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Mayor Kevin Johnson on Thursday sounded resigned to the idea Sacramento may soon lose its professional basketball team.
A day after his first conversation with the Sacramento Kings' owners in more than a month, Johnson said Anaheim and its city-owned arena, the Honda Center, have this city beaten on too many fronts.
Anaheim has a lucrative TV market and the Walt Disney Company’s Disneyland and other Fortune 500 companies that can buy sponsorships and luxury boxes and suites – critical revenue streams for basketball teams, in addition to ticket sales. Sacramento's economy is struggling and its arena is outdated, he said.
"It's a business decision and the economics of Anaheim are better than the economics for them at this state here in Sacramento," Johnson said in a late-afternoon press conference at City Hall. "They are fully exploring their options, which appears to be Anaheim."
Johnson has been trying to meet with the Maloof brothers, who own a majority share of the Sacramento Kings, since Feb. 19 during National Basketball Association All-Star Weekend in Los Angeles, when NBA Commissioner David Stern confirmed rumors the Maloofs have been talking with Anaheim officials about a possible move.
The Maloofs also made it clear during the discussion with Johnson before Wednesday night's game against the Portland Trail Blazers that they will not sell their interests in the Kings.
The Maloofs aren't willing to negotiate a deal for the Kings to stay in Sacramento or share any financial documents about Kings and Arco Arena revenue unless a deal in Anaheim falls through, Johnson said.
"I do not think Sacramento can influence the outcome of their decision," he said. "I'm OK with that. I think we're all OK with that. It's a decision they're going to have to make."
During a phone call with the mayor Wednesday, NBA Commissioner David Stern encouraged Johnson to continue to "fight" for the Kings – but said he'd support the Maloofs when they make a case to move to Anaheim to other team owners during the NBA Board of Governors meeting April 14-15.
On Tuesday, the NBA board extended the Kings’ deadline to file a relocation request to April 18.
Bracing for the likelihood the Sacramento Kings will be leaving town, business leaders said in a separate press conference Thursday that the time is right for the region to pull together to get a new sports and entertainment center built downtown.
Downtown redevelopment and the region's $2.4 billion convention and tourism industry and other businesses would benefit by having a state-of-the art facility downtown, said Sacramento Convention and Visitor's Bureau President Steve Hammond.
"This is about so much more than the Kings," said Downtown Sacramento Partnership Executive Director Michael Ault at a morning press conference inside the Sacramento Convention Center. "There are too many examples of urban centers .... where these facilities have been catalysts."
In a rare joint press conference, Ault, Hammond and Sacramento Metro Chamber President Matt Mahood threw their support behind an arena effort led by Johnson – who until now has been the lone leader addressing the unfolding situation involving a possible Kings departure.
An arena and events center can be expected to draw 3 million visitors to at least 225 events each year, they said.
Leaders from 14 business chambers throughout the area recently met and agreed to collaborate to determine what type of arena and event center is needed and how to get it built. The community must "prepare itself" that public investment will be needed, Mahood said.
Hammond quickly added that efforts to fund the facility must include "opportunities" for the businesses that would benefit and that business leaders couldn't expect all the funding to come from taxes.
Just what that would mean – whether it might be businesses buying luxury suites at a new arena or some other type of funding – is uncertain. Business leaders are awaiting a list of financing options being put together by a development team, they said.
The Sacramento area has lost several major conventions, primarily religious conventions, that would have brought 10,000 to 15,000 visitors to the area because there isn't a big enough facility near downtown's hotels. Those visitors would stay at hotels, eat at restaurants and spend money in other ways, Hammond said.
The six-county region's 2 million residents would benefit by having a facility that could accommodate much more than just professional basketball, which Arco Arena was built for. A newer and bigger facility could handle the kinds of events and concerts that residents must drive to the Bay Area for, such as hockey games and big concerts, they said.
Leaders of the ICON-Taylor development team told Johnson after Stern confirmed rumors about the Kings' possible move to Anaheim they would use financial data from comparable NBA markets to prepare a financial analysis for building an arena.
The Maloofs agreed to communicate more quickly and openly with Johnson and the city in the future. They'll make sure he's one of the first to know once a decision about a move has been made.
"They told me if they do decide they don't want to be here, they'll let me know immediately," Johnson said.
Kings officials declined to comment Thursday.
Videos by Brandon Darnell. Suzanne Hurt is a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.
Farewell, Kings! We shall not miss your noisome and rapacious owners.
The city is now looking at building an arena without a primary tenant (which previously would have been on the books for $300 Mil), while reeling from the dejection of being considered a substandard metropolitan area. The convention and tourism industry has always been the primary reason this arena needed to be built, but many people have been so busy turning their altruistic noses up towards the Kings and the Maloofs that they never saw that. It has never been solely about the Kings, but even if it somewhat was, it only adds to the need for an arena for the benefit of Sacramento Area fans and visitors.
It's alright for a city to have a professional sports team AND try to improve other aspects at the same time, however most naysayers act like they are in opposition. I don't feel that once the Kings leave, all other problems in the city will suddenly improve as a result of the removed "frivolous" diversion, I think it's a pretty naive thought to think so. Our schools will still be failing, and people will still be unemployed... If that were the case, there would be overwhelming cause in EVERY other large city in the US to abolish their professional sports teams, yet there isn't.
Sacramento will continue to grow and become a larger city, so thinking that losing the Kings, or not building a new arena will cause the city to be a better small city is also something naive to really expect.
The first deal was a stinker that the city rolled over for. It was rejected because it was one sided - and that side was in favor of the owners. The second deal was negotiated by the NBA and fell apart because Cal Expo made a reasonable decision.
I still think the Cal Expo board has tanked the future of the state fair by turning down the convergence plan. A developer offered them a brand new turn key site and assumed all risk by banking on future real estate value. Go figure....
anaheim is 26 miles away from L.A., a city that already has two NBA franchises. LA has a hockey team and anaheim has a hockey team. there are four already established franchises in the area. now i am sure the economic reality of the situation is "yes" there will be more profit available, however, they will be the fifth wheel. its not like anaheim doesn't already have supporters of the lakers and the clippers (especially with the emergence of blake griffin as an exciting young talent). but anaheim is still more appealing that beating the head against the wall of sacramento or going to a similarly smaller market like kansas city (who already has an empty arena waiting for a franchise).
but, if an arena was built 5-10 years ago when it should have been, the business side of things would probably not have been affected by the personal side of things. if i sit in my favorite restaurant for a 1/2 hour at the table waiting for my server to even take my drink order, then i am getting up and leaving and taking my business elsewhere. it won't matter how great the steak is, if they treat me like dirt, then i will take my business elsewhere. the city council and former mayor haven't exactly shown they cared about the kings. so the maloofs became tired of waiting at the table and are deciding on another restaurant.
yes it is business, but the maloofs do care about this community (no matter how most feel about them, you don't have a business in a community for over a decade and not grow some attachment to the area). they have given this city every chance to understand the importance of their franchise, both economically and socially. i urge you to check out the sacramento business journal's latest edition. there is a front page article detailing how much the kings mean to this area economically. this city and surrounding areas will take a huge financial hit. all because the city council made it personal and took the business side of tihngs out of the equation.
if you can't access the article, i have made a copy of it and would be happy to scan and email it to you. in a nutshell, the kings mean $100 million to the local economy annually. i'd say that is a pretty good investment on $70 over "x" amount of years. i don't remember the length of the loan, but let's call it 15 years. the city gets back $70 over that time and the local economy gets back $1,500,000,000.00. i'd call that a pretty good return on the investment. for example, when visiting teams come to arco they take up hotel rooms. those teams spend $6K to $8K per night. this equates to approximately "$287,000 directly in room rents and additionally about $34,440 in transit occupany taxes" (sac business journal article, 3/4/2011 "who get's hut if kings leave town").
i highly suggest reading the article. there are other tidbits of info, for instance "The family says it has contributed $19million in cash and in-kind donations over the 11 years it has owned the team". i don't think any of those charitable organizations would say that $19 million isn't enough.
and "Preliminary results indicate that two-thirds of those surveyed patronize other businesses each time they go to a kings game". this has been one of my stances since this issue has come up. the kings bring money from outside the city limits, into the city limits. and those businesses rely on those outside dollars coming in.
there will be many affected if the kings leave. i submit the return on the investment is worth the price.
I read so many reports which appear swayed to deceive or propaganda but I try and keep an open mind hoping that one day I can read something without special interest / hidden agenda.... But the Kings appear to want to leave so I see little point in crying over spilled milk. But reading it can be a lesson towards future endeavors. Perhaps if we know better; we'll do better when and if given another opportunity of a NBA team. But Rich, if the kings loved this city I don't they'd have to be bought. You can't buy love and genuine love is unconditional for better or worse. God is Love Rich. Genuine Love will always be free and not for sale. If they loved the city or genuinely wanted to stay in the city they'd sit with Johnson, council, supervisors and ask how can we make this work for us all. But they'd rather have us hanging in limbo with a if-I-can't-leave-and-I-have-no-choice-but-to-stay-we'll-remain-here attitude. I’ll read the info but I don’t follow the money; I’d rather follow my heart. It may leave me financially broke- lol; but with a rich conscious--lol