During the last few months of the latest Kings relocation saga, a constant refrain we heard in the national media has been how the NBA Board of Governors would much rather have a team in Seattle over Sacramento because of the fact that Seattle would not be a receiver in revenue sharing while Sacramento would. It's a strong financial argument.
However, according to a new report by Daniel Kaplan of the Sports Business Journal, Vivek Ranadivé and co. have made some big concessions to the NBA in order to convince them not to let the team to move to Seattle and revenue sharing is at the forefront.
But perhaps most importantly for the seven owners on the relocation committee who voted to overlook the more financially lucrative Seattle opportunity in favor of the Sacramento group, the desired new Kings ownership group agreed to limit how much revenue sharing it would take while playing in the team's current arena and would end the club's status as a revenue recipient altogether once moved into the new arena, one of the sources said.
The group also agreed to cover a significant percentage of arena cost overruns as well as a timeline of construction goals, according to Kaplan. However, it's the revenue sharing concessions that likely turned the most heads in New York. According to Kaplan, the Kings were set to receive $18 million from the revenue sharing pie next season, one of the highest amounts in the NBA. Vivek and co. have offered some sort of cap on that, but more importantly have promised NOT to take any revenue sharing once they've moved into the new arena, because "of an expected increase in locally derived revenue".
This is a very good sign that the Sacramento group is not doing this for show but because they're actually invested and willing to make this work. It's a show of good faith and commitment to both the NBA and the fans in Sacramento.