UPDATE: THE SACRAMENTO BEE REPORTS THAT THE ARENA DEAL IS DEAD.

One of the owners of the Sacramento Kings, one of the NBA teams on the short list to move to Seattle if the city builds a new arena, held an angry press conference this morning accusing the city of Sacramento of refusing to negotiate to keep the Kings in Sacramento. And he suggested that the city revamp its existing arena, the hilariously named Power Balance Pavilion, rather than build a new one---a 180-degree shift from his previous position.

The Maloof family, which owns the Kings, commissioned an economic analysis of a proposal to build a new arena that concluded, according to the Sacramento Bee, that building a new arena would "put the Kings at enormous financial risk and place the city 'right on the edge' of financial disaster."

Maloof has insisted all along that the team has no intention of leaving Sacramento. But he has also said the mayor and city council have to re-negotiate some of the details of the term sheet between the team and the city---the document that dictates the terms of any contract between the city and the Kings. The family said yes to the terms of the deal in a handshake agreement six weeks ago.
Yesterday, a large group of Sacramento business and community leaders wrote a letter to NBA commissioner David Stern saying they had lost faith in the ability of the team's owners---the Maloof family---to strike a deal to keep the Kings in the city.  ”It is time for a new ownership group to take over the team," they wrote.