The city of Sacramento is looking for the Kings and NBA to contribute $85 million to a new arena, with $60 million of that an upfront cash payment to cover a 30-year lease, according to a report by the Sacramento Bee. The Kings, who are owned by the Maloofs, are not exactly flush with cash. The Maloofs sold their family's beer distributorship in New Mexico in recent years to pay down debt on The Palms casino in Las Vegas; nonetheless, the family's stake in The Palms shrank to 2 percent last year as the Maloofs' debt was taken over.
The Maloofs already owe the city roughly $70 million for a loan executed in the late 1990s when the Kings had threatened to leave Sacramento under previous ownership. The Maloofs are also believed to owe at least $100 million to the league's credit facility. For the second consecutive season, the Kings have the NBA's smallest payroll. Sacramento barely exceeded the league's minimum payroll level last year.
The city is working with arena developer AEG and the NBA on a term sheet that would be presented to the Sacramento City Council on Feb. 28, two days before the league's March 1 relocation deadline. That term sheet will include a large chunk of the capital coming from the leasing out of the city's downtown parking facilities to a private contractor, an issue that has met with some controversy in Sacramento. That piece of the deal is expected to contribute roughly half of the capital needed to build the $400 million arena at The Railyards, Sacramento's massive infill space just off of downtown.
For more on the Kings, visit Sactown Royalty and SB Nation Bay Area.
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and Seattle is set announce new arena plans
wheels are in motion
"Rooting for the Yankees is like rooting for Steve Jobs to win the lotto." - Chris Rock
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by Taylor Made on Feb 16, 2012 1:53 PM EST reply actions
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