10:50pm: NBA commissioner David Stern released a statement responding to news that the city of Sacramento and the Kings have failed to reach an arena agreement, reports USA Today's J. Michael Falgoust (via Twitter).
"We are disappointed for the city, its businesses and the supportive fans of the Kings, as well as team ownership , that this transaction, which we thought was fair has been abandoned. The Kings had the right to do that, as well as the right to continue at Power Balance Arena."
2:41pm: Johnson says Sacramento will move on to "Plan B" and try to build a downtown sports arena without the Kings. Co-owner George Maloof, meanwhile, says the Kings don't intend to seek relocation. Ryan Lillis of the Sacramento Bee has the details.
2:08pm: After two days of meetings to see if the two sides could salvage the proposal for a new arena, the city of Sacramento and the Kings have failed to reach an agreement. The arena deal is dead, tweets Rob McAllister of KFBK in Sacramento. The Maloofs confirmed in a statement that today's talks were unsuccessful and no further discussions are scheduled (Twitter link).
"It became clear today that our differences are irreconcilable," said Sacramento mayor Kevin Johnson, who added that the best interests of the city and team were not aligned. According to Johnson, the two sides wanted to leave "no stone unturned," but the deal that was tentatively agreed upon in February will not be happening (all four Twitter links).
While it's too early to jump to conclusions about the Kings moving to Anaheim or anywhere else, the team's long-term future in Sacramento is hazy at the moment. We'll have to wait to see what the next move is for the Kings' owners and the city of Sacramento.