KINGS’ LEASE: $225,000 RENT IN FIRST YEAR
April 11, 2018
STOCKTON — The City Council will consider approving a lease agreement with the Sacramento Kings on Tuesday so the NBA team’s minor-league franchise can move into the Stockton Arena for the 2018-19 season.
On Monday, the Kings announced plans to relocate their G League team, the Reno Bighorns, to Stockton, pending league approval.
As part of the lease agreement, the Kings will pay Stockton $225,000 per season ($9,000 a game) for 25 home games with a 5 percent annual increase. The net revenue per game will vary depending on attendance and concession sales, but city staff expect $100,000 annually in increased revenue for the arena.
Also, according to a staff report for next week’s City Council meeting, the initial three-year contract with the city will give the team full use of the arena, storage, locker rooms and game staff, 15 percent of revenue, and 70 parking spaces. The agreement will come with three additional one-year team options.
The City Council will meet at 5:30 p.m. Tuesday to vote on the matter.
Stockton Arena already is home to the AHL’s Stockton Heat hockey team, as well as several popular events during the year, including StocktonCon and wrestling. Last year, it hosted the Sweet 16 and Elite Eight of the NCAA Division I Women’s Basketball Championship Regional.
Games will be aired on multiple outlets including Facebook Live, Twitch, NBATV and ESPNU, according to the staff report.
A typical G League season runs from October to April for years was known as the NBA Development League before agreeing to a multi-year deal with Gatorade. While it coincides with the Heat’s schedule, the arena has the capacity for both uses.
City officials said the ice will be covered and the basketball court will be built over it. This practice is common in other large entertainment venues across the country. SMG, which manages Stockton Arena, will have staff responsible for changing the facility for appropriate usage.
A new team name, logo, colors and identity for the Stockton franchise will be unveiled later this spring, and a job fair will be held. City staff said the Kings have indicated that they will be involved in the community, and the club will join Mayor Michael Tubbs at the State of the City event on May 24.
“It is my honor to welcome the Kings organization to Stockton and I look forward to watching NBA G League action at the Stockton Arena,” Tubbs said Monday. “The Kings have been known for their tremendous impact in the community, and we’re excited to have their support as we continue to reinvent Stockton.”
Moving the Bighorns to Stockton makes more sense logistically considering the team will be 45 minutes away from the Kings’ front offices and Golden 1 Center, and players and officials no longer will have to deal with weather conditions traveling through the Sierra Nevada.
The Bighorns have been based in Reno since their inception in 2008.
To view the full Stockton City Council agenda, visit https://tinyurl.com/ya9vfr25
Originally Posted on Recordnet.com