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.

Russell Westbrook’s 5th straight triple-double lifts Thunder

Oklahoma City Thunder guard Russell Westbrook (0) dunks ahead of New Orleans Pelicans forward Terrence Jones (9) during the second half of an NBA basketball game in Oklahoma City, Sunday, Dec. 4, 2016. Oklahoma City won 101-92. (AP Photo/Alonzo Adams)
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OKLAHOMA CITY (AP) — Russell Westbrook became the first player with five consecutive triple-doubles since Michael Jordan had seven straight in 1989 and the Oklahoma City Thunder beat the New Orleans Pelicans 101-92 on Sunday night.

Westbrook finished with 28 points, 17 rebounds and 12 assists. The Thunder have won all five games during Westbrook’s triple-double stretch. It was Westbrook’s 10th triple-double of the season and the 47th of his career.

Enes Kanter had 17 points and 10 rebounds and Victor Oladipo added 15 points for the Thunder.

Anthony Davis, the NBA’s leading scorer, had 37 points and 15 rebounds for the Pelicans. Buddy Hield, who led nearby Oklahoma to the Final Four last season, scored 16 points in his first game back in the state.

Oklahoma City led 49-41 at halftime. Westbrook had 12 points, nine rebounds and six assists at the break, and Davis kept the Pelicans in it with 24 points and 10 rebounds.

Westbrook threw down a vicious right-handed jam on a drive down the middle in the third quarter that gave Oklahoma City a 57-47 lead. He clinched the triple-double on an assist to Kanter for a dunk with 2:14 left in the third quarter. The Thunder took a 78-66 lead into the fourth quarter.

Hield drained a 3-pointer to cut Oklahoma City’s lead to four with just under two minutes to go, but Westbrook’s 3 with 51.3 seconds to go bumped the Thunder’s lead back to 99-92.

TIP-INS

Pelicans: Hield got a standing ovation when he checked in late in the first half. … G Jrue Holiday started for just the third time this season. He missed the first 12 games while his wife, former U.S. women’s national team soccer player Lauren Holiday, recovered from surgery to remove a benign brain tumor.

Thunder: Made 14 of 15 2-point shots and missed all nine of their 3-pointers in the first quarter. … C Steven Adams sprained his left ankle in the first quarter and did not return. … The Thunder missed all 15 3-point attempts in the first half, then made 6 of 13 in the second. … Westbrook leads active players in career triple-doubles. … Thunder are 26-2 the past two seasons when Westbrook has a triple-double.

 

Follow Cliff Brunt on Twitter: http://www.twitter.com/CliffBruntAP.

Serge Ibaka lifts Magic over Pistons 98-92 in return of Reggie Jackson

Orlando Magic forward Serge Ibaka, left, and Jeff Green (34) celebrate against the Detroit Pistons in the second half of an NBA basketball game in Auburn Hills, Mich., Sunday, Dec. 4, 2016. Orlando won 98-92. (AP Photo/Paul Sancya)
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AUBURN HILLS, Mich. (AP) — For about ten minutes on Sunday night, it appeared the Detroit Pistons had solved the Orlando Magic’s lock-down defense.

Like the rest of the NBA, they will have to keep searching for answers.

Orlando gave up 27 points in the first 9:30 but then shut the Pistons down in a 98-92 victory.

“I’m proud of our guys, because that team was averaging 118 points their last three games, and that was on the road,” Orlando coach Frank Vogel said. “We held them to 92, and most of that was our second-half defense. They were at home, and they got 42 points on 37 percent shooting in the second half.”

Serge Ibaka scored 21 points and blocked four shots, while Nikola Vucevic added 16 points and eight rebounds.

The Magic have held 10 of their last 11 opponents under 100 points.

“We just changed our mindset,” Ibaka said. “We knew we could play defense, and now we’re playing for each other on offense. We knew we could play this well. We just had to keep working.”

Pistons guard Reggie Jackson made his season debut after missing Detroit’s first 21 games with knee tendinitis. He had 18 points in 23 minutes. Marcus Morris led Detroit with 21 points.

“I felt good out there, but I wish we could have gotten a win out of it,” Jackson said. “I think there might have been a little rust, but I was able to do everything I need to do. I wouldn’t be out there if I was going to be physically limited.”

Orlando won for the third time in four games while Detroit had its three-game winning streak snapped.

“We were terrible on defense,” Pistons coach Stan Van Gundy said. “Our offensive numbers were good enough to win, especially against that defense, but we didn’t guard anyone. We just didn’t want to put in the effort.”

On Jackson’s first possession, the Pistons went to their bread-and-butter play – he and Andre Drummond running a high pick and roll. Jackson came off the screen and hit a 3-pointer, bringing a cheer from the small crowd. Jackson played the first 5:50 of the quarter as Detroit built a 16-10 lead.

Morris had 14 points in the first 7 minutes but didn’t get much support from his teammates. The Magic scored 35 points in the second quarter to take a 58-50 halftime lead. Orlando shot 62.5 percent from the floor in the half to Detroit’s 51.2 percent and only turned the ball over four times.

“We’re starting to see the value of the pass on the offensive end,” Vogel said. “If we pass with good timing, good intent and good delivery, it will help us shoot the ball, and we’ve got good shooters.”

The Magic led by 11 late in the third, but the Pistons narrowed the gap to 78-73 at quarter’s end. Orlando moved the margin back to double figures with nine minutes left, with the Pistons struggling to get open looks against one of the NBA’s best defenses.

Ibaka ended a Pistons run with a 3-pointer to make it 90-80 with 5:32 to play, then blocked Drummond’s dunk attempt at the other end.

Kentavious Caldwell-Pope hit a 3-pointer with 40 seconds left to pull the Pistons within 95-90, but Jeff Green clinched the game with a turnaround jumper.

TIP INS

Magic: Former Piston Jodie Meeks had seven points in 15 minutes in his second game of the season. Meeks only played three games last season for Detroit due to chronic foot problems.

Pistons: Jackson spent most of the game matched up against D.J. Augustin, the main player given up by the Pistons in the three-team trade that brought him to Detroit in 2015.

TROUBLE FROM THE LINE

The Pistons were 0 for 5 from the free-throw line in the first half, with Drummond missing four in a row. He came into the game shooting 47.4 percent from the line after setting a league record at 35.5 percent in 2015-16.

RARE STREAK

The Magic have won two straight road games for the first time this season. They beat the Philadelphia 76ers 105-88 on Friday.

ONLY A SINGLE-DOUBLE

Vucevic fell two rebounds short of his seventh straight double-double. He had a nine-game double-double streak in 2012-13.

 

Brilliant dig: Knicks fans chant “Derek Fisher” as Kings’ Matt Barnes inbounds ball

Sacramento Kings' Matt Barnes (22) reacts during an NBA basketball game against the Brooklyn Nets in New York, Sunday, Nov. 27, 2016. (Photo/Andres Kudacki)
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I had hoped never to write of this again, but alas… remember when Matt Barnes got in a fight with then Knicks’ coach Derek Fisher over the latter spending time with Barnes’ estranged wife? It cost Barnes a couple of game suspension.

Barnes is playing well for the Sacramento Kings this season, who were making their annual stop in Madison Square Garden Sunday. As Barnes was inbounding the ball in the fourth quarter, some Knicks fans started a “Derek Fisher” chant.

It’s not original, some Pacers fans had done it before. But it’s still a Cameron Crazies worthy ploy.

The Knicks got 20 points each from Carmelo Anthony and Derrick Rose to get the 106-98 win, despite 36 from DeMarcus Cousins.

Zaza Pachulia steals ball, starts break, blows open layup against Suns (VIDEO)

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Zaza Pachulia is riding the Golden State Warriors train for all it’s worth, in the good and the bad. In November, Pachulia hit a mid-range jumper and did a horse dance. If that was the zenith, Saturday night against the Phoenix Suns was the nadir.

Particularly because Pachulia blew a breakaway layup in which he definitely should have scored.

Instead, the Warriors big man stuffed the ball between the iron and the backboard, clumsily squandering his opportunity:

*Sad trombone*