Sacramento officials are seeking a contribution of "about $85 million" from Kings Owner the Maloof family for a proposed downtown arena, according to sources cited by Kasler, Lillis & Bizjak of the SACRAMENTO BEE. Negotiators are “scurrying to complete a ‘term sheet’ in time for the March 1 deadline imposed by the NBA” for the arena plans, but it is “not clear the NBA -- which is negotiating on the team's behalf -- will agree, and negotiations are far from complete.” The term sheet, which city staff “expects to present to the City Council on Feb. 28, would be nonbinding.” The city believes the financing plan “would draw on a blend of sources, including the Kings' contribution, an expected $50 million from arena operator AEG and $40 million or so from the sale of public lands.” Hotel taxes “could play a role, too.” The city “would provide the biggest piece of the puzzle by leasing out its parking garages and meters to private investors -- a deal that could raise perhaps $200 million or more in upfront cash.” A source said that NBA Commissioner David Stern's “top lieutenants,” including President of League Operations Joel Litvin and Exec Counsel for Business & Finance Harvey Benjamin, “are involved in the talks.” What is “unclear is whether the Maloofs are willing or able to put in” the $85M. But if the NBA “likes the financial package, city officials expect the league could begin pressuring the Maloofs to bring in new investors or sell the team altogether” (SACRAMENTO BEE, 2/16).
