While the Kings look for a new arena, an old financial debt came into view recently. Apparently the Kings still owe $83 to the city of Sacremento.
"They've been in the arena a number of years and it looks like nothing has been paid on the principal," said Joe Sullivan, president of the Sacramento County Taxpayers Association. "How much has the city really gotten back?"
"They were not able to put any capital into the business to keep it going, for players or any other expenses," Friery said. "They never got a dime coming back to help pay for basketball operations. And meanwhile, the costs of basketball continued to rise."
Terri Hardy reports that the Sacramento City Council and Thomas settled on a loan of $70 million. The city would go to a bank, borrow the cash and float 30-year bonds. The Kings would own the arena and make payments on the loan each year.
Although the loan contract addresses what is necessary if the Kings were to move out of the city, it does not specify requirements if the team moves to another arena in Sacramento.
Sullivan, of the taxpayers group, said his members are concerned that if a new arena deal is forged, the old loan will be waived.
"That's a lot of money to forgive," Sullivan said. "That's not the way our tax money should be spent."
Councilman Steve Cohn said even though the contract does not specifically outline a new arena scenario, he believes the Maloofs would be required to pay the loan.
"I don't think there is a circumstance where they can get out of it," Cohn said. "That could mean wrapping it up in a new loan or paying it off in its entirety."
John Thomas said no matter what happens with a new arena, the Maloofs intend to pay the loan.
"The clear view we have is that the loan is a debt obligation that we intend to fulfill; it's one of the Maloofs' family values that we pay our bills on time or earlier," Thomas said. "At no time have Joe or Gavin asked or discussed being let out of the loan. We have no expectation of that."