The Sacramento Kings made headlines at the beginning of April when it was announced that the Natomas Arena (Arco Arena to Kings fans) would serve as a field hospital to provide additional space for patients suffering from COVID-19. The Kings are now facing some scrutiny over the arena’s use, as the Sacramento Bee reported that the state of California is paying $500,000 per month for the use of the facility. The Bee originally accused the Kings of collecting a payment after initially saying that the arena’s use was being donated. It is worth noting that the Bee’s report on this has been updated since it was originally published, no longer claiming that the Kings said the arena was a donation.
In response to this news, a Kings spokesperson told The Kings Herald We are incredibly proud of our public-private partnership to operationalize the team’s former home in Natomas in record time. Per the state, our lease agreement for Sleep Train Arena is consistent with other similar alternate care facilities that have been created to support the growing medical needs of the COVID-19 crisis across California. We, however, are providing the use of the team’s former practice facility at no cost. Our intent was, and is, to continue to use our platform for good and to help support our community.
At the time the agreement was announced, Gov. Newsom said We just signed the contract. Army Corps of Engineers has been working to spec out what needs to get done here. We now have the contractor on-site, we’re working with California-based labor.
The indication of there being a contract in place suggests there could be compensation involved. Although the amount may seem significant, a source with knowledge of the specifics told The Kings Herald that $500,000 is actually a discounted rate considering the space and parking provided, and is primarily going to offset the costs of actually owning the property, such as property taxes. Before turning the facility into a surge hospital, the facility was being used for office space rentals and parking space rentals, which is income the team is now forgoing by making the space available. The agreement has also enabled over 100 part-time Kings team members (i.e. engineers, janitors, food service workers and security officers) to return to work who were previously unable to work due to the state-mandated closure of Golden 1 Center.
The practice facility adjacent to the arena was donated at no costs to the state, and is part of the area being used to house COVID-19 patients.
While the initial announcement of the arena being used as a surge hospital did not mention the price tag of the agreement with the state, it also never stated that the use of the arena was a donation. It did, however, state that in addition to using the arena as a surge hospital, “the Sacramento Kings are making additional contributions, including donating $250,000 to support area community organizations providing essential services and supplies to families and individuals in need, and the donation of 100,000 medical masks to state and local health agencies.”
The Kings are being compensated by the state for the use of the Natomas arena, but that doesn’t change the fact that the Kings are still doing a service and providing a lot of good to the community at a time when revenues from games and concerts are nonexistent.
While technically true that it was never mentioned that the use of the Arena was a donation, it was also studiously avoided in an article which was centered around how the Kings aid in the fight against Corona, so it easily created such am impression.
https://www.nba.com/kings/news/sacramento-kings-announce-natomas-arena-serve-surge-hospital-and-250000-donation-support-area
Not a crime, but also not the best example of transparency.
Perhaps. But how would you have disclosed that there was compensation for use? There’s no way to put that into a release and have it sound good, even if it is standard. And who has the responsibility for that disclosure? Is it the Kings? Is it the state?
If it doesn’t sound good, then it seems it isn’t that good, right?
It’s the Kings press release. Unless the state of California put a non-disclosure clause in the agreement (why would they and an a state even do that, for such public money spending?), the Kings have a civic responsibility to be transparent no?
I find this segment right after the Natomas Arena paragraph especially tricky and borderline misleading: “To further assist the state and city in its fight against the coronavirus, the Sacramento Kings are making additional contributions, including donating $250,000 to support area community organizations providing essential services and supplies to families and individuals in need, and the donation of 100,000 medical masks to state and local health agencies.”
Let me see (my addition in CAPS):
Today, the California Governor’s Office of Emergency Services announced plans for the California Department of Public Health, in collaboration with the U.S. Army Corps of Engineers, to convert the Natomas arena and practice facility into a surge field hospital to provide critical medical services for coronavirus and trauma care patients. The hospital, which will house approximately 360 beds along with additional hospital services, will provide additional capacity for the Sacramento region in response to the expected surge in patients due to the COVID-19 health crisis. TO PARTIALLY COVER THE LOSS OF INCOME FROM RENT OF THE NATOMAS ARENA, THE STATE OF CALIFORNIA WILL PAY A DISCOUNTED MONTHLY RENT TO THE KINGS. (PART OF) THAT RENT PAYMENT WILL BE USED FOR A DONATION OF MONEY AND MEDICAL EQUIPMENT.
And I am not a native speaker, not someone who is trained to supply press releases. I am sure someone can make it smoother and more positive.
IMO they hid that fact, and the careful wording of the release makes it clear that it was convenient for them not to disclose it and present it in a way that put them in a more positive light than the facts support.
The other side I see is that the state also did press releases, did press conferences, and never mentioned that they were paying anything.
This. Local media made an assumption and it was wrong. Nothing to see here except an honest mistake.
The other side I see is that the state also did press releases, did press conferences, and never mentioned that they were paying anything.
I think it’s a silly thing for people to be upset about (for those that are.)
They’re charging what ostensibly is a very market competitive rate, never claimed it was purely humanitarian, and it’s good for the region, their employees, and the public.
I don’t see a problem. Businesses charge money for things. Now folks that are chsrging 3x what a respirator would cost by bidding things up? Now that’s not cool.
Oh no! Kings Herald is a shill site!
You think we can afford all this without Vivek money?
I’m looking forward to purchasing a Kings Herald T-shirt someday!
Is there a new catch prase? Or will it still be “Try out thick creamy shakes.”?
it’s gonna have the Court Jester logo on it….
Imagine an army of Kings Heralders all wearing that T-shirt with the Court Jester logo on it. Our enemies would flee in fear!
I wouldn’t say I’m upset about it, but the fact that they are getting “only” $500,000 (which is about 60% of what an undrafted rookie free agent would get in the first year of a minimum deal) – well, it might as well be zero simply for PR purposes.
I’d bet there’s some potential tax writeoff involved here, as well.
I actually don’t have a huge problem with this, if the facility is full. When you do the math, it does work out to $42 per night if the facility were full.
I don’t buy that they were making meaningful revenue from parking space rental (unless local car dealerships were absolutely filling the lot with cars). I also don’t buy this as having anything to do with property taxes, as that money was being paid anyway.
But again, if you look at price per night, it’s not a bad deal. I think the transparency could and should have been better, and I’m very sure the Kings are turning a profit here, but again, this space may have been very necessary and potentially not enough were the situation to get out of hand, so no major complaints from me.
Yep, the issue was messaging. Whoever is at fault for that, that’s where I think the blame lay.
Badge Legend