City Beat

News, insight and discussion on Sacramento and its neighborhoods

March 1, 2012
Arena term sheet unveiled

The financial term sheet for a new $391 million sports arena in the downtown railyard was released today.

Among the new details released were plans for a privately-financed $25 million premium parking facility next to the arena; a $1 fee on every arena ticket that will be set aside for facility maintenance and operations; and terms of a 50-50 split on naming rights and luxury suite revenue between arena operator AEG and the Sacramento Kings.

The term sheet can be found here.

Kings co-owner George Maloof said there are "some things we still have to negotiate" on the deal, but that he is confident it will get done.

"Term sheets are not final deals, but there's enough in there that there's a roadmap to getting it done and that's our intention," Maloof told me. "It is our intention to get this done and stay in Sacramento."

Maloof would not say which parts of the term sheet still need negotiating.

"There are things we need to figure out, which is typical of a term sheet," he said. "There will be things we have to figure out, but I'm sure we'll get it done."

However, Maloof did say his family will continue talking to AEG. Under the term sheet, the Kings and AEG would split 50-50 the naming rights deal and luxury suite revenue from the arena.

"We're going to sit with AEG and go through some things with them," he said. "There are things that are fair and other things we have to look at."

Maloof said the premium parking plan - which calls for arena developer David Taylor to build a 1,000-space facility close to the arena - "was a big deal, we need that."

"We're pretty satisfied (with that part of the term sheet)," he said.

Maloof said his family is also "pretty comfortable" with both a $1 ticket surcharge to pay for arena maintenance and a 5 percent ticket surcharge to be collected by the city.

As reported on Wednesday, the city is being counted on to provide $255.53 million toward the city-owned project, most of it from either privatizing downtown parking or borrowing against future parking revenue.

The Kings are being asked to provide $73.25 million toward the project upfront. The franchise will chip another $70 million over the next 30 years by allowing the city to collect that surcharge on Kings game tickets.

AEG will contribute $58.75 million to the deal in exchange for keeping much of the revenue from operating the arena. AEG will share part of its profits with the city.

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About City Beat

Ryan Lillis has covered the city of Sacramento, its 108 neighborhoods and its politicians since 2008. Prior to that, he covered crime at The Bee. A native of upstate New York, Lillis has a journalism degree from the University of California, Berkeley.

Contact reporter Ryan Lillis at rlillis@sacbee.com

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