Representatives of the city of Sacramento, the NBA and Kings Owners the Maloof family were scheduled to "resume negotiations this morning after failing Sunday to finalize a funding plan for a new downtown arena,” according to a front-page piece by Lillis, Kasler & Bizjak of the SACRAMENTO BEE. The parties worked until 10:00pm ET last night, following which Sacramento Mayor Kevin Johnson "emerged to say the process had moved forward -- but that the sides had not reached a deal.” NBA Commissioner David Stern noted the sides "made some progress" on Sunday and that "it is a good thing we're talking again (today)." Johnson would “not discuss what is separating the city and the Maloofs.” Kings co-Owner George Maloof said, "We've still got lots of issues." Lillis, Kasler & Bizjak report the NBA has given the city “until Thursday to come up with a plan or risk losing the Kings.” As expected, much of yesterday’s negotiations “focused on the finances of the Maloof family.” The Maloofs “met privately with NBA officials for much of the day going over a proposed financing plan for the arena.” While the city “requested an upfront payment from the family of between $70 million and $90 million,” a source said that city officials “also proposed allowing the Maloofs to refinance a loan the Kings franchise has with the city.” The balance of that loan “is roughly $67 million.” The source said Saturday that the “city's request of the Maloofs includes upfront lease payments and an estimated $25 million from the sale of land around Power Balance Pavilion owned by the family.” A big part of Sunday's talks “was focused on figuring out how to help the Maloofs come up with the estimated $60 million in upfront lease payments.” The source said that the money requested of the Maloofs “was seen as fair by the NBA, but that there was some question regarding whether the family could afford the payment” (SACRAMENTO BEE, 2/27). Stern said that the league “would not loan the Maloofs money to bridge the financing gap.” Johnson said that the sides “were ‘within striking distance’ and that there have been no discussions of extending a March 1 deadline to have a deal completed” (SACRAMENTO BEE, 2/26).
DIFFERENT OPINIONS: Johnson said, “Everybody clearly recognizes the time constraint of the March 1 deadline, and I can just say there's a sincere effort by everybody in the room to make this happen.” USA TODAY’s Falgoust & Zillgitt note Sunday’s meeting was Johnson's “first face-to-face with the Maloofs to discuss the city's financing plans” (USA TODAY, 2/27). SI.com’s Sam Amick cited a source who said that it is “abundantly clear that George remains an obstacle to a possible deal.” After Johnson “told reporters that both he and the Maloofs agreed that the ‘city has done its part’ in this equation, George told SI.com that he didn't agree.” George Maloof said, "I'm not convinced yet. I'm not 100 percent convinced. I think they're trying. We just got their deal today” (SI.com, 2/26). In Sacramento, Ailene Voisin notes Stern's “affinity for the Kings and Sacramento have been obvious for years.” He “likes the community, is protective of the market and has been expending tremendous energy and time to facilitate a deal.” George Maloof, who “directed the team's threatened relocation last April, remains the most skeptical of the siblings.” He is the brother “who develops projects, he says, which causes him to be more cautious.” Stern at the meetings was “accompanied by Deputy Commissioner Adam Silver and league attorneys Joel Litvin and Harvey Benjamin, among others.” The Maloofs were joined by Kings Senior VP/Business Operations John Rinehart. Johnson “led a Sacramento contingent that included City Manager John Shirey, Assistant City Manager John Dangberg and consultant Chris Lehane” (SACRAMENTO BEE, 2/27).
