invested $53 million into the construction of Kansas City's Sprint Center. It now operates the facility, keeping the profits; if profits exceed a certain threshold, the revenue is shared with the city.
Sacramento officials have been in talks with AEG for weeks about the firm's interest in a project here.
"All parties recognize that at the end of the day, any agreement will have to have economics that work for all parties - the Kings, developer, operator and, most importantly, the public," said Mayor Kevin Johnson. "To this point, the fundamental approach being taken by Sacramento's team will be to put taxpayers first when it comes to reaching an agreement that will represent a real return on the public investment, defined as jobs and economic development."
Shirey has also put together the team of outside advisers that will help the city evaluate a menu of financing options for the $387 million project.
One of the most significant funding options being discussed in the leasing of city-owned parking garages and spaces.
Acting as the chief consultant on that issue will be Walker Parking, a firm with offices in San Francisco, Los Angeles and several other U.S. cities. According to Walker's website, it is the "largest parking consulting and design firm" in the country.
The city's negotiating team will be made up of Mayor Kevin Johnson and Council members Rob Fong and Steve Cohn, Shirey, Assistant City Manager John Dangberg, City Attorney Eileen Teichert, arena finance consultant Dan Barrett and attorney Paul Jacobs.



Categories: City Council, City Manager, Kevin Johnson, KingsPosted by Ryan Lillis

 

[Livinthedream]

Maloofs are just bitter because the other owners and the NBA told them no, so they're pouting. It's to the detriment of the Maloofs not to be active in the negotiations for both the NBA and Sacramento. But spoiled kids don't usually understand the consequences of their tantrums.

Wonder what details they're nailing down that's important enough to meet face to face. I suspect AEG is letting the NBA know what they are willing to do and what they need in return from the NBA/Kings to make it all happen. Sounds like serious progress if you ask me.

 

[rainmaker]

Maloofs are just bitter because the other owners and the NBA told them no, so they're pouting. It's to the detriment of the Maloofs not to be active in the negotiations for both the NBA and Sacramento. But spoiled kids don't usually understand the consequences of their tantrums.

Wonder what details they're nailing down that's important enough to meet face to face. I suspect AEG is letting the NBA know what they are willing to do and what they need in return from the NBA/Kings to make it all happen. Sounds like serious progress if you ask me.

I was kind of thinking the same thing when reading it. Are the Maloofs embarrassed? I wonder if they've lost credibility/respect within the fraternity of nba ownership.

 

[JB_kings]

I guess it's all speculation. But if they intended to be owners of the team long term, I think they would really want to have an active role in the CBA and the new arena. They do have a gag order on the owners. But they have literally not been attending key meetings lately in NY. And now they are letting the NBA represent them in these talks? More here I think...

 

[whozit]

I guess it's all speculation. But if they intended to be owners of the team long term, I think they would really want to have an active role in the CBA and the new arena. They do have a gag order on the owners. But they have literally not been attending key meetings lately in NY. And now they are letting the NBA represent them in these talks? More here I think...

I'm not so sure there is anything more here than meets the eye.

As for the arena, they are going to be tenants and being involved at this stage would likely do more harm than good. They let the league and everyone else involved know what they were willing to accept down in Anaheim so there isn't much more for them to say.

As far as the CBA goes, only one more than a third are there. I wouldn't read anything more into it than I would on the rest that aren't there.

 

[JB_kings]

More today:
http://www.sacbee.com/2011/10/05/3960714/serious-talks-about-new-sacramento.html

Sacramento's arena talks kick off today, as officials with the city, the NBA, development group ICON/Taylor and arena operator Anschutz Entertainment Group meet in Dallas to discuss the particulars of how to build a new sports facility in the downtown railyard.

According to a memo written by City Manager John Shirey, the parties will have a "preliminary technical discussion."

"Following this discussion, we will lay out the process and timeline that formal discussions and negotiations will take place," Shirey wrote. "Our collective goal is to reach a definitive financing plan by the end of the year."

One party that won't be included in today's talks is the Sacramento Kings, who would likely be tenants in the new facility.

"We've decided to let the NBA take the lead on this, but we are in very close contact with the league and are briefed regularly when new updates are available," said team spokesman Chris Clark.

Kings co-owner George Maloof, asked about the Dallas meeting, said, "We weren't invited."

"They're going to meet and they're going to get back to us," he said. "That's been the process. It's a little strange, but we're anxiously awaiting what they have."

He said the city and the developers have been extremely busy and "we've left them alone," adding that the Kings' owners have not been approached with a proposed annual rental fee.

"Nobody's put a number down," he said.

Leading the National Basketball Association's negotiating team is Clay Bennett, the owner of the Oklahoma City Thunder. Bennett also led an NBA contingent to Sacramento earlier this year; it helped persuade the league to keep the Kings in town for another season while an arena project was developed.

The sides will meet in Dallas because it is a "middle location that works for all parties, including Clay Bennett," said Joaquin McPeek, a spokesman for Sacramento Mayor Kevin Johnson.

The role of Anschutz Entertainment Group, or AEG, in the talks is also noteworthy. The firm invested $53 million in the construction of Kansas City's Sprint Center. It operates the facility, keeping the profits; if profits exceed a certain threshold, the revenue is shared with the city.

Sacramento officials have been in talks with AEG for weeks about the firm's interest in a project here. An AEG spokesman could not be reached for comment Tuesday.

City officials said they were eager to begin the arena negotiations.

"The sooner we begin meetings with the NBA, the better," Councilman Rob Fong said in an emailed statement.

Johnson said "the fundamental approach being taken by Sacramento's team will be to put taxpayers first when it comes to reaching an agreement that will represent a real return on the public investment, defined as jobs and economic development."

Meanwhile, Shirey has also put together the team of outside advisers that will help the city evaluate a menu of financing options for the $387 million project.

One of the most significant funding options being discussed is the leasing of city-owned parking garages and spaces.

Acting as the chief consultant on that issue will be Walker Parking, a company with offices in San Francisco, Los Angeles and several other U.S. cities. According to Walker's website, it is the "largest parking consulting and design firm" in the country.

The city's negotiating team throughout the arena talks will be made up of Johnson, Fong, Shirey, Councilman Steve Cohn, Assistant City Manager John Dangberg, City Attorney Eileen Teichert, finance consultant Dan Barrett and attorney Paul Jacobs.

 

[JB_kings]

Looks to me like the NBA is calling the shots for the Maloofs.

 

[Larry David]

To me, this meets several goals for the league:

Because the Maloofs already put what they can live with down on paper in Anaheim, have talked to the league, and frankly, the league office knows what "fair" and "needed" more than the Maloofs do, the NBA can represent the Maloofs - for free - and get the best deal for them.

The city is going to play nice and make their best offer to the league. If we can't keep the Kings, we want to keep that door open. Better starting offer, more money, no bad blood. Smart.

Conversly, because it's not clear the Maloofs are going to be long term NBA owners, the NBA isn't going to allow the Maloofs to ruin a market over a few hundred thousand dollars. They learned a lesson in Charlotte.

The NBA is also dealing with the Maloofs on another front. They told them "Not now" regarding Anaheim because they weren't sure they couldn't get a fair deal here. If Sac steps up and the Maloofs don't like a deal and/or would rather be in LA, well they are SOL. The NBA is going to tell them, "No. You said Sac wouldn't give a fair deal. Well, we got you one. You can take it or put up a for sale sign."

 

[JB_kings]

All good points Larry.
I think the key thing there is that the Maloofs moves and negotiations with Anaheim revealed more than just some acceptable points on a deal. I think it revealed how weak their position is financially and how vulnerable they are as owners. The league was playing pretty hard line with Sacramento right up until they sent Bennett and his team to look into both Sacramento and Anaheim. I'm guessing this was an eye opening look at how desperate they were to move and to what extent they sandbagged the market here. They also acted rather petulant toward the NBA around that same time and tried to bully the league into approving the move. All of this adds up to the league sending out their swat team to fix the ticket sales, PR and represent the NBA and team interests in the arena. They are not looking out for the Maloofs. They are protecting their asset and market.

 

[Livinthedream]

All good points Larry.
I think the key thing there is that the Maloofs moves and negotiations with Anaheim revealed more than just some acceptable points on a deal. I think it revealed how weak their position is financially and how vulnerable they are as owners. The league was playing pretty hard line with Sacramento right up until they sent Bennett and his team to look into both Sacramento and Anaheim. I'm guessing this was an eye opening look at how desperate they were to move and to what extent they sandbagged the market here. They also acted rather petulant toward the NBA around that same time and tried to bully the league into approving the move. All of this adds up to the league sending out their swat team to fix the ticket sales, PR and represent the NBA and team interests in the arena. They are not looking out for the Maloofs. They are protecting their asset and market.

^ Yes. When KJ was able to produce $9 MM worth of sponsorship in 2 weeks and drop it in front of Stern, that turned the tide.

 

[Section 101]

^ Yes. When KJ was able to produce $9 MM worth of sponsorship in 2 weeks and drop it in front of Stern, that turned the tide.

I think when the sponsors said they hadn't heard from the Kings in years was the telling point they weren't trying.

 

[Gary]

I think when the sponsors said they hadn't heard from the Kings in years was the telling point they weren't trying.

Exactly. I believe the Maloofs have been planning to move since the early 2000s and made it look like there were no sponsors here, but it backfired when KJ got them, and the sponsors had said the Maloofs didn't even call them.

 

[kennadog]

I think the Maloofs won't be long term owners. I just hope that whoever buys the Kings plans on keeping them in Sac.

 

[Gary]

I think the Maloofs won't be long term owners. I just hope that whoever buys the Kings plans on keeping them in Sac.

Well when the arena is done they will have to. I am assuming it will be a 20-30 year deal. So if an owner comes in they cannot move the team like what happened in Seattle.

 

[Section 101]

Well when the arena is done they will have to. I am assuming it will be a 20-30 year deal. So if an owner comes in they cannot move the team like what happened in Seattle.

Seattle had that in their lease. They just had 2 years left on their lease which was bought out.

 

[JB_kings]

Another good article on the Maloof absence in Dallas: http://probasketballtalk.nbcsports.com/2011/10/06/nba-doing-the-maloofs-talking-for-them/

Sometimes when it walks like a duck and quacks like a duck... it's a duck.

 

[Livinthedream]

It's now an extremely awkward relationship between the Maloofs and the city and the NBA. The writing is on the wall in my opinion. They won't be around for too much longer.

The problem for the Maloofs not being involved in the talks is that you can't really trust Stern's motives. Who's to say the NBA won't negotiate a deal that the Maloofs just can't stomach, but the NBA knows that another buyer would be fine with. I'm not a conspiracy guy, I just don't put anything past Stern. I think the article you posted JB was alluding to this, but can't say it that way because he's a journalist.

 

[BMiller52]

It's now an extremely awkward relationship between the Maloofs and the city and the NBA The writing is on the wall in my opinion. They won't be around for too much longer.

The problem for the Maloofs not being involved in the talks is that you can't really trust Stern's motives. Who's to say the NBA won't negotiate a deal that the Maloofs just can't stomach, but the NBA knows that another buyer would be fine with. I'm not a conspiracy guy, I just don't put anything past Stern. I think the article you posted JB was alluding to this, but can't say it that way because he's a journalist.

Fine with me.

 

[Gary]

Yah Same here.. I don't care if the Maloofs sell. Or if Stern makes them sell.

 

[nebs]

I really hope they sell. They burned the bridge here and now We are going to build an arena and hopefully get new owners. They can go kick rocks.

 

[Trueblood]

The one part of the linked article that I didn't understand was where it said that the Maloofs “would have likely been forced to sell had they relocated to Anaheim, which remains a distinct possibility.”

I don't get that. If anything, the whole point of moving to Anaheim was to keep themselves financially relevant and stay on as owners of the Kings, or so they thought. And if the Maloofs really are out of the picture then you have to think that an Anaheim move is out of the picture as well. If Sacramento can't make it happen then I'm guessing that the league would prefer to look at unsaturated markets. A return to KC, Vancouver or Seattle would make the most sense for the league.

 

[Gary]

The one part of the linked article that I didn't understand was where it said that the Maloofs “would have likely been forced to sell had they relocated to Anaheim, which remains a distinct possibility.”

I don't get that. If anything, the whole point of moving to Anaheim was to keep themselves financially relevant and stay on as owners of the Kings, or so they thought. And if the Maloofs really are out of the picture then you have to think that an Anaheim move is out of the picture as well. If Sacramento can't make it happen then I'm guessing that the league would prefer to look at unsaturated markets. A return to KC, Vancouver or Seattle would make the most sense for the league.

I knew it... The Maloofs are in a TERRIBLE financial situation right now, and the whole deal moving down to LA was to raise the value of the team in order to sell majority ownership to Samueli, and still Sac on the portion they owe for the Arena until the court system can figure out if it has reduced value in this economic slump which means their final bill would be less.

 

[Section 101]

The one part of the linked article that I didn't understand was where it said that the Maloofs “would have likely been forced to sell had they relocated to Anaheim, which remains a distinct possibility.”

I don't get that. If anything, the whole point of moving to Anaheim was to keep themselves financially relevant and stay on as owners of the Kings, or so they thought. And if the Maloofs really are out of the picture then you have to think that an Anaheim move is out of the picture as well. If Sacramento can't make it happen then I'm guessing that the league would prefer to look at unsaturated markets. A return to KC, Vancouver or Seattle would make the most sense for the league.

Because they would have increased their debt and didnt really increase the revenue streams.

 

[rainmaker]

Because they would have increased their debt and didnt really increase the revenue streams.

I'm sure most, if not all of the owners are aware of everything, and I wouldn't be surprised if most felt the same way many here do.

Also think that is part of the reason they haven't been at any of the NBA meetings. Doubt the respect level is high, and they're probably embarrassed. I wouldn't look to them for advice on the enxt CBA either,

 

[Trueblood]

Because they would have increased their debt and didnt really increase the revenue streams.

I'm guessing that the whole idea of doubling their tv revenue was just a pie in the sky effort. Either that or the money they would've given up to Samueli would've wiped out what they would be getting via the new tv deal.

 

[Livinthedream]

I'm guessing that the whole idea of doubling their tv revenue was just a pie in the sky effort. Either that or the money they would've given up to Samueli would've wiped out what they would be getting via the new tv deal.

The bottom line is Samueli was making a play for the team. The way the deal was structured left no room for anything to go wrong for the Maloofs. With the financial issues that the Maloofs were having with the Palms, their lack of business sense and a more competitive L.A. market, there was a very big chance the Maloofs would have lost the team.

 

[kennadog]

I think the Maloof's were trying to save their majority interest in the Palms, at the time, with the loan from Samueli. When the NBA said no to the move, that plan went down the drain. And it was a very short-sighted plan, as the deal in Anaheim was amazingly bad , when you read the details.

Nothing the Maloofs have done since dad died has shown anything but poor business men. When you have money and the market is hot, big gambles can pay off. Real business people are the ones that survive the rough economic times, because they are wise enough and shrew enough to survive. Smart business men eat people like the Maloofs as an appetizer for bigger prey.

I can only hope the Kings do get a much smarter owner or owners.