What do you want to hear first in today’s Sacramento Kings news, the hard news or the crazy half-baked rumors? I’m guessing you want to hear wild and crazy, so let’s start there:
If the Kings stay in town under new owners, those new team owners would expect a different deal, a city of Sacramento staff report said today.
Some of the possible differences could include other real estate development opportunities in addition to an arena and the new owners taking the development lead, meaning less risk to the city, according to the staff report. Also, as previously reported, the city won’t necessarily go with the railyard as the arena location. Much attention now is being given to the site of the Downtown Plaza.
Ha ha, fooled you! In the land of Kings arena deals, “we know we want to build an arena but don’t know where or how much it’ll cost or what it’ll include or who’ll pay for it” counts as hard news. For truly out there, we need to turn to Twitter:
— FOX40 News (@FOX40) February 26, 2013
As FOX40 News explains in a marginally longer news article, that’s current Kings minority owner John Kehriotis, who, according the unnamed source, plans to put together $750 million to not only buy the Kings but build an arena, all without “a major financial contribution from the city.” Which would maybe be possible in terms of the basic math — $341 million to buy out the Maloof brothers’ majority share of the team, plus another $400 million or so for an arena — but seems pretty insane from an investment point of view, since Kehriotis and friends would end up saddled with tons of arena debt and have to share arena proceeds with the other minority partners. In other words, it would have all the problems of the Seattle arena plan, only more so, given that Sacramento is a significantly smaller market than Seattle.
Of course, the other possibility is that when the source says no “major financial contribution” from the public, they don’t actually mean that, and the city would have to cough up tons of money for land acquisition or operating subsidies or free land for other development or god knows what else. Still, this latest rumor is bound to even further heat up talk about building a new Kings arena in Sacramento — Newballpark.org already has a long post up calling it “a potential game changer” — which, even if the details are encased in murk, can’t make the NBA too unhappy, since more people in a bidding war are always a good thing, even if they’re potentially crazy people.