Darth_Pelican
02-27-2012, 02:20 PM
Report: Kings, Sacramento reach deal
ESPN.com news services
The Sacramento Kings (http://espn.go.com/nba/team/_/name/sac/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, The Sacramento Bee has reported.
A tearful Gavin Maloof announced the pact after the Kings' co-owners emerged from a Monday morning meeting in Orlando, Fla., the newspaper reported.
"We've always said we wanted to stay in Sacramento, and now's our opportunity," Joe Maloof said.
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.
ESPN.com news services
The Sacramento Kings (http://espn.go.com/nba/team/_/name/sac/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, The Sacramento Bee has reported.
A tearful Gavin Maloof announced the pact after the Kings' co-owners emerged from a Monday morning meeting in Orlando, Fla., the newspaper reported.
"We've always said we wanted to stay in Sacramento, and now's our opportunity," Joe Maloof said.
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.