Supervisors Approve Kings Deal Without Knowing All The Details

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(Sacramento, CA)
Wednesday, July 26, 2006

At the meeting, supervisors approved putting a quarter cent sales tax increase measure on the November ballot to raise money for a new arena, even though they didn’t know how much profit the Maloof brothers would make from the facility.
Citizen Emanuel Gale asked the question of Supervisor Roberta McGlashan:

What are the estimated revenues that would accrue to the Maloofs of the 200 plus events a year and the name rights?  Because I think that’s an important part of the consideration.
Is that information that we have?
We do not.
We do not have that information. 
After the meeting, when pressed by reporters, Joe Maloof predicted he and his brother would make quote, “a small windfall” of about 5 or 6 million dollars a year.  But he said they would also have more expenses than at Arco:
The size of the arena will be double what Arco is now, we’ll probably employ twice as many people as we do now at Arco, so we’re in charge of all the…we’re in charge of all the operating expenses, so I don’t think there’ll be a huge windfall, but it will be better for us.
That was just one question supervisors couldn’t answer for voters.  Another is what type of public projects the other fifty percent of the tax increase will fund.  Because the tax is a general one, by law, officials can’t get specific about the projects.