SACRAMENTO (CBS13) —  New figures have emerged showing how much money Kings employees alone bring the Sacramento region.

A Kings move could have a ripple effect on the region’s money trouble, just from the 150 full-time Kings employees that would be out of work.

As Sacramento State Economics Dean Sanjay Varshney explains, the math is very simple.

“If you wanted to be conservative, the ripple effect could be as large as 1.5 times,” says Varshney.

So, the estimated $7.5 million in salaries going to Kings employees in Sacramento would be gone, and no longer spent on mortgages, clothing or food,  and add Varshney’s multipler, and it would put a $10 million dent into the real Sacramento economy.

“Because the money no longer exists, these people no longer have a paycheck to take home, they’re spending less in the local economy,” says Varshney.

The Maloof ‘s are nowhere near the top employers in the region.  That list includes Kaiser, Raley’s and Intel, each with a thousand full-time positions.  The Kings have 150 full-time jobs that are supplemented by about a thousand part-time workers.  But, Varshney believes if the Kings leave the real economic loss to Sacramento might not be felt for years.

“The real loss in my mind with the Kings moving to another city will be the psychological loss that will eventually translate into economic damage,” explains Varshney.

Comments (56)
  1. Howmuch says:

    How much money does the Maloof’s owes the city for building the Arena? Did they pay back the loan?

    1. NBADollas says:

      Not to mention the millions (I read 3)the NBA spent scouting and planning a new arena that never happened, someone got paid form that $$$ I bet it wasn’t a teacher.

  2. Steve says:

    This is a stupid article… they didn’t care when my employer of 9 years sent all our jobs to Ohio because they would have to pay their employees overtime in that state… they didn’t care that all of us who lost our jobs wouldn’t have x-amount of money to spend in the Sacramento area.. what about the 600+ employees that lost their job when USAA moved all their jobs to other states as well. Were is the article about all the company’s that are doing exactly the same thing?

    1. drm47 says:

      exactly..and all the places that i used to stop at to buy food/gas etc. seem to be doing fine without me. I just had to adjust

  3. rick says:

    I have been to one game in 10 years and one concert in about the same time at Arco. Building a new arena will not encourage me to go anytime soon The economy is currently very bad. With about 9% sales tax, $5700 ayear propery tax, my 30% income tax, currently $4 a gallon for gas I’m not sure i want to spend $75 for a ticket along with $20 to park my car. Please dont tell me i could get cheaper seats in the third balcony……… I’d rather do something else.

    Aren’t sport atht·etes alot like public employees? We watch and they get paid. I’m sure if their wages were cut they would leave for a higher paying job,.

  4. tom carpenter says:

    It shouldn’t take a genius to figure out that someone with some enterprising skills could fill the void and maybe draw even bigger crowds. Thus, saving the jobs. So long, and best wishes, Kings

  5. william bowcutt says:

    who cares let the kings go there lousy any way .

  6. Robert Thompson says:

    I’m not going to buy any tickets. I don’t need to. I’m paying for cable. I’m paying for new televisions. I’m paying for jerseys, hats, magazines, posters, banners, shoes, beer, munchies. I’m a kings fan. I could care less about new arenas. I’ve never been to Arco. I don’t even know where it’s at. If they build a new arena I won’t go. I can’t wait till 5pm to watch the kings play tonight on my new high def big screen. God only knows what fun I’ll be having then, especially if they win (or do real good). Do we have a backup plan if the Kings leave? Rearrange the K St Mall again, no we already tried that a couple of times. How about paint the bridge again? We could plant some flowers along the bike trail. How about letting people ride their bikes on the K St Mall in order to entice them to spend some of their food stamps, or did we recently do that?

  7. Bill says:

    This thier second arena. How will it be before they want a newer and bigger one

  8. Selim says:

    Unfortunately it seems that most people don’t understand the economic impact this will cause. This issue isn’t about the Kings and how good or bad the team is. It isn’t about the Maloofs. This isn’t about taking money from firefighters or teachers to build a new entertainment center. Anyone who believes any of this is ignorant. In reality, it’s the exact opposite. Losing the team means losing the arena which as this article states means losing money from the current employees. But more importantly that means you lose tax dollars from property taxes, income taxes, sales taxes and so much more. This will hurt small businesses in the areas around the arena which again means you are losing more tax dollars. People from out of the area won’t be coming to Sacramento and spending money and people in Sacramento will have to go out of the area and spend money to see live events. Again, losing more tax revenue. Ultimately the tax dollars lost from losing the arena will have a larger negative impact than the tax dollars that will be spent building a new one. Now you’re talking about losing tax dollars which means MORE cuts to firefighters, teachers and cops. People need to wake up and understand the negative impact losing this team/arena will have on the Sacramento economy.

    1. Brian Salemme says:

      Someone finally gets it! To lose the Kings is way more than 10 million a year. It is the 100 million plus range! If this community is so blind to believe, in this economy, you can survive the Kings leaving without 100’s of business ‘s going under, you truly are naive. We need to take the tax increase and build the arena and own it ourselves. This way we get all the profits from the Arena. We also not only keep the 150 full time employees, but also the 1500 part time employees. We also get a much needed redesign of the downtown and boast the business downtown by 3 fold. We are not going to get out of this recession without spending. The positives of building a new arena and keeping the Kings way outweigh the negatives that the losing them will bring1

  9. Greg S says:

    Old Photo. Didn’t they take ARCO off the building last week. I agree no one yelled when thousands of Jobs left the city who cares about these overpaid bums.

    1. TB says:

      I’m an employee of Maloof Sports and Entertainment and I am not an overpaid bum. I moved here for the job a year ago and I pay for my son’s daycare, I bought a new car here, I buy groceries and put a lot of money into the local restaurants (probably too much). If they go, so does my family and so do our dollars we put into this community. Just giving my side of the story.

  10. Rick Proschold says:

    They said we would not survive the closure of the Army Depot, then McClellan and Mather, but guess what we did. And we lost far more employment then that what the Kings represent. We will survive the loss of the Kings just fine. Let em go and good riddance to the greedy Maloofs

    1. Michael Thai says:

      You think the way Sacramento is right now, that that is “SURVIVING”? Holy cow… No wonder this town is going into the gutters.

  11. Cal Dude says:

    I believe what would’ve saved the Kings was not a new building nor complex, but local ownership. Ever since Greg Lukenbill and his colleagues defaulted on some loans and lost control of the team, all subsequent owners were from “out of town.”

    I remember when former Kings owner Jim Thomas requested a $70 million-dollar loan for “improvements.” Where did that money go? Just like Jimmy Hoffa, the 2000 Bush-Gore recount in Florida, and people lost in the Bermuda Triangle, we’ll never know.

    With the Maloof Family, reading the daily report goes: casinos, thoroughbred racing, stock, bonds, and——-and oh yes, the Sacramento Kings.

  12. Lance Burton says:

    Bye Bye Kings. Enjoy the pond.

  13. Just a thought says:

    I say instead of building a new arena for Maloofs (which would cost the city around 500 mil, and we still be at their mercy) we should just buy the team and Arco arena for 400 mil . If we own the team we will pack the arena because we will ultimately benefit from it. Look at Greenbay packers, even when they sucked they packed the stadium. Just a thought!

  14. conserver1 says:

    Averaging 50k per year, these are good jobs. Hopefully they won’t be lost, they’ll just move to another city. Local kings fans will be saving 7.5 mil? Think of what that can buy!

  15. Robert Thompson says:

    Why are you Sacramentans afraid to spend a billion or 2 to bring prestige, fame, and glory to this city? Is it because you are a bunch of cheapskates? How are you going to attract tourists to this city whose citizens have done nothing in the past 20 years other than painting a bridge gold (I think it’s gold). You are not only going to lose a lot of money if the kings leave, you are also going to lose your last chance to be somebody. If I’m a tourist the last stop on my list of places to visit will be Sacramento if I can’t at least go to a Kings game (who will probably be world champs within 3 years, tops). It’s obvious what the problem is here. There are many more rednecks, hicks, and people who don’t like basketball compared to the true kings fans who are waiting to fill the new arena. Tons of people in Sacramento are ready to drop down their money on their Kings if they decide to stay.

    1. Griddance says:

      World champs? Are they going to Take up Baseball and name themselves the Yankees? Only way the kings are going to win any title in the next 3 years sir.

  16. PHILLIP SMITH says:

    That makes 150 potential Democrat votes up for sale. Just give all of the ex-Maloof employees government union jobs. Why would anyone be shocked that another in a long line of private businesses is leaving the Peoples Republic of California?

  17. bob says:

    They are just wanting to leave because they didn’t get their way with the cal expo deal. So they are willing to hurt Sacramento even more because of it. They are greedy sob’s that do not really need to be in Sacramento if they are willing to leave over a deal. They do not need a new area, they have been fine having that area for a very long time and need to stop being greedy. People are mad because if they leave it will hurt Sacramento even more. Shouldn’t you be mad that they are considering leaving even thou they know it will hurt Sacramento? They are using fear to try to get their way in letting them have a new area and the tax hikes that will come with it. They are low lives that pour salt on the wounds of the less fortunate and sit back and watch them squirm. Trying to beat Sacramento into submission so they get what they want. Let them leave, I do not want them in Sacramento because they think they can use fear to get their way.

  18. dennislai says:

    the fans who spent money on king tickets will now have those dollars to spend on other things like rivercats, concerts, etc. i will have more money in my pocket without the kings.

    1. Selim says:

      there won’t be concerts to go to when there isn’t an arena.

      1. G Riddance says:

        But moving the arena to downtown still does NOTHING to help a struggling Natomas.

  19. bob says:

    The arena isn’t the only place in Sacramento where concerts are held at.

    1. Michael Thai says:

      The arena can seat 17,000 people indoors. No other location in Sacramento can provide that.

      1. Maud says:

        Geez, that’s unelbieavble. Kudos and such.

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