The city of Sacramento needs to have a deal with the Maloofs, who own the Kings, to fund the construction of a $400-million arena by Thursday in order to meet the NBA's relocation deadline. The parties met with the NBA over All-Star Weekend in Orlando and will continue those talks on Monday, as the Maloofs have yet to sign off on the deal as presented.
Sacramento, Kings Continue Negotiations On Arena Deal As Deadline Looms
The deal would reportedly ask the Maloofs for $85 million up front, with $15 million of that being freed up in a refinancing of an existing city loan to the family, $25 million coming from the sale of land around the Kings’ current arena, Power Balance Pavilion, and the rest constituting advance lease payments. At least one brother, George Maloof, who runs The Palms in Las Vegas -- a casino the Maloofs built but recently lost controlling interest of due to massive debt obligations -- is unconvinced the deal is a good one.
For comparison's sake, the Magic-owning DeVos family contributed $100 million toward the construction of Orlando's new Amway Center, a building that was cheaper to build than Sacramento's would be. That would appear to eliminate the question of whether the city's requested contribution is fair. It's more a matter of whether the Maloofs can pay.
For more on the Kings’ arena situation, visit Sactown Royalty and SB Nation Bay Area.
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