Sacramento Could Lose Kings If Arena Doesn't Open By 2017

[RealGM Wiretap]

The NBA has set "a series of benchmarks" for a new arena that the Sacramento Kings' new ownership group must meet in order to keep their team.

The NBA has the option of pulling the Kings out of Sacramento and to arrange a sale to new owners if the deadlines are not met.

The Ranadive group agreed to the deadlines in writing, David Stern said.

Stern said that he expects the group to meet the deadlines, but the owners insisted upon the agreement in case the arena project fails.

The NBA is insisting that the new arena open no later than 2017, which is actually one year later than city officials forecast.

Ranadive's group closed escrow on the team's purchase early Friday.

Via Dale Kasler, Tony Bizjak, Ryan Lillis/Sacramento Bee

[Brushman34]

No one comes to King games, how can we draw in a bigger audience?? Hmmm...raise taxes and build an arena financed a good deal by the city that we will never see a return on?? GREAT IDEA KEVIN!!!
While i hate seeing teams move cities, this might be a great example of when to pack up and leave.

[sonictecture]

Any fan base with an older arena is accustomed to the NBA threatening to take their toy and move to a new City willing to give more money, but what is weird here is how the current owners and league office has asked the new ownership group in Sacramento to give up certain rights of ownership in writing. Like it's not enough just to come up with half a billion dollars anymore you have to agree not to take revenue sharing despite the disadvantages of your smaller market and you have to agree the NBA can take back your investment if an arena deal with the City falls apart. Not that you can move, but the NBA will take the franchise and sell it to someone else of their choosing.

It's a strange welcome to the exclusive club.

[Seralin]

No one comes to King games, how can we draw in a bigger audience?? Hmmm...raise taxes and build an arena financed a good deal by the city that we will never see a return on?? GREAT IDEA KEVIN!!!
While i hate seeing teams move cities, this might be a great example of when to pack up and leave.

Aren't they just giving them space to build the arena? If there were negatives the city would not have supported the Mayor to try to keep the team in Sacramento.

[floppymoose]

Like it's not enough just to come up with half a billion dollars anymore you have to agree not to take revenue sharing

That was a straight up bribe from the Kings' new owners to the rest of the owners to get them to approve the deal.

And that bribe was offered because the new owners still expect to make a great return on their investment without the revenue sharing money.

And that return is purely because of the huge shift in revenue from the players, to the owners, in the recent cba.

[Kerrsed]

The owners insisted upon the agreement in case the arena project fails because they know that the city is fighting against paying for a new arena, and having the agreement in place allows the to sell the team to the Seattle group that was going to purchase the Kings for $100+ million more than they got it for. Thats a huge easy profit to be made.

Buy a team (knowing you cant keep it in Sacramento), then turn around and sell it 3 years later to the guys that outbid you the first time around for $100M more. Smart easy money.