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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).

John Stockton working with Bucks point guards at training camp

SACRAMENTO, CA - APRIL 30:  John Stockton #12 of the Utah Jazz dribbles in Game five of the Western Conference Quarterfinals against the Sacramento Kings during the 2003 NBA Playoffs at Arco Arena on April 30, 2003 in Sacramento, California.  The Kings won 111-91.  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: Jed Jacobsohn/Getty Images)
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The Bucks are coached by one of the greatest point guards in NBA history, Jason Kidd. But Kidd invited another legend of the position to camp to work with his point guards. John Stockton, the NBA’s all-time leader in assists and steals, was at Bucks practice on Thursday working with Michael Carter-Williams, Matthew Dellavedova and Giannis Antetokounmpo.

Not a bad person to learn from, especially since the Bucks have one of the weakest point-guard positions in the league.

Blake Griffin says he’s working on improving his three-point shot

LOS ANGELES, CA - DECEMBER 21:  Blake Griffin #32 of the Los Angeles Clippers shoots a jumper over Serge Ibaka #9 of the Oklahoma City Thunder during a 100-99 loss to the Thunder at Staples Center on December 21, 2015 in Los Angeles, California.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and condition of the Getty Images License Agreement.  (Photo by Harry How/Getty Images)
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2016-17 is going to be a big year for Blake Griffin. He missed much of last season with a quad injury and a broken hand stemming from a punching incident, and he has the ability to opt out of his contract next summer. When Griffin was healthy, he was his usual All-Star self for the Clippers, but he played just 35 games. He’s healthy now, at the start of training camp, and he says he wants to improve his three-point shot.

From Dan Woike of the Orange County Register:

“I want to be someone who shoots from there confidently, for sure,” Griffin said after Thursday’s practice at UC Irvine’s Bren Events Center. “A lot of us power forwards, our strength is inside or our versatility. You look at the best power forwards, Anthony Davis, LaMarcus (Aldridge), Draymond (Green) … they can all shoot but they can all put the ball on the floor and they can all score inside. I don’t necessarily think falling in love with the 3-point shot is a good idea, but shooting it confidently from there is great.”

Not only has Griffin not hit his threes in his career (his overall mark from beyond the arc is an awful 27.1 percent) but he doesn’t take very many of them. The most threes he’s ever shot in a season is 44 in 2013-14, and he hit 12 of them. Griffin is only 27, so he’s theoretically not done improving as a player, but it’s hard to imagine a dramatic jump this far along when that hasn’t been a part of his game at all to this point.

 

Steve Kerr endorses shorter preseason to limit back-to-backs

OAKLAND, CA - JUNE 19:  Steve Kerr of the Golden State Warriors speaks to members of the media after being defeated by the Cleveland Cavaliers in Game 7 of the 2016 NBA Finals at ORACLE Arena on June 19, 2016 in Oakland, California. 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 Thearon W. Henderson/Getty Images)
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There are too many preseason games. The NBA has its reasons for playing them — namely, to allow for games in non-NBA markets — and sometimes they can be valuable for teams to experiment with rotations. But most teams play seven or eight preseason games, which is unnecessary. Warriors coach Steve Kerr agrees, according to the San Francisco Chronicle‘s Connor Letourneau:

“I kind of like the idea that’s been tossed around the last couple summers to start the regular season a little earlier, maybe a week early,” Kerr said Thursday afternoon after Warriors practice. “Play five exhibition games instead of eight. I kind of like that, just so you have fewer back-to-backs in the regular season.”

The NBA has floated the idea in the past of cutting the number of preseason games in order to stretch out the regular season, thereby lessening the burden of travel and back-to-backs. The NBA has made an effort this season to cut down on back-to-backs, and this would be a logical way to do that.

Hornets’ Batum won’t let big contract affect how he plays

MIAMI, FL - APRIL 20: Nicolas Batum #5 of the Charlotte Hornets drives on Joe Johnson #2 of the Miami Heat  during game two of the Eastern Conference Quarterfinals of the 2016 NBA Playoffs at American Airlines Arena on April 20, 2016 in Miami, Florida. 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 Mike Ehrmann/Getty Images)
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CHARLOTTE, N.C. (AP) Nicolas Batum said he isn’t planning to alter how he plays the game after signing a five-year, $120 million contract with the Charlotte Hornets.

And that’s just fine with coach Steve Clifford.

Clifford said Batum doesn’t need to put additional pressure on himself to score just because he’s now the highest-paid player in Hornets history. He told him to play how he plays.

“You don’t change the nature of how you play. I think guys get messed up with that,” Clifford said. “… I don’t think you try to reinvent yourself because the money changed. We gave him the money because he played so well. In my opinion he was an All-Star-caliber player last season when healthy.”

Batum was acquired in a trade with Portland before last season and turned out to be a gem for Charlotte, which won 48 games and tied for the third-best record in the Eastern Conference. Batum averaged a career-high 14.9 points and 5.6 assists while becoming one of the team’s top three go-to options.

Batum said he’s learned from experience that it’s not worth putting pressure on himself just because he signed a big contract.

He did in that 2012 after inking a four-year, $46 million deal to remain with the Portland Trail Blazers. While he still played well, he said it was pointless.

“I was a young guy at the time and I didn’t know what to expect,” Batum said. “Now I know. I know what I have to go through right now. I know what the views of the media and the public will be. I know that, and I’m good with it.”

For Batum, pressure no longer enters the equation because the Hornets trust him and believe in him.

“It’s more relief than pressure,” Batum said.

The Hornets made re-signing him their No. 1 priority, offering the Frenchman a huge deal about an hour into the free-agency signing period. Batum also received several offers from other teams shortly after the deadline, which he called flattering.

The 6-foot-8, 200-pound Batum enters the season as Charlotte’s best all-around player and a favorite among teammates.

“Guys are so much more comfortable when he’s out there on the floor because he makes it so much easier at both ends,” forward Marvin Williams said.

Williams said there’s a naturalness to Batum’s game, and he’s incredibly unselfish – he’s always looking for the better shot option.

“He likes to make the assist, and he likes to get everyone involved,” Williams said. “I think that is why so many people like playing with him. It’s why I love playing with him.”

And why Clifford views him as irreplaceable.

When Batum went down in the second half of last season with an ankle injury, the Hornets struggled to find their rhythm.

“He’s not a numbers guy to me,” Clifford said. “People can say, `Well, he’s making this or he’s making that (much money),’ but if he plays at the level he played at last year when he was healthy, we have a chance to be a really good team.”

The Hornets continue to work on 5-on-5 scrimmages extensively during practice as Clifford gets a feel for his team.

But there were several key players missing on Thursday.

Point guard Kemba Walker (knee) and center Cody Zeller (knee) remained out of practice while rehabbing from injuries. Guard Jeremy Lamb did not practice after stepping on a basketball and twisting his ankle, while Brian Roberts was held out after injuring his hamstring when he slipped on some water on the court. Clifford said he hopes to have Lamb and Roberts back in a few days.