Tag: new NBA arena

Los Angeles Lakers v Sacramento Kings

NBA doing the Maloofs’ talking for them

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The Maloofs’ relationship with Sacramento is decidedly love-hate. When the Kings were winning and Joe and Gavin were plastered on TV during games, Sacramentans were ready to propose.

But it’s funny how life works — the team started losing and (gulp) started asking the city of Sacramento for money, and everything has been downhill since. Their 2006 ill-fated measure to finance an arena was a PR disaster. Now the relationship they have with fans after a failed attempt to get out of Dodge in April is well, think Elin Nordegren and Tiger Woods having dinner at Thanksgiving with their children.

It’s all about the Kings, so I won’t throw this turkey leg at your head.

In all fairness, the Maloofs have dealt with a city that has acted like NBA franchises grow on trees and that people will gladly pay property taxes absent the consideration of amenities.  But let’s not get into details, because who cares about those?  After all, more than half of the basketball public believes the players are ‘on strike’ because Ron Artest and Stephen Jackson ran away with all of the dollar bills to make it rain with.

Nevertheless, it wasn’t surprising in the least to read Rob McAllister’s latest report on KFBK.com about the big meeting in Dallas between arena-related parties. McAllister reports that yesterday the city of Sacramento, NBA representative Clay Bennett, AEG, and others met to lay out parameters, timelines, etc. You know, arena stuff.

But is he forgetting somebody? I’ll let McAllister take it from here:

The Maloof family was not at the meeting in Dallas and there is no time table that currently details when the Kings’ owners will join the negotiations. (Sac City Councilman Rob) Fong said he expects the “Maloofs to be a part of the talks,” even though the city has been dealing directly with the NBA.

If you recall, the NBA kindly told the Maloofs to give Sacramento one more year to get an arena, after Kevin Johnson came up with $10 million in corporate sponsorships and an eleventh hour plan – while simultaneously fans pulled a ‘hell no, we won’t go.’

Make no mistake, it’s not typically the NBA’s protocol to block a team from moving, particularly if the old city has balked at building a new arena. As long as the supply for NBA teams is restricted, and the demand for teams remains high, then the NBA will always have that leverage (see antitrust: reasons why the NBA wants never to speak of it).

So telling the Maloofs to get back in the negotiating seat would normally mean that they, ya know, sit at the table, right? Wrong.

This time Ron Burkle and prospective buyers lurk in the background behind Kevin Johnson’s promise that Sacramento can be an NBA city. The Maloofs, hit hard by the economy, have sold all but two percent of the Palms, and what had once been rumors was finally put into print when NBA insider Jonathan Abrams wrote at Grantland that they “would have likely been forced to sell had they relocated to Anaheim, which remains a distinct possibility.”

Even at city council meetings, where opponents of the arena initiative would normally rail against giving money to rich people, they’re now talking about the various uses of public funds rather than making it about the Maloofs. And arena proponents barely even talk about the Kings these days. Instead, they talk about the A-list acts that will go to the Bay Area if an ‘Entertainment and Sports Complex’ isn’t built, and the millions being lost in Sacramento property tax revenue that a new ‘Entertainment and Sports Complex’ would address according to top economists.

The Maloofs have made just a handful of public comments regarding the process since it was decided that they would stay, and nothing that would make the 10 o’clock news.

For a family that doesn’t exactly lay low, it’s almost like they’re not there, complicit with the idea that their presence could somehow derail things in Sacramento.

It’s a pretty simple decision to hide the Maloofs, given their past history with arena initiatives, the threat of moving, and the like, but as Abrams alluded to there is more at play here.

As much as you would like to hide the Maloofs if you’re Sacramento and the NBA, any owner would be expected to be involved in a process like this, and their representatives would certainly be at meetings of this type. In this case, Bennett is there instead to keep things on track.

The NBA has invested a ton of time in getting an arena deal in Sacramento, and frankly, had they wanted to be in Anaheim they would have simply let the Kings go. But there were too many reasons not to go at the time.

Henry Samueli rolled out the red carpet for the Kings and really, really, really wants to take over for the Maloofs if they can’t afford to play with the other billionaires, but he has an image problem. Convicted of lying to regulators in a stock option scandal years ago, he was suspended as an owner in the NHL. He has a history of philanthropy and Donald Sterling is obviously tolerated, but still, it’s a blemish.

Compared to David Stern’s drooling over Ron Burkle, it’s quite clear who the NBA would prefer to pick up wherever the Maloofs leave off, assuming of course Burkle or the other suitors are still interested.

And then there’s the small issue of the lockout. Back in April the NBA was preparing to ask the Jerry Busses of the world to dish out some pie in the form of revenue sharing – not exactly the right time to plunk a team in his back yard. In fact, there may be no right time to do that if the NBA quadruples revenue sharing – at least not for a while. Don’t tell that to Sacramento, though, since Anaheim is still being dangled over their head (not like a carrot, like a guillotine).

Besides, can the NBA really uproot another franchise — after a lockout — when Sacramento has so publicly been supported by just about everybody in the NBA?  And financially, do they really want to abandon the 20th largest market in the United States, just to overlap what they already have in L.A.?

No. Not now. Not under these circumstances. Not if Kevin Johnson can deliver an arena.

So Clay Bennett will show up and lay out the parameters that have likely already been communicated to Kevin Johnson, AEG, and the rest of the team. Johnson and Sacramento city councilman Rob Fong will be there to discuss what they believe can and cannot pass in the council, which ultimately controls Sacramento’s checkbook. The NBA will negotiate on behalf of the Maloofs, but as long as a reasonable plan gets presented by Sacramento, they’ll turn to the Maloofs and say, ‘here it is.’

And they will take it.  Whatever they choose to do with it from there is anybody’s guess.

Sac City Council members tip their hands on arena vote

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Sometimes you need to see the look in somebody’s eyes when they’re forced to make a decision before you truly know how they feel.

We got to see that on Tuesday night when the Sacramento City Council voted 7-2 to approve $550,000 to secure consultants, lawyers, and parking experts to start formalizing a funding proposal for the $387 million Entertainment and Sports Complex (ESC). Once the funding proposal is finalized, the council will eventually vote on it. The NBA and the Maloofs have given Sacramento until March 1, 2012 to get a funding plan in place.

Each council member was given ample time to wax poetic about the nature of this small request, and most of them gave some clues about how they view the larger $387 million question that will be coming.

Here, I am going to handicap their votes, based on what they said and how they said it. A total of five out of nine votes on the city council will yield a new Entertainment and Sports Complex for Kings fans.

And for the sake of brevity, I’m going to call mayor Kevin Johnson and known proponent, councilman Rob Fong both yes votes, and I’m going to call both Sally Sheedy and Darrell Fong no votes, though I have a slight suspicion that Darrell Fong could be turned to the purple side.

Onto the science of word-parsing:

Angelique Ashby:

We have a real opportunity here. AEG is at the table. That’s great news. That’s terrific news.

This, for me, is not about a decision for what we do this week. It’s long term. A lot of the things we decide at this council…is how to fix things right now. We have a public safety problem, right now. We have three browned out fire stations, right now. But this…is a half-million dollar investment in long-term solutions, so we don’t have the urgent ‘right now’ discussion every year. If we play our cards right and we invest wisely, and we make smart decisions, we can come out of this with multiple economic engines.

Me: Real opportunity, long-term solutions, we can come out of this with multiple economic engines. She’s a yes.

Steve Cohn:

Let me be real clear, this work has to be done. If we’re even going to consider an arena, this has to be done. If one has the point of view that we shouldn’t be doing an arena, obviously it’s a waste of money, and we should stop right here. But I think if we’re open to the idea that we might find the public-private partnership that works, then this work has to be done and it has to be objective information.

Me: He voted yes to authorize the spending, which presumably he wouldn’t do if he opposed the arena given his comments. And he hung out with Slamson and KJ at a district meeting in May, so if he’s not a ‘yes’ he’s on the fence and leaning hard that way.

Bonnie Pannell:

What I heard this week….is we need jobs. Seniors are talking about ‘we need jobs,’ and our young people are talking about ‘we need jobs.’ There are no jobs in Sacramento. So what do we do? Do we take a chance and invest $500,000 that could lead to billions of dollars, or many jobs?

We need jobs, many more jobs, so I have to take a chance. We can’t depend on the federal dollar…state dollars…our destiny is in our hands. So I have to support this next step.

Me: Jobs, jobs, jobs. Jobs. Billions of dollars? Many jobs? Almost like she was reading from the Think Big brochure. Yeah, she’s in.

Jay Schenirer:

I talked (in my campaign) about my opposition to the city giving away land. This is something very different here, which is a city owned property (an arena), and an asset we will have for a very long time. We saw Sacramento build the Crocker Art Museum, and put millions of dollars into it, and I think that it has become a jewel of the city. And I would look forward to this facility, this complex, being something similar. And what it can bring to the city will be incredibly important.

Me: Incredibly important, jewel of the city, that’s a yes.

Kevin McCarty:

I don’t want to be a naysayer, but this project is still a long-shot. It’s a shot, more than we had before, but it’s still a long road to hoe. With that, I’m thinking, if we can find some tools that we can invest in our downtown, whether it’s an arena or a California academy type thing in the railyards or anything else, we may not have an economic development tool anymore, such as redevelopment or the really limited opportunities to make sense of the investments.

Me: I don’t know what that means, either. That he thinks the project is a long-shot puts him on the fence for me, and probably leaning no.

First things first, none of these folks are going to sign off on something that they don’t agree with, so the Think Big Sacramento coalition still has to provide a viable proposal to them. But this issue didn’t just pop up overnight. These officials, for the most part, have a strong grasp of arena politics after 10-plus years of talking about this topic to no avail.

Looking at my ridiculously unscientific analysis I’d say that four of the five are either a yes or leaning that way. They only need three of the five to vote yes after counting K.J.’s and Rob Fong’s vote.

As always, the devil is in the details, but if you’re a Kings fan or a fan of teams staying put – then tonight’s meeting was an unqualified victory.

AEG acknowledges interest in Sacramento Entertainment and Sports Complex

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It wasn’t a matter of if, it was when.

Anschutz Entertainment Group, known better as the stadium and arena operations giant AEG, acknowledged for the first time Friday that they might provide “assistance” to Sacramento mayor Kevin Johnson and the Think Big Sacramento coalition in their quest for an arena, according to the Sac Bee.

AEG’s involvement with the arena initiative was about as secret as LeBron’s hairline, but without the illusion of a headband to try and hide it.

According to sources, that ‘assistance’ should come in the form of tens of millions of dollars of up-front money, assuming of course that AEG can come to terms with the City of Sacramento, the Kings, and the NBA.

In return they would get profits from operating the arena, and using the Six Degrees of Kevin Bacon they could also see benefits from the fact that their partially-owned subsidiary, the ICON-David Taylor Group, is providing the logistical backbone for Think Big Sacramento and its proposals. Taylor, whose development company David Taylor Interests would like to build the arena, has also expressed interest in buying up properties located near the arena. And with AEG, Taylor, Darius Anderson, and many other committee members also having business interests near the arena, a mini-L.A. Live type project with the Kings as the epicenter is where the smart money is heading.

This public statement from AEG is just one of many baby steps the Think Big Sacramento coalition will take, as it otherwise sprints to cultivate a $387 million Entertainment and Sports Complex (ESC) that will keep its anchor tenant from leaving for Anaheim. KJ’s coalition has a self-imposed, though painfully realistic deadline of December 30th to get a funding plan approved so the city can meet the NBA’s deadline of March 1, 2012 to have funding in place.

The next test for the Think Big coalition will come today when the Sacramento City Council will either approve, table, or reject a $550,000 request for lawyers and consultants to be used to officially vet the project and negotiate with third parties such as the NBA and the Maloofs. The city council will also be asked to vote whether to give the ICON-David Taylor Group the authority to start negotiating on behalf of the city with operators.

Here’s betting that the operator is AEG.

As for Kings fans’ chances of keeping their team, Tuesday’s vote will be the first time the city council, who will ultimately decide the project’s fate, will be asked to part with cold, hard cash. If any of them are opposed to it, saying so before the city spends a half-million dollars would make some sense. With no real public opposition being shown by the council so far it is likely that they will approve the request, and see what numbers come through the pipeline and how the public reacts to them.

If the request is approved, negotiations will commence with the aforementioned parties to determine what level of private funding can be secured, and in turn what level of public funding will be needed. Sources from Think Big Sacramento are in agreement that a public vote to generate funds for an ESC would be an abject failure, so they don’t plan on using public funds that would trigger a public vote.

Because of this limitation they’ve taken a kitchen sink approach where everything from hotel fees, ticket surcharges, cell phone towers on the arena, and the sale of city lands have all come into play. Local kids have taken to selling lemonade to raise funds, and Think Big may just need it. But finding enough money to hit the magic number isn’t their only challenge. Making sure that the city council is comfortable voting ‘yes’ for a controversial measure is job No. 1.

So far, the Think Big coalition campaign has been run to a presidential degree, with traveling town hall meetings around the region and a media awareness campaign not seen before in arena politics. While there will always be skeptics and opponents of such a measure, you wouldn’t have known it by the last city council meeting where every public commenter was in support of an arena and no dissident voices could be found.

Today we’ll see if the first one shows up.

NBA pulls back efforts to bring new arena to Sacramento. Moving trucks start warming up.


Thumbnail image for arco.jpgIn the past few years, the Maloof brothers (owners of the Kings) have been able to pull back from the messy politics of getting a new arena built for the Sacramento Kings. That’s because four years ago David Stern himself said he personally and the NBA offices would work to get a deal done.

Last week, the Cal Expo board voted not to pursue a City Council backed deal that would have leveraged the land in the city to build a new sports arena and complex plus turn the current ARCO Arena site into new fairgrounds for the Expo.

Now the NBA is done leading the fight, according to the Sacramento Bee
, which learned of this through an email from league officials.

“On the heels of the disappointing – but not surprising – action (or inaction) of the state and Cal Expo board, it is fair to say that the NBA has ceased its activities on the Sacramento arena front,” league representative John Moag said in an e-mail to The Bee. “However, we will continue to monitor and respond to the activities and options of others that might reasonably ensure the competitiveness and viability of the Kings’ franchise.” 

Back in 2006, Sacramento voters shot down an idea to raise the city sales tax to pay for an arena. That sparked the NBA involvement, which evolved into the now dead Cal Expo deal. The Kings are not interested in trying to refurbish ARCO Arena.

Which means it’s back to square one. Sacramento has a mayor — former Suns point guard Kevin Johnson — who wants to get a deal done. Several people and groups involved in the Cal Expo deal are coming forward with a new plan involving several properties, which will go public in a month or so.

Meanwhile, the threat of a move becomes more real.

There are NBA ready buildings right now in Anaheim and Kansas City, among other places. So long as they make the announcement by March, the Kings could be playing somewhere else by next season.

This is not good for the fans of Sacramento — a very loyal and deserving fan base. They were one of the loudest, most fearsome road venues in the league a decade ago. But the economics of the NBA have changed to more suites and high-end seating, and ARCO did not change. And unless something comes together soon Sacramento may lose its team.