City To Disband Sacramento Sports Commission After It Defaults On Loan
SACRAMENTO (CBS13) – Sacramento is disbanding its money-troubled sports commission after getting stiffed on a $400,000 loan it granted the commission’s foundation.
The Sacramento Sports Commission, which recruits big sporting events to the region, has been in the red for years, and any attempt at a last shot appears to be sunk.
They’ve cycled through the options; and now, Sacramento’s sports commission has hit the finish line.
“Is it a black eye for Sacramento? I don’t think so, if we make it an easy transition,” a city spokesperson said.
The Sacramento City Council will vote on cutting ties with the commission and its non-profit foundation after defaulting on a $400,000 city loan.
“It was not expected that the city would be at risk here,” said the spokesperson. “So, yes, we were definitely looking for that money to come back.”
A city audit determined the numbers did not add up, and that the foundation mismanaged the loan money. It was supposed to be kept in the foundation’s own account, but was commingled with other foundation revenues.
No portion of the loan has been repaid.
City staff is recommending the Sacramento Convention and Visitors Bureau take on the role of marketing Sacramento sports venues. In exchange for the business, it would replenish the $400,000 loan amount.
“Obviously it’s not our loan, and it’s not our load to repay. But replenishing money into the civic coffers was the right thing to do, and a way to make everybody happy with the agreement,” said Mike Testa with the Sacramento Convention and Visitors Bureau.
As for the Sacramento Sports Commission, after 25 years, it appears to be game over.