[Tongue-Out-Like-23Participant]

The Sacramento Kings have reached a tentative deal with the city of Sacramento that will keep the team there long-term with a new arena to be built.

A tearful Gavin Maloof announced the pact after the Kings’ co-owners emerged from a Monday morning meeting in Orlando, Fla., The Sacramento Bee reported.

"We’ve always said we wanted to stay in Sacramento, and now’s our opportunity," Joe Maloof said, according to the newspaper.

The Maloofs agreed to contribute more than $70 million upfront to the construction of the arena, "probably another $75 million over the term of the agreement."

The Maloofs agreed to contribute more than $70 million upfront to the construction of the arena, "probably another $75 million over the term of the agreement."

"It’s game over," Sacramento Mayor Kevin Johnson said, according to The Bee.

Johnson and NBA commissioner David Stern had announced a joint work plan Wednesday for the two sides to reach an agreement to finance the arena by a March 1 deadline.

Johnson, Stern and the Maloof family had been meeting during this weekend’s All-Star festivities in Florida.

Barring any hangups, a term sheet could be announced March 1 and the Sacramento City Council would vote on the plan at its March 6 meeting.

"I feel very confident that we as a city are going to be able to do our part," Johnson had said Wednesday. "The city controls its own destiny."

The major sticking point in negotiations had remained how much the Kings would contribute.

Under a previously reported agreement, the city of Sacramento was to raise about $190-$230 million by leasing out parking garages to private investors.

A source, speaking on condition of anonymity to The Associated Press because they were not authorized to disclose the information, said another $75-$100 million is expected from the Kings and $40-$60 million from arena operator AEG.

The remaining gap will be covered by some combination of a ticket surcharge, advertising around the arena, allocating a portion of the city’s existing transient occupancy tax or a sale of three or four parcels of city land.

The final price tag for AEG depends largely on the team’s contribution.

The Kings’ portion would include upfront cash — the city had initially asked for $60 million — and donating back the land around the franchise’s current suburban Sacramento arena, estimated at about $25 million. AEG’s contribution will be impacted by the splits with the team in arena-related revenue.

Johnson made a desperate pitch to the NBA Board of Governors last April to give the city a final chance to come up with an arena plan. He also bought time by presenting more than $10 million in commitments for new advertising, ticket purchases and other financial support from regional businesses for this season.

Despite attempts by Anaheim and Seattle to swoop in and lure the Kings, Stern has said the league was making every attempt to keep the franchise in California’s capital.

Information from The Associated Press was used in this report.

http://espn.go.com/nba/story/_/id/7621128/sacramento-kings-strike-arena-deal-stay-city

[iminipandaParticipant]

 I am so happy for my city, my community and my team. The only sports team I truly truly love.

[BA30Participant]

I am glad that we don’t have to see another NBA team moved and hopefully this is just the first step in turning the organization around. Their front office still needs a lot of work. 

[Jlv2012]

+1 for Stern and the NBA

+1 for the Maloofs

+2 for Kevin Johnson

 

[starpyParticipant]

Happy for Sacramento but… now where is Seattle going to get a team from??

[OldSkoolBasketballParticipant]

Nothing against New Orleans but why is Stern trying to keep a team there? 

[HitsterParticipant]

Great news for Sac-town and a great coup by Mayor Johnson, he did not give up hope and brought extra time for the city. With a new arena the team could become profitable again especially with Jimmer generating a lot revenue already, another good draft pick and an upturn could push the Kings back in the right direction.

I’m not surprised to see AEG contribute to a new arena as I could not see them wanting a team in Anaheim as it could draw a few fans away from the Staples Centre which is one of their most profitable venues.

As regards Seattle, I wonder if the rumoured investors there might turn their attention to the Hornets if they make a serious play to get a team back there. The NBA pushed for a new CBA so can they continue running a likely loss making team like the Hornets especially if a decent offer came in to take the team elsewhere.

[FLYNTFLOSSYBABY]

best strip club city in cali 

[BasketBalAllanParticipant]

I really hope everything ends up working out well with this agreement. That would make my year…

[SeattleSuperChronicsParticipant]

 SEATTLE!?!?!? wtf all bad 

 

ROBBED again

[antiwork3000Participant]

This is historic in many senses, especially for those teams looking to build a new stadium w/o tax dollars.  This is a great model that KJ set up. 

The city wins because it essentially owns the stadium and a percentage of all its revenues forever (concerts, wrestling, monster trucks, games).  Even if the team moves the city can still use the arena.

The Kings fans win because of obvious reasons.  Not only because the Kings but now we don’t have to go to the Bay area or to LA to see a Rihanna or Andrea Bocelli concert.

The Maloofs win because it is a small investment (70 million) in the grand scheme of things (pretty much like renting) while they still get to keep the team and profits generated by it.  If you look at it like they plan to keept he Kings for 10 years and make profits of $50 mill/year (reasonable) they’re looking at half a billion on revenue already.  Also with the new arena, this should open up TV contracts with Comcast, ESPN, ABC, TNT and the likes which would be a source of revenue the Kings hadn’t had since the Webber kings.

Good job to all parties involved.  Now we have to somehow get better on the court 🙁

[HitsterParticipant]

Arenas are now multifunctional with the Staples Centre for example hosting numerous other concerts alongside maybe 100 basketball games going forward if both LA teams make the play-offs in a full season.

It is not only the capacity but all the corporate side, hospitality boxes etc which a new venue can generate income from for example the new Cowboys stadium has a large number of executive seats which brings in a huge income. The new Sac-town arena will be on a much smaller scale but say 2,000 to 3,000 luxury seats plus room for the more working class fans works out well.

Apart from NOH moving, I don’t see an obvious way back into the NBA for Seattle as an expansion to 32 teams is currently unlikely.

[Author]

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