McNall Sells Part of Kings; Group Plans to Build Arena : Business deal: A new partnership is formed, but many questions are left unanswered.

Bruce McNall confirmed Wednesday that he has sold partial ownership of the Kings to two telecommunications executives and formed a partnership with them to build a new arena.

McNall and Joseph M. Cohen of IDB Communications Group Inc. made the announcement at a news conference at the Forum, where there were a few questions left unanswered, such as: how much would the new facility cost, where would it be built and who is going to play in it?

“It’s a brave new world,” Cohen said.

Nor did McNall disclose either the financial arrangements or percentage of ownership involved in the transaction, although he said the deal would not change his role with the Kings.

“I’m still in charge of the Kings,” said McNall, the Kings’ chairman and chief executive officer. “There’s no change in that whatsoever. . . . I’m still the guy with the Kings.”

McNall became sole owner of the Kings when he bought Jerry Buss’ remaining interests in 1988.

After Wednesday’s developments, it seemed clear that Buss is a major player in the new sports facility, where the Kings are the only certain tenant. Buss, who was not present at the news conference, owns the Lakers and the Forum and holds a lease that commits the Kings to play there through 2008.

The Kings have played at the Forum since it opened in 1967. It seats 16,005 for hockey, but the Kings receive no revenue from parking and concessions.

McNall and Cohen went out of their way to praise Buss and to express their desire to involve him in the project. In addition to the lease issue, Buss could solve two major hurdles in the plan if the arena were built on his land and if the Lakers became the second professional team to play in it.

“We’ve always enjoyed a good relationship with Jerry, so it won’t be a problem (to settle the lease),” McNall said.

McNall said the first priority of his as yet unnamed association with Cohen and Jeffrey P. Sudikoff, IDB chairman and chief executive officer, is to elicit Buss’ involvement.

“He’s definitely interested,” McNall said.

“For him, it’s a dollar-and-cents thing,” he said. “He has a sizable investment and he has to make sure on economic terms that it’s good for him.”

Buss, in absentia, released a two-sentence statement: “I will be interested in what Bruce, Jeffrey and Joe have to present as I am very interested in a new sports complex for Inglewood. If there is an opportunity for us to participate, we’ll be glad to be part of it.”

According to McNall, there have been some talks with Buss about the project, but a spokesman for Buss said nothing specific has been presented.

McNall also said it is a possibility that the Clippers might be a co-tenant with the Kings, and that there is very little chance of both the Clippers and Lakers joining the Kings in the new arena. He said the Kings could go into the venture without Buss.

“Anything can happen, but it’s not our preference, to be sure,” he said.

Andy Roeser, executive vice president of the Clippers, said the team is moving ahead with its own plans for a new arena.

“If that process should move in such a way that it could involve a partnership with the Kings, then we certainly would be willing to explore that,” Roeser said.

McNall established cost estimates on the new building ranging from $125-150 million. He said capacity would be about 20,000. Asked where it would be built, McNall said quickly:

“Could be right here. A lot of that has to do with our conversations with Jerry.”

McNall said construction time for the new arena would be two to three years. If an Inglewood site cannot be worked out, McNall said, there may be no shortage of other prospective sites.

“Anyone with 50 acres and a hoe has an idea,” he said.

The proposed arena would be something like the new stadium being built in Chicago to house the Blackhawks and the Bulls, McNall said. It would also feature luxury boxes, which the Forum does not. The arena would also feature retail stores, television facilities and interactive video games that would provide business opportunities for IDB.

Based in Culver City, the telecommunications operator is known for transmitting broadcast feeds as well as voice, data and video traffic for corporate clients.

“The Kings are the entry fee into this exciting business in this great market,” said Cohen, founder of Madison Square Garden Network and co-founder of the USA Network. Since 1989, Cohen has served as a consultant to Spectacor, an entertainment and arena management firm, in regards to television distribution and arena activities. He was appointed president of Spectacor West, which manages the Coliseum, in 1991.

Sudikoff, who was not at the news conference, founded IDB in 1983 and is credited as a pioneer in developing new ways to use satellite technology in radio programming, production and distribution.

Cohen said he and Sudikoff are comfortable with McNall retaining control of the Kings.

“We trust his judgment,” Cohen said. “He’s done a great job. The Kings are the envy of a lot of teams in the league. We don’t need to reinvent the wheel. We’re happy to go along for the ride.”

Buss bought the Kings, Lakers and Forum from Jack Kent Cooke for $67.5 million in 1979. Buss sold the Kings to McNall for $20 million. Estimates of the Kings’ market value range as high as $120 million.

Roy Mlakar, the team’s president, assured the King players, in a short meeting in Pittsburgh, that McNall remains in control.

Left wing Warren Rychel said nothing has changed.

“It doesn’t mean we’re going to automatically win a bunch of games,” he said. “I don’t think anyone had it on their minds. We have enough problems. We had the meeting and we have new guys (owners) and Bruce is happy. It’s a bright thing in a crappy atmosphere.”

The Kings have lost seven in a row on the road.

Said goaltender Kelly Hrudey: “You look around the room and in two, three years, how many guys will still be here? Very few players on this current team will be playing in the new building.”

King Coach Barry Melrose denied the ongoing talk regarding a sale had been bothering his team.

“The press has asked me if it was a distraction,” Melrose said. “I said, ‘Business is separate from what we do.’ If Bruce is happy, we’re certainly happy.”

Times staff writer Lisa Dillman contributed to this story from Pittsburgh.

Keys to the Kingdom

A look at Wednesday’s developments:

* OWNERSHIP

Bruce McNall, chairman of the Kings, sold partial interest to telecommunictions executives Jeffrey P. Sudikoff and Joseph M. Cohen.

* PROPOSED ARENA

Building would seat 20,000. Tenants would be Kings, and, ownership hopes, the Lakers or another franchise. Cost would be $125 to $150 million. Site could be the present Forum location if deal is struck with Laker and Forum owner Jerry Buss.