NBA Kings File Bankruptcy Claim Against Naming-Rights Partner Power Balance
The NBA Kings filed a claim in U.S. Bankruptcy Court for $8.3M -- the “unpaid amount left on the naming rights deal that turned Arco Arena into Power Balance Pavilion last year,” according to a front-page piece by Dale Kasler of the SACRAMENTO BEE. While the contract “was supposed to run through 2016, the relationship was left in limbo after Power Balance filed for Chapter 11 bankruptcy protection last fall.” The Kings said that they are “still talking to the company that bought Power Balance out of bankruptcy about salvaging the relationship.” But the court filing “raises the possibility of the team severing its ties.” Not only would Kings Owners the Maloof family “be out millions, they would have to spend money erasing all traces of Power Balance from the arena.” Team attorney Robert Trodella in the court filing said, "The Kings estimate that removing (Power Balance's) logo from the arena building and practice facility, various locations within the arena, and other locations such as programs, stationery and merchandise will cost approximately $200,000." The court filing said that Power Balance “was to pay $975,000 the first year, $1.53 million the second, $1.9 million the third, $2.25 million the fourth and $2.35 million in year five.” The team thus far has “collected just $700,000 of the first year's amount” (SACRAMENTO BEE, 2/18).
ROCK THE VOTE: In Sacramento, Tony Bizjak noted an opinion poll was circulating over the weekend that asked city residents “whether they would support a $1 to $3 surcharge on out-of-town motorists who park in city garages when sports, concerts or other entertainment events are being held at a planned downtown arena.” If surcharges were to be included in the plan, they “could help bump up revenues to finance the arena.” A city official on Saturday said that the parking surcharge on non-city residents “is not, however, part of the city's still-forming financing plan for a $387 million arena” (SACRAMENTO BEE, 2/19).