Professor Joo Comments on Sacramento Kings' City Loan for Sacramento Bee
Professor Thomas Joo commented for the Sacramento Bee on the future of the controversial loan issued by the City of Sacramento to the owners of the Sacramento Kings. City officials loaned the team $73 million in 1997 as part of a plan to restructure the Kings' finances and keep the team in Sacramento. Now, as the Kings' current owners appear poised to complete a sale of the team that would result in its relocation to Seattle, city officials have suggested that $77 million would become due as soon as any move becomes official.
At the Bee's request, Professor Joo examined the loan documents and commented that the contract appears to give the Kings some options for how to make good on their debt if the team leaves town. Because the Kings put up as collateral Sleep Train Arena, the surrounding 83-acres, and a $25 million stake in the team, the Kings could try to settle the loan by offering some cash and forfeiting the arena, Joo said.
Joo, a professor at UC Davis School of Law, an expert on contract law, specializes in the areas of corporate governance and race and the law.