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01-26-2013, 09:34 AM
  #51
Pinkfloyd
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Quote:
Originally Posted by gstommylee View Post
And they have no shovel to group arena deal with funding finalized so its a moot point.
They were in the beginning stages of starting to act on the non-binding agreement. It's also an agreement that the city and AEG are still supporting if new ownership wants to go that route. So regardless of finalized funding, it would go through if new ownership wants. Chances are that new owners may want to do something different but a huge part of the foundation of the deal in terms of who is contributing what is there. Burkle has always been interested in redoing Downtown Plaza for a new arena as opposed to the railyards. We will see. The arena deal will happen with or without the Kings.

Quote:
Originally Posted by aqib View Post
Actually I think AEG was involved and let me tell you why.

The feasibility study for the City of Sacramento was done by ICON Venue Group. Now consider the following:

1) ICON's biggest regular customer is AEG

2) ICON normally charges $7-10 million for these studies

3) ICON did it for FREE

4) The study came back and said "Yeah build it, its totally worth it"
AEG certainly has their own angle but they didn't actually do anything to block the potential move to Anaheim. Nobody did. I'm sure Stern talked to the Maloofs and strongly suggested to them that we would prefer you not to move there but he can't really block a move either. Only the Maloofs could tell you why it didn't happen since it was their choice.

Quote:
Originally Posted by aqib View Post
But its not like the city has $300+ million sitting in an account waiting. So they have to go to market and get a commitment from a funding source to do it.
They don't need 300+ million sitting in an account. They worked out a deal where that money would be generated. Maybe the numbers are ambitious but if they fall short, the city still has to cover it anyway. The city IS the funding source and the city IS the source for generating the revenue.

Quote:
Originally Posted by gstommylee View Post
Indeed funding for that arena plan wasn't secured.
They didn't have to secure funding. It came from their own plan and their own assets in which to use to sell or as revenue. They don't have to find someone to give them the money. Once they come to an agreement on what they're going to do for the money, most of it dealing with parking, they go with it and unless it specifically says someone else is covering any shortfalls, the city will cover it.

It wouldn't have gotten past Sacramento city council if it was a poor deal or completely outlandish in terms of funding for it. This city has rejected numerous arena deals in numerous locations based on silly projections for revenues and little recourse for overruns or shortfalls.

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