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Talks on Arena for Sacramento Kings Start Anew
A fresh effort is underway to fund and build a new sports arena for the Sacramento Kings, News10 has learned.
Steve Capps, a spokesperson for prominent Sacramento developer Angelo Tsakopoulos, confirms Tsakopoulos is behind new talks to replace the oldest arena in the National Basketball Association. "Angelo is doing everything he can to keep the Kings here. The plan includes private involvement," Capps told News10 reporter George Warren.
Tsakopoulos was among the major backers of a plan hatched last year to fund a new arena with development fees in Sacramento's North Natomas area. That plan fell apart when some of the landowners chose not to participate.
Capps would not reveal specifics of the new discussions.
In an exclusive interview with News10 sports anchor Bryan May, Kings owners Joe and Gavin Maloof admitted the road to a new arena has been difficult, as multiple proposals have fallen through. The two said they’re disappointed there hasn't been a commitment for a new facility, despite at least five years of effort on their part. "I'm surprised," said Gavin Maloof. "I mean, I felt we've done everything we've ever said we’re going to do with the city and we give back millions of dollars to the community."
The Maloofs believe for them to fund an arena would put them at a competitive disadvantage when it comes to signing players. Gavin Maloof said paying $40 million a year in interest and debt service fees on a $400 million arena isn't good business in a medium-sized market like Sacramento. "What's going to keep us competitive," said Joe Maloof, "Is making sure we sign the best players and you can't do that if you're paying interest on your facility. Interest costs eat you alive."
The public conversation about a new arena has virtually ceased in recent weeks. A survey conducted by CSU Sacramento in March found that the majority of Sacramento residents don't feel there is a need for a new arena. Of 1,002 adults polled in a four-county area including Sacramento, 56 percent thought a new arena was unnecessary. Thirty-six percent agreed it was time for a new facility and 11 percent didn’t know.
The survey also revealed that just one percent believed an arena should be publicly funded. Fifty-one percent said it should be built with private money and 37 percent believed a combination of private and public funding was reasonable.
The cost of new arena in North Natomas to replace the current facility there is estimated at $318 million. However, Kings ownership want a $400 million structure that would accomodate 18,000 fans, have preferred seating and 55 luxury boxes.
Among other recent arena proposals to fizzle is a partnership between the City of Sacramento and the Maloofs proposed last summer. City leaders capped Sacramento's contribution at $175 million, leading the Maloofs to storm out of the city council session. Joe Maloof has said the Kings will contribute no more 20 percent of the cost.
However, the Maloofs profess they are not giving up and they are not planning to relocate the Kings. "We’re willing to do whatever it takes," said Joe Maloof. "A public-private partnership and put our fair share in, we’ve always said that. We’re going to pay off the $80 million loan. Whatever they want us to do, we’re going to do."
ARCO Arena, which seats 17,317, was built in 1988. It was built without taxpayer funds for $40 million.
Talks on Arena for Sacramento Kings Start Anew
Steve Capps, a spokesperson for prominent Sacramento developer Angelo Tsakopoulos, confirms Tsakopoulos is behind new talks to replace the oldest arena in the National Basketball Association. "Angelo is doing everything he can to keep the Kings here. The plan includes private involvement," Capps told News10 reporter George Warren.
Tsakopoulos was among the major backers of a plan hatched last year to fund a new arena with development fees in Sacramento's North Natomas area. That plan fell apart when some of the landowners chose not to participate.
Capps would not reveal specifics of the new discussions.
In an exclusive interview with News10 sports anchor Bryan May, Kings owners Joe and Gavin Maloof admitted the road to a new arena has been difficult, as multiple proposals have fallen through. The two said they’re disappointed there hasn't been a commitment for a new facility, despite at least five years of effort on their part. "I'm surprised," said Gavin Maloof. "I mean, I felt we've done everything we've ever said we’re going to do with the city and we give back millions of dollars to the community."
The Maloofs believe for them to fund an arena would put them at a competitive disadvantage when it comes to signing players. Gavin Maloof said paying $40 million a year in interest and debt service fees on a $400 million arena isn't good business in a medium-sized market like Sacramento. "What's going to keep us competitive," said Joe Maloof, "Is making sure we sign the best players and you can't do that if you're paying interest on your facility. Interest costs eat you alive."
The public conversation about a new arena has virtually ceased in recent weeks. A survey conducted by CSU Sacramento in March found that the majority of Sacramento residents don't feel there is a need for a new arena. Of 1,002 adults polled in a four-county area including Sacramento, 56 percent thought a new arena was unnecessary. Thirty-six percent agreed it was time for a new facility and 11 percent didn’t know.
The survey also revealed that just one percent believed an arena should be publicly funded. Fifty-one percent said it should be built with private money and 37 percent believed a combination of private and public funding was reasonable.
The cost of new arena in North Natomas to replace the current facility there is estimated at $318 million. However, Kings ownership want a $400 million structure that would accomodate 18,000 fans, have preferred seating and 55 luxury boxes.
Among other recent arena proposals to fizzle is a partnership between the City of Sacramento and the Maloofs proposed last summer. City leaders capped Sacramento's contribution at $175 million, leading the Maloofs to storm out of the city council session. Joe Maloof has said the Kings will contribute no more 20 percent of the cost.
However, the Maloofs profess they are not giving up and they are not planning to relocate the Kings. "We’re willing to do whatever it takes," said Joe Maloof. "A public-private partnership and put our fair share in, we’ve always said that. We’re going to pay off the $80 million loan. Whatever they want us to do, we’re going to do."
ARCO Arena, which seats 17,317, was built in 1988. It was built without taxpayer funds for $40 million.
