The Maloofs Cannot Lose Money Forever? Shocking
by Ziller on Oct 16, 2009 3:09 PM PDT
in Arena
23 comments
This is a matter of "who do you trust?" Artestify! shared a SbB post in the FanShots. Here are the relevant quotes, which come from John Ireland, who is a sportscaster in Los Angeles.
"The people I have talked to in the NBA have told me that the Kings are going to be forced to move. They are not, especially in that political climate, going to get a new arena. No matter what the mayor says, no matter what the Maloofs say. Most of the people close to the team have told me they will try everything humanly possible to stay in Sacramento but that it’s not in the cards.
I don’t know if Anaheim would happen, that would put three teams within 50 miles of each other, highly unlikely. But Kansas City has a new Anschutz (managed) arena, that’s a very likely possibility ... and Seattle would like to get the Sonics back. You’re looking at maybe 3-5 more seasons in Sacramento and then after they’re going to have to find a place to play."
Forget the fact that the local media has been on top of the arena issue, and that any number of reporters at The Bee, KHTK or one of the TV news stations (Jim Crandell at Fox 40, specifically) would have had this stuff before Ireland gets it. And forget how flimsy -- "the people I have talked to in the NBA" -- the sourcing here is. Forget all that. Just look at the argument.
If there is no arena solution in three years, the NBA won't have to force the Kings to move. The Kings will move. This was the fear for next season ... until the Maloofs promised they will not file for relocation this season. If there is no progress by next summer, this will again be a major fear. Not because the NBA will demand that the Kings fill Phil Anschutz's coffers somewhere. But because the Maloofs will no longer be able to lose money (or put out 20-win teams trying to avoid losing money) with no arena light in sight. At some point sooner than 3-5 years from now, the Maloofs will get the hint.
Further, this has nothing to do with politics. This is to do with finances. As in, financing an arena from the private sector, or using a public entity (Cal Expo) to help speed up the construction of the gym. I sincerely doubt Mayor Johnson will trot out a tax measure for the arena, even if circumstances take the plan back to the railyards. As such, the NBA, the Maloofs -- no one is relying on a tax measure, or the political climate.
This is not reporting. This is rumor-mongering. It's clear Ireland -- even if he is hearing these things from legit voices -- has no feel for the actual situation up here. At least that's my opinion, and it's why I'm filing this crap in the "parse and ignore" pile.
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as far as the future of the Kings and a new arena based on what is known today
I prefer to rely on the wisdom of the oracle because it makes just as much sense.
by betweentheeyes on Oct 16, 2009 3:14 PM PDT reply actions 0 recs
Well, I'm glad this issue is settled!
Never forget: I am a complete idiot
by Exhibit G on Oct 16, 2009 3:28 PM PDT up reply actions 0 recs
I read that post over at SbB earlier today and took nothing away from it.
FIRE BRUCE BOCHY NOW!!!!!!
AND TAKE BRIAN SABEAN WITH HIM!!!!!
by 49er16 on Oct 16, 2009 3:17 PM PDT reply actions 0 recs
It's all beside the point anyway
The issue comes down to how greedy the Maloof family is, nothing more.
I have said over and over again, that any sports franchise owner had better have another source of income, because there are no guaranteed profits in ownership. If you can’t afford to lose money, then you have no business being an owner. Most owners got rich and then bought in, not the other way around.
When the Kings were profitable, the Maloofs built a casino, and then doubled it in size. I doubt any of the profits from Sacramento went into the Palms, after all the Maloofs are billionaires.
Billionaires.
And even if in the current market, they are only worth, oh let’s just say, $400 million, well, you still have healthy profits from the casino and beverage business in New Mexico. I’ll be honest, I have my doubts that, given all of the ancillary income the Maloofs get from Arco events, that they even lose money on their Sacramento properties.
If they move, it will be out of nothing more than sheer greed. This isn’t about some family business trying to keep its head above water, it’s about trying to gather up as much as possible before they die.
The family has done very well by this community, and if they can’t see their way to investing in it for the long term, good fucking riddance.
Rocks are free, and slingshots easily stolen.
by andy sims on Oct 16, 2009 3:20 PM PDT reply actions 2 recs
If what you claim is true...
then, yeah, I fully agree. but, until I see actual recordings or balance statements containing the facts on the Maloof fortunes, then I’ll reserve judgment.
Tourism is down, which means their hotel probably didn’t do as well the last 18 months as it normally does. Drinking is up, so presumably the liquor biz is doing better. The Kings lost millions last year, which hurts, obviously.
Running a business (which the Kings franchise is), is about making money. No owner is going to be okay losing money year in and year out. If you owned a business that was losing money and some one else offered you the chance to relocate and make money, you’d do it too. Because it’s smart.
"We ain't in the takin' prisoners business. We in the killin' Nazi's business...and Cousin, business is a-boomin'."
by PhutureKings on Oct 16, 2009 3:41 PM PDT up reply actions 0 recs
Amen Sims
No mistakes in the tango, darling. Not like life. Simple. That's what makes the tango so great. If you make a mistake, and get all tangled up, you just tango on.....
Maybe the they should run public service announcements- starring Francisco Garcia and Sean May (as the expected mother), warning of the dangers of big blue balls. -- JJham15 10/13/09
by pookeyguru on Oct 16, 2009 3:57 PM PDT up reply actions 0 recs
It's a business in name only
Ultimately, for many of these owners, a franchise is simply the vanity plate on the back of the limo that generates their actual fortunes.
The most recent info I could find, from the beginning of last season, puts the cost for 4 to see a Kings game at $318.33. Multiply that by 3143 (to get the average attendance of 12571 per game), you arrive at a figure of $1000511.19 per game, multiplied by 41 home games (I will conveniently leave out pre-season and other related Kings events), and we get a figure of $41,020,958.79.
So, that’s $41 million dollars.
The Maloofs get a piece of every single event that goes on at Arco, because they own it. From the time you pay to park at the Trans-Siberian Orchestra concert you bought tickets for, buy a $9 beer, and snag a Green Day t-shirt on the way out the door, well, you’ve dropped more than a couple of bucks.
And the Maloofs get a taste of all of it, as they should. After all they own all of it. It adds up to mountains of cash.
They are exceedingly wealthy, and have been made moreso via their business holdings in Sacramento. If they decide to move, it ain’t about having to, it’s about wanting to. They will not be forced to move, people that wealthy cannot be forced to do anything.
Rocks are free, and slingshots easily stolen.
by andy sims on Oct 16, 2009 4:11 PM PDT up reply actions 0 recs
Left a good job in the city,
Workin for the man evry night and day,
And I never lost one minute of sleepin,
Worryin bout the way things might have been.
Chorus:
Big wheel keep on turnin,
Proud mary keep on burnin,
Rollin, rollin, rollin on the river.
Cleaned a lot of plates in memphis,
Pumped a lot of pain down in new orleans,
But I never saw the good side of the city,
til I hitched a ride on a river boat queen.
Rollin, rollin, rollin on the river.
If you come down to the river,
Bet you gonna find some people who live.
You dont have to worry cause you have no money,
People on the river are happy to give.
Rollin, rollin, rollin on the river.
Rollin, rollin, rollin on the river.
Rollin, rollin, rollin on the river.
No mistakes in the tango, darling. Not like life. Simple. That's what makes the tango so great. If you make a mistake, and get all tangled up, you just tango on.....
Maybe the they should run public service announcements- starring Francisco Garcia and Sean May (as the expected mother), warning of the dangers of big blue balls. -- JJham15 10/13/09
by pookeyguru on Oct 16, 2009 4:16 PM PDT up reply actions 0 recs
PG - it has been for a few weeks now but let me add
it is good to have you back and in fine (PG-mode) form
by betweentheeyes on Oct 16, 2009 10:14 PM PDT up reply actions 0 recs
They are evil! Burn them!
What the hell is Brett Favre doing here?
by otis29 on Oct 17, 2009 5:59 AM PDT up reply actions 0 recs
They turned me into a newt...
well, I got better.
Ball movement ... is like jogging for most people: They do it occasionally, and it makes them happy. Then they go back to not doing it. - Henry Abbott
by Kfan in Korea on Oct 17, 2009 6:02 AM PDT up reply actions 0 recs
Evers Burns! Evers Burns!
SACTOWN ROYALTY - Try our thick creamy shakes!
by section214 on Oct 17, 2009 9:37 AM PDT up reply actions 2 recs
How long they stay has more to do with the fan base than Politics or Economics
If a community financed “Entertainment & Sports Center” (note: no longer using word Arena because Kings only us facility 45 days a year, and too many people associate the word Arena with Maloofs & Kings) is going to be built, the Kings must be sure of the fan base before they enter into any long term finanical committment.
The Kings don’t make more money filling 12000 seats in a new facility than they do selling 12000 seats in Arco. If the organization isn’t absolutely positive the fans will fill the new facility, then they’re not going to sign a long term contract unless it has escape clauses.
That’s why I’m pleased to see the Mayor and community leaders working to sell seats. Fans need to stop telling the Maloofs to spend their money. Fans can do something, buy tickets. That’s the only sure way to keep the Kings.
"If you don't have anything good to say, LIE" - Mom
by HighTops on Oct 16, 2009 3:42 PM PDT reply actions 0 recs
I wonder how feasible issuing bonds would be?
In order to get the arena deal done, maybe offer bonds ($100, $500, $1000). Pay the bonds back as the new arena begins generating income.
Granted, many people right now don’t have tons of extra dough, but safe savings options are attractive right now with the market being so unpredictable.
"We ain't in the takin' prisoners business. We in the killin' Nazi's business...and Cousin, business is a-boomin'."
by PhutureKings on Oct 16, 2009 3:44 PM PDT reply actions 0 recs
You mean....
….they can’t expect a bailout like wall street or the auto idustry?
by Smills91 on Oct 16, 2009 5:48 PM PDT reply actions 0 recs
To be honest TZ
As a Southern California resident and talk radio listener, I would’ve filed it in that category solely because Ireland said it. A lot of the l*ker fans I know down here feel the same way. You have to be pretty obviously horrendous for kings and l*ker fans to agree on something down here. The pond would blow as a basketball venue anyway. Too steep and awkward.
by default on Oct 16, 2009 8:13 PM PDT reply actions 0 recs
Do you say this as a Kings fan?
Or as a Lakers/Clippers fan?
No mistakes in the tango, darling. Not like life. Simple. That's what makes the tango so great. If you make a mistake, and get all tangled up, you just tango on.....
Maybe the they should run public service announcements- starring Francisco Garcia and Sean May (as the expected mother), warning of the dangers of big blue balls. -- JJham15 10/13/09
by pookeyguru on Oct 16, 2009 8:35 PM PDT up reply actions 0 recs
OK, what the hell is going on with this post.
How is it that another stadium managed, and probably owned, by somebody else is going to make the Maloofs more money than they make now? They own Arco and get all the revenues for everything as has been pointed out.
If they go somewhere else they won’t own the stadium and won’t get all the parking and other stuff. They will also have to pay to move so how do they make more. Is it that with more seats and suites in a bigger venue they expect more people to show up? They can’t even sell out Arco, little ol’ Arco, with the team they have had. How can they expect to sell out a bigger venue?
Also, as I understand it they are expecting to break even or make money this year. How did that change to losing money all of sudden? What the hell is going on here? Is there something whacked about this post?
by MustangMBS on Oct 16, 2009 8:47 PM PDT reply actions 0 recs
Forgot to add
Yeah, I completely agree that Ireland’s post is pure crap.
by MustangMBS on Oct 16, 2009 8:50 PM PDT up reply actions 0 recs
nobody knows what deals are done
that aren’t on the (public) table. Tax breaks, guarantees, incentives. That is what goes on to attract a team, period. It doesn’t matter if that deal is in LA, Chicago, KC, Seattle.
We just don’t know and will never know.
by betweentheeyes on Oct 16, 2009 10:19 PM PDT up reply actions 0 recs
Really?
If we are judging the Kings solely as a business, then whether or not the Maloofs are rich or poor is irrelevant (judging them as people is completely different, and something I partake in all the time). If the business is losing money, then its a stupid decision. Sacramentans had their chance to fund the arena but voted against it. I think the common argument is “the Maloofs are rich – let them buy an arena!” Maybe more research should be done on how many sports arenas are funded by private money…
I say good riddance Maloofs. But before you leave, we’ll gladly take back the loan we cut you to buy Arco. Enjoy the relocation fee and possibly the territory rights fee should you take the Kings to LA.
by Tyler Futures on Oct 17, 2009 7:47 AM PDT reply actions 0 recs
John Ireland is a hack. Talking to Mike Lamb doesn’t count as a source.
by HesGotTheBucket on Oct 17, 2009 10:11 AM PDT via mobile reply actions 0 recs
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