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.

Hassan Whiteside gets triple-double as Heat hold off Hornets

Miami Heat center Hassan Whiteside (21) reacts to his team scoring a basket during the second half of an NBA basketball game against the Dallas Mavericks Wednesday, Feb. 3, 2016, in Dallas. The Heat won 93-90. (AP Photo/LM Otero)
Associated Press
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CHARLOTTE, N.C. (AP) — Miami Heat center Hassan Whiteside did his part to prevent the Charlotte Hornets from scoring inside.

Mix in a couple of key steals in the final seconds, and the Heat had a nice win on the road.

Whiteside had 10 points, 10 rebounds and 10 blocked shots, and Miami beat Charlotte 98-95 on Friday night.

Dwyane Wade scored 22 points and Chris Bosh added 20 points for the Heat, who have won six of seven. Goran Dragic had 12 points, nine assists and eight rebounds.

Whiteside, a native of nearby Gastonia, North Carolina, posted his third triple-double of the season and No. 4 for his career.

“I was at the YMCA around the corner two years ago; now I’m here,” Whiteside said. “When a ball is around my elbow area, I’m going to try and catch it.

“The last three minutes, they were so worried about pump-faking, pump-faking. I told the guys to just stay with the 3-point shooters.”

Marvin Williams scored 27 points for the Hornets, and Nicolas Batum added 21. Kemba Walker had 20 points.

“Whiteside just dominated every aspect of that game,” Hornets coach Steve Clifford said. “Right now, he’s the premiere rim protector in the league. It changed the game when he came in; they were a totally different team when he was out there.”

The Heat were coming off a close 93-90 win at Dallas on Wednesday. The last time Miami played at Time Warner Cable Arena on Dec. 9, Charlotte won 99-81.

“It’s hard not to notice what they’ve done on this home court,” Heat coach Erik Spoelstra said. “It seems that every top team in the East that comes in here walks out of here with a double-digit loss.

“It was something that we wanted to collectively do – get a win to put us at .500 on the road, and in a building that we haven’t played well.”

The Hornets led 93-90 with 1:10 remaining, but Wade made a layup and Bosh added a three-point play to make it 95-93 with 23.5 seconds left.

Charlotte had a chance to tie it, but Justise Winslow‘s steal set up a free throw by Luol Deng for a 96-93 advantage with 13.2 seconds left.

Wade then stole the ball from Walker and passed to Deng for a fast-break dunk with 4.3 seconds remaining and the Heat’s biggest lead of the game.

Before Miami’s flurry at the very end, neither team was able to grab much of an advantage. There were 26 lead changes and 12 ties, including 47-47 at halftime.

“We know we have to get stops,” Wade said. “We know we have enough offensive firepower down the stretch to get great looks. Tonight, Hassan was incredible down the stretch with protecting the basket.”

TIP-INS

Heat: Winslow had eight points and 10 rebounds. … Miami finished with 12 blocked shots. … The Heat outscored the Hornets 64-32 in the paint, and also enjoyed an 18-6 edge in second-chance points thanks to eight offensive rebounds.

Hornets: Shot 44.4 percent from the field (36 of 81), and made 10 of 26 3-pointers. … Also shot 13 of 15 from the free-throw line. … Charlotte’s reserves scored just 12 points, while Miami got 29 points from its backups.

 

HONORING `ZO’

Former Hornets star and 15-year NBA veteran Alonzo Mourning, now the vice president of player programs and development for the Heat, was honored by the home team during halftime of Friday’s game.

While he spent only three seasons in Charlotte (1992-1995), Mourning still holds franchise records for career blocks (684) and blocks per game (3.2), and is second in career scoring (21.3 points) and rebounds (10.1 per game).

 

Paul Millsap, Al Horford pace Hawks past Pacers 102-96

Atlanta Hawks center Al Horford dunks against the Indiana Pacers during the second half of an NBA basketball game Friday Feb. 5, 2016, in Atlanta. Atlanta won 102-96. (AP Photo/John Amis)
Associated Press
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ATLANTA (AP) — Hawks coach Mike Budenholzer wasn’t terribly concerned that his team gave up 19 offensive rebounds.

Not when Atlanta held on for a third straight win.

“Obviously we’d like to be better, but I think just because you give up a rebound doesn’t mean automatically they’re going to score two points,” he said. “Overall, our defense is a lot of times what’s giving us a chance.”

Paul Millsap scored 24 points, Al Horford added 21 points and the Hawks beat the Indiana Pacers 102-96 on Friday night.

Paul George finished with 31 points for Indiana, which has lost 17 of its last 19 regular-season matchups in Atlanta. Lavoy Allen added 13 points and a game-high 14 rebounds.

The Pacers missed their first six shots of the fourth quarter before C.J. Miles‘ runner cut the lead to 78-74 with 8 minutes remaining.

George’s 3 with 4:49 left gave Indiana its last lead at 86-84. He hit another 3 with 1:02 left, falling back and heaving the ball over his right shoulder for a 35-footer that brought the Pacers within two.

But Jeff Teague‘s jumper and Kent Bazemore‘s two free throws pushed the lead to six with 22 seconds left. Teague had 16 points. Bazemore had 15 points and tied for a game-high eight assists.

Neither team led by more than six until the closing seconds. The lead changed hands 12 times.

It was a particularly frustrating night for Indiana, which out-rebounded the Hawks 53-32 and outscored them on second-chance points.

“Our bigs did a great job of rebounding,” George said. “It’s hard to make plays when they’re getting whacked all day at the rebounding, but it’s another game that we should have had – one that we didn’t do so late in the game and put it away.”

Horford had two consecutive dunks to push Atlanta back in front 73-72 in the last minute of the third. Dennis Schroder hit a 3 to make it a four-point lead early in the fourth.

“I think guys were pretty excited about the dunk(s),” Horford said. “I felt like that defensively fueled us going into the fourth.”

Millsap, at 6-foot-8, and the 6-10 Horford caused problems for Indiana’s big men all night on the perimeter with their passing skills and athleticism. They helped the Hawks outscore Indiana by four points in the paint.

“We did some good things but we didn’t handle their pressure well enough offensively,” Pacers coach Frank Vogel said. “They got some very, very difficult coverages with Horford and Millsap out there spacing the floor we didn’t handle well enough either.”

The Hawks stayed in third place in the Eastern Conference with a 30-22 record. Indiana, at 26-24, fell to eighth place.

TIP-INS

Pacers: Indiana has dropped six of its last eight on the road. … George has scored at least 30 points in 15 of his 50 games. … G Monta Ellis, who averaged 20.5 points in the previous four games, scored 11.

Hawks: Atlanta has won nine of its last 11 at home. … The Hawks improved to 25-3 when scoring at least 100 points. … Led by Schroder’s nine points, the bench scored 20 – 60 less than the reserves combined for in Wednesday’s win at Philadelphia, the team’s highest total since 1987-88.

 

Bulls’ Jimmy Butler leaves game with sprained knee (VIDEO)

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This is not good.

With just more than a minute to go in the second quarter in Denver, Jimmy Butler drove the basket, absorbed some contact, and hit the ground hard. Butler — who seems to bounce back up from everything — stayed down. He hobbled out to take his free throws (the only way he could potentially return to the game) but then left it in a wheelchair. He did not return to the game.

The Bulls announced he has a left knee sprain. This is the same knee where he has been battling tendonitis.

Butler will have an MRI to assess the damage. As of now, there is no timetable for his return, but it seems he will miss at least a few games.

The up-and-down Bulls can’t afford to lose him for an extended stretch.

Celtics’ Avery Bradley’s three at buzzer beats Cavaliers (VIDEO)

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After two Kyrie Irving nailed free throws, the Cavaliers were up 103-99 on Boston with :07 left in the game. They had this.

Then J.R. Smith fouled Evan Turner on a driving lay-up with four seconds left, giving the Celtics the chance at an and-1. Turner missed the free throw, but the rebound bounced off LeBron James out-of-bounds, and Boston was going to get one last shot.

Avery Bradley nailed it from the corner. Celtics win.

Cleveland led this game by 22 at one point; they collapsed. This one is going to sting.