Tag: Maloof brothers

team maloof with stern

David Stern comments about Kings arena situation with typical coded message


David Stern took a moment to address the Kings arena situation in Utah before Wednesday’s game against the Suns. Brian Smith of the Salt Lake Tribune has been a great resource for the Kings arena information and he brought this quote to print:

Stern on how he feels about the Kings staying in Sacramento, compared to when a tentative deal was reached during All-Star weekend:

You know, I’m more hopeful than I am confident right now. I’m hopeful because the city of Sacramento has between last meeting and this, has been responsible for responding on a sponsorship basis, on a ticket basis and on allocating $250 million or so for a new arena. In basically a week — what’s today? Wednesday — in a week, our owners will be coming in for meetings next Thursday and next Friday, and we’ll be having the Maloofs in to talk with some group of them and we’ll see where it’s going. Very, very hopeful that it gets on track, because the owners have a respect for the Maloofs. And I think the owners also have an enormous respect for what Sacramento has done over the years in supporting an NBA franchise. And it’s always been our first preference — particularly when government agencies or states are helpful — to keep a team where a team is if they’re playing in a good facility.

Despite Stern’s downgrade from ‘confident’ to ‘hopeful,’ this should come across as pretty good news to Kings fans. The city has hit all of the marks on Stern’s list, and by making remarks about how the owners respect the Maloofs – he’s making the not-so-subtle implication that he expects them to continue earning that respect.

As I wrote earlier today, all eyes will be on the Board of Governors meetings on April 12-13 when the NBA is expected to decide what to do about the Maloofs’ recent refusal to pay arena pre-development costs.

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.

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.

One kink in Sacramento arena plan: $85 million from Maloofs

Sacramento Kings v Los Angeles Lakers

There is a real momentum in Sacramento to get a deal done and get an arena built — one that appears ready to clear the final hurdles. The Kings would stay in Sacramento.

But if one thing were to derail that train, it could be the brothers who helped create the problem in the first place — the Maloof brothers. The owners of the Kings.

They have said in the past they would pitch in to help get a new arena built, but they have not been part of these arena negotiations (the NBA has handled that directly). Now it is coming time to write a check, reports the Sacramento Bee.

The city seeks a contribution of about $85 million from the Maloof family, which owns the Kings, multiple sources said. But it’s not clear if the NBA – which is negotiating on the team’s behalf – will agree, and negotiations are far from complete.

Why is that a cause for concern? Well, Tom Ziller at SBNation explains it well.

The Maloofs already owe the city roughly $70 million for a loan executed in the late 1990s when the Kings had threatened to leave Sacramento under previous ownership. The Maloofs are also believed to owe at least $100 million to the league’s credit facility. For the second consecutive season, the Kings have the NBA’s smallest payroll. Sacramento barely exceeded the league’s minimum payroll level last year.

In the last couple years the Maloof have sold off their beer distributorship that was very profitable and given up majority control in the Palms Casino that they built in Las Vegas.

The city of Sacramento, arena operator AEG and everyone else is ready to pitch in and do their parts. Given one last chance to get an arena done and keep the Kings in Sacramento, the city has rallied behind mayor Kevin Johnson and done a tremendous job.

Let’s hope it’s not the Maloofs that end that dream.

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.