SEATTLE - The city of Sacramento Saturday unveiled a key piece of its efforts to keep the Kings from relocating to Seattle, announcing it has reached an agreement on a $448 million deal to build a new arena.
The deal must still be approved by the Sacramento City Council on Tuesday, though initial reports indicate that is expected to happen.
Sacramento mayor Kevin Johnson announced the deal with a private investment group in a series of tweets Saturday.
Johnson, a 12-year NBA veteran, has led the city’s efforts to keep the Kings since it was announced in January that the team had been sold by the current owners, the Maloof family, to a group from Seattle led by Chris Hansen. That sale, however, must be approved by the NBA Board of Governors when it meets in New York April 18-19.
Johnson has assembled an ownership group that is making a counteroffer on the team and will also lead the charge on the arena.
The Sacramento Bee reported that the arena will be financed by $258 million in city funds. The Bee reported $212 million of that will come from borrowing against downtown parking revenue and the other $46 million from selling city land. The other $190 million will come from the ownership group led by Ron Burkle, a billionaire who also is a co-owner of the Pittsburg Penguins; Mark Mastrov, founder of 24 Hour Fitness; and Vivek Ranavide, a co-owner of the Golden State Warriors.