Stern: Kings will make substantial financial contribution to arena deal

[bluntsnbball]

im reading the comments a bit differently. In my mind he's saying that the Maloofs will contribute substantially, but he doesnt exactly say they will contribute whatever is needed. My thoughts are that maybe the maloofs are gonna say "we're putting in this much, thats a lot of money, and if it isnt enough then we're done talking about it."

Hopefully im wrong

 

[Larry David]

im reading the comments a bit differently. In my mind he's saying that the Maloofs will contribute substantially, but he doesnt exactly say they will contribute whatever is needed. My thoughts are that maybe the maloofs are gonna say "we're putting in this much, thats a lot of money, and if it isnt enough then we're done talking about it."

Hopefully im wrong

The good news is this. Stern is the middle man between the Maloofs and the NBA. It's his job to make a deal work, but at the same time make sure the city doesn't put more on the backs of his owners than needed. KJ doesn't have much margin and Stern is talking about a gap and staking out turf, which is bad.

However, the good news is that the NBA folks are here looking over the rest of the deal for 3 days. KJ knows what Cohn needs and Stern will listen to what KJ has to say. On this weekend, Stern will still try to trim any fat and make the best deal for his owners, but he'll also know if there isn't any fat and he's simply sending KJ back to redo a deal that will never pass. NBA is basically the last big money in the pot and right now we're showing them why the deal happens with 80 million and doesn't at other numbers.

Of course this team just got done misreading what the players could do, and put a huge black eye on the NBA ... so there is that.

Best case, the NBA reports back to Stern that KJ is right and there isn't any margin and it's a fair deal for the Kings, Sacramento, and the League. At which point it's, "Look, Boys, I got them down to 70 million. This is a better deal for the franchise, the league, and you than moving. Let's work out a way for you to pay that number, because the team isn't moving and if needed the league is going to find an owner that will pay the 70 that the league will front if needed.

Worst case, "Hey KJ. I see your point. We'll go from 50 to 60. I see you are looking at either user fees and county parking to fill the 9 million. You need to do both to close the gap. I'm sure you can get that passed" And then KJ has a few days to try grab more money.

 

[nebs]

If this Arena gets built and we keep the Kings, there better be a statue of KJ out in front of this sucker.

 

[JB_kings]

They aren't talking like the gap is something huge. I think what Larry David said is a pretty accurate read.

The county coming in late might just be something to satisfy votes for council member or two to make sure the general fund backfill is solid. This almost looks like Cohn's fingerprints. I want to hear more on this and we are supposed to get some statement from the county today. But it doesn't sound unreasonable to ask them to contribute the extra they would be getting from their parking lots on event nights. This is found money for them if the ESC gets built. I don't think they are asking them to monitize their three garages which would trigger off something much larger to debate.

 

[JB_kings]

KCRA David Bienick tweet:

#Sacto County Exec to announce support for city's effort to raise money for #arena... and regional parks.
county parking revenue will be shared with city
75% of revenues would go for arena, 25% for regional parks

The stars are really aligning on the Sacramento end.

 

[nebs]

KCRA David Bienick tweet:

#Sacto County Exec to announce support for city's effort to raise money for #arena... and regional parks.
county parking revenue will be shared with city
75% of revenues would go for arena, 25% for regional parks

The stars are really aligning on the Sacramento end.

Crossing my fingers.

 

[BMiller52]

Crossing my fingers.

hey bro you on twitter?

 

[Circa_1985_Fan]

If this Arena gets built and we keep the Kings, there better be a statue of KJ out in front of this sucker.

Indeed!!! Something like a 10 ft high, bronze version on this:

 

[The Hammer]

KCRA David Bienick tweet:

#Sacto County Exec to announce support for city's effort to raise money for #arena... and regional parks.
county parking revenue will be shared with city
75% of revenues would go for arena, 25% for regional parks

The stars are really aligning on the Sacramento end.

Wow. That is golden right there. If I take that correctly... all "extra" revenue from event nights (based on overage of a historical average or something I'd guess), would go 75/25 arena/parks. That may very well more than cover the 9 million hole left by city garages, but I have no idea. Now, all the sudden, with the parks thrown in there... if you're a city council person and you vote against this, and the gap is filled, you're all the sudden voting AGAINST money for parks, money that would come outside of tax revenue. Another BRILLIANT move politically.

So just throwing some totally uniformed numbers around:

250 events / year
2000 "extra" parking spaces filled
$10 profit/night per extra spot

That's 5 mil

3.75 mil per year for arena

1.75 for parks.

Does anyone have any idea if these numbers are ballpark or not? (no pun intended)

 

[Mike0476]

Think Big Sacramento has a new video out and it features FANS with our philosophy of "Bigger Than Basketball" and includes our group picture from Feb 14th. They have us under #5Votes.

 

[Circa_1985_Fan]

Wow. That is golden right there. If I take that correctly... all "extra" revenue from event nights (based on overage of a historical average or something I'd guess), would go 75/25 arena/parks. That may very well more than cover the 9 million hole left by city garages, but I have no idea. Now, all the sudden, with the parks thrown in there... if you're a city council person and you vote against this, and the gap is filled, you're all the sudden voting AGAINST money for parks, money that would come outside of tax revenue. Another BRILLIANT move politically.

So just throwing some totally uniformed numbers around:

250 events / year
2000 "extra" parking spaces filled
$10 profit/night per extra spot

That's 5 mil

3.75 mil per year for arena

1.75 for parks.

Does anyone have any idea if these numbers are ballpark or not? (no pun intended)

I thought the county garage funding was going to help backfund the $9 parking revenue for the city?

 

[JB_kings]

I thought the county garage funding was going to help backfund the $9 parking revenue for the city?

Language of their resolution contains this: County resources will be used solely for the purpose of financing the ESC and the City will not use these resources to supplant other City funding or finances.

So it's not going in the city general fund. Your guess is as good as mine as to how it's going to be used for the ESC. Perhaps some revenue streams for a tenant in exchange for larger upfront cash contribution?

It really doesn't sound like the city is scrambling to backfill that 9 million in parking revenue. Which could mean they already have that solved. It wouldn't shock me that they are working hard now to nail down terms with the NBA. I think AEG just flat laid it out with their part and won't negotiate unless it's a give and take thing.

 

[The Hammer]

I thought the county garage funding was going to help backfund the $9 parking revenue for the city?

Oh yeah, that's what I meant. Sorry.