“The Kings get their arena deal” article
1) Who are the parties (key decision makers) of the new arena deal?
The city of Sacramento and the Kings owners are the parties of the new arena deal.
2) List the details and finance tools of the public funds contributed to the new arena.
It is said that the city will contribute $200 million to $250 million to the deal, primarily from leasing its parking garages to a private operator. Other contribution includes revenue from cell phone tower leases and electronic billboards. Entertainment conglomerate AEG has agreed to pay nearly $60 million for the right to operate the city owned facility, up from its original offer of $50 million. AEG will operate the arena under an arrangement similar to the one it has in Kansas City. When AEG operations profits reach a certain threshold, further profits will be split with the city of Sacramento.
3) What funds will the city collect in order to recoup their investment in the new arena?
The city will collect a 3 percent to 5 percent surcharge on every ticket for every event at the arena, both sports and non sports. That revenue will go directly into the city’s general fund. That figure is expected to be in the millions of dollars annually, and will cover a portion of the $9 million in the lost revenues from the city’s planned lease of its downtown garages.
The city also will collect all parking revenue from arena events at its downtown parking garages, even those it plans to lease to a private operator. The city will split those revenues with the Kings during Kings games.
4) What private funds will the Kings ownership contribute to the new arena?
The Maloofs will pay $75 million up front which includes proceeds from the eventual sale of Power Balance Pavilion and the land around it. Also, probably they will pay another $75 million over the term of the agreement.
5) What evidence can you provide regarding whether or not the NBA supports this deal and why?...