Sacramento Kings' New Arena to Be Settled at NBA Board of Governors Meetings

A lot has been happening since the financing for the 'new arena was approved by the Sacramento City Council on March 6. Two weeks ago, it came out that the Maloofs—the owners of the Kings—were in disagreement with the city over who should pay the arena's $3.26 million pre-development costs.

Ultimately, David Stern decided to advance the city $200,000 to cover the pre-development costs until the matter can be resolved at the NBA's Board of Governors meetings in New York on April 12 and 13.

Well, now the Board of Governors meetings are here. On April 12, the Maloofs made a 90-minute presentation in which they voiced their displeasure with the "term sheet" (the arena's financing plan) that they negotiated with the city on Feb. 27.

Since the deal was never signed by the Maloofs, they have the option of backing out. But the owners insist they are committed to getting an arena built in Sacramento. The NBA, especially NBA commissioner David Stern, seems committed to keeping the team in Sacramento as well.

Commissioner Stern has asked Sacramento mayor Kevin Johnson to attend the meetings on Friday, which Johnson's agreed to do. But before Johnson left for New York, he fired off a letter to the Maloof family, conveying that the deal they agreed to on Feb. 27—and that was approved on March 6—is non-negotiable.

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First, all parties agreed to a deal in Orlando on February 27th, codified in the term sheet subsequently approved by our City Council. At the time, George Maloof explained the Maloof Family's reason for agreeing to the deal, saying to the Sacramento Bee that it is a “fair deal…worth taking.”

Any representation that a deal was not reached is simply not consistent with the perspective of every other party to the negotiation nor the actual statements of the family.

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Later on in the letter, Mayor Johnson addressed the Maloofs' desire to renegotiate the parameters of the deal.

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Third, and most critically, under no circumstances will the City make material adjustments to the current terms of the deal. Put simply, we have done our part.

We are 100% committed to moving forward under the framework laid out in the term sheet.

And there should be no expectation in tomorrow’s conversation that this deal is subject to further negotiation.

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Johnson then finished strongly, reminding the Maloofs to honor the agreement that they supported at the time.

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We take you at your word that you are committed to Sacramento as you've said repeatedly in recent weeks.

The best - and only - way to demonstrate that commitment is to honor the "fair deal" as all other parties have done. Your handshake is your handshake. Your promise is your promise.

Given all that the people of Sacramento have endured and achieved on your behalf, we deserve nothing less than a partner who will work with the city in good faith and as a true partner.

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With the meetings scheduled to conclude on Friday, and with Mayor Johnson slated to attend, this should be settled quickly. 

The city and the Kings say they're committed to each other, so it's possible they can work everything out. But if they can't, then the whole arena deal could fall apart only five weeks after it was approved.

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Read more here: http://www.sacbee.com/2012/04/12/4410968/open-letter-from-mayor-johnson.html#storylink=cpy

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Read more here: http://www.sacbee.com/2012/04/12/4410968/open-letter-from-mayor-johnson.html#storylink=cpy

Read more here: http://www.sacbee.com/2012/04/12/4410968/open-letter-from-mayor-johnson.html#storylink=cpy

Read more here: http://www.sacbee.com/2012/04/12/4410968/open-letter-from-mayor-johnson.html#storylink=cpy