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New arena complication - Maloofs' loan clause

KCRA 3 obtained a document detailing the loan for the $65 million the Kings still owe the city. According to the city treasurer, a paragraph titled, "New Arena Right," says if the city builds a new arena without the Kings as the prime user, then the Maloofs have the "right to terminate" the outstanding debt "without any further obligations." "It's our understanding that if we weren't the tenant, we would be out of our obligation with the city," said Kings owner George Maloof. When asked if the document makes an arena without the Kings as tenants impossible, Johnson said he wasn't sure but that city staff would be working to determine an answer over the next couple weeks.

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