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).

DeMarcus Cousins has dropped a ton of weight this offseason already (PHOTO)

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New Orleans Pelicans DeMarcus Cousins has been known to carry a bit of weight on his frame. He is currently listed at 6-foot-11 and 270 pounds.

It appears that last bit has significantly changed over the off-season.

Cousins has reportedly dropped quite a bit of weight during his off-season regimen, eating right and even hiring the personal trainer who made Julius Randle look so good in just a short amount of time for the Los Angeles Lakers.

Speaking to WDSU, Pelicans head coach Alvin Gentry Said cousins was primed to take a new role for the pelicans next season, taking on a bit of a ball handler role as a point center. That should be easily done now that cousins has gained a little bit of mobility by shedding some weight.

Via WDSU:

When I saw DeMarcus, his body looked great. He invited us to his house for lunch; he’s eating really healthy — he’s got a chef that he’s hired. I was really, really excited about what he’s taken from the standpoint of trying to get himself ready for the season and obviously he feels like this is a very important season for him.

Looking at Cousins’ Instagram, you can clearly see the results of his eating and training regimen. He looks damn near svelte.

The newly-formed Pelicans had a disappointing end to the season, but with more time together they will certainly be one of the teams to watch in the Western Conference.

Rumor: Cavaliers, Pacers, and Nuggets discussed 3-way deal with Paul George, Kevin Love

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Don’t count the Cleveland Cavaliers out of the Paul George sweepstakes just yet.

According to ESPN’s Marc Stein and Chris Haynes, the Cavaliers are still working on a way to get George with LeBron James and Kyrie Irving in Ohio.

The latest rumor involves a three way deal being discussed between the Cavaliers, Indiana Pacers, and Denver Nuggets. According to Hayes, the deal would send George and Kenenth Faried to Cleveland and Kevin Love to Denver.

Presumably, Indiana would end up with good picks and a few young assets.

Via Twitter:

There is a lot to think about here given the potential for this trade. The first is how the Cavaliers would be able to complete a deal without a general manager in place. Owner Dan Gilbert fired David Griffin just last week. The Cavaliers are still talking to former NBA player Chauncey Billups about a chance to run the front office, but nothing has been decided just yet.

As good as George is, with the way that Kevin Love played in the 2017 NBA playoffs, it’s a wonder that the Cavaliers would want to let him go. The Golden State Warriors ate up Tristan Thompson in several of their Finals games, and Love was often the best player outside of LeBron on the floor for Cleveland.

Rumors also have George as being adamant that he is a one year rental only. His preferred landing place is still Los Angeles with the Lakers.

How a one year rental would work in exchange for one of Cleveland’s best players is sort of confusing. Even if the Cavaliers landed George and Faried, they would need to add yet another piece in order to get over the hump as the Eastern Conference strengthens and as they try to face off against the Warriors yet again.

This NBA off-season has been particularly crazy, and I don’t expected to calm down anytime soon.

Watch Isiah Thomas work out Lakers No. 2 overall pick Lonzo Ball (VIDEO)

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Lonzo Ball Is finally a member of the Los Angeles Lakers. Magic Johnson & Co. took him with the second overall pick in the 2017 NBA Draft on Thursday.

Despite a few issues with his draft workouts with the Lakers, Ball was still the top choice for Los Angeles when they came to select after Markelle Fultz was off the board. The Lakers have already given Ball more control of the team after trading D'Angelo Russell to the Brooklyn Nets last week.

Before the draft, Ball took some time out to work in his back yard and on his home court with NBA legend Isiah Thomas.

Check out the interaction between the two and see where Ball grew up learning to shoot his oddly-formed but highly-accurate jumper.

Mavericks’ Dirk Nowitzki to Harrison Barnes: “You need major skill to get to 20 years”

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Harrison Barnes is set to be a foundational piece for the Dallas Mavericks for years to come. He is trying to learn all he can from one of the greatest Mavericks of all time in Dirk Nowitzki.

So what has Barnes learned under Nowitzki’s tutelage?

Well, for one thing, he’s going to need to learn an elite-level skill if he wants to lead when Nowitzki is gone.

Speaking with the Dallas News, Barnes said that Nowitzki sarcastic but tough when it comes to gym habits and player development.

Via Dallas News:

“Honestly, I’ve just been trying to work as hard as I can and spend as much time as I can with him in the gym. I remember one day at practice we’re standing on the sidelines on the gym and said, ‘Oh man, Dirk, you’re about to get to 20 years. That’s impressive. Do you think I can get to 20 years?’ He’s like, ‘No way man. You need major skill to get to 20 years.’ So that’s kind of the nature of our relationship. I just want to try to become the best basketball player that I can and follow the mold that he’s set here in Dallas for years and years of just constantly getting better every single year.”

Knowing Dirk’s personality, there is a fair bit of tongue-in-cheek happening here but he’s not entirely wrong.Barnes was a jack of all trades for the Golden State Warriors before he signed his contract with the Mavericks. Nowitzki is one of the greatest scores in NBA history, and he obviously has more than one major skill under his belt.

Even still, it’s good advice for Barnes moving forward.