KFBK's Rob McAllister has an interesting column at Cowbell Kingdom considering the optimism over the city's budding financing plan for a new arena in downtown Sacramento, and a sense that because of progress but an impossibly tough timeline, the NBA and Kings will elect to commit to Sacramento for the 2012-13 season and wait for the funding plan to be finalized this spring.
[T]he Maloofs have stated that the March 1st date is "flexible" and it seems NBA Commissioner David Stern is willing to give Sacramento a longer leash after seeing what Johnson and his Think Big Sacramento team have accomplished in just ten months. The mayor has likely earned the city until March of next year before a move is discussed again. ...
Even with the extra time, Johnson will not go public stating the March 1st deadline is workable. He does not want to give opponents a chance to delay or hinder progress on the project.
Expect financing to fall in place sometime in May. The city will have a firm figure on the parking sale, hotels will make up their minds on how much they'll fork over, Anschutz Entertainment Group will negotiate a price to operate the arena, and the NBA/Kings will come to the table to discuss their contribution. All these pieces need to add up to $406-million or more.
My perspective is a little less optimistic.
I do think the mayor is on the right track and will be able to put together a package that will keep the NBA from approving a move. But I don't think the Maloofs ready to forfeit their second one-way ticket out of town. I think that the league and Maloofs will make a good-faith effort to the city by extending the relocation deadline to the end of April or first week of May ... which is where it ended up last year anyway. That would give Kevin Johnson two extra months -- a full year overall -- to have the funding plan in place. If there are critical City Council votes scheduled for March and April, I don't think the Maloofs will be willing to agree to stay for 2012-13 without knowing there's any chance of a new arena in downtown in the forseeable future. Imagine if the Maloofs agreed to stay in Sacramento for 2012-13 in the last weeks of February, then the Council (Heavens forbid) rejected the parking plan in March. There's no way the Maloofs let that happen, right?
The mayor and the Maloofs are in opposite positions compared to last year. In 2011, KJ needed to keep the window to save the team open as long as possible. Every day without a relocation application was another day to rally local support. In 2012, the Maloofs need to keep that window open. Every day in which relocation for '12-13 can still be achieved is another day for the whole shebang to fall apart.
It's cynical, and for that I apologize. But I believe that sometime in February, the league will announce that they have given Sacramento an extension, through the end of the regular season. If there's nothing finalized by the Board of Governors meetings at the end of April, the Maloofs will be able to file for relocation, which would still be subject to a majority vote (and all the associated interference from the L.A. teams).
But KJ can't bet on that extension, so he needs to get this stuff done fast fast fast.
1 recs | 26 comments
Agreed.
Hopefully the supporters on the council are able to keep firm and get this done.
TrojanCBB - January 31, 2012
I agree with this assessment 100%
And if it’s “cynical” not to trust the Malindas any further than I can throw George, then I am cynical as well.
section214 - January 31, 2012
Maloofs' Options
Based on last year’s events, I can’t see Anaheim being an option for relocation anymore. Kansas City, with the existing Sprint Center ready to go, then becomes the primary relocation target. Make no mistake, I’m sure the Maloofs have their plans already in the works for such a relocation should it become necessary. This would be the only way they could immediately move without objection from the other NBA teams (especially the LA market) and immediately improve their bottom line with luxury suite money that would instantly become available to them. Seattle would normally be the primary relocation destination, but without a new arena for the forseeable future they are out of the running. Other markets (Louisville, St. Louis, Pittsburgh) just don’t seem to have a strong enough NBA following as compared with NCAA programs or other sports for that matter to be any more competitive than the current Sacramento market.
SacKing4Ever - January 31, 2012
The problem is
They need the money from the Samueli loan to pay off their other debts. They’ll likely get no such loan from Kansas City. I think they would continue to push for Anaheim.
Carl - January 31, 2012
Pretty sure they don't get redo's.
Granted they can buy back apparantly some of the Palms but that $380 million loan has already been dealt with
wallywagon11 - January 31, 2012
They have an option to buy back into 20% of the Palms
They owe money to Sac (about $70 mil) and reportedly about $150 mil to the NBA.
lietothegirls - January 31, 2012
True
Was $150 the credit max threshold with the NBA? By the way, we know for certain that it’s at least $70 million with the NBA because that is a priority creditor to the city.
wallywagon11 - January 31, 2012
I think at this point it's Seattle
The revenue sharing and Lakers/Clippers have killed Anaheim IMO. KC is a lot smaller market than Sacramento, and has Baseball, Football, MLS and big time college events. Seattle has had some rumblings of a new facility, and if the Kings had to play at Key for a season or two I don’t think it would be a big deal. As someone who has watched the NBA at Key Arena it’s nicer than PBP already, and in a great location. It would make fine temporary arena
KingsFanInPortland - January 31, 2012
Public Vote
I would rather wrap this up ASAP and not leave the window open for the Sheedy’s of Sacramento to demand a public vote. If we get an extension, I am worried that it could add anti-arena momentum to Sheedy and the people in the SacBee comments.
SharkKings49 - January 31, 2012
Now that Sheedy has said she won't run for re-election
I doubt her wishes will carry much weight.
lietothegirls - January 31, 2012
Hi, I'm Troy McClure.
You might remember me from my heroic roles in films like: Saving Sacramento;
or tragic roles, such as: Almost Anaheim.
I’ve seen first hand what poor ownership can do to a community; and speaking from this experience I can say that I approve this post.
The Crown Royal Gentleman - January 31, 2012
I think the real story here
is likely that the city and the NBA are trying to put the squeeze on the Maloofs.
My guess is that if the city votes to commit the funds but haven’t finished all the contracts and details surrounding it (and they won’t), the NBA will extend another 60 days. No vote from city council by then and then we are left stuck trying to guess.
This is actually where you go from complicated to insanely complicated and it’s really hard to figure out what the heck is going on if you are outside of the tent. And we’re stuck here trying to figure out what 28 other owners are going to do and whether the Maloofs have figured out the Time Warner stuff or whether they are willing to take the league to court if the owners don’t do what they want them to do.
Basically it’s completely up in the air.
wallywagon11 - January 31, 2012
and yes
my “thinking” is basically from a guess that the owners and the NBA still want to cock block the move to Anaheim. But in honesty, more of a guess probably based on hope more than anything.
wallywagon11 - January 31, 2012
Could you imagine this team in So Cal now?
People were worried abt lack of interest in the Kings..errr Royals, if they moved to Anaheim last year. Now, with the Clips making a huge noise down there, this team would be one notch above D League.
gregory l - January 31, 2012
It almost makes me wish the Kings could move to Anaheim in an alternate universe
just so I could have the pleasure of watching it fail.
deadenddude - January 31, 2012
I don't think it matters what the Kings want at this point
I can’t see the NBA pulling the rug out from under Sacramento by approving a move. Not when things are so close. That would be a PR disaster. not to mention I think they’d rather the team stay in Sacramento anyways.
deadenddude - January 31, 2012
Even with the cynical approach from Ziller
(Which I agree with 100%)
I’m pretty optimistic even if the Maloofs DO intend to push for a relocation. I think the NBA has to see how serious Johnson is working and how much ground is being made. Even if the relocation deadline is pushed back to May, I think the NBA would rather take the risk and make the Maloofs stay another season than fuck it up and move when theres still so much momentum.
Did that make sense?
LightningStrike5 - January 31, 2012
I think Anaheim is dead as a destination as far as the NBA is concerned
We don’t know the details of the revenue sharing agreement the owners worked out but it’s not hard to guess what the LA teams and GS had to say about their market protection before they agreed.
lietothegirls - January 31, 2012
yeah the revenue sharing is another reason
i think the Maloofs don’t file. i was reading it will provide and extra 15-20$ million a year to small markets. That’s a lot of money and even though I don’t exactly think the Maloofs are geniuses, I don’t think they’re dumb enough to walk away from the chance to be in Sac with a new arena and the benefits on the new CBA. Anaheim was a one shot deal. That ship has sailed, I believe. Who’s to say Samueli would even make them the same offer now or that the NBA would suddenly be OK with the Maloofs leveraging the team to him even if he did. I just don’t see it happening.
deadenddude - January 31, 2012
I don't think this will stretch even to June.
If it does, that gives a chance to put this to a vote. The urgency aspect of all this is actually a benefit assuming everything falls into place.
jveezy - January 31, 2012
Timing Is Everything (Almost Anyway...)
My guess is that, in addition to focusing on funding sources, KJ and others have also been very methodical about timing. They know as well as we do that a deadline (even if it is more perceived than actual) is actually helpful in getting the ball moving – especially when it comes to politics! So, that said, I bet there’s a lot going on behind the scenes; including announcements about additional funding sources, such as a major corporate sponsor whose name will go on the new arena, etc.
Darren King - January 31, 2012
Kenny Rogers Said It Best
In other words, as the song goes:
“You gotta know when to hold’em, know when to show’em…”
Darren King - January 31, 2012
Kenny Rogers Said It Best
I think he said “you gotta know when to hold’em , know when to fold’em, know when to walk away and know when to run”?
Skeptic con Urquell - January 31, 2012
What this team needs to do is
start to win, fast. Having another abysmal season with half-empty arenas on most nights isn’t exactly making a phenomenal case about how good of a basketball city Sacramento is. Winning would cure a lot of what ails this organization and unfortunately that hasn’t happened and probably won’t in the near future. So it is up to the efforts of individuals outside the organization to push this arena effort forward because the team and the ownership aren’t really helping at all.
Cincy Kings Fan - January 31, 2012
Is there any chance that Samueli would purchase a stake in the team now,
given the apparent financial situation of the Maloofs? I am wondering it the Maloofs would look to sell a portion of their stake to him with a buy-back option, as an alternative to the loan concept (presuming that a move to Anaheim is less imminent than Samueli hoped).
The reason I bring all of this up is that, to me, the only option worse than the Maloofs owning this team right now would be Henry Samueli.
RJinFairOaks - January 31, 2012
Will the Kings commit to 2012-13 without a finalized plan? I doubt it seriously. For one thing, the so-called “plan” is a house of cards, based on inflated parking figures, plaques or bricks from fans, and, worst of all, an expected contribution from the Kings/NBA to the tune of $150-200 million, which will never happen. It is truly depressing to see this play out.
ExPFCWintergreen - February 1, 2012
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