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Kings Arena Update: Kevin Johnson working with Ron Burkle’s right hand man

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The Sacramento Kings arena saga took an interesting turn on Wednesday when it was announced that the Maloof family had given up majority ownership of the Palms Casino after a “recapitalization agreement” with their main creditors, TPG Capital and Leonard Green and Partners. The deal reduces the Maloof’s ownership from about 80 percent to 10-20 percent, but the Maloofs will continue to operate the casino.

The recapitalization agreement doesn’t come out of nowhere, however, as Bloomberg News and many Las Vegas outlets reported in January that there was a strong chance that this would happen, though the Maloofs refused to acknowledge that they would sell or that the Palms was in trouble.

Meanwhile, on Monday, Mayor Kevin Johnson announced the identities of the 70-person Here We Build committee, named after the grassroots movements created by Blake Ellington of #HereWeStay, and modified into #HereWeBuild when local radio personality Carmichael Dave created a pledge drive for the ages.

And if you’re a fan of political and financial All Star teams, you probably want to stand in line to get your briefcase autographed.

Headlining the committee as co-chairs are California Senate President pro Tempore Darrell Steinberg and California State Senator Ted Gaines, though the big heavy hitters here include the guy whose feasibility study is being used as Sacramento’s blueprint, David Taylor, and political heavyweight Darius Anderson, who presented to the NBA Board of Governors back in April when the Maloofs applied their full court press to move the Kings down to Anaheim.

As for Taylor, his ICON Venue Group is partially owned by sports facility giant Anschultz Entertainment Group (AEG), who has the money and wherewithal to quickly implement a time-sensitive, politically driven arena project, though there have been no public statements made to the effect that they are on board in an official capacity for now.

Anderson’s inclusion is the largest elephant in the room, however, since he is a close advisor to none other than billionaire Ron Burkle, who was reportedly interested in buying the Kings back in April.

It was this interest that created the most quotable moment in the saga to date, when NBA insider Sam Amick reported that Commissioner David Stern made a wise crack saying K.J. was bringing him a “used car dealer,” but upon learning that the billionaire was interested in buying the Kings he grew quiet and then said, “You’ve got Burkle?”

Burkle was recently ranked No. 347 by Forbes among the world’s richest billionaires, and he built his empire in the grocery industry, parlaying several successful deals into a massive financial empire across many industries.

When the Maloofs were confronted with news of Burkle’s interest in buying the Kings at the NBA Board of Governors meetings in April (a move they claimed to have rebuffed a month earlier), they were outwardly angry and they insisted that their team was not for sale. Stern would eventually echo those sentiments by downplaying a potential purchase by Burkle, and since then Burkle’s name has fallen out of the Kings’ news cycle.

But that doesn’t necessarily mean he has stopped flirting with professional sports. Burkle, also a part owner of the Pittsburgh Penguins, has reportedly joined up with Dodger great Steve Garvey to form a group interested in purchasing the struggling Dodgers franchise. This follows his attempts to buy the Pittsburgh Pirates and Washington Nationals, and if you go back to 1999, his failed attempt to bring football to L.A. with, wait for it, AEG’s Tom Leiweke.

Incidentally (or not), AEG attempted to lure Burkle’s Penguins from Pittsburgh to Kansas City, and after that failed, AEG would later help Kansas City pass a public-private ballot measure to build the now-thriving Sprint Center that returns the city significant revenue based solely on concerts and events.

And just when it appeared that Burkle was falling off the Kings’ radar, a May 18 report came out of Las Vegas from none other than Lifestyles of the Rich and Famous host Robin Leach, who wrote that Burkle “insists on re-entering the Las Vegas market.” After the company Burkle bought shares in, the Morgan Hotel Group (MHG), failed to turn around their struggling Hard Rock Café property – it was sold off to creditors in March, much to the chagrin of Burkle, apparently.

Afterward, Burkle upped his ownership stake in MHB to approximately 30 percent and installed his guy, Michael Gross, as CEO.

At least one investment banking group, Jeffries, believes they intend to grow the company rather than sell it. Leach, who may not appear on the outset to be the best source of financial news, has spent the last 10 years on the Las Vegas industry news beat, and goes on to write that Burkle and his Morgan Hotel Group have “been actively kicking the tires, examining facilities and asking tough questions of a hotel group (in Las Vegas) willing to sell off one of its properties.”

Wait. Didn’t the Maloofs just sell? Yes they did – to two separate private equity firms in Leonard Green and TPG Capital. TPG owns Caesars Entertainment and would theoretically take over the Palms, but Leonard Green has also been trying to buy up gambling entities while the gambling industry is bottoming out – so it’s still anybody’s guess what the end-game is over at the Palms.

Let’s be clear – Leonard Green isn’t Burkle, and Burkle isn’t Leonard Green, but maybe Burkle is Finkle and Einhorn is a man.

Leonard Green and Burkle’s investment firm, Yucaipa Companies, both bought large portions of the grocer Whole Foods in 2009. And in 1991, Burkle sold his Almac’s grocery stores to Leonard Green for $75 million. All the while, both have been extremely active investing funds for the California Public Employees Retirement System over the last two decades. Surely it’s possible that in the elite rungs of society, where the billionaires play Kevin Bacon’s Six Degrees of Separation game with themselves all the time, that any interaction between the two entities is purely coincidental.

But just to be sure, I may have to go down to the Palms this Wednesday when Burkle will reportedly be there to celebrate the NHL awards and ask him about it myself.

The Maloofs, for their part, are not publicly tipping their hand regarding the involvement of Darius Anderson. George Maloof recently told Dale Kasler (via Ryan Lillis) of the Sacramento Bee that Anderson’s involvement in the committee “doesn’t give me any thoughts or concerns.”

As for the state of the funding hunt taking place in Sacramento, the jury is still out whether the $400 million wiped off the books at the Palms will allow the Maloofs to bring more money to the table for a new Entertainment and Sports Complex (ESC), though that doesn’t mean they should have to. After all, as reported yesterday, Anaheim is going forward with improvements on the Honda Center and is welcoming the Kings with a shiny new credit card. Besides, it’s entirely possible the new financial flexibility could be funneled back into the Palms, though pumping up your newly divested asset with freed up funds doesn’t sound like ‘Plan A’ for cash-strapped NBA owners looking to fund an arena.

Regardless, the Maloofs have said that they would contribute toward funding the ESC, so this would appear on the surface to give them better flexibility in doing so.

The 70-person Here We Build committee, meanwhile, consists of every expert, partner, planner, lawyer, community leader, and politician that would be needed to complete an endeavor of such magnitude. According to a source close to the situation, the NBA has also “firmly planted their feet in Sacramento,” and has “sent their best lieutenants to work day and night to get an arena built.”

Numbers-wise, the commission has enlisted the services of at least three well-respected consultancies to review the economic impact of the undertaking, which according to well-placed sources will show enough tax revenue and job creation to not just justify the new Entertainment and Sports Center – but also give political cover to the various bodies that will need to approve the proposal.

What this means, the source says, is that the tenor of the discussion in Sacramento has changed from ‘we don’t want to pay for this’ to ‘we need to pay for this, as it may very well be the difference between economic revival and economic disaster.’ And while there will certainly be skeptics and opposition groups that may choose to latch onto the issue, they could be committing political suicide as the Here We Build committee continues to release positive economic findings.

What does it all mean? It’s hard to say anything definitive right now. But while Kevin Johnson orchestrates his regional dream team, the powerful triad of Darius Anderson, the ICON-David Taylor group, and the NBA are knee deep in the fight to keep the team in Sacramento. And whether or not AEG or Ron Burkle can come along for the ride, the amount of firepower in Sacramento right now is big news for Kings fans.

Update (Saturday, June 18, 2011): The Sacramento Bee reports that the Maloofs will own just two percent of the Palms, according to regulatory documents.  They could have the option to buy back a significant share, up to 20 percent, and in the meantime TPG and Leonard Green will each own a 49 percent of the company.

On the surface, this would strengthen the chance that the Maloofs are freeing up funds to contribute toward Sacramento’s proposed Entertainment and Sports Center.  As for TPG and Leonard Green, the fact that the pair would have matching 49 percent shares creates an interesting dynamic, whereby each company could have the same voting rights (with the Maloofs holding a tie-breaking vote).

James scores 33, Cavaliers reach second straight NBA Finals

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TORONTO — LeBron James scored 33 points, Kevin Love had 20 points and 12 rebounds and the Cleveland Cavaliers advanced to their second straight NBA Finals by beating the Toronto Raptors 113-87 in Game 6 of the Eastern Conference finals Friday night.

It’s the third finals appearance in team history for the Cavaliers. Cleveland lost to Golden State in six games last year and got swept by San Antonio in 2007.

For James, it’s his sixth straight trip to the finals, including four with Miami. He broke the 30-point barrier for the first time this postseason and finished with 11 rebounds and six assists.

“I had to bring my game,” he said. “I had to be in attack mode from the beginning.”

Kyrie Irving had 30 points and J.R. Smith had 15 for the Cavaliers, who will face the winner of the Golden State-Oklahoma City series on Thursday.

Cleveland would open at home against the Thunder but would be on the road against the 73-win Warriors, who trail 3-2 against Oklahoma City heading into Saturday’s Game 6.

The Cavs will be seeking to end Cleveland’s 52-year championship drought, the longest by any city with at least three professional teams. No Cleveland team has won it all since the Browns blanked Baltimore 27-0 to win the NFL championship in 1964.

Kyle Lowry scored 35 points and DeMar DeRozan had 20 as the deepest playoff run in Raptors team history ended, much to the disappointment of a sellout crowd of 20,605 dressed in red and white T-shirts that formed a maple leaf pattern on either side of the court. Fans stood and cheered “Let’s go, Raptors! Let’s go, Raptors!” throughout most of the final three minutes.

Toronto prolonged the series with back-to-back home wins in Games 3 and 4 but never mounted much of a challenge to the conference champions in Game 6, falling behind by 21 in the third quarter.

The Cavaliers came in 0-4 at Air Canada Centre counting the regular season and playoffs, but looked much more like the team that handed the Raptors a trio of lopsided losses in Cleveland this series.

The Raptors trailed 88-78 on a jumper by DeRozan with 10:23 remaining but James scored six points in a 14-3 run that gave the Cavs a 102-81 lead with about 6 minutes left.

James scored 14 in the first and five of Cleveland’s nine field goals were from long range as the Cavaliers led 31-25 after one.

After video review, the officials waved off a basket by Biyombo with 3:18 left in the period and gave him a flagrant foul for knocking down Love.

Tempers flared again early in the second when Richard Jefferson reacted angrily to catching an elbow from Jonas Valanciunas as the two battled for a rebound. Patrick Patterson came over and shoved Jefferson out of the way. Both Patterson and Jefferson were given technical fouls.

Cleveland made five more 3-pointers in the second and outscored Toronto 9-3 over the final 71 seconds to lead 55-41 at halftime. The Cavaliers made 10 of 15 3-point attempts in the first half, while Toronto was 2 of 12.

The Cavs led 78-57 after a 3 by Love at 3:53 of the third but Lowry scored 15 points as Toronto closed the quarter with a 17-8 run, cutting it to 86-74.

TIP INS

Cavaliers: Shot 17 for 31 from 3-point range. … Outscored Toronto 17-5 in fast break points.

Raptors: Finished their playoff run by playing every other day from April 29 onward, a 15-game run that started with Game 6 of the first round against Indiana.

LeBron James, in ‘attack mode,’ leads Cavaliers to second straight NBA Finals

TORONTO, ON - MAY 27:  LeBron James #23 of the Cleveland Cavaliers celebrates their 113 to 87 win over the Toronto Raptors in game six of the Eastern Conference Finals during the 2016 NBA Playoffs at Air Canada Centre on May 27, 2016 in Toronto, Canada. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Vaughn Ridley/Getty Images)
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TORONTO (AP) — LeBron James scored 33 points, Kevin Love had 20 points and 12 rebounds and the Cleveland Cavaliers advanced to their second straight NBA Finals by beating the Toronto Raptors 113-87 in Game 6 of the Eastern Conference finals Friday night.

It’s the third finals appearance in team history for the Cavaliers. Cleveland lost to Golden State in six games last year and got swept by San Antonio in 2007.

For James, it’s his sixth straight trip to the finals, including four with Miami. He broke the 30-point barrier for the first time this postseason and finished with 11 rebounds and six assists.

“I had to bring my game,” he said. “I had to be in attack mode from the beginning.”

Kyrie Irving had 30 points and J.R. Smith had 15 for the Cavaliers, who will face the winner of the Golden State-Oklahoma City series on Thursday.

Cleveland would open at home against the Thunder but would be on the road against the 73-win Warriors, who trail 3-2 against Oklahoma City heading into Saturday’s Game 6.

The Cavs will be seeking to end Cleveland’s 52-year championship drought, the longest by any city with at least three professional teams. No Cleveland team has won it all since the Browns blanked Baltimore 27-0 to win the NFL championship in 1964.

Kyle Lowry scored 35 points and DeMar DeRozan had 20 as the deepest playoff run in Raptors team history ended, much to the disappointment of a sellout crowd of 20,605 dressed in red and white T-shirts that formed a maple leaf pattern on either side of the court. Fans stood and cheered “Let’s go, Raptors! Let’s go, Raptors!” throughout most of the final three minutes.

Toronto prolonged the series with back-to-back home wins in Games 3 and 4 but never mounted much of a challenge to the conference champions in Game 6, falling behind by 21 in the third quarter.

The Cavaliers came in 0-4 at Air Canada Centre counting the regular season and playoffs, but looked much more like the team that handed the Raptors a trio of lopsided losses in Cleveland this series.

The Raptors trailed 88-78 on a jumper by DeRozan with 10:23 remaining but James scored six points in a 14-3 run that gave the Cavs a 102-81 lead with about 6 minutes left.

James scored 14 in the first and five of Cleveland’s nine field goals were from long range as the Cavaliers led 31-25 after one.

After video review, the officials waved off a basket by Biyombo with 3:18 left in the period and gave him a flagrant foul for knocking down Love.

Tempers flared again early in the second when Richard Jefferson reacted angrily to catching an elbow from Jonas Valanciunas as the two battled for a rebound. Patrick Patterson came over and shoved Jefferson out of the way. Both Patterson and Jefferson were given technical fouls.

Cleveland made five more 3-pointers in the second and outscored Toronto 9-3 over the final 71 seconds to lead 55-41 at halftime. The Cavaliers made 10 of 15 3-point attempts in the first half, while Toronto was 2 of 12.

The Cavs led 78-57 after a 3 by Love at 3:53 of the third but Lowry scored 15 points as Toronto closed the quarter with a 17-8 run, cutting it to 86-74.

TIP INS

Cavaliers: Shot 17 for 31 from 3-point range. … Outscored Toronto 17-5 in fast break points.

Raptors: Finished their playoff run by playing every other day from April 29 onward, a 15-game run that started with Game 6 of the first round against Indiana.

Reports: P.J. Carlesimo to join Sixers staff as Brett Brown’s lead assistant

CHICAGO, IL - MAY 02:  Head coach P.J. Carlesimo of the Brooklyn Nets watches as his team take on the Chicago Bulls in Game Six of the Eastern Conference Quarterfinals during the 2013 NBA Playoffs at the United Center on May 2, 2013 in Chicago, Illinois. The Nets defeated the Bulls 95-92. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Jonathan Daniel/Getty Images)
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Last season, when new president Jerry Colangelo started shaking things up in Philadelphia, he brought in Mike D’Antoni to be a lead assistant next to Brett Brown. This led to all kinds of speculation around the league that the Colangelos were trying to bring back the old Suns brain trust (especially when Jerry hired his son Bryan to be GM).

However, D’Antoni jumped ship to be the head coach of the Houston Rockets.

Enter, P.J. Carlesimo.

Carlesimo is a good fit, but that’s not going to quell the rumors that the Colangelos are not comfortable with Brown (despite giving him a contract extension). The Sixers need to give Brown a legitimate shot — he’s been like a contestant on Chopped the past few seasons, given a ridiculous basket of ingredients and told to turn Mango, octopus and graham crackers into a four-star meal. He’s gotten them to play defense (at times) and started to build a culture. He has earned the chance to show what he can do with a better lineup.

Which is what the Sixers will have next season.

Nuggets’ Jusuf Nurkic likes idea of two-bigs lineup with Nikola Jokic

DENVER, CO - APRIL 5:  Jusuf Nurkic #23 of the Denver Nuggets controls the ball against the Oklahoma City Thunder at Pepsi Center on April 5, 2016 in Denver, Colorado. The Thunder defeated the Nuggets 124-102. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Doug Pensinger/Getty Images)
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Late last season, Nuggets coach Mike Malone tried something — two young bigs together. Jusuf Nurkic and Nikola Jokic. It goes against the trends of the NBA, but that has worked pretty well these playoffs for Oklahoma City with Steven Adams and Enes Kanter.

It didn’t work all that well for Denver — in just 92 minutes together the Nuggets were outscored by 7.1 points per 100 possessions, mostly because the offense was terrible.

But Nurkic — who came in third in the Rookie of the Year voting — wants to try it again next season, he told the Nuggets’ official Web site.

“I’m happy about the big lineup [with Nikola]. “Basketball has kind of changed. The NBA has gone smaller because of [the] Golden State [Warriors]. In the [Western Conference] semi-finals, look at [Oklahoma City’s Steven] Adams, [Enes] Kanter, and [Serge] Ibaka. They played all those guys and they see the difference. Me and Nikola have great communication because we played in the same league, we played against each other.”

He’s referring to their time in the Serbian league where the two played before going to the NBA.

While it could only be used situationally, expect Malone to experiment with this lineup more. There are some serious defensive questions (neither is exactly fleet of foot), and there could be spacing issues. But if the league moves one way, the smart teams and coaches think about counters.