David Stern Opens A Window Into Sacramento Arena Negotiations
by Tom Ziller on Feb 22, 2012 6:56 AM PST
in Arena
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PrintThere were some real airwaves let out into the atmosphere when David Stern broke the league's hermetic seal on its role in Sacramento arena negotations and the Kings' future. NBA.com's excellent David Aldridge interviewed the commissioner on Tuesday, and the Bee's Tony Bizjak transcripted a seriously important quote:
"The team has agreed to a substantial contribution, both directly from itself, but also by catalyzing AEG to be interested. In effect, whatever money AEG puts in is because of give-backs by the team ... so we see that as a team contribution," Stern said.
This is a negotiating point. "We see that as a team contribution" doesn't come straight out and say that "the city does not see that as a team contribution" ... but it's a far cry from "we and the city agree that AEG's contribution constitutes a team contribution." I suspect that this is one of the area's where the city and league are still negotiating; in my estimation, the city needs an upfront contribution from AEG in exchange for the rights to run the facility, and an upfront contribution from the Kings to ensure they have a suitable place to play in Sacramento within a couple of years.
I see Stern's point, and I note to myself that if the Maloofs don't pony up in advance, their annual lease payment could go toward ensuring that the $9 million in parking revenue is covered for the next 30 years. That said, Stern's position doesn't appear to be tenable. Kansas City provides an example of AEG investing in the construction of a facility without team or league involvement. Given the work that Kevin Johnson and Sacramento have done to get AEG involved from the outset, I don't understand how that can be counted toward the Maloofs' responsibility to get this built.
As with all things arena, stay tuned.
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So this is a bad thing I take it?
Not real bright this early in the day, and it doesn’t get much better later on either…
Remember I don't give a flying fuck!
A concerning curveball. This would appear to leave a rather large potential funding gap – but I like to think given how far we have come – I am hopeful this is another obstacle we can work through.
by VirginiaKingsFan on Feb 22, 2012 7:18 AM PST reply actions
Expectations.
I never expected the league and the team to voluntarily contribute huge chunks of cash without blinking. Negotiation is to be expected. But if the city comes up with their portion, and with Kansas City serving as a precedent, I can’t fathom how the league/team could use this as a point to draw the line in the sand. Or at least I hope they won’t.
Never forget, I'm a complete idiot.
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A guess
as to how the league can use this as a point to draw the line in the sand is if Stern shows support for the Maloofs/ their financial situation and decides that the scenario Sacramento presents doesn’t create the best environment for ownership.
Many have eluded to a scenario where Stern is more on Sacramento’s side than the Maloof’s. This may not be the case and could be why the Maloofs have been so content to sit back and let the NBA negotiate for them. Stern may see himself in a position to gather back some positive karma from ownership with his stance in these negotiations after possibly leaving many frustrated after the recent CBA talks. though that’s a little conspiracy theory-ish.
Don't get ahead of yourself
Stern is quite a card player, what he implies he means now for the sake of standing by an owner may not mean anything to where he’ll land.
Does he really want the Maloofs on life suppport in some other City? Where would they get the relocation money?
It’s an opening stance, nothing more, and no, I don’t know where he really plans to land either,
- but I’ll bet he does.
"Victory goes to the player who makes the next-to-last mistake."
- Chessmaster Savielly Grigorievitch Tartakower
by lietothegirls on Feb 22, 2012 9:40 AM PST up reply actions
Never forget
That Stern is a sneaky little shit whose job is to work for ownership. The Maloofs are still owners, so it wouldn’t surprise me a bit if Stern’s ultimate goal is still to help them get where they want to be.
Sacramento Kings - helping feed NBA fans across the country since 2011
by otis29 on Feb 22, 2012 9:47 AM PST up reply actions 2 recs
"where they want to be"
means money-wise or Anaheim??
Anaheim is dead as a location IMO
"Victory goes to the player who makes the next-to-last mistake."
- Chessmaster Savielly Grigorievitch Tartakower
by lietothegirls on Feb 22, 2012 10:04 AM PST up reply actions
Actually, I agree with this
There’s nothing short of a quarter billion dollar payment to Jerry Buss that will get another team in the area, IMO.
Still, I don’t trust Stern to prioritize what benefits Sacramento over what benefits ownership.
Sacramento Kings - helping feed NBA fans across the country since 2011
I think Stern's priority is what benefits the league the most as a whole
Which, in my opinion, is a new arena in Sac (as opposed to a contentious move to Anaheim or a “meh” move to KC or Louisville) and then hopefully a new arena in Seattle to move one of the truly dead teams there. I agree that Stern works for the owners, but it seems to me that he’s got a pretty divided group of owners right now. The revenue sharing deal plays into this in a big way. Is he really going to let the Maloofs use this to start another shitstorm among owners after everything last year, when there seem to be a couple of much better options worth fighting for?
"If you're going to lead the orchestra, you have to turn your back on the audience." -Geoff Petrie
by AnotherStupidSN on Feb 22, 2012 10:29 AM PST up reply actions
I just don't trust him that much
I think Stern’s priority is what benefits the league the most as a whole
I think his viewpoint of the world is “what benefits the league is generally what benefits the ownership in the league”.
Feel free to trust him, and I might just be irrational. But I suspect wishful thinking towards anyone who thinks Stern is going to assist in getting the Maloofs removed as owners or that he’s really looking out for the best interests of Sacramento here.
Sacramento Kings - helping feed NBA fans across the country since 2011
2002 Game 6
Stern: Let’ me think. What outcome would benefit the league the most?
"Should he just be renamed Player of the Week?" HeuristicLineup on Cousins.
by Slam_Dunk on Feb 22, 2012 12:35 PM PST up reply actions 1 recs
Rec'd for
Stern is a sneaky little shit
"Should he just be renamed Player of the Week?" HeuristicLineup on Cousins.
I thought it was funny too.
I read the Hunger Games trilogy during the lockout, so I always pictured President Snow as David Stern.
"First we get jobs, then we get the khakis, then we get the chicks."
by Wonderchild on Feb 22, 2012 12:44 PM PST up reply actions
I pictured him more like Saruman.
"We're not talking about me and Darko in the same sentence." - Chris Webber vs KAHN!
by caseycheesecake on Feb 22, 2012 1:00 PM PST up reply actions
Just like Niedermeyer
Purveyor of Bull Plop
by SayWhat? on Feb 22, 2012 1:58 PM PST up reply actions 2 recs
I'm curious as to
what kind of “Give-Backs” the team has to offer that has enticed AEG’s contribution. Is it a certain percentage of luxury box sales? Similar to what the Maloofs agreed to in Anaheim?
What is at issue
Is the profit off of every event that happens in the new arena. Right now the Maloofs make money off of everything. AEG is looking to take over operations of the arena and they will make that money. Not the Maloofs.
"I gotta have more cowbell"
by CowbellKings on Feb 22, 2012 8:18 AM PST up reply actions
I don't think that's it, because they want to be tenants not owners
I think it has to do with game night parking money from the arena controlled parking structures, rent (paid annually or upfront), and maybe money from the concession stands.
by Kfan in Korea on Feb 22, 2012 12:50 PM PST up reply actions 1 recs
Concessions I'd think they have as a lock
"Victory goes to the player who makes the next-to-last mistake."
- Chessmaster Savielly Grigorievitch Tartakower
by lietothegirls on Feb 22, 2012 1:57 PM PST up reply actions
Yeah, but they may be looking to give up some of that in stead of
up front cash. Something like Kings keep 50% of concessions and AEG gets 50% and in return fronts an extra 10 million to get the arena built. (Have no idea what the numbers would be, just put something in for the example)
by Kfan in Korea on Feb 22, 2012 7:43 PM PST up reply actions
Well as long as the "team" is contributing 135 mil (85-Team, 50-AEG)
I’m cool with however they wish to label it.
by ThomasGQ on Feb 22, 2012 7:29 AM PST reply actions 6 recs
Just a thought...
Mr. Stern is probably more in touch with the true state of the Maloof financial structure than is KJ or Tony Bizjak or anybody else who’s been covering this. After all, when you owe somebody north of $100M, they’re gonna pay very strict attention to your financial structure so as to allow them to recover that loan. As such, he may be warning us that the Maloofs will attempt to “incorporate” the AEG contribution into their own expected $85M when everyone sits down at the table and starts talking the Real Deal With Bill McNeil.
Stern may well have done us a favor here, in that by exposing this, it will help the city wall off the Maloofs from conflating the AEG contribution with their own prospective contribution (presumably funded by the underwear gnomes), and make sure that they can afford to actually sit at the table, and not just be a 2% player.
SJSU. Excellence In Mediocrity, Since 1857.
by SierraSpartan on Feb 22, 2012 7:29 AM PST reply actions 1 recs
Also...
Don’t read the SuckBee comments on the story. Just…don’t.
SJSU. Excellence In Mediocrity, Since 1857.
by SierraSpartan on Feb 22, 2012 7:31 AM PST reply actions 1 recs
d'awwww....
they look so cute… then they begin to type…. it’s….just….horrible….
Is cowboyron a chiropractor?- Wallywagon11
its questions like these that make STR oh so lovely.
Who wears a Kings jersey and rhymes with "Nothing but net??"
by fffindeed on Feb 22, 2012 7:43 AM PST up reply actions 4 recs
I'm a little confused here...
Is Stern saying that the 85 million contribution by the Maloofs will include the AEG contribution? So together they will add up to 85 million? I guess this would mean that KJ and Sacramento are 50 million short?
If I’m reading this wrong let me know. Like I said, I’m a little confused.
by Travis Mays Hayes on Feb 22, 2012 7:36 AM PST reply actions
That's how I read it, but Stern isn't always very clear in his quotes
Since they didn’t give a dollar amount, I’m hoping that it means the NBA/Kings are intending on paying $135 or up to half and are saying this so it doesn’t look like KJ is doing everything on his own while George Maloof and company just sit and mope around. I just don’t see how it can be the NBA/Kings contribution when KJ did all the work to bring them on board.
I propose that we allow the Kings/NBA to claim the AEG contributions if in exchange we get Burkle for the Maloofs. win-win
by SharkKings49 on Feb 22, 2012 7:58 AM PST up reply actions
I didn't read how much the NBA intends to contribute. Did you leave that part out?
"Should he just be renamed Player of the Week?" HeuristicLineup on Cousins.
It is just lawyer talk from Stern.
He never has been a “straight shooter” about anything (to an annoyance IMO) when talking publicly.
"First we get jobs, then we get the khakis, then we get the chicks."
I was just observing what wasn't being said.
No mention whether NBA intends to contribute one dime; all the attention being diverted elsewhere.
"Should he just be renamed Player of the Week?" HeuristicLineup on Cousins.
The give-aways are the arena operations
Seems like Stern is saying that if AEG runs the arena and makes money off of all the events, instead of the Maloofs, then that is something the Maloofs are giving up. With AEG stepping in and taking it over then their, AEG’s, contribution represents an exchange for the Maloofs giving up the non-Kings event income.
This may have already been negotiated. It will be interesting to see how it proceeds. AEG is already committed to contributing and Stern may just be trying to take credit for that. Or really give the Maloofs credit.
"I gotta have more cowbell"
Of course
He may also be trying to lower the amount the NBA and the Kings put in upfront because he wants to count the AEG contribution. That seems to be his angle.
The question is whether or not this is a surprise to KJ…
"I gotta have more cowbell"
by CowbellKings on Feb 22, 2012 8:25 AM PST up reply actions
This is likely what he means
And it’s total bull.
The Maloofs were not going to be owning or operating the Honda center, and they wouldn’t be owning or operating an arena anywhere they relocated to.
Never forget, I'm a complete idiot.
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Author of Inside-Out Game
by Exhibit G on Feb 22, 2012 11:04 AM PST up reply actions 4 recs
Yes, that nails it.
IMO, the Maloofs basically blew there chance in Sacramento by intentionally sabotaging arena effort after arena effort. All with the intention of trying to better leverage the situation for themselves or ultimately taking the team elsewhere for a bigger payday.
And it blew up in their face. They lost. They could never take the team elsewhere and make money on any other events. They would actually probably have to share revenues and any gains would be zero sum.
They can’t stay here, let the citizens of Sacramento build an arena, despite them, and expect jack. They really have zero leverage.
"I gotta have more cowbell"
by CowbellKings on Feb 22, 2012 12:40 PM PST up reply actions
So Stern opened a window
Now, what will it take to to get the Malindas to jump out of it?
SACTOWN ROYALTY - Try our thick creamy shakes!
by section214 on Feb 22, 2012 8:26 AM PST reply actions 5 recs
Fly Malindas...
Fly….
...Watching DeMarcus Cousins’ transformation from large human to immortal kill beast...
SACTOWN ROYALTY - Try our thick creamy shakes!
by section214 on Feb 22, 2012 8:42 AM PST up reply actions 9 recs
Happy to make this green
So perfect
Never forget, I'm a complete idiot.
Follow me on Twitter
Author of Inside-Out Game
Pay no attention to the man behind the curtain....
Purveyor of Bull Plop
I may be taking the overly simplistic (and optimistic) view here
but I saw this as a SacBee puff piece to ensure any “on-the-fence” city residents and councilmembers that the NBA is going to follow-through and hold the team (read: the owners and all other deep pockets not named “taxpayers”) financially accountable for getting this deal done. When I first read it, my first reaction was “excellent; this may be just the kind of third-party validation that skeptical local residents were looking for”).
I see the additional angle now that you’ve articulated it, Tom, but I can’t help but feel like it wasn’t the intent of the Bee when they wrote the article (particularly given the timing). Frankly, they could have written the article without the “AEG is part of the team” statement and it would have had plenty of effect. But, it is the complete story.
I miss Big Mike and his Arco Thunder monologue.
by RJinFairOaks on Feb 22, 2012 9:08 AM PST reply actions 1 recs
Right.
If you read it with the emphasis like this:
“The team has agreed to a substantial contribution, both directly from itself, but also by catalyzing AEG to be interested.
…then it’s mostly about Stern confirming that the team is trying to do its part to make this happen. The question, then, is how big the difference is between what Stern and the Maloofs see as a “substantial contribution” and what KJ and his team see as a “substantial contribution”. I don’t imagine that they’d be all that far apart at this point (KJ’s arena people didn’t just pluck that $85 million number out of a hat, these guys know what they’re doing), particularly considering there’s less than a week now until the crucial city council vote and the NBA’s March 1 “deadline”. I agree with Tom that Stern has his negotiating hat firmly on his head at this point, but I think that ultimately the prize of a new arena in Sac and all of the positive PR and financial implications for the league that would come with it will keep these negotiations from turning into a Stern v. Hunter situation.
"If you're going to lead the orchestra, you have to turn your back on the audience." -Geoff Petrie
by AnotherStupidSN on Feb 22, 2012 9:44 AM PST up reply actions
I made this point in last night's version of this
but I think the 50 +85 number is the goal. 25 land 110 $.
AEG and the NBA/Maloofs are expected to reach this total. If the Maloofs give up parking rights, for example the AEG portion may go up 10 million and the Kings down 10. In that sense MS&E is “Giving” something away (profits) to AEG, so in the loosest sense that portion of the AEG $ could be considered a MS&E payment.
I think the give and take over who gets what profits is what we expected all along and Stern is doing nothing more than framing the portrayal in a light that makes MS&E look better.
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
Let's just hope that AEG sees a gold mine in those railyards and is willing to compensate for the Maloof's brokeness
"If you're going to lead the orchestra, you have to turn your back on the audience." -Geoff Petrie
by AnotherStupidSN on Feb 22, 2012 10:01 AM PST up reply actions 1 recs
Revenue streams
There is a finite pie of revenue that will be generated by all things ESC related. This is all related to who is getting what. AEG doesn’t put anything in that they won’t get back later. In KC, they don’t have a tenant to draw dates. The good part is that they still get lots of arena events. Thus KC is worth more because they don’t have an NBA team to share that revenue with. Stern is saying the Kings will give up the access to this revenue so that AEG is happy to upfront some money. But the Kings will not be chipping in a big lease payment each year to offset this. It’s sort of a twisted look at what is going on.
Sneak peek
This weekend in Orlando
Stern: Mayor Johnson, I’m sorry to tell you that your expectations of the team’s contribution in this are simply unrealistic. The team owners can not provide $65 million in cash upfront to help build the arena.
KJ: These team owners can not provide the $65 million.
Stern: Yes, that’s right.
KJ: No, David. Let’s be clear. These team owners can not provide the money.
(Mayor Johnson snaps his fingers, in walks a stunningly handsome and powerful man with an enormous briefcase) David, I believe you’re familiar with my friend Ron?
Burkle (setting briefcase heavily on the table): There is $65 million in this briefcase. I forgot the first case at the hotel, but luckily I had an extra one in the trunk. I’ll leave this here while you two talk, I’m having lunch with Bill Clinton and Richard Branson on a spaceship.
(Burkle fist bumps KJ on his way out the door)
KJ: So, David, as I was saying…
"If you're going to lead the orchestra, you have to turn your back on the audience." -Geoff Petrie
by AnotherStupidSN on Feb 22, 2012 9:58 AM PST reply actions 25 recs
"The briefcase itself is worth an additional $3 million"
Author of NBA Mashups. Follow me on Twitter here.
Awesome! Rec'd
"I gotta have more cowbell"
by CowbellKings on Feb 22, 2012 10:25 AM PST up reply actions
I have a briefcase from a woman named... Swan... Swanso... Samsenite!
but its filled with IOU’s
by The Guy on the Couch on Feb 22, 2012 10:41 AM PST up reply actions
No, that's the Maloof's briefcase...
George Maloof: Thats as good as money: those are IOU’s. See this one here, $70 million for that loan. Might want to hang on to that one.
"First we get jobs, then we get the khakis, then we get the chicks."
by Wonderchild on Feb 22, 2012 11:07 AM PST up reply actions 4 recs
I should be enjoying this again
when I read Aykis’ weekly GB&U.
SACTOWN ROYALTY - Try our thick creamy shakes!
When you said "No, David. Let's be clear."
I totally pictured Mayor KJ saying this. It is exactly the way he would phrase it.
I miss Big Mike and his Arco Thunder monologue.
by RJinFairOaks on Feb 22, 2012 11:08 AM PST up reply actions
BRILLIANT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Purveyor of Bull Plop
Is there a link to the original Aldridge interview?
I can’t find it.
"Victory goes to the player who makes the next-to-last mistake."
- Chessmaster Savielly Grigorievitch Tartakower
Yikes
Not the end of the world but still not a good tea leaf and unfortunately this is the one weekend where things can spin way out of control in a split second so keep your fingers crossed.
Obviously, yes Stern’s a business man and he’s in the business of making money and won’t just give it away. And yes, as Jb_Kings says above, there is a finite pie of revenue that will be generated by all things ESC related. However, having said that, this comment by Stern clearly doesn’t just relate to who is getting what, this is about who pays for the arena specifically. And if you listen to the interview or read a transcript without the “…” it seems quite certain that Stern is saying what Tom fears, that Stern is essentially of the position that the NBA believes that AEG’s contribution constitutes a team contribution.
To be blunt: that’s a very massively huge giant stumbling block if the NBA decides to drive that hard of a view in negotations. So many of our assumptions on this project are on the basis that the deal the city is making is by the NBA’s standard of fairness and that the NBA will try their best to force the Maloofs to accept it or find someone who can. In fact it seemed many thought that everything way already worked out behind the scenes more or else and everyone was just waiting for the parking numbers.
However, if the NBA considers AEG’s contribution to constitute a team contribution that changes everything. It could be awful hard to convince the NBA that a fair deal would require an NBA owner to poney up somewhere around 38% of the arena and the NBA is already extending itself in the fact they are considering the $80+ milion loan (the NBA does not usually give out additional loans other than their credit line to NBA owners and I can’t think of a time the NBA let a team borrow under this basis to build an arena).
The biggest fear for the vote on the 28th is the council members who don’t want to be forced into a deal on the parking without all of the necessary details. It sure seems like KJ needs $50 million from AEG, $80 million from the NBA/Maloofs, and needs a parking deal that 5 council members agree on that brings in around $200 million. And even on top of that there are some budget holes that have to be filled (with things like the city possibly selling property) and the Kings loan issue must be addressed. Essentially, the $130 million in private money from AEG and the NBA/Maloofs can’t be fudged much, there is very little margin for error at this point and it could even affect the parking vote on the 28th because that 5th vote on the parking might be hesitant to be forced into this if there is still so much in the air.
Kings fans better pray they make it through All Star weekend without a bad Stern quote bomb. We all know this is a somewhat adversarial given everyone is fighting over who pays for what and who gets what in return but if the NBA really drives that hard of a view on this that can spell some serious trouble. KJ is on the tight rope now.
After all of that nonsense, given what we know at this point (but can change awful fast)
still would bet 2 to 1 that the vote on Tuesday comes back “Yes” on the parking; however, still think there will be an extension to try and work out everything else and that it’s likely still about a 50/50 shot that it works out at that point.
by wallywagon11 on Feb 22, 2012 12:01 PM PST up reply actions
What do you mean by "everything else"?
"Children want what they want when they want it." ... Andy Sims
If there is an extension they wouldn't need to sign a binding arena deal, the council will likely just be agreeing to a parking deal and a nonbinding resolution to keep working on a lease agreement with AEG and the Maloofs under some basic guidelines.
by wallywagon11 on Feb 22, 2012 12:08 PM PST up reply actions
I believe that's pretty much what's happening on Tuesday
I may be getting lost in translation here.
"Children want what they want when they want it." ... Andy Sims
The goal was for a jointly developed finance plan by March 1st.
Staff has already recommend a list of qualified bidders to Council for its approval.
The plan is that once tentative negotiations were concluded between the City and the NBA, Kings, AEG, and the ICON-Taylor are done, the City staff will present to Council the draft terms of that agreement, identify revenues to backfill the general fund from the loss of parking revenue and will discuss progressing to an RFP stage with the parking.
If he Council authorizes staff to proceed to the RFP process and then later agrees to a transaction with one of the final bidders, it is anticipated the City Council could execute an agreement around the same time as it considers the rest of the Entertainment and Sports Complex project.
I personally believe though that the NBA will end up having to grant an extension and the rest of the ESC agreements will be agreed upon until whenever the extension goes out to. Too many moving pieces that are still in fact moving and being negotiated with little margin for error. Again though, this is just my opinion and I could be completely wrong. Either way though, I see the council proceeding with an RFP process on Tuesday.
by wallywagon11 on Feb 22, 2012 12:29 PM PST up reply actions
I see it the same way
maybe I just thought that was clear to some, obviously it was to you. The process will likely not end for another months, though Tuesday is the biggest hurdle to date.
I don’t know if it would be much of an extension or a longer vote of confidence (another year) to finalize all details and set the plan in motion.
"Children want what they want when they want it." ... Andy Sims
... and I said I wouldn't be around to comment this week
I don’t know if it would be much of an extension or a longer vote of confidence (another year) to finalize all details and set the plan in motion.
If this goes a year up in the air than that’s just a situation where the Maloofs decide not to file for relocation this year and that’s it. That would just be them thinking the Anaheim deal is an absolute no go this offseason and them focusing all of their efforts on staying here. Personally, I wouldn’t bet on that happening after an extension but we’ll see.
by wallywagon11 on Feb 22, 2012 1:47 PM PST up reply actions
I believe there is no way the NBA and AEG do not have at least
a mild consent on the 135 million dollar total that is needed from them, and I think there is agreement between the 3 parties as to amount, the how is the ?.
Assuming this deal would have been drop a long time ago if the projected revenue stream did not cover a 135 millionup front investment the only question is the one we always have had " Who gets what revenues streams and what is a fair divide of the $135 million. My guess 25 million in land from MS&E, 60 million from the NBA as an up front loan for the lease payments and 50 from AEG. There would be no actual cash coming directly from MS&E.
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
I dunno, if the NBA keeps playing hardball they either will be trying to make AEG pitch in more or he's trying to save the Maloofs money.
by wallywagon11 on Feb 22, 2012 1:49 PM PST up reply actions
Devious thought here
maybe he’s going to say I’ve done all I can but you (Maloofs) need to get $40 million bucks together in cash, or you need to sell the team
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
how's he going to force them?
At that point you are banking on the Maloofs only have Anaheim as an alternative destination and that a majority of owners still do not approve the move.
by wallywagon11 on Feb 22, 2012 2:35 PM PST up reply actions
and you hope they really in fact don't mind listening to offers and Burkle gives the best deal
(By the way, I do approve of the devious here. At this point to me it seems either this road or the entire deal is based around a sale to Burkle that we don’t know about that helps fill in the budget gaps)
by wallywagon11 on Feb 22, 2012 2:36 PM PST up reply actions
Here is a hypothetical...
Lets say for instance the NBA agrees that $80 mil is a fair number, and loans it to the Maloofs. If that brings their total loans to a higher dollar amount than their share of the team is worth, what is to stop the NBA from stepping in and taking over control to the team, then selling it to someone like Burkle?
"First we get jobs, then we get the khakis, then we get the chicks."
Has there been any more talk about
Here We Stay pledges and the selling of bricks? If it were down to a couple million dollars, that could bridge the gap.
I don't know if we should look at that to bridge a gap
but even if that were the case, there isn’t much known about the brick by brick campaign.
Lets see if I can clarify: you’re mentioning to different thing, first, the here we build (not stay) campaign by Carmichael Dave which collected pledges to donate. This was a great chance to increase awareness and show how much people were willing to give but not a penny was collected and there was no plan set up to turn the pledges into real money.
Now, the brick by brick campaign, is pretty much this same idea except for the fact that the city will be running it and it will give everyone a chance to purchase bricks that will be used in the ESC. This campaign will probably not launch until later, once the main financing points are figured out.
"Children want what they want when they want it." ... Andy Sims
I agree with this quote
And if you listen to the interview or read a transcript without the "…" it seems quite certain that Stern is saying what Tom fears, that Stern is essentially of the position that the NBA believes that AEG’s contribution constitutes a team contribution.
…but does it satisfy Stern’s opinion of what should be their entire contribution should be? I’m interested to see what the non-leveraged contribution from the Maloofs will be. These guys are $125 million into Stern’s money (you know Stern sees it that way) my gues says there might be a little more sense of duty to that note than a broke Malinda. Given a reasonable plan from the City, fair contributions from AEG/Icon validating viability and a Maloofs shortfall, I think Stern looks the other way while Burkle does the hostile takeover dance all over the Maloof’s faces. A la Seattle.
The one problem with the Burkle play though (and yes I am in the Burkle camp personally)
is that the Maloofs aren’t the only owners in the league likely maxed out on their credit line, it’s rumored that quite a bit of them are and includes a few of the owners looking at possibly moving soon. If Stern really views AEG’s part as the “team’s part” (which is pure bullshit by the way, just at Tom says in this article) he’s not going to be okay with setting a new precedent where team owners give so much towards arenas. Then you are stuck essentially just hoping that Stern at the very least just prevents them from moving to Anaheim and the Maloofs are stuck inbetween a rock and a hard place but without very much push from the league either way.
I have a hard time believing this is what Stern really believes either way though. To me it reeks of “Let’s make sure we can get the best deal possible” but of course for KJ and the City Council the margins kind of matter at this point.
by wallywagon11 on Feb 22, 2012 12:38 PM PST up reply actions
Ownership Question
Question: Does anyone know of a situation where Stern and gang have basically stiff-armed owners into selling their team?
I know we all joke (and fantasize) about Burkle being sold the team. But just wondering if there’s any historical precedent when owners are not ideal, but don’t want to sell.
Board of Governors issue?
Can the Board of Governors vote somebody off the island? Do they have the power to take over ownership of an individual franchise when current owners show they are incapable? Hmm..
This is a really good question. It would probably be in some kind of by-laws or charter documents…
"I gotta have more cowbell"
by CowbellKings on Feb 22, 2012 12:46 PM PST up reply actions
If they tried to would the Maloofs have some legal basis to retaliate?
"Should he just be renamed Player of the Week?" HeuristicLineup on Cousins.
I believe this is how the league owns the Hornets. George Shinn ran into financial straights in 2010 and sold out to the league.
I believe it was a great Bill Simmons article last year that speculated the league may do this with the Kings but it does not appear we have seen any signals yet that this could happen.
by VirginiaKingsFan on Feb 22, 2012 1:48 PM PST up reply actions
..I presume Shinn was forced by the team to relinquish his majority ownership of the Hornets but I am not sure precisely how that played out..
by VirginiaKingsFan on Feb 22, 2012 1:50 PM PST up reply actions
he was actually looking to sell
and the NBA made him an offer based on the fact the NBA felt it was important to keep the Hornets in New Orleans and he ended up agreeing to that deal.
by wallywagon11 on Feb 22, 2012 1:52 PM PST up reply actions
Ass long as they meet payroll and such
little legal action can be taken
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
ass......oops...banner hammer fro extra S
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
thoughts and some questions
Several things maybe well be true here. As has been said by a few on the comments, Stern is acting for the owners and as such doesn’t want to set a precedent for other arena situations going forward. Its smart business to use whatever leverage you can to advance the position of your constituents, I don’t care for it but I understand the logic of it.
Sadly on the PR front it would be hard to those trying to get something done in Sacramento to try and shame Stern for his game playing. Judging by the TNT Debacle the national media cares note one bit about the NBA, gees if you watched the Heat-Kings highlights they should have just referred to the Kings as the Washington Generals.
Worse case scenario how would this play out if this comes a deal breaker and the Kings would end leaving over this deal?
Should we care the AEG will have to kick in more, will they? What is the relationship between the NBA and AEG?
Ultimately is this a game breaking setback or is it just a negotiating point
As others have said, this is how negotiating often plays out. I still feel very confident it’ll all get worked out. I don’t see the Kings leaving over a funding gap in the tens of millions. That will get filled somehow, by someone. And I’m sure there are players watching on the sidelines, ready to add their part if necessary. Bottom line: many players want to get this done, they’re just playing it out to not have to put more in (themselves) than necessary to reach that ultimate goal. Again, business (negotiations) as usual.
by Darren King on Feb 22, 2012 12:17 PM PST up reply actions 1 recs
I wonder if Seattle Sonics fans sat back saying the same thing...
Sacramento Kings - helping feed NBA fans across the country since 2011
But from what I remember, the Sonics arena idea never even got close to this point. At the time the city was not interested in spearheading (and funding) a new arena at all.
by Darren King on Feb 22, 2012 12:20 PM PST up reply actions
Yeah, but they had two years remaining on their lease when the team was sold to Clay Bennett
I could imagine some Seattle fans thought this:
This is all part of negotiating. The team’s got two years left on the current arena lease, which gives us time to get an arena deal in place. Bennett and Stern have indicated that there are no plans to do anything but leave the team in Seattle. Bennett’s currently attempting to get the city to fully pay for a new arena, which isn’t going to happen, but it’s really all just part of the negotiations. I feel pretty confident it will all get worked out. Why would the NBA want to leave Seattle anyways??
I just don’t trust any of these scumbags one iota.
Sacramento Kings - helping feed NBA fans across the country since 2011
Deadline extended
Term sheet will be presented on March 6, not February 28 per pretty much every news outlet in Sac. Joint statement by city and NBA
"Children want what they want when they want it." ... Andy Sims
It's not bad news...
But it sounds like they need more time to close the gap. This is still a very delicate politcal landscape here and we don’t need Stern playing hardball to give people like Sheedy traction.
I will remain nervous until I see some shovels in the railyard digging for the new ESC.
Please tell me that Stern isn’t going balls to the wall to get a few more million in breaks.
Don't worry about Sheedy
worry about Cohen and Pannell with McCarty bringing up the rear.
by wallywagon11 on Feb 22, 2012 1:51 PM PST up reply actions
Cohn is part of the city team in negotiations. But I have seen him sabotage past arena efforts. Sheedy is hinting now about running for mayor. If she can use any crack in this to her advantage, she will.
It's not about "sabotaging"
In regards to the arena, if the private parties don’t pony up the percentages any fifth vote on the council wants, it will make it difficult. What if that fifth vote on the council doesn’t want to do more than a 30 year lease and now it comes out a private party isn’t willing to give as much as thought and nobody can put leverage on that party? The money has to come from somewhere, would the council member be willing to extend the lease to 50 years? Sell more city property to cover it? You keep driving a hard bargain here and you can lose that vote.
So sorry about that fifth vote, not some random “sabotage” or whatever.
by wallywagon11 on Feb 22, 2012 2:33 PM PST up reply actions
I see it as the council needing more time to look over the term sheet.
They just want to make sure they cross all their T’s and dot all their….lowercase J’s
"First we get jobs, then we get the khakis, then we get the chicks."
I do not see this as a major problem
just an agreement that terms could not be reached by tomorrow, so they extend it a week.
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
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