Sacramento, Kings Reach Deal On New Arena

ORLANDO (CBS13/AP) – It looks like the Kings will be staying in Sacramento.

Mayor Kevin Johnson, the Maloofs and Commissioner David Stern announced they have a hand-shake agreement for a deal to build a new entertainment and sports complex for Sacramento and keep the Kings in the Capital City.

“It’s a great day for the city of Sacramento,” said Joe Maloof to reporters gathered at the Waldorf Astoria in Orlando where the Maloof family, Sacramento Mayor Johnson and NBA officials have been meeting for the last three days to try and hammer out a deal by a March 1 deadline set by the NBA.

CBS13’s Koula Gianulias is in Orlando and reports the team and city have “framework” of a stadium financing proposal.

“It’s game over, so our community should be really excited. I want to jump up and down,” Johnson said. “I’m very excited. It’s a new day for Sacramento. We’ve all been working around the clock to get to this point.”

Sources tell CBS13 there was $35 million gap when they came to the table this morning. They bridged the deal with the Maloofs upping their contribution from $50 million to $75 million up front. AEG helped by adding $10 million for a total contribution of $60 million.

Sports Illustrated reports that the Maloof family also said they could add an additional $60 million in future years.

The Sacramento City Council is expected to vote on the plan March 6.

The full financing plan will be made public by Thursday.


Reaction to the tentative deal was quick, ricocheting through the Twittersphere.

Devin Blankenship, the Director of Media Relations for the Kings sent this tweet: “Was at my parents house with my 2 kids when I got the news this am. 3 generations of Sacramentans near tears. So happy for the city.”

And from Think Big Sacramento: “A new day for Sacramento! We have a framework for a deal!”

Local politicians also reacted to the news of the tentative agreement.

“This deal is great news and a big boost for the Sacramento region. I congratulate Mayor Johnson and the City Council, as the entire community came together and developed a blueprint of what they would like to see out of a downtown sports and entertainment complex,” said State Senator Darrell Steinberg. “When you bring a “can-do” attitude to negotiations, everybody wins.”

Despite attempts by Anaheim and Seattle to swoop in and lure the Kings, the fate of the franchise is in the hands of the Sacramento City Council – which has approved every arena measure to date under the current project. The arena, which would open for the 2015-16 season in the downtown Sacramento rail yards, is a vote away from breaking ground.

“I’ve had the great pleasure … of opening up two arenas and I’m looking forward to opening up a third in Sacramento,” Stern said. “I want the Maloof family to get back to Sacramento fast because I’ve asked them to get those renewals out for next season.”

The next step is for the arena deal to be voted on by city council.

  • Whitey

    Yes… maybe we should make you both mayor and owner of the team since it’s obvious you’re so successful. Before that, though, you’re going to have to explain if you want Johnson to lose, loosen or loose his post.

    Don’t worry… you still have time to pick your nose, troll this site and j.o. before Springer comes on. It’s going to be a good day for you, d-bag.

  • Lucas Hess

    it’s about time someone mentioned the 78 million the Maloofs already owe Sacramento. That should be paid in full before any negotiations continue. A pox on the NBA and all the circling sharks waiting to bite into our collective wallet, leaving us with nothing but a massive debt, an unusable facility and an ex mayor who won’t have a dime of his own in the pot. Nice work Dennis, thanks for helping to bankrupt this community.

  • Jon

    I can understand folks that wants the Kings to stay in Sac.

    But the city is seriously putting themselves into a big financial hole for decades to come.

    They are willing to give up the city’s parking revenue which calculates to BILLIONS with inflation factored in for the 50 years term. Billions in exchange for $200 million or less upfront so the Maloofs can get a new arena. Makes no sense for the majority of citizens that never will step foot into the arena.

    Now they want to restructure the old loan for the Maloofs. That is basically making sure that the city will not get paid in full within Joe, Gavin and George’s lifetime.

    The Maloofs owe the NBA over $100 million, already over $70 million to the city of Sac and whatever other loans we don’t know of. If they were to borrow another $70-$90 million, where is the revenue coming from that will allow them to make these payments?

    They only own 2% of the Palms now so basically they get close to nothing from there. The Kings may make a couple million a year at best. Thats considering they will continue to field a team of low paying players. But in order to retain the likes of Tyreke and DeMarcus in the next few years, their payroll will shoot up. That will offset any new TV deals or increase in sponsorships.

    So the Maloofs will be back at square one of broke and shouldering tons of debt. The city and its people are the ones to lose the most.

    • Joe

      The only reason it is worth “billions” as you put it is because of the promise of the arena. Do you think anyone would just give us $200 million for the parking now? All you are saying is that we should not sell the parking but we can only sell the parking if the arena exists. So what are talking about?

    • Karen

      I agree. I think it’s funny that all the renters and people who live out of Sacramento are the ones who want the Kings. Why? Because they wouldn’t be the ones taxed. Just the Sacramento homeowners. So at least it’s not coming from us.To bad the idiot Kevin couldn’t find some money for Sacramento schools.

      • mrmike

        Do you not think a new arena won’t generate an economic engine for future tax revenue towards school, fire, police, parks? Think!

        Come to think of it, I believe schools are funded by the state. However the point still is…

        -Firms are willing to pay $$ for an arena. W/o an arena they won’t be willing.
        -The arena creates jobs and redevelopment on an unused portion of land.
        -That redevelopment creates income. Income creates taxes.
        -More $ goes int the general fund. The city is better off.

  • yutrrx

    The reason why you can’t see why “no one else can see that….” is because you’re an idiot

  • cementmixer

    Sad day for Sacramento.

  • DAVE

    Thank God….we got it…..HERE WE STAY!!!!!!!!!

    • You

      Dreamer…….IT WILL FAIL!!!!!!!!

  • ..............

    I hope it includes a set of new teeth for Kevin.

  • DAVE

    This is the best day ever…. now all you haters out there can go kick rocks…..GO find something else to me miserable about…New arena is coming no matter what you say…

    • You

      Dream on…Loser

  • Jordan

    I think it great news. I’m really excited when reading this article and I can’t believe some of the comments I’m reading.

  • You

    Get ready to “Bend Over Sacramento”

  • Bob Bobster

    How did the old rail yard that was Hazardous from 100 + years of diesel and chemicals become clean and free to build on? Very interesting………What a bunch of crooks and a bunch of money can do…………………………………..

    • You

      So true………………..

      • Joe

        Life is short and this is what you do you do with your life? Nothing but downer loser mindset. Name one big city that is economically prosperous that doesn’t have a national sports franchise?

  • Cris

    Here’s what an arena can do…entice businesses to stay, entice new businesses to come. No perhaps not directly increase jobs to a great extent, but tangentially as the downtown revitalizes and the arena is used as the cherry on top of an advertising package to bring investment and new business to this area.

    • Bob Bobster

      INCREASE TAXES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You forgot that.

      • mrmike

        Where are the increased taxes? If taxes were increased there would have to be a vote on the ballot. They’re selling off parking for huge amount of money that no one would pay for w/o an arena deal.

        You need to invest to be able to make money. (the city is investing in a new arena which will generate tax revenue for the city long term)

    • King of SactoOtherWorld

      I can’t wait for all those beer maid, hot dog vendor, and ushering jobs to hit. Gee, I hope to make enough money selling hot dogs and brauts to pay my increased local taxes and parking fees….downtown here I come! Pass the word or is that ketchup?

  • FLOP

    Just the look of Stern in the picture above makes me think Sacramento just got it up the ole shaft!

    • You

      Stern’s face says it ALL…………BEND OVER SACRAMENTO

  • ..............

    What’s more important…A new arena or Fixing up our Schools for OUR Children? O yea.. We have a Black Mayor..PLAY BALL!


      Get the FACTS. IDIOT !!!!!!

  • Susie


  • Arena agreement reached between Johnson, Maloofs | ranSACkedmedia

    […] Sacbee, CBS 13, KCRA, News 10 Related […]

  • Independent voter

    Could it be that D. Stern is snickering to himself, thinking what a total cretin KJ is to sign off on this deal?

  • Andy

    on a clear day you will be able to see the new arena from the twin 54 story condo towers…. in other words I’ll believe it when I see it. Koula is a doll!

  • liz

    lets organize a protest!!!!! this is a criminal waste of money and time, and we have to suffer for it. all it will bring downtown is traffic!!


      Trafic at night YEA!!! New restaurants, lots of tax money for the city. lots of new jobs. Your head is where the SUN dont shine !!

      • DTCHRIS

        traffic !!

    • Joe

      Get a freaking clue! This will only bring life to downtown and make it a magical place just like other parts of the country. Oh wait I forgot you’ve never left Sacramento. Loser!

      • You

        Bend over Joe and take it like a man!!!

  • ben lujan

    NBA, Maloofs, Developers and KJ, 4, Sacramento, 0. Way to go. Don”t you just love it when you have all these money grabbers deciding your future. KJ, City Council, do not forget (We the People) have the power to oust you ALL!

1 2
blog comments powered by Disqus
The Taz Show
LIVE: Monday through Friday from 6am – 6pm ET

Listen Live