Anaheim city officials released documents relating to the potential relocation of the Sacramento Kings on Friday, included the current incarnation of a lease agreement between the Kings and Henry Samueli, who operates the Honda Center and runs the Anaheim Ducks.
The centerpiece of the agreement is an upfront $50 million loan to the Maloofs, who own the Kings franchise. The loan would actually be made by Samueli, but paid for immediately by bonds issued by the city of Anaheim. Samueli would be on the hook to repay bondholders, and the lease agreement includes a process for the Maloofs to pay Samueli back. A city staff report recommending approval of the bond issuance says that taxpayers would not be put at risk.
The bond issuance also includes $25 million for Honda Center renovations, including a practice facility and locker rooms. The Maloofs are expected to face hefty relocation fees due to encroachment on the Lakers' and Clippers' Los Angeles market. The Maloofs also have an outstanding $70 million loan from the city of Sacramento to pay immediately upon relocation.
Other details of the lease agreement include:
- an nondisclosed share of premium seat revenue;
- the Maloofs keep 92.5 percent of non-premium gate;
- a 50-50 split for parking and concession revenue;
- the Maloofs take one-third of in-arena ad revenue; and
- a previously negotiated additional naming rights fee paid by Honda to the Maloofs.
The Maloofs are expected to announce their intentions by April 18. A plan to build a new arena in Sacramento surfaced this week, though the Maloofs have not yet been in contact with those proposing the deal.