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

2 Comments

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).

Manu Ginobili’s uncertain future has Spurs fans feeling anxious

Getty Images
Leave a comment

SAN ANTONIO (AP) — Manu Ginobili was swept away by the emotions of a sold-out home crowd serenading him with chants of “Manu, Manu” and rising as one for a standing ovation in the closing minutes of the Western Conference Finals.

Spurs fans were saying goodbye, but did not want to let go of the star who helped San Antonio win four of its five NBA Championships with his dynamic play.

“It was kind of emotional and overwhelming,” Ginobili said. “Yea, I don’t have a lot of words to describe it, but of course it makes you feel really well. Feeling that type of appreciation, love, respect. … When it happens in a situation like that and you receive all of that without expecting it, it shakes your world a little bit.”

The emotional outpouring led Ginobili to make a startling revelation to friend and teammate Patty Mills as they sat on the bench.

He had no idea what all the fuss was about.

“It felt like they wanted me to retire,” Ginobili said with a smile. “Like they were giving me sort of a celebration night. And of course, I’m getting closer and closer. There is no secret, for sure. It’s getting harder and harder, but I always said that I wanted to let it sink in for three weeks, four weeks, and then I will sit with my wife and see how it feels.”

San Antonio’s highly passionate fan base does not want Ginobili to retire. The fans simply wanted to show their appreciation because they are unsure if their beloved star will return next season. The Spurs also aren’t sure.

“If he decides he’s going to play again, that’s up to him,” coach Gregg Popovich said. “I won’t try to convince him one way or the other. I don’t think he needs that.”

Ginobili’s uncertain future is one of many questions the Spurs are awaiting answers on this offseason.

San Antonio’s season came to an abrupt end when they were swept by Golden State in the conference finals. The Warriors became the first team in league history to start the playoffs 12-0 after defeating the Spurs 122-108 on Monday night in Game 4.

Still, San Antonio’s first season in 20 years without franchise cornerstone Tim Duncan was a success. The Spurs captured their second straight Southwest Division title and earned their 20th straight playoff appearance.

“If you have half a brain, you put things in perspective,” Popovich said. “For the first year without Timmy’s leadership and a lot of new players, these guys got it together to win 61 games and just got better and better as the playoffs proceeded and we were basically on a pretty good roll starting Game 1 at Golden State. Some bad fortune which happens to all of us at some point in our lives and we don’t get to be the last team standing. But when I think about what they accomplished, they deserve a lot of credit.”

The Warriors outscored the Spurs by 85 points in the series after Kawhi Leonard suffered a sprained ankle in Game 1 with 7:52 remaining in the third quarter and San Antonio leading 78-55.

Leonard will be fine after some rest and rehabilitation. Forward David Lee is also expected to return after suffering a torn patellar tendon in Game 3 against the Warriors. Tony Parker is expected to be out at least eight months after suffering a ruptured left quadriceps tendon against Houston in Game 2 of the West semifinals.

Healing LaMarcus Aldridge‘s psyche could be trickier. The 6-foot-11 forward struggled in the postseason, especially against Golden State. Aldridge was twice held to eight points in the conference finals, including a 7-for-17 effort in Game 4.

Popovich isn’t worried.

“Not having Tony and Kawhi, it takes away our two best creators,” Popovich said. “They create a lot for our team. If one of the other scorers is left on his own like L.A. and he gets doubled and the playoffs get more physical, then you have to find scoring elsewhere and we had a problem doing that.”

The Spurs do not have any existing cap space to add players, but do have eight potential free agents that could impact that.

Lee, Pau Gasol and Dewayne Dedmon all have player options while Patty Mills and Jonathon Simmons are unrestricted free agents. Keeping Simmons may be difficult after his star turn in the playoffs, especially once Leonard went down.

“We value all the guys that are going to be free agents,” Popovich said. “R.C. and I will sit down and put together a plan and priorities and that sort of thing, it’s no different than any other year.”

Ginobili is a free agent, but is expected to return to the Spurs if he does not retire.

The question is, does he want to.

The 39-year-old rebounded from four straight scoreless games against Memphis in the opening round to provide San Antonio with a needed boost. He finished with 15 points in a frenzied 32 minutes in Game 4 against Golden State.

“I do feel like I can still play, but that’s not way is going to make me retire or not,” Ginobili said. “It’s about how I feel.”

Unsure of what that decision is, Popovich made sure Ginobili understood what he has meant to the Spurs and their fans. Ginobili started and was taken out of the game with two minutes remaining to huge applause.

“I’m really happy we did what we did last night for him,” Popovich said. “I think he really was moved by it. He deserved it and it worked out wonderfully.”

 

Report: Knicks would like to revisit Ricky Rubio trade talks, eyeing free agents such as P.J. Tucker

1 Comment

The Knicks need a whole lot of things this summer — starting with someone who would give them anything of value for Carmelo Anthony (they may well strike out there) — but at the top of the list should be getting players who can defend. That’s the end of the floor where they had the biggest issues last season (they were 25th in the league).

One way to do that, revisit the Ricky Rubio trade discussions they had near the trade deadline. Ian Begley of ESPN said some in the Knicks camp hope to do that.

Some in the organization were hopeful after the trade deadline that they could revisit their attempts to acquire Rubio from the Minnesota Timberwolves in the offseason, per sources. It’s unclear if that interest remains, but Rubio would fit the mold of a two-way contributor.

Rubio found his shot after the All-Star break and played some of the best basketball of his career during that stretch. Combine that with the fact Kris Dunn struggled mightily as a rookie, and it’s hard to see why Tom Thibodeau and the Timberwolves would want to move the only quality point guard on their roster. If they do, the price will be too steep for the Knicks to afford.

On the free agent side, they reportedly have an interest in physical defender P.J. Tucker, among others.

The club has preliminary interest in veteran free agent P.J. Tucker, per league sources. Jeff Hornacek coached Tucker in Phoenix and praised him last season as a strong locker-room leader and intense defender. Tucker shot 35.7 percent from beyond the arc last season, including a 40 percent clip after being traded to the Toronto Raptors.

New York has also shown preliminary interest in New Orleans Pelicans forward and free-agent-to-be Dante Cunningham, per sources.

Tucker is an interesting fit, but he’s going to have other suitors as well.

Whatever Phil Jackson and the front office do this summer, they need to do it better than the Derrick Rose/Joakim Noah signings of last summer. There is some pressure on Jackson to get things right this time around.

As part of diversion agreement, Josh Jackson admits to damaging Kansas women’s basketball player’s car with her in it

AP Photo/Reed Hoffmann
5 Comments

LAWRENCE, Kan. (AP) – Former Kansas basketball player Josh Jackson must attend anger management classes, write a letter of apology and refrain from using alcohol or recreational drugs for a year as part of a diversion agreement arising from his confrontation with a Jayhawks women’s basketball player last year.

Jackson, who is leaving Kansas after one season and is expected to be a top pick in next month’s NBA draft, had pleaded not guilty to a misdemeanor count of criminal property damage after he argued with McKenzie Calvert on Dec. 9 outside a bar in Lawrence.

Jackson signed the diversion agreement on April 26, according to Douglas County Court records obtained by The Kansas City Star. If he successfully completes the program, the case against him will be dismissed.

He is required to complete the anger management class and community service by Oct. 31 and write the apology letter and obtain a substance abuse evaluation by June 30. If the evaluation doesn’t make any treatment recommendations, Jackson must complete alcohol information classes by Oct. 31.

Jackson also signed a “stipulation of facts” that said he followed Calvert out of the bar after she threw a drink at fellow Kansas player Lagerald Vick. He said he yelled at Calvert and called her names before she got into her car and locked the doors.

“I kicked her vehicle, breaking the left rear taillight and denting the driver’s door,” Jackson said in the document.

A damage estimate of Calvert’s car for $2,991 was given to police in December, according to a Douglas County District Court affidavit. The total repair bill was $3,150, which included $1,127 for the driver’s door and left tail lamp. Jackson was not charged with felony criminal damage in excess of $1,000 because prosecutors couldn’t prove that he caused all the damage to the car “due other unidentifiable individuals damaging the vehicle,” according to county District Attorney Charles Branson.

He was ordered to pay $158 in court costs, $150 in a diversion fee and $250 in restitution to Timothy Calvert, McKenzie’s father. If Jackson violates his 12-month diversion, he would pay restitution of $3,150 to Calvert.

The 6-foot-8 swingman was the nation’s No. 1 recruit when he signed with the Jayhawks out of Prolific Prep Academy in California. He immediately earned a spot in the starting lineup, teaming with national player of the year Frank Mason III and Devonte Graham to form one of the nation’s top backcourts.

Jackson was the Big 12 newcomer of the year after averaging 16.3 points and 7.4 rebounds. He helped the Jayhawks to a 31-5 record and a 13th straight regular-season Big 12 title before a loss to Oregon in the Elite Eight of the NCAA Tournament. He has signed with former NBA player B.J. Armstrong of Wasserman Media Group.

Reports: Miami Heat, Chris Bosh have (or near) agreement removing him from roster, allowing comeback

2 Comments

Chris Bosh is never going to suit up for the Miami Heat again. A blood clotting issue that sidelined him a couple of seasons back never fully went away and Miami doctors would not clear him last season.

He may never play in the NBA again, but his max contract is an anchor on the Heat’s effort to rebuild. Miami can waive him and apply for an injury hardship to get his salary taken off its cap (Bosh would still get paid, the contract is guaranteed, but it just wouldn’t count against the cap). The concern for Miami was a comeback — under the current NBA rules, if Bosh played 25 games for any other team, his full salary would come back onto their books.

Miami officials and Bosh’s representatives have repaired their relationship, and the two sides — working with the NBA and the players’ union — have an agreement on a deal, reports Barry Jackson of the Miami Herald.

Chris Bosh has told family members that an agreement has been struck among the NBA, the Heat, the union and himself for Bosh to part ways with the Heat at some point in the coming weeks, with the Heat receiving maximum cap relief, an NBA-employed source said in early May and reiterated Tuesday.

There are still details to be worked out so nothing is final, reports Ira Winderman of the Sun-Sentinel. He also does a good job explaining the deal.

Under the CBA in place until June 30, a return to the league by Bosh could have reinstated his salary-cap hit to the Heat’s ledger over the remaining term of his contract, which expires after the 2018-19 season. However, under the CBA that goes into place July 1, once a medical panel comes to an agreement that it no longer considered safe for Bosh to continue his career, there no longer is the risk of Bosh’s cap charge or luxury-tax hit returning to the Heat’s book.

The approach with Bosh, 33, from the league and union apparently is a one-time allocation, with Bosh in the midst of a preexisting condition amid the transition to the incoming work rules.

That seems fair. It lets Miami off the financial hook if he does return, and just as importantly for the team, it gives them financial flexibility going into the draft and free agency — if they want to chase Gordon Hayward or Paul Millsap or someone else, they have the room and no fear of a financial bombshell landing on them.

On the other side, it makes it possible for Bosh to return to the NBA if he wishes.  And if he can get cleared medically (which may be difficult, but the people around him say is not impossible).

The question for Bosh is how much he wants to come back at this age — it’s not about the money, he’s got a lot of that now. But it takes a lot of work to get back into NBA shape and prepare his aging body for another marathon of an NBA campaign. After time off, hanging out with his young family and pursuing his diverse other interests, does he want another go at the NBA or is he ready to move on? Only Bosh can answer that, and there isn’t a wrong answer.