Inside Kings Arena

Sacramento City Council has votes for arena if reachable criteria is met

6 Comments

The Sacramento Kings and their fans will hold their breath on Tuesday night, as the Sacramento City Council holds the first of at least two critical votes that will determine whether or not the team leaves town.

Let me be the first to tell you that tonight’s vote will pass.  Sources close to the situation report that the council is all but certain to have the votes necessary to move the process forward.

Specifically, the vote will allow the council to finalize proposals with ten competing private parking operators that will provide upwards of $200 million toward the cost of the estimated $387 million Entertainment and Sports Complex.

This will setup a vote on February 28 that will decide the Kings’ future.  It is at this time that the council, in cooperation with mayor Kevin Johnson’s Think Big Sacramento coalition, will vote to approve a term sheet that will signal to the NBA that Sacramento can indeed fund an arena.

I’m also told by sources with knowledge of the situation that as long as a laundry list of criteria is met, the council will have at least the four votes necessary (not counting Johnson’s tie-breaking vote) to approve the term sheet.

This laundry list includes guarantees that the city’s general fund will be replenished by the approximate $9 million annual revenue stream currently provided by city-owned parking operations, a plan for some or all of the city’s employees to be transferred into the new parking company’s operation, a mechanism to cap rate hikes for parking in the future, an option for an agreement shorter than 50 years, and a mechanism to provide kickbacks to the city if parking revenues exceed certain benchmarks.

It is believed that within that framework, the city can meet or exceed their $200 million target.

The last major item on the laundry list is who will be responsible for cost overruns if the $387 million project goes over its budget.  I’m told the city will approach the developer, David Taylor, to potentially provide that guarantee.  While it is unclear whether or not Taylor would shoulder such responsibility, he will likely be given incentive to do so by an offer of development rights near the arena.

Taylor has been working on the arena deal for years and has evaluated the project for Sacramento at a significant cost to himself, and it would be surprising if he told the council that he would not be responsible for cost overruns on a project he evaluated and promoted – particularly if there is further incentive in the form of development rights.

Adding the estimated $200 million or more from parking, an estimated $30 million from local hotels, an estimated $50 million from an arena operator (AEG), and an estimated $80 million from the NBA and the Maloofs — sources tell me that the city is well in the ballpark of securing the financing necessary for the arena.

In other words, the city of Sacramento has both the will and the way to secure a ‘yes’ vote for an arena.

As far as the timing goes, while February 28 is potentially the date for a deciding vote, it is likely that the NBA will allow for an extension on the March 1 deadline so they can properly evaluate Sacramento’s findings.  That announcement could come during All Star weekend.  The NBA and the Maloofs could theoretically act on the city’s proposal quickly and provide their terms in time for a February 28 vote, but sources stress the important part is that the city will have communicated that it is ready to vote on a deal.

From there it is on David Stern and the Maloofs to pull the trigger on the estimated $80 million price tag, which amounts to about $3 million per year in rental payments for 30 years, all paid up front.

As for any talk of selling the team, The Maloofs have been consistent with their message that it’s not an option, and their sale of the Palms can be seen as either a sign that the ship is sinking or a sign that they were moving money for the purposes of an arena.  In the unlikely event they do want to sell, Think Big Sacramento executive director Jeremiah Johnson told Seattle’s King 5 News that the city has “a number of ownership groups willing to keep the Kings in Sacramento.”

It’s not going to come to that.

The Maloofs and/or the NBA could try leverage the city of Anaheim against Sacramento, who recently made improvements on their NBA-ready facility, but after Jerry Buss and Donald Sterling just agreed to revenue sharing with small market clubs it’s less likely that the NBA will place another team in their backyard.

As for Seattle, despite their clear efforts to bring an NBA team back home, they are well behind Sacramento in their pursuit of an arena.  They too would have to approve public funds for a new building, and Stern and the Maloofs will have to weigh the $80 million cost of a sure thing given a ‘yes’ vote, and a nebulous offering in Seattle that is 1-2 years away while Key Arena is a stop-gap solution at best.

With all of the support David Stern and the NBA has given Sacramento in its fight to keep the Kings – from manpower in the front office to people on the ground helping make the arena deal a reality – it just doesn’t make sense for them to pass up a viable option for two that have problems.

This is a complex situation and it is not a done deal, but the once half-court shot turned 3-pointer doesn’t even seem like a free throw at this point – it seems like a layup.  The Party of Five that voted down a public vote that would have sent the Kings packing are interested in a deal that addresses the aforementioned criteria.  That criteria reportedly can be met and still provide the project with the money that it needs to be green-lighted, assuming the private parties each put in amounts that seem reasonable, achievable, and already written in pencil.

Kings fans will probably wait until the shovels hit the dirt before they celebrate.  Let this prediction be the first bottle of Dom Perignon.

The Kings aren’t going anywhere.

Report: Lakers ‘aren’t that high’ on DeMar DeRozan

TORONTO, ON - DECEMBER 07:  DeMar DeRozan #10 of the Toronto Raptors is fouled by Robert Sacre #50 of the Los Angeles Lakers during an NBA game at the Air Canada Centre on December 07, 2015 in Toronto, Ontario, Canada.  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 Vaughn Ridley/Getty Images)
Vaughn Ridley/Getty Images
3 Comments

DeMar DeRozan sounds like he wants to re-sign with the Raptors, and Toronto wants him back.

But what about those Lakers rumors?

Kevin Ding of Bleacher Report, via Noah Coslov of Bleacher Report Radio:

I’m breaking up with you.

No, I’m breaking up with you first.

Warriors would show historic perseverance with Game 7 win over Thunder

OKLAHOMA CITY, OK - MAY 28:  Stephen Curry #30 of the Golden State Warriors drives against Serge Ibaka #9 of the Oklahoma City Thunder during the fourth quarter in game six of the Western Conference Finals during the 2016 NBA Playoffs at Chesapeake Energy Arena on May 28, 2016 in Oklahoma City, Oklahoma. 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 Maddie Meyer/Getty Images)
Maddie Meyer/Getty Images
6 Comments

The Warriors went an NBA-record 73-9.

And the Thunder massively outplayed them in Games 3 and 4 of the Western Conference finals.

No, Golden State wasn’t at full strength. But Oklahoma City reached a level the Warriors hadn’t all season. Even if Golden State had hit peak performance, I’m not sure that would’ve been enough. The Thunder were that good.

Kevin Durant and Russell Westbrook were their superstar selves. Steven Adams defended inside and out. Serge Ibaka hit timely shots and moved well defensively. Andre Roberson made open 3-pointers and cut. Dion Waiters read the floor to make the right shot or pass. And everyone rotated correctly throughout entire defensive possessions.

Oklahoma City was awesome, handing the Warriors 28- and 24-point losses.

But Golden State rallied to force a Game 7 tonight. If the Warriors win, they’ll become just the eighth team in NBA history to lose multiple games by more than 20 in a series and still win it. The seven to do it:

  • Houston Rockets lost to Los Angeles Clippers by 25 and 33 in 2015 second round
  • Atlanta Hawks lost to Miami Heat by 29 and 26 in 2009 first round
  • Houston Rockets lost to Phoenix Suns by 22 and 24 in 1995 second round
  • Philadelphia 76ers lost to Boston Celtics by 40 and 29 in 1982 Eastern Conference finals
  • Denver Nuggets lost to Milwaukee Bucks by 31 and 28 in 1978 Western Conference semifinals
  • Los Angeles Lakers lost to Milwaukee Bucks by 21 and 26 in 1972 Western Conference finals
  • Minneapolis Lakers lost to St. Louis Hawks by 34 and 30 in 1959 Western Division finals

The Warriors never stopped believing in themselves, even when getting routed. That mentality has them one game from a comeback for the ages.

Masai Ujiri: Raptors No. 1 goal is to re-sign DeMar DeRozan

TORONTO, ON - APRIL 12:  DeMar DeRozan #10 of the Toronto Raptors runs up the court during the first half of an NBA game against the Philadelphia 76ers at the Air Canada Centre on April 12, 2016 in Toronto, Ontario, Canada.  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 Vaughn Ridley/Getty Images)
Vaughn Ridley/Getty Images
Leave a comment

DeMar DeRozan sounds like he wants to re-sign with the Raptors.

But does Toronto want to give max money to someone who 39% from the field and 15% on 3-pointers in the playoffs?

Raptors general manager Masai Ujiri, via James Herbert of CBSSports.com:

This is probably the right course. I don’t know whom the Raptors could get if they lets DeRozan walk, but if he signs elsewhere, they would have just about $19 million in cap space – less than a max salary. I doubt they could land a better replacement.

I’m not sold on DeRozan as a playoff player, though he legitimately took the next step this regular season. But I’d rather keep him, hope he learns to handle the challenges of the postseason and possibly use him in a trade down the road. It’ll cost a max salary if DeRozan isn’t willing to take a discount, but that beats the alternative of losing him for nothing but cap space.

Report: Tyronn Lue urged Cavaliers GM not to fire David Blatt

CLEVELAND, OH - DECEMBER 17: Cleveland Cavaliers Associate Head Coach Tyronn Lue (L) talks with Head Coach David Blatt (R) against the Oklahoma City Thunder during the second half of their game on December 17, 2015 at Quicken Loans Arena in Cleveland, Ohio. The Cavaliers defeated the Thunder 104-100. 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)
David Maxwell/Getty Images
3 Comments

At 30-11, the Cavaliers had the best record ever while firing a coach during a season. Cleveland was the first team in a decade to fire a coach that took it to the NBA Finals the year prior.

Maybe firing David Blatt was the right move, but on the surface, it seemed outrageous.

Chris Haynes of Cleveland.com:

In speaking with numerous sources close to “The Call,” cleveland.com learned the details. There were no initial pleasantries. Griffin got right to the point — David Blatt was being relieved of his duties.

Lue’s response was candid and immediate.

“This is f—– up, Griff.”

That didn’t prevent Griffin from calmly asking Lue if he could take over. Hired as the associate head coach a year and a half earlier, becoming the head of a franchise was Lue’s eventual goal. But this didn’t seem right.

Lue pleaded with Griffin, arguing for several minutes that firing Blatt was an excessive move for a team carrying a conference-best 30-11 record. Griffin listened to Lue’s pleas. When they ended, he told Lue the decision has already been carried out.

Griffin circled back to his original question.

“What’s done is done. I’m asking you if you can lead this team?” It had taken a few minutes, but Griffin got the response he sought.

“Yeah, I can f—ing lead this team.”

Griffin then congratulated him.

I’m not sure I buy all this. It’d look bad if Lue undermined Blatt in any way.

But the Cavs asked for this situation when they hired the runner-up in their head-coaching search to assist the winner. Lue didn’t have to do anything for that call to happen. The situation opened the door for it.

And it worked out. Lue has done a masterful job guiding the Cavaliers back to the NBA Finals. We’ll never know how Blatt would’ve done if he remained on the job, but Lue has set an excellent bar. I’m not yet sold Lue is a great head coach, but for this team – and the difficult task of communicating with LeBron James and elevating Kevin Love and Kyrie Irving, who’d be featured stars on many teams – Lue has been aces.