ProposedKingsArena

Sacramento Kings arena funding plan to be released Sept. 8

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We don’t know the specifics of how the city of Sacramento plans to pay for the proposed $387 million Entertainment and Sports Complex (ESC), but we do know when they plan to announce those plans.

According to Ryan Lillis of the Sacramento Bee, a menu of funding options will be presented to the public on September 8, with a more detailed report being released on September 13 to both the public and City Council.

According to Lillis:

While precise details of the financing plan are still unknown, Chris Lehane, the chair of the task force, said in a new release this morning that it will include “contributions from both the public and private sectors, including the Kings ownership group, arena developers and operators.”

He also added:

It’s also expected that an arena operator – a company such as AEG – will be approached to help with the construction costs.

While the city of Sacramento’s efforts to keep the Kings have appeared at times to be as desperate as a 55-foot game-winner, the framework for the proposed funding options has been a relative constant, and has always been envisioned to be a mix of private and public funds.

Hotel and airport taxes have been discussed, but more recently the pencil has been sharpened to include user fees such as ticket surcharges and parking fees, in addition to the sale of city-owned properties, corporate sponsorships, and revenues originating from cell phone towers and electronic billboards placed on the ESC.

In short, every dollar will count as they tally up the funds, and the inclusion of a company like AEG to both fund the project and operate the arena sounds like a must at this point. That their name continues to come up in on-the-record and off-the-record discussion is a great sign for Kings fans.

And as we posted in June, the Maloofs liquidated most of their interest in the Palms to enhance their financial flexibility. While they could have done that simply to free up money for their continued involvement in the Palms, as George Maloof said was the case at the time, it stands to reason that being relieved on a $400 million note will help them be able to pitch in.

So where does the rubber meet the road here?

First, the Think Big Sacramento coalition, which includes 70-some odd politicians, businesses, community leaders, and the original grassroots leaders such as Carmichael Dave and Here We Stay — they will need to procure support within the Sacramento City Council, and then also have enough public support to marginalize attacks from any opposition groups. Attacks could come in the form of lawsuits seeking injunctive relief, most likely on the grounds that the use of public funds will require a public vote. The Kings arena effort would likely come up short if a vote is needed, so avoiding such a challenge will depend on the exact nature of the public funds being used and the appetite for opposition groups to go through a costly legal and political fight.

A lot of that appetite will be derived from what the folks in the Sacramento region actually think about this public subsidy. Losing the Kings will necessarily be a blow to the area, and most believe they will not be able to get an NBA team back should they lose this one. In the battle to attract businesses and the new-age worker that values a city’s identity, this could be a defining moment for the entire region.

And that is where the battle for public opinion is taking place. The Think Big Sacramento group is doing a commendable public relations job, with interactive campaigns targeting not just Kings fans, but folks that may be more inclined to see Disney on Ice than five shooting guards and one basketball. Between the town hall meetings, the dominant social media work they’re doing, and local events featuring non-basketball types such as world-renowned artist David Garibaldi (seriously, check out his work) – it’s safe to say that they’re not making the mistakes of the ill-fated arena tax campaign from 2006 that was easily rejected by the voters.

But as with anything else, you have to follow the money, as public funds come with questions about tax allocations, economics, and the like. Today, I spoke with leading sports economist Brad Humphreys (and expert witness in the Sonics vs. Seattle case no less), who has been outspoken about the problems with sports stadium subsidies (as are most of his colleagues), and the takeaway is that this isn’t just a Sacramento issue – it’s a United States issue.

Due to the artificial lack of supply (teams) in the major sports leagues, a De facto monopoly, teams have the leverage to demand public subsidies. If the city of Sacramento wants to belabor the point, the Kings will have a new address in Orange County – and that scenario has played itself out a number of times.

I’ll be scratching together another post about my conversation with this economist, which covered everything from sports subsidies to the Kings to the lockout. Interestingly, he said he wasn’t against the Kings’ arena subsidy, and in one (not yet peer-reviewed) white paper he wrote,

A new state of the art facility integrated in a comprehensive urban redevelopment program and located in the heart of a large city might be expected to generate increases in residential property values in the vicinity of hundreds of millions of dollars within a mile of the facility, if the location, planning, construction, and development are carried out carefully.

While most economists are mostly aligned in saying that no empirical evidence has been found to show that the presence of sports teams and so-called big sporting events (i.e. the Super Bowl) actually bring in additional tax revenue, let alone to cover the cost of the subsidy — it doesn’t mean that the proof doesn’t exist.

Sacramento County had a $40 million reduction in budgetary revenue this year due to the drop in property values in the area, which is money that they’re not getting back. That loss of revenue comes from the fact that people aren’t willing to pay as much to live in the Sacramento region.

So assuming, annually, the county gets the 1% property tax revenue on a theoretical ‘hundreds of millions of dollars (of increased property value) within a mile of the facility,’ this unexplored area of sports economics could answer the question as to why cities continue to ignore economists’ clamoring. While people may spend their entertainment dollars elsewhere (the substitution effect) if the Kings are not in town, they won’t necessarily pay as much to live there. The intangible benefits of living by your favorite sports team or having the option to go to an A-list show – those benefits may be being capitalized in ways economists have yet to find (or in this case, may be on the precipice of finding).

Humphreys took great care to point out that the case of Sacramento is unique, and that cities with downtown revitalization projects have had both success and failure. But in the world of data that economists live by, one thing is clear – they’re simply not ready to buy the economic impact reports that teams are selling, but they’re also not ready to rule out that the sports subsidy could be a good thing.

After all, everybody is doing it.

PBT Podcast: Breaking down DeMarcus Cousins trade with Dan Feldman

NEW ORLEANS, LA - FEBRUARY 17:  DeMarcus Cousins #15 of the Sacramento Kings speaks with the media during media availability for the 2017 NBA All-Star Game at The Ritz-Carlton New Orleans on February 17, 2017 in New Orleans, Louisiana.  (Photo by Ronald Martinez/Getty Images)
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It happened very quickly and snuck up on the league. As of Friday night there was not even a whisper of the Kings shopping Cousins among the NBA media. By Sunday night it was done, and executives from a few other teams wished they had been contacted and could have gotten in on the bidding.

DeMarcus Cousins was traded from Sacramento to New Orleans. Who won? What do the Pelicans do now? Kurt Helin and Dan Feldman of NBC Sports break it all down.

They also talk about a handful of other possible trades that could come before the deadline. (Note, this was recorded before the Lakers’ front office shakeup or Lou Williams trade.)

As always, you can check out the podcast below, or listen and subscribe via iTunes (check there to see all the NBC Sports podcasts), subscribe via the fantastic Stitcher app, check us out on Google play, or check out our new PBT podcast homepage and archive at Audioboom.com.

Play vs. Rest: For many NBA teams, it’s still a real battle

CLEVELAND, OHIO - APRIL 13: Kevin Love #0 of the Cleveland Cavaliers and LeBron James #23  watch from the bench during the game against the Detroit Pistons at Quicken Loans Arena on April 13, 2016 in Cleveland, Ohio. The Pistons defeated Cleveland 112-110 in overtime.  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 David Maxwell/Getty Images)
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MIAMI (AP) — There are 27 games remaining on Cleveland’s regular-season schedule, and perhaps only one person over that stretch will be able to stop LeBron James.

That would be Cavs coach Tyronn Lue.

He has to protect James from himself.

Finding the right time to rest players is a conundrum that many NBA coaches have wrestled with for years, even more so now given the ways teams have been able to apply technology to the formula and use personalized data to help their medical and athletic training staffs determine when someone simply needs a break. The rest topic seems to become more prevalent as the season winds down, particularly after the All-Star break, with teams in the playoff race trying to ensure top players are healthy for the postseason.

As James nears 50,000 minutes for his NBA career – a milestone that he’ll likely reach during the upcoming playoffs – he abhors the idea of taking nights off. Yet there will almost certainly be nights over the next few weeks where James’ uniform stays on its game-night hanger, and fans who plunked down big money to see him play will have to deal with disappointment.

“Me being a competitor, me loving the game that I’ve loved every single day, I don’t always have the right assessment of me playing a lot of minutes,” James said. “That’s why I have coach Lue and the coaching staff and the training staff to be like `Hey, LeBron … let’s take it easy today.’ Me, I don’t ever want to take a day off.”

Only seven players appeared in all 82 of their teams’ regular-season games in 2015-16. It is becoming more and more of a rarity; in 2005-06 there were 14 players who appeared in 82 games, in 1995-96 the number was 25.

“At times, it may be necessary for a guy to rest whether if it’s on the road or it’s at home,” Toronto guard DeMar DeRozan said. “It’s a thin line.”

Some coaches make no secret about their desire to rest players. Foremost among them, of course, is San Antonio’s Gregg Popovich, he who famously sat Tim Duncan for a game in 2012 citing “old” as the official reason, and who decided that Tony Parker and Manu Ginobili needed rest in the third game of this season – which just happened to be the Spurs’ home opener.

“It’s ridiculous,” Popovich said of the Spurs having to play four games in the season’s first six nights.

The schedule starting next season will have the 82 games played over a longer stretch of time, which NBA Commissioner Adam Silver hopes relieve some of the rest issues. When the Cavs sat James, Kyrie Irving and Kevin Love for a game at Memphis earlier this season, even some Cavs fans in attendance expressed their disappointment .

“The science has gotten to the point where there is that direct correlation that we’re aware of between fatigue and injuries,” Silver said. “And as tough as it is on our fans to miss one of their favorite players for a game, it’s far better than having them get injured and be out for long periods of time. So we’re always still looking to strike that right balance.”

Memphis coach David Fizdale said he listens to the Grizzlies’ medical staff when deciding when the time is right to give one of his players a break. Unfortunately, if there are many Marc Gasol fans in Minnesota, his nights to sit included the ones that fell on both of Memphis’ trips to visit the Timberwolves this season.

“Fans pay their hard-earned money to see you play,” Golden State guard Klay Thompson said. “The young guys like me, I don’t need to rest, but the old guys, the old superstars, they need a game or two off here and there. . Yeah, you feel for the fans.”

The vast majority of players polled at All-Star weekend said if it were up to them and they weren’t dealing with an injury, they’d play every night. Houston’s James Harden, who last missed a game two years ago and that was because of suspension, said he takes pride in not only playing every game but playing particularly well on the second night of back-to-backs.

No one has played more games since the start of the 2010-11 season than James, in large part because he rarely sits and because each of his last six seasons have all gone until the NBA Finals.

He ranks No. 2 in average minutes per night this season – topped by only Toronto’s Kyle Lowry, by a mere 9 seconds.

“I’m comfortable with whatever coach wants me to do out on the floor,” James said. “Whatever he gives me to do, I can figure it out.”

Memphis has healthy roster for playoff push in stretch run

LOS ANGELES, CA - NOVEMBER 16:  Marc Gasol #33 of the Memphis Grizzlies celebrates his three point basket for a lead over the LA Clippers with James Ennis #8 during the final seconds of the fourth quarter at Staples Center on November 16, 2016 in Los Angeles, California.  The Grizzlies won 111-107.   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 Harry How/Getty Images)
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MEMPHIS, Tenn. (AP) — The Memphis Grizzlies’ latest injury reports need a second glance, they appear a bit suspect.

Nobody is listed as hurt or nursing an injury. If someone is out, it’s simply for rest.

No knee problems requiring forward Chandler Parsons to sit. No ankle issues for reserve forward Brandan Wright. No lingering problems from point guard Mike Conley‘s broken back earlier this season, and no more groin issues for defensive stalwart Tony Allen.

There’s not even foot problems for All-Star center Marc Gasol.

Having no injuries to report is a relief for a team that has been hit hard the last two years. The Grizzlies are 34-24 and sixth in the Western Conference heading down the stretch.

“I think our chemistry is starting to come,” forward Zach Randolph said. “Guys are starting to fill into their roles and starting to play a lot better, especially on the defensive end.”

It was just a year ago on Feb. 20, 2016, that Gasol had season-ending surgery to repair his broken right foot, sending the Grizzlies spiraling into a historical season for injuries that finished with Memphis using an NBA-record 28 players . Memphis limped into its sixth consecutive playoff appearance and was mercifully swept out of the first round by the San Antonio Spurs.

Memphis’ injury woes seemed to pick up where last season left off for the first three months of this season. Conley missed 11 games, nine with broken vertebrae in his lower back . Wright, hampered by knee issues after signing with Memphis in 2015, dealt with left ankle issues the first 49 games. Parsons, the Grizzlies’ major free agent acquisition last offseason, missed 17 games with knee problems and still doesn’t look completely healed.

That left Memphis with only nine players for a few games.

“It’s nice to have more bullets, definitely,” first-year coach David Fizdale said. “It was fun winning with the Nasty Nine, but it didn’t feel good going into every game with the Nasty Nine, I tell you that.”

Fizdale, hired away from Miami where he assistant head coach, has had players miss a combined 130 games forcing him to adjust lineups regularly while settling into his first head coaching role. As the Grizzlies prepare for the stretch run, Fizdale says he feels prepared for anything.

“I think that was the good part about everything that has happened to us this year,” Fizdale said. “It has prepared me for different things. Our team doesn’t panic when guys go down or when we have to rest a guy. I think that part of it was good for me from a learning standpoint.”

Gasol has recovered so well that he made his third All-Star appearance Sunday. He is averaging 20.6 points and 6.2 rebounds, along with 4.3 assists. At Fizdale’s urging, Gasol has added a new weapon to his post play and midrange jumpers. The 7-foot-1 Spaniard has converted 77 3-pointers this season – a stark improvement from the 12 combined over his previous eight seasons.

Conley also has improved, averaging 19.3 points and 6.2 assists shooting 41 percent from outside the arc. He says he doesn’t notice the back bones he broke Nov. 28 against Charlotte at all.

“I (don’t) think twice about going in the paint or anything,” Conley said. “I’m excited about that and looking forward to a healthy second half.”

With 24 games left, Memphis is only two games behind the Los Angeles Clippers for the No. 4 seed and home-court advantage to start the playoffs. The Grizzlies, who visit Indiana on Friday night, also have an eight-game lead ahead of Denver for the final playoff spot, putting them on course for a seventh consecutive postseason appearance. Only San Antonio and Atlanta have longer active streaks in the NBA.

If the Grizzlies’ current run of good health continues.

Report: Jazz have some interest in reacquiring Deron Williams, no deal imminent

CHARLOTTE, NC - DECEMBER 01:  Deron Williams #8 of the Dallas Mavericks brings the ball down the floor against the Charlotte Hornets during their game at Spectrum Center on December 1, 2016 in Charlotte, North Carolina. 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 Streeter Lecka/Getty Images)
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I’m not sold that this trade idea has a lot of legs to it, I’d be surprised if it happened, but it is interesting.

The Utah Jazz have talked to the Dallas Mavericks about trading for — and bringing back — Deron Williams, reports Tim MacMahon and Marc Stein of ESPN.

No deal appeared imminent Tuesday night, sources said, but Utah has registered interest in bringing Williams back to his original team, with Dallas open to trading both Williams and center Andrew Bogut in advance of Thursday’s 3 p.m. ET trade deadline.

Williams can’t be traded without his consent, thanks to his one-year, $9 million deal with the Mavericks after he played the previous season in Dallas. The 32-year-old would have to forfeit his free-agent Bird rights if traded to another team.

The Jazz are considering another point guard they can trust come the playoffs, and someone who can lighten the load for George Hill, who has battled injuries for stretches this season. Williams has had injury issues this season as well, but he does love Utah and still has a home there.

The Mavs are looking to get assets for the post-Dirk rebuilding to come, guys who go around Harrison Barnes. Plus, they have rookie point guard Yogi Ferrell and J.J. Barea, the latter of whom is expected back from injury in the coming weeks.