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.

Warriors embrace/struggle through yoga

OAKLAND, CA - JUNE 05:  Draymond Green #23 of the Golden State Warriors reacts in the second quarter of Game 2 of the 2016 NBA Finals against the Cleveland Cavaliers at ORACLE Arena on June 5, 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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OAKLAND, Calif. (AP) — Anderson Varejao lowered his 6-foot-11 frame into a runner’s lunge and raised one arm high into the air to add a twist, demonstrating after a recent shootaround the new yoga pose he just learned.

Then, he took it up a notch and attempted an airplane balancing pose on one leg with his arms spread wide.

The Golden State Warriors have become yogis.

Coach Steve Kerr is committed to changing things up, and he gave Golden State a day off from the practice floor one day last week so the players could practice yoga instead. In the middle of a prolonged stretch at home with a more regular routine, the schedule allowed for some improvising.

“I really liked it,” Varejao said. “I’m going to do more.”

Doubt you’ll see Draymond Green or Klay Thompson doing downward-facing dog again soon – though Green might be talked into another try eventually.

“I’m bad,” Green said. “Yoga isn’t for everybody. I think it’s a great thing, I just don’t think my body is made for all of those different positions. I did well at a few of them. It’s hard, it’s tough. My body really isn’t cut out for yoga.”

The very next night after the group class, during warmups for a home game with the Pistons, player development coach Bruce Fraser pulled his foot to his opposite inner thigh for an impromptu tree pose. He laughed as an amused Shaun Livingston watched from the baseline.

Andre Iguodala is an experienced yogi who can really cat-cow and is considered top on the team, often taking classes. Center Zaza Pachulia also can forward fold with the best of them. They took prominent positions in the class led by Lisa Goodwin, Golden State’s director of corporate communications and also a yoga teacher, at a Berkeley studio – a first for Kerr taking the team away from team headquarters for a yoga session.

No surprise, two-time reigning NBA MVP Stephen Curry can bring it on the mat, too.

“We’ve had some optional yoga sessions at our facility. This is the first time we took everybody and made it mandatory,” Kerr said. “It was good.”

The temperature was about 92 degrees for the hour-long power vinyasa class, so it was steamy.

Everybody was drenched in sweat by the end for final resting pose, or savasana.

“My muscles felt good,” forward James Michael McAdoo said, rubbing his stomach where his core got a workout. “It was fun. It was hot in there, like working in a sauna. I told our strength and conditioning coach, `You got to step up your game. Lisa embarrassed us.'”

“It’s awful, it’s pitiful,” Thompson said of his own yoga ability. “It’s something I worked on and it’s something I actually enjoy. More than just being physically challenging, it’s an incredible mental workout. It tests your pain tolerance and your ability to push yourself mentally. That’s why I like it. It was really good. I think it helped a lot of us – everybody, even the coaches.”

Along with the experienced yoga veterans, there were some first-timers.

A few found it extremely tough.

“I’m not the most flexible,” acknowledged player development coach Chris DeMarco.

Assistant coach Mike Brown described his debut as “terrible.”

“For me, it was really hard, but it was fun,” he said, later adding, “I nearly passed out.”

Ron Adams, another assistant who focuses on preparing Golden State’s defense, happened to work out in the hottest corner of the room for his first time practicing in that high temperature.

“It’s such a cleansing exercise,” he said.

The Warriors aren’t the only ones doing it.

Detroit coach Stan Van Gundy has scheduled yoga time for the Pistons, saying: “It’s got its value, no question about it. Would I consider doing it with them? Probably not.”

Kerr goes whenever he can fit it in, typically taking an hour-long class during the lunch hour on game days when the schedule – and his body – allows.

It’s a time he can focus on taking some deep breaths, literally, away from the pressure-packed NBA workload and just be just another yoga student for 60 minutes out of his day.

This weekend marks one year since Kerr formally returned to the bench last Jan. 22 against Indiana after a lengthy leave of absence to deal with complications from a pair of back surgeries. Current Lakers coach Luke Walton led the way during a record 24-0 start and went 39-4 before Kerr’s comeback on the way to winning Coach of the Year after an NBA record 73-9 finish.

While the 51-year-old Kerr still has some discouraging, physically challenging moments dealing with pain and headaches, he considers himself fortunate to be on the sideline doing what he loves.

“I guess normal is a good way to say it. He seems like his old self,” Curry said. “You know he’s been through a lot just physically trying to recover from the surgeries he’s had. I can’t imagine the frustration, how long it took and things he had to do and all the doctors he’s met with. His whole story is crazy. We’re obviously happy to have him back but not only that, you see him with energy and his presence like he wants. It’s been good to see.”

Whether Kerr will take his team back to yoga any time soon, time will tell. The Warriors are at the season’s midway point and the “dog days” of January as Kerr has put it. Golden State was home for all but a night from Dec. 26 until leaving for Houston on Thursday for Friday’s game against the Rockets, with just a quick bus ride to Sacramento as the lone road trip in a 10-game stretch during that span.

Because there was so much time to practice, the yoga day was a nice change of scenery.

“Just to get away and go do something else,” Green said. “We’re still together doing something productive. But, it’s not for me.”

Lakers’ D’Angelo Russell slips, mildly sprains knee ligament. MRI Saturday.

Indiana Pacers forward Thaddeus Young, right, takes the ball away as Los Angeles Lakers guard D'Angelo Russell, center, falls to the floor with an injury during the first half of an NBA basketball game in Los Angeles, Friday, Jan. 20, 2017. (AP Photo/Alex Gallardo)
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LOS ANGELES (AP) — Lakers guard D'Angelo Russell mildly sprained a ligament in his right knee in the opening minutes of Los Angeles’ game against the Indiana Pacers on Friday night.

Russell was re-evaluated at halftime and did not return to the game.

Russell was hurt while going around a screen set by teammate Julius Randle on Los Angeles’ second possession. The point guard’s left leg alarmingly stretched backward when he lost his footing, and he stayed down on the court for several moments.

He eventually walked on his own to the locker room, where the sprain was diagnosed.

Russell is averaging 14.8 points, 4.5 assists and 3.8 rebounds during the second NBA season for the No. 2 overall pick in the 2015 draft.

Dwyane Wade apologizes to Bulls fans after ugly Chicago loss

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Even for an up-and-down Bulls team that has seen some sloppy losses, Friday night’s was ugly. The Atlanta Hawks went on a 36-11 run between the end of the first quarter and the start of the second, they led by as many as 34, and cruised in for the 103-92 win. The game wasn’t that close, the Hawks thoroughly outplayed the Bulls, and after the game ended coach Fred Hoiberg said he and his staff need to reexamine everything.

Dwyane Wade went another direction, apologizing to fans.

Wade was 2-of-10 shooting on the night.

Despite the loss, the Bulls remain tied with the Bucks for the final playoff slot in the East, a race that will likely include Detroit and New York (and maybe Charlotte) and go down to the final days of the season. The Bulls (21-23) can’t have many more games like Friday.

Warriors get 6th straight win, 125-108 over Rockets

Golden State Warriors guard Stephen Curry reacts after making a 3-point basket late in the second half of the team's NBA basketball game against the Houston Rockets, Friday, Jan. 20, 2017, in Houston. Golden State won 125-108. (AP Photo/Eric Christian Smith)
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HOUSTON (AP) — Kevin Durant scored 32 points and the Golden State Warriors used a big third quarter to build a huge lead and coast to their sixth straight victory, 125-108 over the Houston Rockets on Friday night.

In a matchup of two of the best teams in the Western Conference and All-Star starting guards Stephen Curry and James Harden, the Rockets fell short. Houston, which entered the game leading the NBA with 667 3-pointers, was just 7 of 35 behind the arc. Harden went 0 for 5 and Eric Gordon, who entered the game leading the NBA with 160 3s, missed all seven attempts.

Clint Capela had 22 points and Harden added 17 points with 11 assists for the Rockets, who are third in the West behind Golden State and San Antonio.

The Warriors were up by five at halftime and used a 12-4 run to open the second half and stretch their lead to 74-61 with about nine minutes left in the quarter. Golden State got six points from Durant in that span, including a dunk and a nifty reverse layup.

Houston got four points from Capela after that before Golden State used a 10-2 run, with 3s from Draymond Green and Curry, to make it 84-67 midway through the period.

Golden State pushed the lead to 99-79 entering the fourth quarter.

Houston won the first game against Golden State this season in two overtimes to snap an eight-game, regular-season losing streak to the Warriors. But it was clear the Rockets wouldn’t make it two in a row after they scored just 22 points and went 0 for 10 on 3-pointers in the third quarter.

Houston scored the first five points of the fourth quarter to cut the deficit to 99-84. But Golden State used a 9-4 run after that to extend its lead to 20 points by the midpoint of the quarter, and many fans started heading for the exits.

Curry finished with 24 points and made five 3-pointers, including one with about 3 1/2 minutes remaining that left the Warriors up 117-93. Both teams cleared their benches after that.

The Warriors led 62-57 at halftime.

TIP-INS

Warriors: Golden State made 15 of 38 3-pointers. … Klay Thompson added 16 points. … Green had 15 points, eight rebounds and seven assists.

Rockets: Ryan Anderson had one rebound in nine minutes in his return after missing two games with the flu. … Capela played 21 minutes off the bench in his third game back after missing a month with a fracture on his left fibula. … Sam Dekker had 17 points for his 11th double-digit game this season. …

CHEERING ON THE HOME TEAM

Houston Texans star J.J. Watt cheered the Rockets on from a courtside seat. He received a huge ovation when he was shown on the Jumbotron during a timeout in the second quarter. Watt, who won NFL Defensive Player of the Year last season, played just three games this season before having season-ending back surgery.