Not too long ago, Power Balance bracelets started showing up on the wrists of a bunch of NBA players who were willing to buy in to the idea that a hologram sticker could make them stronger. While this is as ridiculous as it sounds, the makers of the bracelets made a ton of money, picked up big name investors and even bought an arena sponsorship, taking over the Arco Arena for the Sacramento Kings.
Then they went bankrupt because they were selling bracelets with stickers on them. Whoops.
Now that they’re bankrupt, they’re having a little trouble paying for that sponsorship, which is bad news for the Kings. From the Sacramento Bee:
Cash-starved Power Balance expects to be sold soon, and court papers say the likely buyer doesn’t plan to maintain the marketing deal that turned the former Arco Arena into Power Balance Pavilion.
That could change between now and Dec. 20, when Power Balance’s business is scheduled to be auctioned off. Hanyang LLC, the Southern California company in line to buy Power Balance, could choose to retain the contract with the Kings after all. Someone could outbid Hanyang and decide to keep the Kings’ deal.
That’s bad. This is worse.
[The] Power Balance bankruptcy filing adds to the uncertainty about the Kings’ future. As the team gears up for an abbreviated NBA season starting Dec. 26, its owners are waiting to see if the city can assemble financing for a new arena. The Kings have vowed to leave town if financing isn’t in place by spring.
If the Kings lose the Power Balance contract, “they’re not going to have that revenue stream they were counting on,” said E.J. Narcise of Team Services LLC, a Maryland company that negotiates arena naming-rights deals.
Finding a new sponsor wouldn’t be easy, given the economy and the possibility the Kings would leave. “There aren’t going to be a lot of companies that will step up and jump on this,” Narcise said. [...]
Power Balance already owes the Kings $100,000, according to court records.
So, just to clarify, the city of Sacramento pulled a miracle to keep the Kings around for another season. Only it turns out that this season is going to have only 33 home games, will likely see them lose their arena sponsorship in the first week of the season and cost them up to $100,000 in the process, which will make it even harder to find a way for the Kings to remain in Sacramento. Ugh.
This is what happens when your team is owned by two guys who are going broke as fast as the company they have sponsoring their team’s arena. Now is not the greatest time to be cheering for the Kings.
It could be worse though. The Kings could still be wearing those atrocious gold uniforms. At least Sactown fans have that going for them.