It was shaping up as a crucial year for the Kings – possibly the team's final season in Sacramento – and now part of it has been wiped out.

The cancellation of the first two weeks of the NBA regular season could hurt the wobbly Sacramento economy.

With four home dates already gone, including a game vs. the Lakers that probably would have sold out, the immediate impact will be felt by ticket-takers, ushers and other employees at Power Balance Pavilion. Restaurants and other businesses will also be affected.

If the labor impasse drags on, it could erode some of the public enthusiasm for a new arena that the Kings created last May, when they halted their efforts to move to Anaheim.

"It's not an issue that helps anything," Michael Ault, a member of the City Hall arena task force and head of the Downtown Sacramento Partnership, said of the labor stoppage. Ault said it's possible that the loss of games could "have some psychological impact" on public support for the $387 million arena proposed for the downtown railyard.

Still, he said, the arena – which would also host concerts and other events – is "about more than sports" and will likely move forward regardless of the Kings.

Top city officials say the arena project won't be derailed. "We're going full speed ahead," said Mayor Kevin Johnson at his weekly press conference.

John Dangberg, assistant city manager, said city officials are pressing on with detailed negotiations on financing the facility. City Hall is also holding an open house this evening to start the environmental review process for an arena – a crucial step toward its construction.

The cancellation of games "has no impact on the work we are focused on," Dangberg said.

It's unclear what effect a prolonged lockout would have on the finances of the Kings and their owners, the Maloof family. Co-owner Joe Maloof said Tuesday he was forbidden by the league to discuss the impact of the canceled games.

The family has endured hard times lately, surrendering control of the Palms Casino in Las Vegas to creditors. While the Kings are a separate business, the team had the NBA's lowest player payroll last season and the Maloofs have said it's hard to compete in a small market and in an outdated arena.

Part of the labor impasse involves disagreement over a revenue-sharing plan that would put small-market teams such as the Kings on a more equal footing.

The Kings organization employs 700 workers, including 550 part-timers, said team spokesman Chris Clark. The figures don't include concessionaires who work for a contractor.

Clark said the cancellation of games will mean reduced hours, particularly for the part-timers. "Obviously, without Kings games they can't work as often," he said.

It's not as if Power Balance Pavilion will shut down. There are 14 events on the arena calendar between now and the end of November, including a Foo Fighters concert and nine Disney on Ice shows.

Clark said the organization expects to fill in more dates with "fan engagement events" at the arena, including a big-screen showing of a documentary about late Kings player Wayman Tisdale.

Some experts believe the lost Kings games won't put much of a dent in Sacramento's economy. Dennis Coates, an economist at the University of Maryland in Baltimore who has studied the sports business, said Kings fans will simply spend their money elsewhere in the community.

"Mostly it will get rerouted," he said. "It's a movie and a dinner and a new shirt."

Yet Sacramento leaders fear the community will suffer. Besides lost business at restaurants near the arena, Ault noted that several downtown hotels, including the Sheraton, Citizen and Hyatt, host visiting NBA teams.

"It's not just hotels, it's restaurants before and after games, it's parking lot attendants," he said.

Another possible casualty: fan enthusiasm.

"There was a lot of unity among the fans about getting behind the movement to keep the team here," said Kevin Matulich, 23, who attended a lively rally at Cesar Chavez Plaza last May to celebrate the Kings' decision to stay in town. "And this is kind of deflating because you lose that momentum."

Johnson and Dangberg insisted the momentum toward a new arena won't sputter. Notably, Dangberg said the city has already heard from several firms interested in buying a lease to operate thousands of city-owned downtown parking spaces – a deal that could yield tens of millions of dollars for construction.

The assistant city manager said he expects to present a parking proposal to the City Council on Dec. 13.

"We are working on a long-term project here," Dangberg said. "Those two weeks (of lost games) don't really impact a project that doesn't open until 2015."

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Call The Bee's Dale Kasler, (916) 321-1066. The Bee's Ryan Lillis contributed to this report.