Once again the Sacramento arena deal is in jeopardy. Kings owners Joe, Gavin and George Maloof appear to be taking issue with some of the terms of the arena deal. Under the agreement, the Kings and arena operator AEG each agreed to pay about $3.25 million in pre-development costs with the city paying the remaining $6.5 million. The Maloof’s do not want to pay any of the cost.
Mayor Kevin Johnson said Sacramento has “done our part” and now it’s up to the team to do the same. ”Your handshake is your handshake. Your promise is your promise,” Johnson said. ”We are 100% committed to moving forward under the framework laid out in the term sheet,” Johnson said. “And there should be no expectation in (Friday’s) conversation that this deal is subject to further negotiation. In light of these facts, the ball is in your court.”
Another letter sent by Sacramento’s businesses leaders to Stern was not kind the Maloofs. The letter asked the league to “strongly encourage” the Maloofs to sell. It also accused the Maloofs of not negotiating in good faith and questioned whether the owners have the finances and motivation to keep the team in Sacramento.
The Maloofs claim they are not moving the team to Anaheim. This claim was made last year, but our source said this was a done deal and only fell through because the residents of Anaheim were able to block the deal.
The Maloofs have also suggested to renovate the current arena. They said the new arena deal is unworkable. ”Why don’t we look at redoing Power Balance?” Maloof said. “Most of our customers enjoy going to Power Balance. … It just seems more natural.”
Meetings between the NBA, Johnson and the Maloofs will continue today in New York, where the NBA’s Board of Governors are meeting.