The sacbee has a list of the Maloofs issues and requests for the deal and reading it over, you pretty much understand why KJ and Stern think the deal is dead.
Kings have not agreed to putting up collateral for a new bond sale to extend the team's existing city loan.
To help the Maloofs, their current debt to the city will be getting refinanced. The current deal lists Arco as collateral. They don't want to have anything as collateral on this bond deal. That's asking quite a bit to start off with,
Kings want approval rights over arena designs and change orders.
Kings want city to pay all pre-development costs.
Kings do not want to be responsible for additional costs for change orders on arena.
Kings want to be allowed to continue to use Power Balance Pavilion in limited ways that would not compete with new arena.
Kings want more limited wording on whether the team can relocate before 30 years.
Kings want to approve the city's arena management agreement with AEG.
Kings want priority in scheduling practices at the arena, and want to not be charged for using the arena for practices and other Kings events.
Kings do not agree to a 30-year lease. They want that issue negotiated further.
Kings do not want to be responsible for game-day arena expenses.
Kings want a say on arena naming rights and signage.
Kings want further negotiations on use of certain suites, clubs and restaurants.
Kings want to negotiate for parking alternatives if a premium parking garage is not completed nearby in time for arena opening.
Kings want to delete the term sheet section that subjects the arena to all city taxes.
Kings want agreement to include suitable office space for team at the arena.
There's a couple amazing things here. First, their argument for not paying pre-development costs is because tenants don't normally do that. So why would a tenant get to negotiate naming rights, refuse the city taxes, have veto rights and such that tenants don't have? This was pointed out as flawed logic as soon as George Maloof said they weren't paying the Pre-development costs, but they make no effort to hide it.
The city taxes were to help repay the loan. Again, their presentation was like it came from an organization trying to stop the arena because it would hurt and bankrupt the city, while at the same time asking to remove a way for the city to finance the arena.
Then there's wanting to renegotiate the lease, which gets to the biggest deal killer:
Kings want to delete provision that says any new owner of team must assume obligations in term sheet.
Read more here: http://www.sacbee.com/2012/04/13/4411932/kings-arena-deal-concerns-range.html#storylink=cpy
This is never happening. Asking for this basically announces that you'll sell the team at the first increase in market value and you want to be able to sell it to someone looking to move. The city isn't going to build this arena and then give the team an out to leave town in a few years when the Maloofs sell to try to save themselves from bankruptcy. The city will never agree to that. They wouldn't be able to get local businesses on board.
And it will be difficult for the city to redo this and get everyone on board again now that the Maloofs have killed any sense of faith in them.
