Tag: Kings arena

team maloof with stern

Report: Maloofs pitching against Sacramento at NBA Board of Governors meeting


Here we go all over again.

It was around this time last year that the Maloofs stormed angrily out of the NBA’s Board of Governor’s meetings, rejected and dejected after they were told they couldn’t go to Disneyland. Today, they returned to New York to pitch the idea that they were somehow wronged during the past month’s negotiations with the city of Sacramento over a new arena.

Specifically, they’re expected to ask their fellow NBA owners to support the nebulous concept that they’re unhappy with the deal.  They’re also expected to ask owners to support their decision to move to Anaheim if they don’t get what they want out of Sacramento.

The only problem is that the NBA, and specifically David Stern, ran point on a negotiation conducted during All Star weekend that brought the Maloofs, the NBA, AEG, and the city of Sacramento into an agreement in principle on a $391 million Entertainment and Sports Complex similar to L.A. Live.

Hanging in the balance is a fan base that is roundly cited as one of the best in sports.  Also hanging in the balance is a city beset by 12 percent unemployment — that is banking on leading economists’ predictions that a downtown arena can raise property values by hundreds of millions of dollars and kick-start a broken economy.

The Maloofs themselves called the non-binding deal fair when it was struck over All Star weekend, and since that weekend nothing about the deal has changed. The only thing that has changed has been the Maloofs’ public position regarding the deal, which has been duplicitous in its approach.

On one hand, the family has said that they remain committed to Sacramento, and on the other they have unleashed a full-court legal press designed to disrupt the arena funding process.

The family’s newly hired ‘crisis consultant’ Eric Rose started feeding the family’s narrative to the press a few weeks ago, saying they don’t believe the city can deliver on a new arena in time for the 2015-16 season, and that Anaheim was still an option on the table.

Of course, if the city of Sacramento has any holes in its plans to build an arena by 2015-16, we now know that they will be cited by the Maloofs in today’s meetings as a reason the league should allow them to move to Anaheim, where they could make more money whether they keep the team or not.

The Maloofs’ attorney, Scott Zolke, followed Rose’s statements by issuing a letter to Sacramento assistant city manager John Dangberg, providing specific legal notice to the city about issues the family had with anything and everything. In fact, if you wanted to derail an arena project you would want to start a checklist using the items on that list. From the timing of environmental reviews to the ability of arena opposition groups to delay the process or stop it in its tracks – items that could have been discussed behind closed doors were now floating around in an increasingly hostile public domain.

The city responded to this first initial red flag, explaining to the lawyer that he had compiled information for his complaint from six-month old estimates from the city manager’s office that had since been publicly updated.  The 88-page letter went on to address the numerous issues raised by the Maloofs, but made one key point: “It is critical that all parties are pulling in the same direction.”

If it wasn’t clear after Rose’s newspaper run, it became abundantly clear where the Maloofs stood following their April 2 response to the 88-page letter, when they admonished the city for not responding to its concerns over an arena opposition group.

“An important new issue (casts) a giant shadow over the feasibility of the project,” wrote Zolke about a group called STOP (Sacramento Taxpayers Opposed to Pork).  The letter went on to set legal markers designed to threaten liability upon the city:

“All of your assumptions and projections are based on a premise that the Kings will be playing in a new arena for the 2015-16 NBA season. However, the issues we have identified likely will prevent the City from meeting its timeline, and thus pose imminent obstacles to the new arena being ready for the 2015-16 season. Such a failure will result in irreparable harm to the Kings, not to mention the losses the City will suffer.”

This is where things get wacky and border on bad faith.

While one would think that in a near $400 million transaction that the Maloofs’ attorney would have vetted this STOP group, it appears that no such vetting has taken place.

The group did indeed file a petition with the city to try to get the 30,000 signatures needed by May 22 in order to bring the Kings arena issue to a public vote.  If the group were to somehow get the signatures, a vote would occur in November and the project’s delay would almost certainly give the Maloofs a green light to move out of town.

The problem? The petition the group filed to authorize its signature drive might have been written on a napkin and handed to the city clerk with ketchup stains on it. It was recently removed from consideration at the request of the group, and amended to include basic, proper punctuation and simple legal terminology required of such requests.

So the organization the Maloofs’ attorneys are citing as a “giant shadow” doesn’t have an attorney, and it submitted a legal document without putting periods and commas where they legally need to be.

I followed up with the group to determine for myself what kind of organization it was and how seriously it should be taken. They had a public meeting on April 7 at a local park in Sacramento. At this meeting was a group of 10 people, with leader Julian Camacho flipping some hamburgers. Their Facebook page is up to 43 ‘likes,’ and they’re still waiting on the Sacramento City Clerk to review their most recent ballot initiative language, assuming they spelled everything correctly.

Since the April 2 letter to the city the Maloofs have also made a massive public records request – 53 separate requests total. They have requested all communications between the city and the NBA, AEG, and politicians of all levels, and nothing says trust and partnership like a public records request.

So in summary, the project is on a tight deadline, needs all the public support it can muster, and the Maloofs are refusing to pay $3.26 million in pre-development costs, or one year of Travis Outlaw’s salary. They’re saying that the handshake agreement David Stern helped to cultivate didn’t go down how every other stakeholder said it did. They’re delaying the project by not paying those minimal costs, but saying that they’re also not sure the project can be done on time. They’ve rang the bell for an opposition group of 10 people that apparently can’t punctuate nor afford an attorney — that can’t start collecting the 30,000 signatures they need because they botched the original paperwork request. Meanwhile, the Maloofs’ attorneys are deposing the city like defendants and a crisis consultant has been brought on board to manage the media.

Elsewhere, 25 prominent Sacramento business leaders sent a letter to David Stern today asking that the Maloofs be removed as owners of the Kings. The Maloofs’ crisis consultant responded by criticizing the business leaders, pointing out that they didn’t want to get behind a deal like the failed arena project from a few cities over in Stockton.  Never mind the fact that the two deals are like pineapples and oranges — simply mentioning the two deals in the same breath is akin to doing an ad about how rich you are before asking the public for money.  You just don’t do it, and you certainly don’t go on the offensive against the same businesses that you’ll be partnering with for the next 30 years.

So at 2 p.m. ET representatives for the Maloof family, presumably led by brother George, started to make the case that Sacramento has screwed them yet again.  They’ll be pandering to owners that want to maintain their leverage in their future dealings with municipalities. But if the NBA wants to get another publicly subsidized arena without every city citing Sacramento as a cautionary tale, they’ll send the Maloofs out the side door once again, angry and dejected.

Sacramento City Council passes most important vote to keep Kings in town


I interviewed Carmichael Dave, the person most synonymous with Sacramento’s grassroots effort to keep their basketball team, way back on April 5, 2011. The Kings were all-but gone by most accounts, and I asked Dave what he thought the Kings’ chances of leaving were.


It turns out that he might have been a bit optimistic, as there wasn’t a soul on record, including mayor Kevin Johnson, that thought the Maloofs would keep their team in the Cowbell Kingdom.

And during the Kings’ final game last year, when the Lakers were up by 20 points in the first half and the team was honoring its lifelong season ticket holders with the future not just in doubt, but in the trash – I thought to myself, ‘This is what it’s like to watch your own funeral.’

Even the Lakers fans that had gathered that night stopped giving Kings fans the business. They knew when enough was enough. 2,000 or more people stayed after the game, refusing to leave the arena. Players, coaches, media, management, and anybody affiliated with the team all stayed back to take in the scene. Grown men, including then coach Paul Westphal and TV commentators Grant Napear and Jerry Reynolds – they cried. They weren’t the only ones.

In the background, people were working, though. Some of those people had great influence and some of them had simple tweets. Together, and with no one part being able to complete its work without the other, they were able to keep their team and by virtue of that – give their region hope for a better day.

Tonight, the Sacramento City Council voted 7-2 to approve the term sheet drawn up by all of the stakeholders of the $387-400 million Entertainment and Sports Complex. The wheels could theoretically spin off, but there are 5-of-9 votes in the council that are rock solid in favor of the arena. The other four votes range from serious opposition to only mild opposition, as evidenced by two of them crossing the line tonight. In addition, tonight’s vote will put the project in real motion, with more money being spent as the city finalizes the parking portion of its contribution.

And aside from all of that, sources from each side of the table indicate that they are a full go and the Kings are staying in Sacramento.

It was a moving scene, having interviewed many of the fans, stakeholders, city leaders, and the like for over a year. These people spent hundreds of hours not just to protect a basketball team, but to keep their region from going under. The Sacramento area, having relied on the public sector for decades, has been beset by 12 percent unemployment and big-name companies are leaving weekly.

Or maybe the word is ‘were.’

Kevin Johnson, the hero in all of this, was able to raise an additional $10 million in sponsorships before the plane hit the ground for last year’s NBA Board of Governors meeting. With some help from Jerry Buss and Donald Sterling, Johnson was able to convince David Stern and the NBA that Sacramento could be a viable place for an NBA team – and that most importantly that he could deliver on an arena.

He formed a coalition that included business leaders, fans, churches, various ethnic groups, and heavy hitters from the political world that had a vested interest in keeping Sacramento afloat.

He floated the name, ‘Burkle.’

And I don’t know when Johnson whipped the city council to determine whether or not he had their votes, but he knew that if he kept the ball moving that good things would happen.

When the motion to approve the term sheet was made last night, 500-1000 arena supporters packed two floors of the new city hall and one floor of the old, adjacent city hall. The opposition had its chance to speak first and 19 of the two million people in the Sacramento region spoke out against the arena deal. In the interests of time K.J. limited public comment in support of the arena to 45 minutes. When that time ended, he asked those that didn’t get a chance to speak to stand up.

Nearly everybody in each room stood up.

After public comment, as each councilperson spoke it became clear where each of them stood.  When two opposition votes from the last motion moved over to the pro-arena side it was clear that the Kings were going to stay. A full year’s worth of anxiety and effort started to settle, and with one more moment to go – the room looked tired and worn out. Sensing that it was time to vote, though, they sprang into action and started waving their signs.

The payoff was near.

The roll call vote meant that each councilmember would have to say their vote out loud, and when it was Johnson’s turn to give the final vote he screamed ‘YES’ into the microphone.

It was somewhat anticlimactic since we knew the results weeks ago, but it was his Braveheart moment. And Carmichael Dave had a Braveheart moment when he stood on a 12-foot ladder and told 2,000-plus fans that they had to leave the arena but not to give up hope. And each of those fans that organized en masse, made documentaries, and wouldn’t give up – they had their Braveheart moments, too.

That’s the best part about this story, aside from the happy ending. Faced with a less than 10 percent chance of success these people banded together, did something, and might have staved off long-term erosion of their economy.

And if the Kings can play some winning basketball, that will be a close second.

Sacramento City Council takes unanimous step toward key arena vote

kings purple

One vote down to bring a new arena to Sacramento, one more critical vote to go.

Tuesday, the Sacramento City Council voted unanimously to continue finalizing proposals with private parking companies, who will in turn provide $200 million or more toward a new Entertainment and Sports Complex. For that money, the winning bidder will have the right to operate the city-owned parking assets for up to 50 years. This is a critical piece of mayor Kevin Johnson’s plan to keep the Kings in Sacramento, and a ‘no’ vote last night would have sent the team packing, though as I reported earlier Tuesday it wasn’t going to come to that.

That report also included a breakdown of the situation and news that the council will have the votes to approve an arena deal before the March 1 deadline, so long as a laundry list of achievable criteria is met.

That criteria, including safeguards on the parking deal and project cost overruns, is going to be worked out over the next two weeks as the city, the private parties, the NBA, and the Maloofs will come together to create a term sheet for the council to vote on. The vote is expected to be held on February 28, but it’s possible, even likely, that the NBA will allow for an extension on their deadline so they can review the terms at a reasonable pace. That announcement could come on All Star weekend.

Tuesday’s vote wasn’t expected to be contentious, but hundreds of Kings fans still showed up to make their case to the council. They wore white T-shirts with words such as growth, economic engine, events, downtown, nightlife, etc, and did their best not to recreate the acoustics in Power Balance Pavilion.

While there were eight speakers signed up make the opposition’s case, mayor Johnson was forced to limit public comment in support of the arena due to obvious time constraints.

After about 20 arena proponents were allowed to address the council, Johnson asked those in support of the arena that didn’t get a chance to speak to stand up and be recognized. Nearly everybody in the double-decker room stood up.

For well over five years Sacramento has been seen as impotent in its ability to get an arena deal done, but even council members that are in opposition of the current deal seemed resigned to their fate. Sandy Sheedy, the most vocal opponent of the deal, put up little to no fight on the issue and the other opponents chose not to speak. Surely they could be saving their breath for when the games count, but in doing so they lost a critical chance to curry favor with the anti-arena crowd, if it even exists.

The vote in 2006 to implement a sales tax for a new Kings arena lost by an 80-to-20 margin, but what most people don’t know is that it was an extremely flawed and eventually abandoned measure that never had a chance.

Tuesday night a strong message was sent to the NBA and competing cities that an arena deal is coming.  Staring into the sea of white T-shirts, with little to no opposition to be found, it was hard to understand how it took them so long in the first place.