clock menu more-arrow no yes

Filed under:

Sleep Train Arena surcharge will help pay down Kings debt

New, comments

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.

Kelley L Cox-US PRESSWIRE

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.

More from Sactown Royalty: