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?
The Sac Rag 
Yeah, I agree. I would love to see that contract….it would be unimaginable that a $70M loan would not include some basic terms about termination / payoff of the loan if the team moves and also identify some collateral in case of a Maloof default.
The letters from the city to Anaheim and now the Steinberg proposal are all just empty political posturing for the local media market. Steinberg is a complete tool wasting time on this crap while utterly failing to do his actual job of controlling the enormous state debt that has accumulated year after year.
LikeLike
The City put a bunch of the documents here: http://cityofsacramento.org/kings/
And in the March 30 letter to the Kings they quote the original lease language about what to do if the Kings want to relocate.
LikeLike
They can’t pay the loan, no matter what they say. The Senate knows it.
I mean, they’ve had tax problems, they’re close to losing one casino, and they owe lots of people lots of money.
LikeLike
I love the kings, honestly. But that love can’t be blinded by the reality that they intent on leaving. It can go either way, if they leave; I would prefer they pay their sacramento debt but probably won’t. If they stay I will be sour on the whole experience and would prefer to spend my money on the loyal businesses that have stayed in sacramento for years… Sad, but pragmatic.
LikeLike
Thanks cool for the links. Good article in sacpress today on this too.
LikeLike
Rich people can borrow money from taxpayers – millions of working people – and default without any big deal. Working people can borrow money from rich people-owned banks and lose their homes or jobs or life if they don’t pay it back with interest, even while those banks write off the losses and have them repaid, via the federal government, by working people’s taxes.
That’s America!
LikeLike