OT: NBA Sacramento sale moves along
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01-26-2013, 12:13 PM
Join Date: Jan 2012
Originally Posted by
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.
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.
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.
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.
They ever went through the process of selling the parking to a private group which is my point.
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