The King owe the city of Sacramento $77 million dollars on an outstanding loan issued back in 1997. California Senate President Pro Tem Darrell Steinberg said he plans to introduce a bill that ensures the Maloofs pay back that loan on KFBK radio this morning.
The bill is clearly aimed at the ownership group of the Sacramento Kings which is considering a move to Anaheim after the current NBA season. Steinberg acknowledges that the move affects a private company's business dealings, but he said that with public dollars also at stake it makes sense for him to get involved.
There are worries (unless you're Mayor Kevin Johnson) that the debt won't be repaid should the team move to Anaheim. If that happens, the city gets a $25-million stake in a team located five hours south and sole ownership of an outdated sports-and-entertainment venue. A recent appraisal of Power Balance Pavilion valued the building and the land it sits on at approximately $40 million. Those two combined assets are well below the value of the outstanding loan.
So far, the Maloofs have not made written assurance that the debt will be repaid.
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