Report: Vivek Ranadivé’s Sacramento group to turn down revenue sharing as Kings owners
In the effort to keep the Kings, some major concessions were made by the potential Sacramento ownership group according to a new report. The Sports Business Journal reports that one of those concessions included giving up their spot at the poor kids’ table.
The desired new Kings ownership group agreed to limit how much revenue sharing it would take while playing in the team’s current arena and would end the club’s status as a revenue recipient altogether once moved into the new arena, one of the sources said.
By pulling out of the revenue split, Ranadivé’s group is projected to forfeit between $15-20 million a year in free NBA money built into the league’s collective bargaining agreement. In the SBJ report, $18-million was thrown out as a figure the Kings franchise could collect this year as one of the lowest revenue generators in the league. If the team were to move to Seattle, it would not be eligible for the NBA’s revenue sharing split.
The report also states that Ranadivé and company have agreed to a construction timeline and accepted the risk of most cost overruns in the Downtown Plaza arena project.
The NBA’s Board of Governors will meet next week for a final vote on the matter. The Sacramento Bee reports that the league’s 30 owners will congregate in Dallas to make a final decision on the Kings’ future.