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Mayor Kevin Johnson releases arena funding report, will the Maloofs and NBA bite?

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The plight of Kings fans, who came within an inch of losing their only major professional sports team, may be coming to a crossroads today, when the Think Big Sacramento coalition led by mayor Kevin Johnson releases their arena funding proposal to the public. All they have to do is come up with a plan to raise $387 million that keeps everyone happy. No biggie.

Sacramento Bee columnist Marcos Breton got the scoop on it, and released his report in the early morning hours on Thursday:

What is the guiding principle of Sacramento’s new plan?

That’s right: A virtual split – this time in thirds – among the private interests of an arena, the public and the arena’s patrons….

What you will see in today’s arena presentation are plans for three different funding pots to generate the $387 million or more needed to get an arena built. According to people familiar with the document, the Kings, the NBA and a private developer would contribute $91 million to $156 million in lease payments, upfront money, land and other revenue to pay for an arena.

The city of Sacramento would contribute the sale of public land, a tax on hotels and taxis, and money from items such as digital advertising and parking valued at $94 million to $123 million.

And, while residents in the six-county Sacramento region will not be asked to raise their taxes to subsidize a new arena, patrons of the venue will help pay for it. The third pot of money will be fueled by ticket surcharges, naming rights and other revenue sources that could generate $90 million to $121 million.

Kings fans and those tracking how and why the NBA operates the way it does will want to watch how the parties react to this report. Much of the Think Big Sacramento campaign has been orchestrated to a presidential degree, leaving no doubt to the positions of the heavy hitters involved – including companies such as AEG, the ICON-David Taylor group, and of course, the NBA and the Maloofs.

The Maloofs appear to be impotent in this discussion, as some league insiders have openly acknowledged that their future in the NBA will be determined by their ability to get an arena deal done.

The bottom line with this report is that the Kings and the NBA have been asked to foot a third of the cost. Whether that amount will be amicable to them given the whirlwind of interests controlling the matter is entirely debatable. On one hand, NBA owners do not want to see the league telling them what to do, and on the other hand, the Lakers, Knicks, and Bulls of the league don’t want to hear that (allegedly) broke owners can move into their backyard.

And, separately, while arena subsidy opponents scream blood murder, the reality is that top-flight cities have no leverage. They can clamor for leagues and owners to pay their own bills, but the folks in Sacramento would have to do that with an Anaheim Royals press release wiping their tears.

As for the Maloofs being able to contribute rental payments and/or in general, they recently liquidated their majority interest in the Palms Casino down to 2 percent with the option to buy back another 18 percent, in a financial transaction that could easily pave the way for another (Ron Burkle) speculator to come in and take over their team if they get elbowed out. They continue to assert their leverage, albeit with more discretion than they have used in the past, but in reality, David Stern knows where the bodies are buried. And as SB Nation’s Tom Ziller points out, the NBA has been working diligently to get an arena deal done – so they’re not going to stand for grandstanding when diplomacy is needed.

My take – we’re looking at a firm but fair offer from the City of Sacramento. They’re strapped just like most American cities, and this is their first offer. If this dance plays out like every other negotiation we’ve been witness to in our lives, expect the Maloofs and/or the NBA to say that the city’s request is ‘over the top,’ and they’ll waltz to equilibrium.

Report: Pistons claim Beno Udrich off Miami’s waivers

MIAMI, FL - SEPTEMBER 26: A portrait of Beno Udrih #9 of the Miami Heat on September 26, 2016 in Miami, Florida. (Photo by Rob Foldy/Getty Images)
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Miami felt set at point guard with Goran Dragic starting and the up-and-coming Tyler Johnson as his backup. They decided veteran Beno Udrih wasn’t part of the future and waived him.

Detroit, looking for some help at the one until Reggie Jackson returns, saw a dependable veteran guard on the market. So they snapped him up, reports Shams Charnaria of The Vertical at Yahoo Sports.

At age 34 we are seeing Ulrich’s game start to slip. Still, he has valuable NBA skills as a point guard: he doesn’t turn the ball over, can run an offense, and if you ignore him coming off a pick he will bury the shot.

Jackson is expected to be out at least another six weeks after getting PRP therapy to deal with knee tendonitis (he hopes to be back sooner). That leaves Ish Smith as the starting point guard in the short term; Udrih will help provide solid depth at the position.

The Pistons need to keep their heads above water until Jackson can return.

NBA’s new Collective Bargaining Agreement could run to 2024

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The first 12 years of the NBA’s salary-cap era went without a lockout. The league again avoided a lockout for a dozen straight years between 1999 to 2011.

Now, with a new Collective Bargaining Agreement coming soon, the NBA is setting itself up for another 12 years of labor peace.

Adrian Wojnarowski of Yahoo Sports:

The NBA and National Basketball Players Association are working on a seven-year extension to the Collective Bargaining Agreement, with a mutual opt-out in six years, league sources told The Vertical.

The seven-year deal could potentially deliver the NBA labor peace through the 2023-24 season, unless the opt-outs are exercised in 2022, league sources told The Vertical.

The new CBA will begin with the 2017-18 season.

Expect an opt out after six years. By then, there’s usually something to renegotiate.

Hope for another quick resolution, like we’re getting now.

And if neither the owners nor players opt out, be pleasantly surprised at an unprecedented 13th straight year without a lockout in this era.

Rockets waive Gary Payton II and reportedly Tyler Ennis

TARRYTOWN, NEW YORK - AUGUST 07:  Gary Payton II #0 of the Houston Rockets poses for a portrait during the 2016 NBA Rookie Photoshoot at Madison Square Garden Training Center on August 7, 2016 in Tarrytown, New York. 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. Mandatory Copyright Notice: Copyright 2016 NBAE  (Photo by Nick Laham/Getty Images)
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The Rockets entered the day with five point guards with guaranteed salaries: James Harden, Patrick Beverley, Pablo Prigioni, Tyler Ennis and Gary Payton II.

That seemed like too many, but Houston had just 15 players – the regular-season roster limit – with guaranteed salaries. There didn’t seem to be urgency to drop a player with a guaranteed deal.

Yet, the Rockets will drop two.

Rockets release:

Houston Rockets General Manager Daryl Morey announced today that the team has waived guard/forward P.J. Hairston, forward Le’Bryan Nash, and guard Gary Payton II.

Shams Charania of Yahoo Sports:

Barring another move, this opens the door for Houston to keep Bobby Brown (whose biggest impact in the preseason was causing an international incident) and Kyle Wiltjer, a stretch big who went undrafted out of Gonzaga.

The Rockets come out behind in their trade for Ennis. They have could have just waived the player they dealt, a lower-paid Michael Beasley, and saved a little money.

Payton, undrafted out of Oregon State, is an intriguing project. But Brown is probably more capable of helping now, a bigger factor for that roster spot with Beverley injured.

Thunder waive Ronnie Price and Mitch McGary, keep Semaj Christon

2014 Oklahoma City Thunder Media Day
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The Thunder waived a former No. 21 pick who still had two years left on his rookie-scale contract and a 33-year-old journeyman.

The latter was the surprise.

Thunder release:

The Oklahoma City Thunder waived forwards Mitch McGary and Chris Wright along with guard Ronnie Price and center Kaleb Tarczewski, it was announced today by Executive Vice President and General Manager Sam Presti.

At this point, Oklahoma City waiving Mitch McGary was completely expected. Facing 15 games of drug suspension with no proven track record of NBA sustainability, McGary was an easy cut on a team with a roster crunch.

Price signed a fully guaranteed two-year contract worth nearly $5 million this offseason, and teams don’t generally waive players so soon after guaranteeing them multiple seasons (even if guaranteeing them multiple seasons was questionable in the first place). This opens the door not only for Semaj Christon to make the regular-season roster, but to serve as Russell Westbrook‘s primary backup at point guard with Cameron Payne injured.

Christon, the No. 55 pick in the 2014 draft, also signed this summer (with just a $200,000 guarantee). After leaving Xavier, he spent a year on the Thunder’s D-League affiliate then a year overseas. Perhaps, he’s ready for a regular role without the safety net of a veteran like Price behind him, but this sure seems like another case of Oklahoma City overrating its developmental system. See previously: Josh Huestis.