I believe it is, as well as a stake in the team, if I recall correctly. Kennadog might know, I think. She's been through all those agreements already, but it has been a while.
Stern pulls no punches in Bee article (merged)
- Thread starter Krunker
- Start date
I believe it is, as well as a stake in the team, if I recall correctly. Kennadog might know, I think. She's been through all those agreements already, but it has been a while.
Is there a particular reason why the practice facility HAS to be right next to the arena?
And this is why we keep asking for folks to show up at the City Council meetings!
LET THEM KNOW HOW IMPORTANT THIS IS TO ALL OF US, AND SACRAMENTO IN GENERAL!
May 8th, please be there with white shirts on!
Livinthedream
All-Star
No, it wouldn't be $73 million. But at the same time, AEG would be splitting less of their profits and therefore might be willing to chip in a little extra as well. It can be worked out. It's just unfortunate that we wasted this much time and a city council vote already dealing with the Maloofs. Now KJ has to scramble to get a plan B going, if he can.
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See this is where I think that voiding the loan would not be all bad. For one I think the city is exposed if the Maloofs default anyway. While I have no real love to see that burden lifted off the Maloofs, it would make the team easier to sell with less debt. The city would need to refinance the remaining loan debt and that would be a challenge along with building the arena. But perhaps the parking concession model along with the possibility of adding an anchor tenant to pay a yearly lease would be enough to backfill the debt payments.
With 65 million in debt wiped away from the Kings, the sale of the team might be more attractive to the Maloofs. Of course the city would need private assurance from the NBA that they would continue to pressure the Maloofs financially with refusing to allow relocation and no revenue sharing. Add in there that Arco would be unable to compete with a new arena, the Maloofs would almost have to sell.
There is of course a million questions and concerns about doing it that way. But I think once the stance is taken by city, NBA and AEG, the Maloofs would probably take the route of selling over long court battles or waiting out the inevitable of watching a new arena going up downtown. There needs to be some incentive for the Maloofs to sell. With all the debt they have, there is no reason to sell right now.
kingjatt
Starter
As well as local business leaders/corporate sponsors who stepped up with ten million on the spot last year when they knew KJ was on the job. I doubt that all of those 1 year sponsorship deals will be renewed after this. I hope the NBA sees that its because of the magoofs and not because they think Sacramento cant support a team.
I think the part where Stern points out that the owners have significant influence as to how the revenue sharing money is used speaks volumes. hes basically saying they cant just depend on his (the leagues) money to stay afloat.
This now becomes a waiting game. with the city loan payments balooning up soon, less ticket revenue, less sponsorship, possibly less money from the NBA the magoofs will have no choice but to sell or be forced out by their creditors as they were with the palms.
Yes, ARCO is part of the current collateral.
This "bit" about "additional" collateral is mystifying. You don't get to have no collateral on your new loan because you did have collateral on your old, now-paid-off loan. What kind of idiot-talk is that, Side-Door George? I mean, I know you're a blithering moron and all, but what do you take us for?
(I've got a speculative but realistic answer to that question, but as it's not family-friendly I'll leave it be.)
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kennadog
Dog On It!
Yes, PBP and the land its on is part of the collateral for the current city loan. The city also has a lien against part of the team itself for the balance of the collateral.
The Capt. is right. Just because you had collateral on the old loan, doesn't mean you get a refinance and don't have to provide any collateral for the new loan. I didn't think George meant that PBP and the land would be the collateral for the new loan. The problem with that is, PBP and the land it's on, are probably insufficient collateral right now.
I think I read something that the current value was probably only $40 million. If the Maloofs walk without paying off the city, the city may not be able to pay off the bond by selling the property. That's bad news, especially sine the city guaranteed repayment of the bond. Also, early repayment of the bond would cost more, because there is an early payment penalty.
I would hope the league wouldn't let a team screw a city like that, but I wouldn't put it past the Maloofs to walk away from the debt, I'm afraid.
I need to look at the current agreement documents for PBP, because I'm not sure if there's a non-compete clause or not. I'll try and read it tomorrow. I printed all those d*mn documents out a while back, while doing research.
The Capt. is right. Just because you had collateral on the old loan, doesn't mean you get a refinance and don't have to provide any collateral for the new loan. I didn't think George meant that PBP and the land would be the collateral for the new loan. The problem with that is, PBP and the land it's on, are probably insufficient collateral right now.
I think I read something that the current value was probably only $40 million. If the Maloofs walk without paying off the city, the city may not be able to pay off the bond by selling the property. That's bad news, especially sine the city guaranteed repayment of the bond. Also, early repayment of the bond would cost more, because there is an early payment penalty.
I would hope the league wouldn't let a team screw a city like that, but I wouldn't put it past the Maloofs to walk away from the debt, I'm afraid.
I need to look at the current agreement documents for PBP, because I'm not sure if there's a non-compete clause or not. I'll try and read it tomorrow. I printed all those d*mn documents out a while back, while doing research.
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Lock yourself into a lease on ME!
kennadog
Dog On It!
LOL.
If the Maloofs walk away from the $65 million they owe, the city and its citizens have to pay back the debt. I don't think the collateral will cover the whole debt. Believe me, that isn't what we want, at all, but I'm thinking the Maloof jerks may walk away.
