http://www.twitlonger.com/show/gum1e0

Sacramento Mayor Kevin Johnson's letter to Maloofs:

Earlier today I spoke briefly with Commissioner Stern.

On behalf of our City, I expressed our deep appreciation for the league’s
commitment to Sacramento as reflected in the deal all parties agreed to in
Orlando and the term sheet.

I understand that during today’s NBA Relocation Committee you and your team
made a presentation.

During the discussion, it was suggested that a meeting with me tomorrow might
be beneficial.

As has been my commitment throughout this process, I am always happy to meet
in the spirit of open communication and partnership.

However, in advance of our conversation, I believe it important to make clear
several key points:

First, all parties agreed to a deal in Orlando on February 27th, codified in
the term sheet subsequently approved by our City Council. At the time, George
Maloof explained the Maloof Family's reason for agreeing to the deal, saying
to the Sacramento Bee that is it a "fair deal…worth taking."

Any representation that a deal was not reached is simply not consistent with
the perspective of every other party to the negotiation nor the actual
statements of the family.

Second, throughout this process, we have worked closely with the NBA as a
valued partner at your request, as documented by the following Kings' public
statements that the "NBA take the lead on this" while remaining "in very
close contact with the league" and being "apprised of everything that’s
going on."

Third, and most critically, under no circumstances will the City make
material adjustments to the current terms of the deal. Put simply, we have
done our part.

We are 100% committed to moving forward under the framework laid out in the
term sheet.

And there should be no expectation in tomorrow’s conversation that this deal
is subject to further negotiation.

In light of these facts, the ball is in your court.

Our community stands ready to support the Kings and do our part to bring a
state-of-the-art entertainment and sports complex to our downtown.

We look forward to the thousands of jobs, millions in new visitors, and
billions in new revenues such a facility promises for our community.

We take you at your word that you are committed to Sacramento as you've said
repeatedly in recent weeks.

The best - and only - way to demonstrate that commitment is to honor the
"fair deal" as all other parties have done. Your handshake is your handshake.
Your promise is your promise.

Given all that the people of Sacramento have endured and achieved on your
behalf, we deserve nothing less than a partner who will work with the city in
good faith and as a true partner.

Sincerely,
Kevin Johnson


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It was Friday the 13th, so maybe that explains the bizarre horror show of a
gathering at a hotel in midtown Manhattan.
In a shock of a New York minute – and that's how fast this partnership seems
to have dissolved – the parties involved in financing Sacramento's proposed
sports and entertainment complex went their separate ways.

This was a quickie divorce with all the accompanying pain and suffering.

There was no winner here, no winner back there.

NBA Commissioner David Stern spent years overseeing Sacramento arena
proposals and trying to cobble together an effective coalition. He persisted
despite setback after setback. After the Kings almost relocated to Anaheim a
year ago, he sent out an entire marketing team to kick-start ticket sales and
rebuild a depleted business operations department.

Most recently, he squeezed a larger contribution out of AEG and increased the
NBA's contribution to the $391 million project.

He thought an agreement had been reached in principle, a final accord within
grasp. Instead, on Friday, and only minutes after introducing the new
majority owner of the New Orleans Hornets, he finally threw up his hands and
tossed it back to the Maloofs.

Mayor Kevin Johnson, the native Sacramentan and former NBA All-Star,
referenced the need for a new arena repeatedly during his campaign. Creating
jobs and attracting businesses to the urban center: That was part of his
pitch. That was the plan.

His celebrity and his connections galvanized the business community and
helped convince the NBA's other owners to back a one-year hiatus for the
Kings, giving Sacramento one more chance.

And the fans. Can't forget the fans. Is there another roller coaster left to
ride? What emotion haven't the locals experienced these past several years?
Fans have been threatened with relocation, subjected to a lousy product, and,
for a while there, charged ridiculously inflated ticket prices.
Then, just when the city appeared on the verge of a spectacular urban
transformation, anchored by an arena for the Kings, for concerts and perhaps
for Winter Olympics events, Sacramento's big dig became just another big
tease.

Think Kings fans feel like winners?

No chance. This is Robert Horry all over again.

And what about the Maloofs? What about the Maloofs? They wanted to leave.
Then they wanted to stay. Then they wanted a deal. Then they liked the
tentative deal. Then they didn't like the tentative deal.

Anyone with a memory has to remember last year's flirtation with Anaheim and
has to wonder if relocation isn't part of a much larger plot. You know? Kill
the railyard deal and sprint for the Honda Center?

The Maloofs clearly had issues with the railyard proposal, particularly
pertaining to projected revenue streams. They also have become increasingly
uncomfortable with the notion of being a major tenant (Anaheim, railyard
deal) instead of being an owner/operator of a facility (Power Balance
Pavilion). Some local sources are even theorizing that the Maloofs'
preference is to stay put and refurbish Power Balance Pavilion, partly
because the league's increased revenue sharing eases their financial burden.

But after the scene in New York? The abrupt and unseemly manner in which they
didn't do the deal? Seriously?

Stern can scream and cajole and persuade the other owners to oppose a
relocation, which he did. He can coordinate arena efforts that reached the
highest levels of Sacramento politics, which he did. He can entice powerful
AEG into the partnership, which he did. And he can offer loans and guarantees
and make the most recent proposal more appealing to the Kings co-owners,
which he did.

But he can't force the Maloofs to sell. And they're not selling. And,
obviously, they're not buying the railyard concept, either.

"You can call it (the agreement) anything you want," the commissioner said
during a televised news conference, carefully choosing his words. "And I
think it's fair for the Maloofs to say they don't want to do it. If they had
done that a little simpler, a little earlier and a little more directly, it
could have saved a lot of angst and trouble."

Winners?

Somewhere? Anywhere?


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Sacramento's arena deal is dead. And the Kings' reign in the city is once
again clouded by uncertainty.

The family that owns Sacramento's lone major league sports franchise Friday
pulled out of a plan to finance a $391 million sports and entertainment
complex in the downtown railyard. Then, reversing a decade of public
statements, the family suggested instead that city officials could help them
renovate Power Balance Pavilion in North Natomas.
During a hastily called news conference in a law office overlooking New
York's Rockefeller Plaza, a prominent economist and attorneys hired by the
Maloof family took turns tearing apart the city's plan. They argued that it
would place Sacramento on the edge of fiscal disaster and could be equally
damaging for the Kings.

Later in the day, Mayor Kevin Johnson met privately with the Maloof brothers
for more than two hours. But unlike last year – when Johnson was able to
persuade the Maloofs and the NBA to support one more attempt at building a
new arena – the mayor left that meeting burdened with a dark conclusion.

"I wish I had better news," the mayor said. "(The Maloofs) are now saying
they don't want to do the deal, which essentially means they don't want to be
in Sacramento."

Speaking at a somber news conference of his own, NBA Commissioner David Stern
said he was "extremely disappointed both for the Maloofs and the city of
Sacramento."

"I think that there's nothing further to be done," he said.

As for the team's future in the city it has called home since 1985?

"I know we've scheduled them into Power Balance Pavilion for next year,"
Stern said. "It just wouldn't pay for me to talk about anything beyond that."

Now, Johnson returns home to Sacramento without a contingency. He quickly
dismissed an idea floated by Kings co-owner George Maloof that the team and
the city explore renovating Power Balance Pavilion, one of the smallest
arenas in the NBA and a facility long derided by the league as inadequate.

"If it was up to me, there is no way that we as a city would invest in that
building," the mayor said. "If they want to renovate (it) on their own using
private dollars, that's their prerogative."

The City Council had endorsed a plan to leverage downtown parking spaces and
garages to generate as much as $255 million toward a new arena in the
downtown railyard. Stern praised that commitment, on par with what other
cities have provided for arenas.

"We asked the city of Sacramento to step up, and the city stepped up in an
extraordinary way," Stern said in his press conference, which followed the
NBA's spring board of governors meeting.

In what was clearly nothing more than a handshake deal, the Maloof family
agreed in February to contribute $73 million toward the arena. Stern revealed
Friday that $67 million of that would have come in the form of an NBA loan.

Stern also said Friday that the NBA had committed to contributing $7 million
of its own, a fact not previously made public. The remaining funding – about
$59 million – was to come from AEG, the company tapped to operate the arena.

George Maloof, the family's point man on arena negotiations, said he has
concluded that renovating the current arena makes more economic sense.

"Why put the pressure on the citizens of Sacramento when we can all figure
this out and maybe just do it at Power Balance Pavilion?" Maloof asked.

Asked if that plan were feasible, Maloof replied, "You can redo anything.
Trust me, I'm a developer."

But that stance contradicts a statement the family made in March 2011, when a
former Kings executive and the architect who designed the former Arco Arena
pitched a remodel of the facility to the Maloofs. The family said they had
listened to that proposal, but determined "a renovation of the existing
structure is not an adequate solution."

Neither the Maloof family nor their public relations consultants would expand
Friday upon the idea of revamping Power Balance.

Trouble from the start

The sudden collapse of the deal ended an odyssey that began a year ago, when
the Kings played their season finale before an emotional sellout crowd. The
team was poised to move to Anaheim, and many fans thought it was the last
time they would see the team play in Sacramento. That night, the mayor flew
to New York, where he would persuade the NBA's owners to give his city a
final shot at solving its years-long arena puzzle.
After months of wrangling, the negotiations hit a crossroads in February
during the NBA All-Star weekend in Orlando, Fla. After three tense days,
Johnson, the Maloofs and Stern emerged from a hotel conference room with the
framework of a deal. Gavin Maloof choked up with emotion and wept as he
addressed reporters.

The City Council would later vote to move forward with that plan at a
raucous, celebratory meeting.

But in the end, there was much the Kings did not like about the financing
plan.

For one thing, the lease agreement offered by AEG was based on unrealistic
attendance projections, said Maloof attorney Barry McNeil.

"They took the best two years we had ever had," he said. "They took when we
were a championship contender, and they took years at the height of the bull
market and based their projections on that."

Christopher Thornberg, an economist hired by the Maloofs to dissect the plan,
on Friday called the projections "highly overblown" and said actual revenues
could have come in between $5 million and $15 million below forecasts.

What's more, Thornberg said, city officials had presented a "wildly overblown
estimate of the kind of revenue value this arena will bring to the city."

"This project would really put the city right on the edge of potential fiscal
disaster," Thornberg said. "There's a massive amount of risk for the Kings,
the city and ultimately the NBA."

City officials on Friday rejected Thornberg's statements.

"Chris Thornberg has never talked to me or our finance director or anyone in
the city government about our finances," City Manager John Shirey said. "We
feel very confident with the project that was on the table and we were
prepared to move forward with that, and we can still deliver on that project
if there is a change of heart tomorrow."

A representative for AEG did not return a phone call seeking comment.

Concerns about debt

As the arena plan dissolved Friday, the Maloofs accused city officials of
charging ahead while ignoring their concerns.
But in his news conference, Stern said the team's concerns were heard. He
suggested that the Maloofs became uncomfortable about the deal because they
were worried about taking on more debt.

"They decided this wasn't a transaction they wanted to go forward with, and
this was their right," Stern said. "If they had done it a little simpler, a
little earlier, a little more directly, it would have saved a lot of angst
and trouble."

The Maloofs' concerns with the plan became publicly known only in recent
weeks.

The team owners said they first received a term sheet with the proposed
provisions of the deal on Feb. 19, one week before the Maloofs, the NBA and
city officials met in Orlando to negotiate.

In an email to NBA officials, George Maloof wrote the family was "having a
hard time with this document" and that they "find it insulting."

Other issues would materialize as a March 1 deadline to develop a financing
plan approached.

Among those were a reluctance by the Maloofs to provide collateral for a
refinanced loan that would replace the outstanding debt of about $65 million
the family still owes the city.

The Maloofs also insisted that the city cover the project's pre-development
costs. They wanted more authority over arena designs and had issues with the
length of the 30-year lease the Kings would have signed in the new facility.

'We've been good boys'

George Maloof said those concerns and others were presented to city officials
and the NBA in February. On March 6, the City Council voted to move forward
with a term sheet that the Maloofs contend they did not agree upon – and, in
fact, still included provisions they found unacceptable.
Shirey, however, said the city felt it "had addressed every issue" it had
been made aware of by the NBA.

Mayor Johnson said Friday that he was "baffled, to say the least, at how we
ended up here."

"The Maloofs explicitly stated and agreed that the deal was a fair deal," he
said.

The death of the arena plan inevitably led to wishful talk in Sacramento of
an ownership change of the Kings, a notion the Maloofs have repeatedly
rejected. Billionaire Ron Burkle remains interested in purchasing the
franchise, and local business leaders have urged that the Maloofs step aside.

Johnson said he could not say with certainty that the Maloofs "are the best
owners for Sacramento."

"Sacramento deserves a partner who will honor their commitment, Sacramento
deserves a partner who wants to work in good faith, and I think that
Sacramento deserves better than we've got to this point."

George Maloof said the team remains committed to staying in Sacramento. "Our
intentions are not to blow this thing up," he said. "We've been good boys."

The mayor was reluctant to believe him.

"I think I've learned today they can change their mind," he said.

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After two depressing Press Conferences today, the first from the Maloofs and
the second from David Stern. Both essentially declared the current arena deal
as dead. Kevin Johnson, who flew into New York late last night, got a chance
to respond in a press conference after meeting with the Maloof Family.

For those hoping for some good news, you were once again disappointed.
Clearly emotional and upset, Johnson appeared baffled that the process had
come to this point. He reiterated several times that the deal in Orlando,
while non-binding, was agreed to by all parties. More to the point, Johnson's
core point was that "Sacramento Deserves Better".

Mayor Johnson talked about how much the city of Sacramento has done,
something also stated by David Stern in his press conference. The city got
one year to form a feasible arena plan starting from last year's Board of
Governor's meeting. The city did that, and the only ones balking at the deal
in the end was not the city, not the NBA, and not AEG, but the Maloofs.

Without the Sacramento Kings as a major tenant contributing $75 million, the
arena is pretty much dead in its tracks. On the Maloofs' statements today
that they'd possibly be interested in renovating Power Balance Pavilion,
Johnson said that if the Maloofs wanted to renovate the arena with private
dollars, that was their prerogative. He found it ironic that the Maloofs
would say that now after telling him a while ago that an arena renovation was
not viable.

"What I learned today, is that sometimes people can change their minds."

Mayor Johnson went on to talk about how it looked like the Maloofs were
trying to come up with reasons not to do the deal. On the Kings' future in
Sacramento, Johnson refused to speculate. That's now up to the Maloofs, who
released this statement today:

Despite best efforts to negotiate an agreement with the City of Sacramento,
and at the conclusion of a meeting this afternoon with Mayor Johnson, he
advised us that there is nothing to be gained by continued discussions at
this time.

We are committed to remaining the Sacramento Kings.

We only received a non-binding term sheet regarding a complex $400 million
transaction 8 days before the Mayor's deadline of March 1st. From the moment
we received it, we expressed our serious concerns with many of the proposed
terms and conditions. Even now, these concerns have yet to be addressed by
the City.

The negotiations that have occurred surrounding, as Commissioner Stern said
repeatedly today during his news conference a "non-binding framework", never
resulted in a deal that was good for the City or good for the team.

We are going to continue to work hard building our exciting young nucleus
into a play-off contending team that all Sacramento citizens will be proud of.

We want to thank our loyal fans.

We love Sacramento and we will continue all of our civic and charitable
involvement that over the past 15 years has resulted in more than $20 million
in cash and in-kind donations to more than 200 community organizations.

On the Maloofs proposed term sheet's changes, Johnson said something to the
effect that he'd be executed in Sacramento if he brought those changes to the
table. The biggest one was the Maloofs' refusal to put up collateral in case
the city re-financed. He also says that he wasn't aware of these
"complications" until today, while the Maloofs claimed the city has had it
for seven weeks. He also said that going forward, there is definite issue of
trust between himself and the Maloofs in any future dealings.

"Is the deal as we know it dead? Absolutely."

Where do we go from here? Who knows. But this is a dark day for the city of
Sacramento, and for Sacramento Kings fans.

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As of right now, the effort to build a new arena in downtown Sacramento is
dead.  Sacramento Mayor Kevin Johnson held his own press conference and
confirmed so, following pressers by the commissioner and Maloofs.

“They are now saying they don’t want to do the deal, which essentially
means they don’t want to be in Sacramento,” said Johnson during his
comments to media at the St. Regis Hotel in New York City.

As we’ve done throughout the day, here a few notes and quotes from the
mayor, followed by a link to his press conference.

Johnson on the Maloofs and where the capital city goes from here.  “I think
Sacramento deserves a partner that would honor their commitment.  I think
Sacramento deserves a partner who wants to work in good faith.  And I think
Sacramento deserves better than what we’ve gotten up to this point.”
Johnson on what the city managed to accomplish in less than a year.  “We
came up with $255 million in public investment, and that’s a keyword
investment, that would stimulate our economy, revitalize our downtown, create
jobs that we’re very proud of.  And I would venture to say that any other
owner around the league would jump and do backflips for what we were able to
do in a short period of time.”
Johnson expressed confidence in coming to a resolution of the issues that
separated the city and the Maloofs.  “When I came to New York today, I felt
just as strong – that we as a community did our part.  And I really was
optimistic, I thought that we would be able to celebrate, that predevelopment
would be resolved.  The NBA put in some dollars to get us to this point when
there was a dispute and it was just not to be, and that’s very disappointing.
”
 The Maloofs said they’re willing to explore renovating Power Balance
Pavilion.  Mayor Johnson says the family wasn’t interested in that option
before, but have since changed their minds.  He says they told him: “We want
a brand new facility.  We want to be the talk of the town as it relates to
owners in the NBA.  And that’s what we set out to do…If they choose to
renovate Arco on their own and use private dollars, that’s certainly their
prerogative.  There’s nothing to stop them from doing that.”   Johnson says
the city can’t participate in a renovation project of the arena.
The Maloofs contend that Johnson and city staff haven’t communicated with
them on their concerns.  However, Johnson says that the NBA was authorized to
represent the Kings throughout the last year.  He says that the city always
responded to the NBA in a timely manner.  “If you have an agent that
represents you, that’s who you’re negotiating with.”
Johnson says he came to find out it was more than just predevelopment costs
that bothered the Maloofs.  “It just feels like they were coming up with
reasons of why not to do the deal.  That’s what it felt like.  They may say
otherwise.”
One of the concerns for the Maloofs?  Collateral on the outstanding loan that
the city would refinance as part of the deal.  “They would execute me in
Sacramento if I came back with a deal with no collateral.”  The mayor added:
 “When I knew we didn’t have a deal today is when they said to me they don’
t want to put up collateral.  At that point the meeting was over.  There was
just nothing we could say or do at that point.”
The mayor says that the community should still come out and support the team:
“We have a week or two left in the season.  I think we should support or
team for the next couple of weeks.  That’s the respectable thing for
Sacramento to do.”

 Video of Mayor Johnson’s press conference (Via NBA.com)

In addition to the mayor, city officials held a press conference at city hall
expressing their disappointment in the dissolution of the deal.

“It was a project about the future of our city,” said city manager John
Shirey.  He added that the city is postponing any further work on the
proposed entertainment and sports complex.

“We have quite an array of experts that have been put together in order to
move us forward on this project,” Shirey said.  “We had limited money from
the NBA committed by commissioner Stern and we’ll be winding down those
activities for the time being.”

Councilman Steve Cohn had less than flattering comments to add when asked
about the Maloofs.

“It’s hard to say what they’re thinking,” said Cohn.  “But If you’re
asking do I find them credible at this point?  No.”

Addtional arena links

Tony Bizjak of the Sacramento Bee has a report outlining all the issues the
Maloofs have with the arena.
The Bee also has a link to the powerpoint the Maloofs presented to their
fellow owners and Sacramento media.
The Maloofs say they’re committed to staying in Sacramento and that they’re
not considering relocation at this time.  However, the Orange County Register
reports that George Maloof has been in contact with a city official in
Anaheim.

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http://0rz.tw/JqtuG

David Stern thanked the city of Sacramento, its fans and Mayor Kevin Johnson.
 But in his press conference on the Board of Governors’ meetings in New
York, the NBA commissioner appeared resigned that the proposal to build a new
Sacramento arena could be dead.

Below are notes and quotes from Stern addressing the arena situation and
after the jump, audio of the commissioner’s comments at the St. Regis Hotel.

Stern on the deal: “In my view, it was always subject to any party saying
they didn’t want to do it.  It was always non-binding and I think it’s fair
for the Maloofs to say they don’t want to do it.  If they had done that a
little simpler, a little earlier and a little more directly, it could have
saved a lot of angst and trouble.”
Stern says that the city of Sacramento responded and stepped up to the NBA’s
call.  “They’ve always supported NBA basketball and couldn’t have
supported it in a finer fashion than they did this time.  They were prepared
under the mayor’s leadership to finance $260 million, (which) is an
extraordinary feat and a display of I think dedication.”
Stern on whether it’s realistic to re-model Power Balance Pavilion.  “I don
’t know.  If they choose to do that, that’s up to them.”
Stern says that the NBA was going to offer the Kings a $67 million loan and
make a contribution of $7 million to the arena project.  ” I don’t think we
have nothing further to give, to cajole, to yell or all of the various ways
that I have tried to keep the parties on track to get what we thought was a
win-win development in Sacramento, a new arena as part of that development
and a hugely successful franchise.”
The advisory committee was treated to the same presentation the Maloofs
offered this morning to Sacramento media.  Stern discussed the Maloofs’
 morning presser: “It’s probably not the weirdest press conference we’ve
ever had in the NBA.  They’re entitled to do that.  They’re entitled to
have their lawyers do it, they’re entitled to hire economists and the like.
 But I think it really does come with ill-grace for their economist to play
the role he played here.  But, I guess that’s your entitlements.  You can go
out and hire an economist.”
Did the Maloofs a raise the threat of filing an antitrust lawsuit against the
NBA and city? “No one raised any specter.  I just was told their lawyer has
an antitrust background.  But he’s also very capable of using words and
presentations, like all laywers are.  So I wouldn’t hold his antitrust
background against him.”
Stern on the Kings future in Sacramento “I know we’re scheduling them into
Power Balance Pavilion next year and it just wouldn’t pay for me to talk
about anything beyond that.” He says that any decision to relocate rests at
the discretion and judgement of fellow team owners.

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Surrounded by their legal team and advisors, the Maloofs addressed Sacramento
media in New York and expressed doubt in the arena deal reached during
All-Star Weekend.  Below are a few notes from the family’s press conference
conference this morning, followed by a portion of it in audio form.

George Maloof remains fervent on his position that no deal was reached.
 Coming out of the meetings in Orlando, he says there were still “lots of
unresolved issues” that needed to be addressed.  He says that the family,
city and the NBA agreed to address the media saying they have “framework of
a deal with lots of work to be done.”
George says they’re not pulling out of the deal.  He says they’ve countered
with a revised term sheet of their own, but that they’re frustrated with the
lack of feedback from the city.  “My gut tells me that it’s challenging.
 However, if I can hear back from the city on our terms; the mayor says he’s
not negotiating, then he killed the deal and it’s over.”
The family says that they’ve been critical about paying predevelopment costs
right from the get-go.  George Maloof: “Who would want to pay a
predevelopment fee?  Then have your partner pay a predevelopment fee and then
if the project didn’t work, (you’re) reimbursing you’re partner?  How is
that fair?”
George Maloof says they’re not asking the city to invest more money into the
deal.  “Absolutely, not.  That’s not how we do things.”
If this deal doesn’t work, George Maloof says the family has offered an
alternative.  “Why don’t we look at re-doing Power Balance Arena, the
existing facility?  A lot of our customers, most of our customers, enjoy
going to Power Balance or enjoy (going to) an arena at that site.  We already
have the infrastructure, the parking – it’s all there.  The cost to the
city will be a lot less…and it just seems more natural to work.”
Is relocation off the table?  George Maloof says: “No, absolutely.  Not
right now.”
Gavin Maloof on his emotional reaction following the meetings in Orlando: “
Well, I think it was, it was a sense of maybe there was road to get something
done.  Knowing that it wasn’t done, but there could be a road to get
something done.”
Gavin Maloof on speaking before city council during the March 6th meeting: “
I was having a hard time understanding what they were putting up on the board
because those weren’t true…”
George Maloof was not happy with the request to sell the team from more than
two dozen business owners in the Sacramento area.  “I think it’s one of the
most insulting things anybody could ever do.”
At the very end of news conference, George Maloof told Sacramento reporters
that they’re willing to pay their share of $73 million, but they’re
unwilling to pay the roughly $3 million in predevelopment costs.

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Like many fans, the Sacramento business community has had enough of the
Maloofs.   In a letter to the NBA, 26 local business leaders requested that
the Kings owners sell their majority stake in the franchise.

“The city, the fans and the NBA deserve and require an ownership group that
is fully committed to being a good-faith constructive participant in the
arena process,” says part of the letter.  ”And we deserve an ownership
group that is not only committed to the long-term viability of the franchise
in this region but also one that has the wherewithal to make it a thriving,
competitive organization.”

Local entrepreneur Gregory Hayes organized the press conference and confirmed
that he has spoken to someone who would like to purchase the team.  The
interested buyer is a California businessperson, but Hayes, who is a member
of Mayor Kevin Johnson’s Think Big Sacramento committee, said that person is
not billionaire magnate Ron Burkle.

“We are saddened and disappointed when members of the community, who are not
fully informed on the true details of the complex dealings in this arena
process, choose to criticize us publicly today at a news conference,” said
the Maloofs in a statement issued by the spokesperson Eric Rose.

The Maloofs are currently in New York attending the NBA Board of Governors
meetings, attempting to renegotiate the arena deal.

After the jump, the entire letter issued by the Sacramento business community
and the Maloofs’ response issued by their spokesperson.


Business leaders letter:

Dr. Mr Stern,

We the representatives of Sacramento’s business community would like to
acknowledge with great appreciation the contribution the Maloof family has
made to the growth of Sacramento over the years through their ownership of
the Kings.  Their value has been further punctuated by a significant
contribution to charity in our community.

However, at this point, we believe it is time for the Maloofs to sell their
ownership of the franchise, for the good of the city and in the interest of
advancing Sacramento’s effort to build a downtown arena.  The city, the fans
and the NBA deserve and require an ownership group that is fully committed to
being a good-faith constructive participant in the arena process.  And we
deserve an ownership group that is not only committed to the long-term
viability of the franchise in this region but also one that has the
wherewithal to make it a thriving, competitive organization.

Recent events have cast significant doubts on the Maloof’s motivations in
this regard and their ability to participate financially in the arena
development.  The Sacramento community has lost faith in the Maloof family’s
ability to deliver on the many promises it has made.  It is time for a new
ownership group to take over the team.

We urge you and the other NBA owners, for the good of all parties involved,
to strongly encourage the Maloof family to sell the team.

The following business people signed the letter.

Cory Jackson, Owner

John H. Hodgson, President, The Hodgson Company

Steve Goodwin, President of Township Nine

John Culpepper, Owner/ Operator Capitol City Services

Scott Syphax, President and CEO of Nehemiah Corporation of America (NCA)

Mark Otero, Local Entrepreneur

Kevin Donnelly, Achitect/ Real Estate Developer

Johan Otto, Carson Development

Joshua Wood, Vice President of Public Affairs & Community Relations, Region
Builders

Chip Wilkins, Partner of Remy, Moose & Manley

Isaac Gonzalez, Community Advocate, Independent Content Production

Clint Williams, Business Development Manager, Turner Construction Company

John Kaufman, Regional Director – Ygrene Energy Fund – Clean Energy
Sacramento

Jeffrey R. Einhorn, Chief Executive Officer, NonProfits United

Jeff Hallsten, The Hallsten Company

Ken Fahn, Developer

Greg Hayes, Entrepreneur

Tony Babcock, Owner Jack’s Urban Eats

Stan Lukowicz, Owner Capitol Loan and Jewelry

Patrick Mulvaney, Owner Mulvaney’s Building and Loan

Simon de Vere White, Owner de Vere’s Irish Pub

Jon Bagatelos, Owner, Bagatelos Architectural Glass

Steve Edwards, Partner, Potter-Taylor Company

Adam Loveall, Director UFCW

Steve Ayers, Chief Executive Officer, Armour Steel Company

Joe Livaich, Director, Octus Energy

Maloof family response:

We are saddened and disappointed when members of the community, who are not
fully informed on the true details of the complex dealings in this arena
process, choose to criticize us publicly today at a news conference.

The Maloof Family and the Sacramento Kings organization have been involved in
Sacramento’s civic and charitable community for many years. We are proud of
the substantial contribution of time, money, and energy, including $20
million in cash and in kind contributions donated to more than 200 charitable
and community groups in the Sacramento region. The goal of the Kings
organization has always been to provide complete customer and employee
satisfaction.

We share in the community’s frustration on forging a workable agreement on
what is ultimately a $400 million transaction that will impact the region for
many years to come.  However, we must all remember what is at stake in the
development of a new arena in Sacramento, and must insure the agreement works
for all parties involved, and most importantly, the residents of the City. We
only need to look a few miles south to Stockton to learn the lesson of what a
bad arena deal could cost the taxpayers.

The building of a new arena in downtown Sacramento includes the sale of
important city assets; the sale of city land; and infrastructure issues.

We are currently in New York meeting with the NBA and the league’s owners,
presenting the timeline of facts that have transpired during this process.
With that said, the goal of the Sacramento Kings’ organization remains to
open the 2015 NBA season in a new arena in Sacramento, and we look forward to
working with the City on making that goal a reality.

==========================================================================

http://www.sacbee.com/2012/05/24/4512947/restaurateur-mulvaney-steamed.html

Restaurateur Patrick Mulvaney steamed over Kings letter flap


Restaurateur Patrick Mulvaney got a shock a few weeks ago when he contacted a
client, the Sacramento Kings, to discuss last-minute details for a banquet at
his midtown eatery.

A Kings executive told him they were canceling the lunch at Mulvaney's
Building & Loan. They had just seen Mulvaney's signature on a letter from 21
Sacramento businessmen to the NBA urging it to push the Kings owners to sell.
Mulvaney's name also appeared on a separate list of businessmen attending the
press event where the letter was signed.

But Mulvaney says he wasn't at the event and had not signed the letter. His
signature was forged.

The man who organized the April 12 letter signing was Greg Hayes, a local
business consultant and member of Mayor Kevin Johnson's Think Big Sacramento
arena task force.

Hayes admitted when contacted by the Bee last week that five of the
signatures were not signed by the people whose names are listed. Hayes
declined to say who put their names on the letter.

Bee phone calls this week identified seven people who said they didn't sign
the letter, but their signatures appeared on it anyway. Five said they hadn't
given their OK; two said they had.

For his part, Mulvaney says he was livid that his name was signed falsely,
and that it had cost him a major client.

He emailed Hayes, demanding Hayes write to the Kings and the NBA immediately,
"stating that I did not, in fact, sign that letter."

"You invited me to attend your press conference ... . I decided not to
attend," Mulvaney wrote. "Now I see that my signature has been forged. Your
action has put my 10-year relationship with the Kings and many of their
employees in jeopardy and is costing me business."

Hayes emailed an apology to the Kings and the NBA two days later.

"I am writing to clarify a miscommunication that occurred last week with the
letter that several local business people and I generated to the NBA ..."
Hayes wrote.

"Patrick Mulvaney should not have been party to that letter. I apologize to
Mr. Mulvaney and to you for this horrible misunderstanding."

Hayes said his group was in a rush to get the letter to the NBA the morning
of the signing. Members wanted league officials to have their letter in hand
when the Kings owners made a presentation that day to the league on why they
would not agree to a proposed downtown arena financing plan.

Hayes said his group signed the extra names at the bottom because they
thought those people supported sending the letter. Hayes said he had invited
those people to the signing and thought they were willing to sign, even
though they did not show up.

Hayes declined to say who signed the names to the letter, or why several of
those names were also listed as being present at the event, even though they
were not.

Of those whose names were signed on the letter by someone else, only Mulvaney
and Stan Lukowicz would comment publicly.

Lukowicz, of Capital City Loan & Jewelry, said he has no problem with his
name being put on the letter. "I feel ... Greg was given my blessing to do
that."

Several others who spoke briefly to The Bee said they talked with Hayes
afterward, that he apologized and that they consider the matter over.

The Kings' attorneys have since hired a private investigator who has been
attempting to contact the people whose names appear to have been falsified,
said sources who were not authorized to speak publicly.

In response, Think Big Sacramento head Chris Lehane wrote a letter to the
U.S. attorney general last week asking for a criminal investigation of the
Kings for what he described as an effort that appears designed to harass and
intimidate businesspeople who expressed concerns about the Maloof family's
stewardship of the Kings.

A U.S. attorney general's spokesman declined comment.

Lehane said Wednesday he based his letter on a television news report, and
does not know whom the private investigator is calling. Lehane said Hayes
gave Think Big Sacramento officials a courtesy heads-up before the letter
signing, but the event was not a Think Big event.

A spokesman for the Kings, Eric Rose, declined to comment on the private
investigator, but characterized Hayes' letter as part of "relentless
unwarranted attacks" on the Kings ownership since the arena deal fell through
several weeks ago.

"These forgeries are a calculated attempt to destroy the business of the
Sacramento Kings," Rose said in an email.

Restaurateur Mulvaney, a proponent of a downtown arena, said the Kings
ultimately set up another lunch at his restaurant after Hayes' apology, and
after Mulvaney talked with Gavin Maloof.

"My relationship with the Kings is still solid," he said. "I don't have any
right to tell someone else how to run their business."