Sacramento Asks For Kings Repayment Promise In Writing

Letter To Kings
Letter To NBA

SACRAMENTO (CBS13) — City officials are asking the Sacramento Kings and the NBA for written guarantees that the team’s owners will repay the tens of millions of dollars still owed to the city.

Separate letters to both the league and the Maloofs referenced George Maloof’s statements to media outlets Tuesday that dismissed any concerns over the $77 million the team still owes to the city.

In a statement to CBS13, Maloof called the controversy a “non-issue,” adding to CBS13 that “[w]hatever the future holds to ensure the long-term viability of the team, the City of Sacramento will be paid in full.”

The Sacramento Bee reported Maloof stating “we have no intention of leaving that town without paying our debt.”

Sacramento city officials asked the team owners to explain how they plan to repay the debt and establish an escrow account. The letters cite parts of the financial agreement between the Kings and Sacramento that requires the team’s owners to keep the Kings in the city “if the City Obligation is not satisfied.”

“The Relocation Assurance Agreements and the bond transaction as a whole all prevent the Kings from relocating until the Kings pay the bonds and the IRMA [Interest Rate Management Agreement] in full,” city officials stated.

The letters ask the NBA to make full repayment a condition for relocating the Kings and warned that the “City will have no choice but to consider taking all of its options to ensure that the Kings satisfy their financial obligations.”

  • F1

    why not make Anaheim pay it as a balance transfer and they can own the debt

  • Carol

    @F1 … that’s a great idea.

    As for the Maloof’s paying anything back. Good luck. They’ll saign whatever you want them to, but they are in such bad shape (selling off hotels, etc) that once this move or whatever takes place, lots of people are betting they will file bankruptcy, and wash away all this type of debt.
    So Sacramento better find some of no only getting their money back, but also dealing with the old arena. That’s going to be a HUGE liabilty and blight. I don’t even want to think about the cost of destruction of it.

  • JK01

    Does this mean that Sacramento loaned millions to the Maloofs WITHOUT any written guarantee that they’d pay it back? Where do I sign up for loans like that?

  • saclolo97

    The Maloofs are bunch of douchbags that rode the mortgage boom and sold off their parents business in New Mexico and now can even afford to buy a bag of Cocaine without blumming it from the fellow Sacramentans. Thats why the tickets are selling for cheap!

  • John

    This King’s move to Anaheim is all a plot by the Maloofs and the Sacramento City politicians to justify BUILDING A NEW ARENA WITH TAXPAYER FUND$$$$!!!! So, let’s see: The Kings move, Sacramento is left with no Pro team, the city politicians will claim that the only way to attract another team is TO BUILD A NEW ARENA!, so the taxpayer pays for a new arena and afterwards, THE KINGS RETURN TO SACRAMENTO!!! WOW!!! WHAT A PERFECT SCHEME!!!!

  • Elliott the Cat

    Daddies little boys will not repay anything !

    The city of Sacramenthoe hot plugged through out the hole deal !

    Hella funny Sac is so dumb ! Go Magoofs ! Rob And Pillage all the idiots you can !

    Dose anybody want to buy a slap shot of some MC Hammer pants ?

    Maybe some Spinners for your 13mpg SUV ?

  • Fred

    The arena is the collateral for the loan. THey will hand the keys back to the city just like many underwater home owners have done with their homes. So, not only will the city not get their money, they will have a geriatric arena to contend with. Hey, it’s just business.

  • Bob

    Who are the fools in City Govt that let this get this far??????? Wait…its the same kind of fool we have there now……The City leader ship is a bunch of iditos.

  • Richard Main

    Cities don’t belong in the business of basketball, and certainly not when they loan out $77M without a written contract. It would be very difficult for an ex-player as Mayor to see basketball is not a proper government expense. What are these guys doing playing with professional sports when government budgets are so tight?

    • Fred

      Johnson inherited that mess from Fargo. But your point is generally correct – business should be conducted by business people, not hack politicians from a small town

  • Dan Rakow

    I want to see Anaheim get a NBA Frabchise to rename them either Royals or Dreams make the Lakers run for their Money.

  • SoCal Teams Reportedly Pushing Back Against Kings Move - Sacramento CA DIRECTV Service

    […] city officials have asked Anaheim to stop negotiating with the Maloofs until the team’s owners agree in writing to repay the $77 million the franchise still owes the […]

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