Kehriotis says he doesn't know if he'll be able to get all of the pieces in place by Friday. He says the group's goal is $750 million in private monies: $350 million for the controlling shares of the Kings and $400 million for an arena.
The effort is separate from the Ron Burkle/Mark Mastrov plan to match the offer made by a Seattle investment group for controlling interest in the team. The Burkle Mastrov group has been considering arena locations as well, including a Downtown Plaza possibility. The group's template has been a deal struck last year between the City, the Maloof family, and arena operator AEG that would require investments from all three parties.
In that arrangement, the City's portion would have been $255 million -more than half of the arena's total cost.
Eliminating any public financing could eliminate opposition to a new arena voiced by two City Council members, Darrell Fong and Kevin McCarty.
Both voted against a combined motion and resolution that provided $150,000 for consultants and seven guidelines the City should follow when negotiating to build an arena.
The guidelines include no new citywide taxes, a repayment of the City's loan to the Kings' majority partners, the Maloof Family, and the willingness to put up City resources -most notably leasing of its parking operations.
The Kehriotis plan is not location specific -the arena could be built anywhere in the Sacramento area.
Councilmember Steve Cohn asked for the language of the motion to be modified to minimize the notion that a downtown arena was the city's only option. "I think it was clear that the body of the principle that says a new entertainment and sports center must be located downtown does support the idea that there are circumstances where it would make more sense to have it elsewhere."
Cohn also said it would make sense to use the 183 acres in Natomas owned by the Kings and the City, to build a new arena that comes with infrastructure, a practice facility and no significant additional city investment, "If somebody can do that without public investment to me that's a real no brainer."
Councilmembers became aware of the Kehriotis plan once Fox 40's Jim Crandell broke the story Monday night. But, sources tell Capital Public Radio Mayor Kevin Johnson has been aware for some time that a plan was forthcoming and that Kehriotis has been talking with National Basketball Association Commissioner David Stern during this process.
Because Kehriotis owns a piece of the team, the issue of right of first refusal could be pivotal. Partnership documents say minority owners have the right to match an offer made for any shares, but the Maloof family has not offered that option to any of the other owners.
Minority owner Bob Cook's personal attorney, Daniel Weiss says the last time minority shares were put up for sale, other owners were given the first option to purchase those shares.
The trustee for Cook's shares has put the issue before a federal bankruptcy court judge.
In the meantime, the clock is ticking for Kehriotis who has sounded rushed during recent telephone conversations. He said he wished he could comment further, but he has "no time to talk to the media. I'm trying to put this deal together."