The Home of the greatest fans in the NBA!
 
HomeHome    CalendarCalendar  GalleryGallery  FAQFAQ  SearchSearch  MemberlistMemberlist  UsergroupsUsergroups  RegisterRegister  Log inLog in  

Share | 
 

 Good intentions gone bad...

Go down 
AuthorMessage
TheMagnus
Admin
avatar

Posts : 1765
Points : 2172
Reputation : 75
Join date : 2012-04-26

PostSubject: Good intentions gone bad...   Tue May 07, 2013 10:39 am

Just read this from espn.com...

Quote :

NEW YORK -- The would-be new owners of the Sacramento Kings made a crucial and costly concession last week ahead of a relocation vote by NBA owners that may have been a deciding factor in keeping the team from moving to Seattle.

Software billionaire Vivek Ranadive, who hopes to purchase the Kings and complete a deal with local government to build a new arena in Sacramento, agreed to give up potentially tens of millions in revenue sharing from other owners to help sway them to reject the Seattle option, sources told ESPN.com.

The revelation helps explain why owners on the league's relocation committee appeared to pass on what had looked like a better long-term financial situation by moving the team to the larger Seattle market.

Essentially, Ranadive promised to let his potential fellow owners keep money they would otherwise owe to his small-market team each season under the current league rules. It was a shrewd, if quite expensive, card to put on the table as owners were making the challenging decision of what to do with the team.

The Sports Business Journal first reported Ranadive's offer.

This unprecedented component, sources said, was negotiated by the NBA league office as part of what is starting to look like a sweetheart deal for the league that Ranadive and the City of Sacramento ultimately presented. The city has pledged more than $250 million in public funds toward the new arena.

http://espn.go.com/nba/story/_/id/9248685/sacramento-group-makes-crucial-concession-keep-kings-sources

There comes a point in every deal where you have to step back and ask yourself, am I doing the right thing here?

I know Sacramento wants to keep their team and all, but this seems like lunacy. They are talking a small market team in a small market town, a town that has not doing well economically or financially, getting a publically financed arena, and in order to do that they are going to give away the single biggest thing that could keep them viable in the future. Estimates peg the value of the NBA's revenue sharing agreement at around $15 Million a year for small market/low revenue teams. Sacramento is not really that small a market, but they are regularly among the lowest in the league in revenues, an dthe revenue sharing agreement from the NBA could be the difference between a profitable, viable, franchise and one that is just going to go through this whole drama again in less than 10 years when investors start bailing and the city refuses to cough up another 200+ million to renovate a nearly new arena.


I can see why they felt like they had to take it off the table, Seattle would likely not be a recipient of large revenue sharing payouts, but that doesn't mean it was a good idea.

And if the future holds like the past then shame on the rest of the NBA owners for greedily taking the bait and watching as an entire city sells itself just to take a bad deal.

If I'm a member of the city council in Sacramento right now I am starting to have some serious reservations about what I have gotten the taxpayers who elected me into.
Back to top Go down
View user profile
 
Good intentions gone bad...
Back to top 
Page 1 of 1
 Similar topics
-
» summer pike fishing good or bad
» good pike fishing waters
» Have A Great TWH To Give Away To A Good Home
» chris ham.. good luck at the worlds
» Just how good are the Minelab 15x12 elept Mono's

Permissions in this forum:You cannot reply to topics in this forum
Utah Jazz Nation :: The Rest of the League-
Jump to: