Will Sacramento Kings come to Va. Beach? The latest.

November 9th, 2012 at 12:17 am by under News, Politics, Sports, Uncategorized

On Tuesday, the Virginia Beach City Council will be presented with the final consultant’s report regarding the feasibility of building a $350 million arena.

The clock is ticking, so where are we now?

Governor Bob McDonnell, Beach Mayor Will Sessoms and officials from Comcast-Spectacor met in Richmond last week along with Sacramento Kings owner George Maloof in regards to the Kings moving their team to Virginia Beach.

Most of my sources tell me today they don’t believe the arena can survive without the assurance that the Kings will sign a long term deal.

But it won’t be cheap. The Kings will have plenty of expenses, at least a $30 million dollar relocation fee to be paid to their fellow NBA owners, as well as $10 to $15 million in moving expenses. As much as the owners would like Virginia Beach to help them with their $67 million arena debt in Sacramento that will never happen.

The Kings would have to play their games at the Ted Constant Center at Old Dominion for two seasons while the arena is being built.

Thus the team would want to be compensated for lost revenue–the total cost, including relocation fees, moving expenses and lost revenue for two years would be somewhere around $100 million.

It may sound like a lot but that is not an outrageous assumption, and it can be paid over time.

Already one consultant report, given to state officials, concludes an arena with an NBA team could generate as much as $182 million in visitor spending each year, with the state alone taking in almost $11 million in tax dollars.

Throw in the publicity of having a major league sports team in Virginia and the governor, mayor, and local business folks think it’s a good idea.

If the numbers add up.

A big chunk of the money would have to come from the state, as much as $105 million dollars, which would be paid to George and Joe Maloof the owners of the team for relocation fees and lost revenue, with any money left over to be used to help the city with construction costs.

The state would also help with financing bonds needed to build the arena.

Comcast-Spectacor and Live Nation, who are putting the deal together, will also probably be asked to kick in as much as $35 million dollars in cash to help make this happen.

Another option is, if the Kings don’t get what they want, would it be viable to build a less expensive arena–that would host concerts, big college basketball tournaments, like the ACC, ultimate fighting, big religious conferences, and then someday go after another NBA team, or maybe an NHL team that could move right in. Thus no lost revenue to be paid out since the arena will already have been built. That would be a $100 million savings alone.

That would probably rule out any money from the state right now, which might be enough to kill the deal, unless the NBA would guarantee Virginia Beach an expansion franchise, which seems out of the question.

Again the City Council will receive their own consultants report on Tuesday, but will the Kings buy in?

Can the arena happen without the Kings?

A complicated situation that could come to a conclusion one way or another by the end of the year.

6 Responses to “Will Sacramento Kings come to Va. Beach? The latest.”

  1. Char James says:

    Why would a “less expensive arena” be of interest to “another NBA team, or maybe an NHL team”? I’m not a rabid sports fan, but I just can’t believe an arena of interest to the Kings…or any team in their league…would be financially viable in this area. I just don’t see it happening. Possibly it would work better if light rail were available to get to it…but that, in itself, is years away.

  2. Mike Riordan says:

    Paying all of the Maloofs’ expenses is just the start. From there, you need to structure the deal so that they collect an absurd share of the revenue with zero risk or responsibility. Seriously, check out the “red line” version of the Sacramento term sheet that they initially agreed to, but then killed with crazy demands once it was time to cut the first check (I won’t post a link, but it shouldn’t be too hard to find). Also, search for the video of George Maloof with his lawyers and hired-gun economist trashing the economic viability of investment in a new arena. There’s a reason why the head of Sacramento’s arena task force said that working with the Maloofs is like working with the North Koreans (which he did in the Clinton White House), only the North Koreans are more competent.

  3. DaveM says:

    I’m sorry, but the ACC will not be putting their basketball tournament in VA Beach. There are no logical ties to the area at all. Greensboro, NC is the home of the ACC and they almost exclusively host the tournament with exception to stops in Atlanta or Charlotte. Add NYC into the mix since they will be adding Syracuse and potentially UConn into the fold. Not a snowballs chance for VA Beach. Might want to think about the Colonial or Atlantic 10 instead.

  4. Betty Donnelly says:

    No No and No again. This is the last thing Va Beach needs we need to get our Roads fixed, more Teachers. Decent Bus service in Tidewater not Light Rail.
    We already have a Sports arena and a Downtown it’s called Norfolk and Scope. If I wanted a big City I would have stayed in New York. How many Diesel Electric Hybrid bus’s would the money they want to waste on Light Rail buy ? I rode the Bus two years ago from Ghent to Pembroke to pick up my new Car. Two hours
    rediculous I vowed never to ride it again. I would ride the bus if we had service like NY.

    1. GB says:

      Dunno how to break it to you, but Virginia Beach has nearly 450K, in a region of close to 2 million. The fact that they’ve made it on a small-town mentality this long is shocking, to say the least.

  5. shabaz morton says:

    I am from Sacramento and all I can tell all of you is be afraid. Be very., very afraid. You don’t want to deal with the Maloofs. They are more crooked than scoliosis. Remember-their name spelled backwards is:

    foolam

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