The above chart is a visual representation of how much each party involved with the proposed Downtown arena was obligated to contribute, according to the term sheet agreed to on March 6th, to the pre-development costs. The green column is the amount the NBA has agreed to float the Maloof’s to keep the deal moving.
The NBA has stepped in to kept the the arena deal alive after the owners of the Kings balked at the idea of paying for pre-development construction costs. What remains to be seen, however, is if the league’s latest loan to the Maloof’s will be enough to keep the deal from falling apart down the road.
Originally, the plan agreed to in a handshake deal in Orlando called for the city to contribute over $6 million for pre-development costs, with AEG and the Maloof’s contributing another $3.25 million each. Now, the a spokesman for the Maloof’s says that “the team should not be responsible for the pre-development expenses,” and that ”That has been the position of the Kings from the start.”
NBA Commissioner David Stern stepped in last night and committed $200,000 on behalf of the Maloof’s pre-development obligation. That still leaves $3.05 million of the Maloof’s contribution unfunded, for the time being. “… discussions have stalled,” said Stern on Thursday night, “but I have advised Mayor Johnson that the NBA will advance pre-development expenses on behalf of the Kings pending our report to the NBA Board of Governors at its meeting on April 12-13.”
Meanwhile, the Sacramento City Council is set to vote on Tuesday whether or not to proceed with their $6.5 million contribution.
Source: Sacbee.com
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