Posted this in the bond thread. Thought it deserved it's own.
http://blogs.sacbee.com/sports/kings/archives/2011/03/city-of-sacrame.html#
http://blogs.sacbee.com/sports/kings/archives/2011/03/city-of-sacrame.html#
City of Sacramento directs Ahaheim to stop negotiations with Kings.
- Thread starter Hoovtrain
- Start date
This just hasn't been the best day for the Maloofs, has it?
I'm not sure if this has any clout with it, but at least it sends the message that you don't do this without it getting a bit nasty. But the nice part is that it sends the message that signed agreements should be honored. Anaheim could probably look at this and say it's not their problem. And it really isn't. But you have to be an idiot not to catch the reference to the EIR shot across the bow. I guess those lawyers fees were for more than just a little reading and advice. It sounds like a retainer to start a litigation war.
I'm not sure if this has any clout with it, but at least it sends the message that you don't do this without it getting a bit nasty. But the nice part is that it sends the message that signed agreements should be honored. Anaheim could probably look at this and say it's not their problem. And it really isn't. But you have to be an idiot not to catch the reference to the EIR shot across the bow. I guess those lawyers fees were for more than just a little reading and advice. It sounds like a retainer to start a litigation war.
An existing contract is currently in place. The only way the contract is no longer in effect is if the bonds are paid. Any moves by the Kings and Anaheim could be considered in violation of the current contract and the city could seek recourse agains the Kings and Anaheim.
This is something I've continously brought up the past few months. What does the lease with the city say. Do the Maloofs need to pay off the bonds before anything can be signed with another city.
This is something I've continously brought up the past few months. What does the lease with the city say. Do the Maloofs need to pay off the bonds before anything can be signed with another city.
Well. So things are going to finally get nasty. I'm sure the Maloofs will really want to stay in Sac now. Of course, if Sacramento succeeds in forcing their hand...what's the resolution?
I know they've rejected this before, but if their hand is forced...there's an NBA franchise without an owner and in peril of being moved at any time down in the Big Easy. The Maloofs sell their interest in the Kings to a local investor in exchange for interest in the Hornets. Then, when possible, move the Hornets. They get to (try to) move a team to Anaheim, and Chris Paul. We get a local investor who will be patient enough to keep the Kings in town while we get an arena done. (Hey, a guy can dream, can't he?)
I know they've rejected this before, but if their hand is forced...there's an NBA franchise without an owner and in peril of being moved at any time down in the Big Easy. The Maloofs sell their interest in the Kings to a local investor in exchange for interest in the Hornets. Then, when possible, move the Hornets. They get to (try to) move a team to Anaheim, and Chris Paul. We get a local investor who will be patient enough to keep the Kings in town while we get an arena done. (Hey, a guy can dream, can't he?)
It's unreasonable to ensure that the Team lives up to it's agreed up contract? Not in my book. The are within their rights to warn Anaheim that if they should approve the bond sale, that amounts to enticing the Team to break a lease here. If the situation were reversed and they were about to skip your town and leave you holding the bag, you would want your city to employ whatever legal tactic they could to stall or disrupt the process.
They are just saying they want the team to do right by the city here. Sorry if that part about having to pay 77 million back when they point the trucks south on I-5 is most inconvienent, but too bad. Movin on up isn't cheap.
They are just saying they want the team to do right by the city here. Sorry if that part about having to pay 77 million back when they point the trucks south on I-5 is most inconvienent, but too bad. Movin on up isn't cheap.
Haha, they updated the story. More red tape.
Dangberg ends the letter to Anaheim City Manager Thomas Wood by saying Anaheim's environmental review of the impacts of the Honda Center improvment project is "woefully inadequate." An environmental impact challenge is a typical precursor to a lawsuit.
Read more: http://blogs.sacbee.com/sports/kings/archives/2011/03/city-of-sacrame.html#ixzz1Hwkzm94p
Dangberg ends the letter to Anaheim City Manager Thomas Wood by saying Anaheim's environmental review of the impacts of the Honda Center improvment project is "woefully inadequate." An environmental impact challenge is a typical precursor to a lawsuit.
Read more: http://blogs.sacbee.com/sports/kings/archives/2011/03/city-of-sacrame.html#ixzz1Hwkzm94p
Basically the law firm that KJ hired wrote this letter for $150K and told John Dangberg to sign it.
At this point, its obvious the Maloofs want to go. If they don't file, it doesn't mean they want to stay. Does the city really want a team like that?
I don't see Sac being able to win any lawsuit against Anaheim. They can sue the Maloofs, but there is no grounds against the city of Anaheim. Its not their responsibility to enforce the terms of the loan.
I understand the city officials are more concerned about the Maloofs repaying the bonds than them staying. It really just comes down to the language of the bonds and what was agreed to.
At this point, its obvious the Maloofs want to go. If they don't file, it doesn't mean they want to stay. Does the city really want a team like that?
I don't see Sac being able to win any lawsuit against Anaheim. They can sue the Maloofs, but there is no grounds against the city of Anaheim. Its not their responsibility to enforce the terms of the loan.
I understand the city officials are more concerned about the Maloofs repaying the bonds than them staying. It really just comes down to the language of the bonds and what was agreed to.
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No, take this for what its worth from a professional in the field, but this is the right/last thing you can try to do. Being nice isn't going to cut it -- its obvious the Maloofs are lining up to leave and aren't even talking about not doing so. So once nice is off the board, that's when it comes time to make it expensive and try to convince them that way. Make their partners nervous. Its a strike suit, Sacramento will likely have to settle or lose, but ANY disruption or delay the city can cause is in its best interests at this point. Any doubt they can throw into the proceedings on the 15th. Remember the Maloofs are still on an extension here, if you can muddle things past the extension time, or worry the other owners enough to have doubts, or just anything, who knows, then maybe you throw a wrench into the works and survive this deadline. That's got to be the goal now. Survive this deadline, through whatever means. If you can somehow divert it this year, then the longer you can keep them in town, however unwillingly, the longer you have to start building an arena, which at some point would make it very hard for the Maloofs to justify a move to the other owners.
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The idea of delaying them pass the deadline buys time has already been discussed many times. If your answer to my question is "NO" as in you don't want them, then there is no point to extend.
Buy time or not, Anaheim has no responsibility to help Sac enforce anything onto the Maloofs. As long as their lawyers confirm that part, they can still vote as they wish.
They said they wouldn't leave on the assumption they had rational partners. People take wedding vows too and entirely mean them...until their partner gambles away the house and cheats on them.
In any case selling would not help, unless it be to Ellison who would still take the team elsewhere, just closer. Unless Sacto gets its act together, ANY owner's first move is going to be to pick up the phone and see if anybody out there with a modern arena wants a team. Its surviving the deadline in a few weeks that is everything at this point. Have to survive now for anything else to be in play. Doesn't matter how. If it takes slashing the tires of the moving vans, then so be it. The Maloofs are still basically franchisees -- they can no more just move the franchise without permission than the guy who owns the McDonald's downt he street can just pick up and move it to Seattle without the home office's go ahead. Stop any wheel in the process and they are stuck until next year and you have time to make your case.
In any case selling would not help, unless it be to Ellison who would still take the team elsewhere, just closer. Unless Sacto gets its act together, ANY owner's first move is going to be to pick up the phone and see if anybody out there with a modern arena wants a team. Its surviving the deadline in a few weeks that is everything at this point. Have to survive now for anything else to be in play. Doesn't matter how. If it takes slashing the tires of the moving vans, then so be it. The Maloofs are still basically franchisees -- they can no more just move the franchise without permission than the guy who owns the McDonald's downt he street can just pick up and move it to Seattle without the home office's go ahead. Stop any wheel in the process and they are stuck until next year and you have time to make your case.
Actually that's not true -- I suspect you could even make out a little tortious interference claim against Anaheim if in fact the Maloofs do not pay, enough to survive a motion to dismiss, and then Anaheim the city finds itself a party to a lawsuit. Even if it eventually wins, you can stretch it out and make it expensive -- trust me on this -- drag them throguh as much mud as possible, and try to make them sour on the whole deal. Or if not them, then to make the voters down there sour on the idea of getting sued/paying money for a team they ar not wildly enthusiastic about.
The threat of such a thing in turn causes them to call the Maloofs and make sure the loan is going to be immediately paid, whic in turn causes the cash strapped Maloofs to ask Anaheim for enough money to do it, or makes them rethinki things, or makes the amount of the relocation fee critical, or just anything. You are attempting now to sow doubt, so you fling your arrows and hope one finds a chink in the armor somewhere.
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Any idea what kind of legislation could be sought? Fortunately the lead guy in the Senate is from Sacramento.
Let us say it stalls this out a year and in the meantime the city or someone starts to build or has the plan and the money for an arena.
Then does the NBA OK a move? A city that has supported a team well enough to be newsworthy in a city that has REAL plans to build an arena tries to keep a team. I think that can be a vote changer.
This is a first things first idea on a long shot.
Let us say it stalls this out a year and in the meantime the city or someone starts to build or has the plan and the money for an arena.
Then does the NBA OK a move? A city that has supported a team well enough to be newsworthy in a city that has REAL plans to build an arena tries to keep a team. I think that can be a vote changer.
This is a first things first idea on a long shot.
And the chance of getting local owners is just not going to happen even if the Maloofs decide to sell.
If this team gets sold, it WILL get moved immidietly. Thats a given. No owner would want thier team to play in Arco. If the Maloofs put the Kings up for sale, I could see someone like Samueli putting in a substantial bid. Lets not forget that the Maloofs would sell to the highest bidder and I could come up with at least 2 people that could outbid anyone in Sacramento and both of those would move the team in a second.
This is just a nice little tactic by the City of Sacramento to stall this move but its not going to stop the Kings from moving. Pitty they couldn't be this proactive on building a new arena for the last decade.
City of Sacramento rightfully wants Maloofs to pay off thier debts before they make the move.
If this team gets sold, it WILL get moved immidietly. Thats a given. No owner would want thier team to play in Arco. If the Maloofs put the Kings up for sale, I could see someone like Samueli putting in a substantial bid. Lets not forget that the Maloofs would sell to the highest bidder and I could come up with at least 2 people that could outbid anyone in Sacramento and both of those would move the team in a second.
This is just a nice little tactic by the City of Sacramento to stall this move but its not going to stop the Kings from moving. Pitty they couldn't be this proactive on building a new arena for the last decade.
City of Sacramento rightfully wants Maloofs to pay off thier debts before they make the move.
Not true. This is the way I see it going down. Local buyers pull together to buy the team. A new arena gets built. The team gets a nice long lease in the new arena. The local owners can now sell their share to a majority and the team stays.
The local owners would just be a transition to get the team cemented to Sacramento.
The local owners would just be a transition to get the team cemented to Sacramento.
They could make an argument that they want to be paid before they file with the NBA. Certainly part of the move is to not screw over a smaller market city. I'm not sure I believe this myself but I can imagine the NBA, especiually powerful owners with a selfish interest in all this, might pound the table and demand to see a bond repayment plan.
After all, as relayed to me "the NBA is very concerned about the reality and/or perception of how they treat their small markt teams." BS, perhaps but that's the official stance and I tend to believe Stern as he seems to love the idea of NBA universiality.
As angry as Stern may be at the city of Sacramento, he has to have some hesitance about the area the team wants to move to for all the usual reasons. The last several moves have all been lateral moves and not small to big market.
Somehow, he is getting his way. Somebody is getting their way.
Does anyone know the last team to move from a small market to a large market? There must be at least one. Perhaps Minneapolis to LA.
After all, as relayed to me "the NBA is very concerned about the reality and/or perception of how they treat their small markt teams." BS, perhaps but that's the official stance and I tend to believe Stern as he seems to love the idea of NBA universiality.
As angry as Stern may be at the city of Sacramento, he has to have some hesitance about the area the team wants to move to for all the usual reasons. The last several moves have all been lateral moves and not small to big market.
Somehow, he is getting his way. Somebody is getting their way.
Does anyone know the last team to move from a small market to a large market? There must be at least one. Perhaps Minneapolis to LA.
And if the Kings move an interesting trend will have started.
Sonics were in Seattle for 41 years. Kings have been here 26 years. The next longest tenure to move is 14 years in a city (Hornets, 76ers)
http://www.tealdragon.net/sports/nbamoves.htm
Sonics were in Seattle for 41 years. Kings have been here 26 years. The next longest tenure to move is 14 years in a city (Hornets, 76ers)
http://www.tealdragon.net/sports/nbamoves.htm