The Sacramento Kings on Monday announced that the organization has reached a long-term deal with the city of Sacramento that will see a new arena built and a long-term contract signed to keep the team and the Maloof brothers in Sacramento.
News of the agreement was announced by a tearful Gavin Maloof on Monday as he emerged from a meeting during a trip to Orlando, Florida.
Joe Maloof told the Sacramento Bee:
“We’ve always said we wanted to stay in Sacramento, and now’s our opportunity.”
To make the deal a reality the Maloof’s will contribute more than $70 million to the project and “probably another $75 million over the term of the agreement.”
Sacramento Mayor Kevin Johnson said of the new agreement:
“Today is a new day for Sacramento and a defining moment for our community. We came to Orlando needing to convert both ends of a one-and-one free throw. Over the weekend, the city hit the front end of the free throw by making clear it had delivered on its promises and, today, the Maloof family hit the second free throw by stepping up and increasing their contribution.”
The plan will be financed by a March 1 deadline and according to NBA commissioner David Stern he has been working with Mayor Johnson to make that deal work in time.
The major issue of contention for Mayor Johnson was how much money the Kings would contribute, under an original agreement the city would absorb $190 million to $230 million, money that would be raised by leasing out parking garages to private investors.
It’s believed the Kings will now put $75 million to $100 million into the project with an estimated $40-$60 million coming from arena operator AEG.
To cover the remaining money required a ticket surcharge will be added to ticket prices while advertising will be sold around the arena and a portion of the city’s transient occupy tax will also be used along with the sale of up to four parcels of city land.
The deal was a last ditch effort by Mayor Johnson to keep the team in Sacramento at a time when both Anaheim and Seattle attempted to steal the Kings away with the promise of a new arena.
Do you think it was smart for the Kings to stay in Sacramento?