Is the grass really greener for Joe and Gavin in Anaheim?
Net Value of Move (Black signifies gain, Red signifies loss)
|
$30 million |
Anaheim Corporate Commitments |
|
$13 million |
Anaheim Premium Sales |
|
$10 million |
Untapped Sacramento Corporate Commitments |
|
$20 million |
Existing Sacramento Corporate Commitments |
|
$24 million |
Anaheim TV Contract |
|
$11 million |
Sacramento TV Contract |
|
$25 million |
Franchise Value Boost from LA Market |
|
$75 million |
Samueli Loan |
|
$75 million |
NBA Credit |
|
$150 million |
Relocation Fee |
|
$77 million |
Sacramento Loan |
|
$175 million |
Grand Total |
Based on the final estimate, it appears a move to Anaheim isn’t as lucrative as it would otherwise seem for the Maloofs – at least not in the short-term. You’ll notice that Samueli’s loan essentially has zero net value for the Kings co-owners, as it is cancelled out by outstanding loans to both the NBA and the city of Sacramento and also relocation costs.
Long-term, Orange County could prove to sustain another NBA franchise. It’s located in the second-largest TV market in the country compared to Sacramento, which ranks 20th. It has a corporate base to pool from that’s nearly three times bigger than California’s capital according to a report from ESPN. But with the debt the Maloofs are accumulating by simply moving the team, would the Kings co-owners even be in the picture?
There seems to be 175 million reasons to think not.
Read the SLAMonline Discussion Rules before posting.