FanPost

A calm analysis of the predevelpment cost fiasco

Setting aside all emotion for a minute, here's what this seems to come down to.

1) In Orlando, a term sheet was agreed to. It included a very clear and easy to understand breakdown of predevelopment costs with the city picking up 50%, AEG 25% and the Kings (Maloofs) kicking in the other 25%.

2) This term sheet was negotiated in good faith. The talks went on for days until an agreement was reached. Everyone worked very hard and I have to believe that every detail was negotiated. Although it is "non-binding" it is still the basis for the deal moving forward and all parties knew that this was to taken seriously.

3) The city did it's part and got the parking deal done at the city council meeting a few weeks back. AEG did it's part and confirmed it's solid support for the deal.

4) Then, for some reason, the Maloofs refused to pay their part of predevelopment costs saying that they never agreed to pay it and that tenants don't customarily pay predevelopment costs.

It doesn't matter what tenants do or don't customarily pay for. What matters is what was agreed to. (Tenants don't customarily share in naming rights income, so this deal is also unconventional in ways that benefit the Maloofs.)

So with that objection easily neutralized, their remaining objection is that they say they never agreed to this payment. If so, there are only three possibilities:

* Either someone snuck the predevelopment section into the term sheet after they all agreed - Absurd

* Or the Maloofs and their legal team somehow missed that this verbiage was in the term sheet - Equally unlikely

* Or the Maloofs really don't have the money - I don't know anything about their finances, but if they really don't have a measly $3.25 million then they would have sold the team long ago.

* Or the Maloofs are basing their point on the fact that this is a Non-Binding Term Sheet ("and what part of Non Binding don't you understand!") - This is the only possibility that seems to have any possibility.

But if this is the case (and I sure hope I'm wrong), that would tell me that the Maloofs negotiated this in bad faith. Even this makes no sense. But it's the only possibility that seems at all possible.

We all know that George has opposed this deal at ever turn, but whether or not the term sheet was binding, the ship sailed in Orlando and they agreed to the terms of the deal.

Perhaps I missed something. Maybe there really is a plausible reason for backing out on a deal what was agreed to in good faith. If there really is a legitimate reason not to cough up the $3.25 million, then tell us. If not, either get on board or get out of the way.

(This is a FanPost from a member of the Sactown Royalty community. The views expressed come from the member, and not Sactown Royalty staff.)

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