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).

Mavericks owner Mark Cuban: I told players we’re better off losing

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Mavericks owner Mark Cuban admitted the Mavericks tanked last season, but said they wouldn’t this season until they’re eliminated.

Apparently, he’s loosening the restriction – and getting even more brazen about discussing it.

Dallas (18-40) is not officially eliminated, but with the league’s third-worst record, it’s only a matter of time.

Cuban on Julius Erving’s podcast, House Call with Dr. J:

I’m probably not supposed to say this, but I just had dinner with a bunch of our guys the other night. And here we are, we weren’t competing for the playoffs. I was like, “Look, losing is our best option.” Adam would hate hearing that, but at least I sat down, and I explained it to them. And I explained what our plans were going to be this summer, that we’re not going to tank again. This was a year-and-a-half tanking, and that was too brutal for me.

But being transparent, I think that’s the key to being kind of a players owner and having stability.

This is why it’s not completely accurate to say players don’t tank.

Sure, they don’t go on the court and try to lose. Some would have their job for the following season jeopardized by a higher draft pick.

But when management wants to lose, that flows throughout the entire organization, including to players. Workers don’t perform as well when their boss prefers failure. A feeling of apathy (or wore) sets in, intentionally or not.

The message isn’t always this direct, and it’s practically never publicly revealed like this. Cuban marches to his own drum, and he’s absolutely right: NBA commissioner Adam Silver – who disliked last year’s comments – certainly won’t like these.

However Silver responds, Cuban can at least take solace in being right. The Mavericks are better off tanking, and telling the players can build trust. They would have figured it out for themselves, anyway.

Kevin Love says about a month until he’s back on court with new-look Cavaliers

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LOS ANGELES — Kevin Love had some of the best seats in the house for the new-look Cavaliers and their 2-0 push before the break, and he wants back on the court to be part of it.

“I’m probably about two weeks out from getting this movable cast off for good, and then from there about a few weeks after that before I get back,” Love told NBCSports.com about his recovery from a fractured left hand. “So I have a good amount of time, about a month.”

Love was in Los Angeles all last weekend, where he had been voted onto the All-Star team by the coaches for the fifth time, but for the second consecutive year had to sit out due to injury. Love seemed to be at all the events in his former home Los Angeles — working with Kevin Hart for the “Closer Than Courtside” with Mountain Dew Kickstart, at the Beats by Dre party in Hollywood, and courtside for the All-Star Game itself sitting next to Kyrie Irving and LeBron James — but not on the court where he wants to be.

When he does get back on the court, it will be a very different team in Cleveland he’s playing with — and he thinks that’s a good thing.

“Just clearing out… I shouldn’t say that, just getting new faces and getting new energy in the locker room has been big for us,” Love told NBC Sports Saturday. “Even in the last two games, you can just see the energy is different, you can see guys are really competing on both ends of the floor, and that bodes well for us the second half of the season.”

The changes were needed.

“It might not have been a bad thing to get some fresh faces in there and guys from situations where they really wanted to win,” Love said during media day. “I think first and foremost, seeing those (new) guys in Atlanta, they didn’t play, but they got there right after the trade and they just said they want to win.

“You can tell when somebody says it, you can tell when somebody means it. They really meant it and it felt good to have that there.”

In Los Angeles, Love was having fun working with the other guy who seemed to be everywhere all weekend, comedian Kevin Hart. Love was working with Hart on the Mountain Dew Kickstart “Closer Than Courtside” Contest – a nationwide search to find Hart new “CourtsideKick” where fans tell Hart on social media why they think they’re courtside ready for a chance to sit with him during the NBA Playoffs.

“I’ve been drinking Code Red Mountain Dew, and Baja Blast forever,” Love said of this partnership. “My friend and I were just talking about how long we’ve been drinking Code Red, which is kind of a throwback flavor now.”

He’s just drinking it with his right hand. His left — his off, non-shooting hand — is still in that soft cast.

But having been down the injury road before, Love knows what it takes to get back.

“Just look at it from an optimistic point of view,” Love said of his mental process. “Even last year I missed the New Orleans All-Star Game because I just had my knee scoped, so just knowing that I’ve been there before, knowing that I’ve had success coming back, and just getting over that mental hurdle of coming back from an injury.

“Looking at it glass half full, it’s my left hand, so I can still do a ton of stuff out there on the floor and be ready to play in a month.”

A ton of stuff includes both cardio work and being able to do some strength and lifting with bands so that when the cast does come off his return to the court is faster. Once he gets there, Love expects that even with the new players he’ll be back in the same roles playing both the four and a lot at the five with these smaller, speedier lineups.

“I know we will supplement different guys in the lineup,” Love said. “I’ll hopefully be able to come back quite easily, I’ll have my legs under me — like I said, just because it’s my left hand — and I’ll be able to get back into rhythm here really fast.”

The Cavaliers hope so, too.

Little change in TV ratings for new-look NBA All-Star Game

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NEW YORK (AP) — A new format for the NBA All-Star Game had a negligible impact on television ratings.

Total viewership for the game was down slightly compared to last year, although it improved over 2014, the previous time the league’s midseason showcase faced competition from the Winter Olympics.

Turner Sports announced on Monday that the game drew an average of 7.7 million viewers Sunday night on TNT. Last year’s game attracted an average of 7.8 million viewers. In 2014 during the Sochi Olympics, an average of 7.5 million people watched the NBA’s best at the All-Star Game.

This year’s game abandoned the traditional East-vs.-West format in favor of teams selected by superstars LeBron James and Stephen Curry. James’ team won 148-145 in an uncommonly competitive matchup that featured better effort on defense.

Turner said the ratings improved among key demographics, including people between ages 18 and 34, and that video views on social media channels were up 37 percent compared to 2017.

Fergie says she “tried my best” after national anthem blowback

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LOS ANGELES (AP) — Fergie is apologizing after trying something different with the national anthem at the NBA All-Star Game.

“I’ve always been honored and proud to perform the national anthem and last night I wanted to try something special for the NBA,” the Grammy-winning singer said in a statement Monday. “I’m a risk taker artistically, but clearly this rendition didn’t strike the intended tone. I love this country and honestly tried my best.”

Fergie’s slow, bluesy rendition of “The Star-Spangled Banner” on Sunday night wasn’t particularly well received at Staples Center or on social media before the 67th edition of the NBA’s annual showcase.

A low chuckle rumbled through the sold-out arena after she finished the first line of the song with a throaty growl on “the dawn’s early light.”

Fans throughout the star-studded crowd reacted with varying levels of bemusement and enthusiasm while her languid, 2 +-minute version of the song continued. Although Fergie was on pitch, her tempo, musical accompaniment and sexy delivery were not exactly typical for a sporting event or a patriotic song.

Golden State All-Star Draymond Green captured Sunday’s mood – and became an instant GIF – when he was shown open-mouthed on the scoreboard and the television broadcast in apparent confusion over the unique vocal stylings. Green then chuckled to himself after realizing he was on TV.

After a forceful finish, Fergie finally got big cheers when she shouted, “Let’s play some basketball!”

The Black Eyed Peas singer, born Stacy Ann Ferguson, is from nearby Hacienda Heights, California.

Famed basketball commentator Charles Barkley joked that he “needed a cigarette” after Fergie’s performance during the TNT halftime show.

Former Lakers star Shaquille O’Neal leaped to Fergie’s defense, saying: “Fergie, I love you. It was different. It was sexy. I liked it. Leave her alone.”

Others on social media weren’t as kind, with criticism of the performance outpacing the positive reviews.