Tag: Kings leave Sacramento


Maloofs move significantly to meet Sac’s proposal, Kings fans provide political cover for arena deal to get done


In the end, it was about a city and its team, and the will to fight for what was theirs.

Kevin Johnson did the heavy lifting and the heavy hitters moved the ball forward, but it was the Sacramento Kings fans that gave the local politicians the will and the way to see the Kings arena deal to fruition.

The Maloofs and Johnson emerged from Monday’s arena talks with tears in their eyes and an arena deal ready to go. In speaking with sources on the Sacramento negotiating team this morning, even they did not know that an arena deal was coming back with city manager John Shirey on the flight home.

Moreover, other sources involved with negotiations indicated that the Maloofs moved over $20-$30 million on their position coming into today’s meeting, with Sam Amick reporting that the inclusion of a Maloof-paid ticket surcharge provided the mechanism.

While the symbolic celebration is yet to come (hold onto your hats Sacramento), this marks the end of a year-long journey that saw the Kings all-but leave town. I attended the potential final game in Sacramento against the hated Lakers, and watched as grown men cried and thousands refused to leave the stadium. I listened as some of the media in attendance snickered at the audacity of fans to believe they could keep their team.

Nobody, and I repeat nobody, had the Kings staying in Sacramento.

And because of those resolute fans, everybody from the mayor to the city council, the media and the team, and the ultimately the NBA – were forced to believe that a deal could be done.

They chanted at games and made fliers, they made movies, they attended city council meetings, and they used Twitter like they owned it. There was a group called #HereWeStay that started the social media fire, a local radio host named Carmichael Dave with an affinity for Braveheart moments, and a group called #Fans that delivered human PowerPoint presentations at city council meetings.

And there were many more. They were extremely organized, and they numbered in thousands. And for all the heavy hitters that drove the process, they wouldn’t have gotten past first base if the local media and pols didn’t have the political cover those fans provided. Everywhere you turned, it was #HereWeThis and #HereWeThat, supplemented by the education-driven #FANS group that hammered home the message that the arena was #BiggerThanBasketball.

Indeed, the arena is going to revitalize an area of Sacramento that desperately needs help, boosting the local economy while providing jobs and increased property tax revenue for years to come. It’s the shot in the arm the region needs to get back on its feet, and for once, Kings fans get the win that has eluded them for so long.

There are more steps to go as the term sheet will now be brought home by Shirey and the city council will look it over the next few days. As I reported for ProBasketballTalk last week, as long as a set of achievable criteria is met, they will have at least the five votes necessary to approve a parking plan that will solidify the city’s contribution. The fact is, however, that the city of Sacramento doesn’t walk out of that meeting with a deal not knowing if they have the votes to get it done.

The council will vote on March 6 to approve the term sheet and from there only insignificant procedural votes will remain on the to-do list. The Maloofs will ultimately pay in the ballpark of $70 to $77 million toward the cost of the $387-400 million Entertainment and Sports Complex, which is set to open in 2015. It’s my prediction that we’ll learn about an All Star game landing in Sacto in 2016.

The rest of the details will be fleshed out as the parties return to Sacramento and cross the Ts and dot the Is.

For now though, none of that matters. Kings fans have been on pins and needles for well over a year – and they finally get to take a day off. Even those of us in the media covering the story on a daily basis, we’ll take a breath and just enjoy a good story that ended well. And if you own a bar in the Sacramento area tonight, it’s probably a good time to make some purple beer.

Congratulations Kings fans, the Dom Perignon is in the mail.

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.

Sacramento City Council has votes for arena if reachable criteria is met

Inside Kings Arena

The Sacramento Kings and their fans will hold their breath on Tuesday night, as the Sacramento City Council holds the first of at least two critical votes that will determine whether or not the team leaves town.

Let me be the first to tell you that tonight’s vote will pass.  Sources close to the situation report that the council is all but certain to have the votes necessary to move the process forward.

Specifically, the vote will allow the council to finalize proposals with ten competing private parking operators that will provide upwards of $200 million toward the cost of the estimated $387 million Entertainment and Sports Complex.

This will setup a vote on February 28 that will decide the Kings’ future.  It is at this time that the council, in cooperation with mayor Kevin Johnson’s Think Big Sacramento coalition, will vote to approve a term sheet that will signal to the NBA that Sacramento can indeed fund an arena.

I’m also told by sources with knowledge of the situation that as long as a laundry list of criteria is met, the council will have at least the four votes necessary (not counting Johnson’s tie-breaking vote) to approve the term sheet.

This laundry list includes guarantees that the city’s general fund will be replenished by the approximate $9 million annual revenue stream currently provided by city-owned parking operations, a plan for some or all of the city’s employees to be transferred into the new parking company’s operation, a mechanism to cap rate hikes for parking in the future, an option for an agreement shorter than 50 years, and a mechanism to provide kickbacks to the city if parking revenues exceed certain benchmarks.

It is believed that within that framework, the city can meet or exceed their $200 million target.

The last major item on the laundry list is who will be responsible for cost overruns if the $387 million project goes over its budget.  I’m told the city will approach the developer, David Taylor, to potentially provide that guarantee.  While it is unclear whether or not Taylor would shoulder such responsibility, he will likely be given incentive to do so by an offer of development rights near the arena.

Taylor has been working on the arena deal for years and has evaluated the project for Sacramento at a significant cost to himself, and it would be surprising if he told the council that he would not be responsible for cost overruns on a project he evaluated and promoted – particularly if there is further incentive in the form of development rights.

Adding the estimated $200 million or more from parking, an estimated $30 million from local hotels, an estimated $50 million from an arena operator (AEG), and an estimated $80 million from the NBA and the Maloofs — sources tell me that the city is well in the ballpark of securing the financing necessary for the arena.

In other words, the city of Sacramento has both the will and the way to secure a ‘yes’ vote for an arena.

As far as the timing goes, while February 28 is potentially the date for a deciding vote, it is likely that the NBA will allow for an extension on the March 1 deadline so they can properly evaluate Sacramento’s findings.  That announcement could come during All Star weekend.  The NBA and the Maloofs could theoretically act on the city’s proposal quickly and provide their terms in time for a February 28 vote, but sources stress the important part is that the city will have communicated that it is ready to vote on a deal.

From there it is on David Stern and the Maloofs to pull the trigger on the estimated $80 million price tag, which amounts to about $3 million per year in rental payments for 30 years, all paid up front.

As for any talk of selling the team, The Maloofs have been consistent with their message that it’s not an option, and their sale of the Palms can be seen as either a sign that the ship is sinking or a sign that they were moving money for the purposes of an arena.  In the unlikely event they do want to sell, Think Big Sacramento executive director Jeremiah Johnson told Seattle’s King 5 News that the city has “a number of ownership groups willing to keep the Kings in Sacramento.”

It’s not going to come to that.

The Maloofs and/or the NBA could try leverage the city of Anaheim against Sacramento, who recently made improvements on their NBA-ready facility, but after Jerry Buss and Donald Sterling just agreed to revenue sharing with small market clubs it’s less likely that the NBA will place another team in their backyard.

As for Seattle, despite their clear efforts to bring an NBA team back home, they are well behind Sacramento in their pursuit of an arena.  They too would have to approve public funds for a new building, and Stern and the Maloofs will have to weigh the $80 million cost of a sure thing given a ‘yes’ vote, and a nebulous offering in Seattle that is 1-2 years away while Key Arena is a stop-gap solution at best.

With all of the support David Stern and the NBA has given Sacramento in its fight to keep the Kings – from manpower in the front office to people on the ground helping make the arena deal a reality – it just doesn’t make sense for them to pass up a viable option for two that have problems.

This is a complex situation and it is not a done deal, but the once half-court shot turned 3-pointer doesn’t even seem like a free throw at this point – it seems like a layup.  The Party of Five that voted down a public vote that would have sent the Kings packing are interested in a deal that addresses the aforementioned criteria.  That criteria reportedly can be met and still provide the project with the money that it needs to be green-lighted, assuming the private parties each put in amounts that seem reasonable, achievable, and already written in pencil.

Kings fans will probably wait until the shovels hit the dirt before they celebrate.  Let this prediction be the first bottle of Dom Perignon.

The Kings aren’t going anywhere.