Sleep Train Arena surcharge will help pay down Kings debt

Kelley L Cox-US PRESSWIRE

The city is expected to approve a deal in which the Kings would charge a 5 percent surcharge on all events at Sleep Train Arena and pass those proceeds on to Sacramento to pay down the 1997 loan.

The Bee's Tony Bizjak reports that on Tuesday the Sacramento City Council will vote on an agreement with the Kings on a 5 percent ticket surcharge intended to pay down the team's 1997 loan. This was one of the clauses in the March term sheet the city approved 7-2. The Kings are also repaying pre-development fees for the new arena, pending obvious Council approval.

You'll remember that the previous owners of the Kings sought to have the 1997 loan (about $60 million) forgiven and the pre-development fees paid by the city. The Maloofs in fact argued that no team paid those fees; pretty much every team actually pays those fees.

The surcharge will go into effect soon, and will cover more than just Kings tickets. It comes out to $2 on a $40 ticket. Whatever remains on the loan in 2016 when the new building opens will be paid off or refinanced by the Kings.

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