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SACRAMENTO CITY COUNCIL WRESTLES WITH KINGS DECISION

          In Sacramento, some members of the eight-person City
     Council "appear to be reluctant to make a call on the issue"
     of a $70M loan to keep the NBA Kings in town, according to
     Tony Bizjak in the SACRAMENTO BEE.  While it will take five
     council votes to OK the deal, "several" say they are not
     pleased with the team's desire for a quick decision, and
     want to wait until outside financial experts see the Kings'
     books, review the deal and offer advice.  Four members are
     "leaning toward approving the deal," three are so far
     against it, and one is "on the fence."  The council has
     granted loans to private businesses before, such as $26M to
     "lure" Packard Bell two years ago, but the $70M being
     discussed would represent the largest loan the city has ever
     given to private enterprise (SACRAMENTO BEE, 1/30).
          NAME GAMES: The "long running feud" over naming rights
     between Thomas and Arco has emerged as a "potential deal-
     killer" in the city's efforts to keep the team, according to
     Gary Delsohn in the SACRAMENTO BEE.  Thomas contends Arco is
     obligated to pay around $1M a year for at least 20 years to
     keep its name and logo on the arena.  Arco has said that it
     has already paid more than $7M under a 99-year agreement
     reached with the prior owners, and that all of the company's
     contractual obligations are fulfilled.  Thomas met with Arco
     Products Co. President William Rusnack and a spokesman for
     Rusnack said Arco might be willing to spend another
     $300,000-400,000 a year to increase its visibility in the
     arena, but not the $1M Thomas wants (SACRAMENTO BEE, 1/30).

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