CBS13 is reporting that State Sen Steinberg is planning to introduce a measure in the legislature that would “effectively prohibit a California city from signing a contract with a professional sports team unless that team has paid off all its debts to the other city.”
Putting aside the Onion News Network aspect of this kind of legislation, I was under the impression that the loan would already be due in full based on the Maloofs’ existing contractual obligations, and therefore that existing law would probably be sufficient to force the Kings to pay what they owe.
In fact, the way I read the Kings April 1 letter in response to the City’s letter requesting loan pay-off confirmation, the Kings basically agree to abide by the terms of the agreement. I think the media are stirring the pot to make this part of the conversation more saucy than it really is. One is left with the impression that the Maloofs basically said FU to the City when asked to honor their contractual obligations.
But I’m not one to champion the Maloofs grasp of business ethics. What do you say, Kings fans–am I wrong?