When investors Mark Mastrov and Ron Burkle along with the city of Sacramento sent in their first bid to the NBA, Commissioner David Stern politely told them it wasn’t enough and then did everything but give them GPS coordinates on what they needed to do next.
Inset current Golden State Warriors minority owner Vivek Ranadive, who decided to combine forces with Mastrov and Burkle, creating a three-headed investment monster that (along with the city) has pledged nearly $1 billion dollars to keep the Kings in Sacramento – this according to the long anticipated term sheet released this afternoon.
While there is no actual definitive final number on the exact cost (or breakdown), USA Today’s Sam Amick reports that the near billion dollar sum includes $190 million of investment for the new sports and entertainment complex – $58 million more than the arena agreement that was eventually backed out on by the Maloof family:
While the specific figure of the offer for the team is not yet known, $190 million of the investment is in the arena. That sum is $58 million more than the $132 million put forth by the NBA and the Maloof family that owns the team in a 2012 arena deal that would have put the arena in the city’s railyards but fell apart when the Maloofs were no longer comfortable with the handshake agreement.
In addition, the city of Sacramento will contribute $258 million to the funding, which they intended to do in the failed Maloof arena deal but this time do it in a much more investment friendly way.
Sacramento Mayor Kevin Johnson has announced the city has reached an agreement on a $448 million deal with a private investment group to build an arena at the Downtown Plaza site. The city will put $258 million in value into the deal, mainly by bonding against its downtown parking garage future revenues, and by selling several downtown parcels to developers. The development team will put $190 million into the deal. That team is made of up investment billionaire Ron Burkle, 24 Hour Fitness founder Mark Mastrov, and Vivek Ranadive, a Silicon Valley entrepreneur.