Kevin Johnson to Maloofs: There will be no negotiations during critical Friday meeting

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I wrote on Thursday about the recent developments in the Sacramento Kings arena situation, and namely the Maloofs’ recent actions that amount to a legal full court press designed to land the franchise in Anaheim. The quick and dirty to catch you up is this – the Maloofs, Sacramento, AEG, and the NBA came to an agreement in principle on a $391 million Entertainment and Sports Complex during All Star weekend. A few weeks ago, the Maloofs publicly refused to pay for pre-development costs totaling $3.26 million that were agreed upon during that time. The Maloofs are the only party that disputes that they agreed to the amount, and the dispute has landed at the NBA Board of Governors meeting, which is where we pick up.

The Maloofs pitched at the BOG meeting for about 90 minutes yesterday, and afterwards they disappeared through a side exit not to be found by reporters guarding the various orifices of the St. Regis Hotel in Manhattan.

Dale Kasler of the Sacramento Bee provided this report following the meeting:

In particular, the Maloofs have said they never agreed to contribute $3.26 million toward environmental studies and other “pre-development” costs, as the term sheet says. Spokesman (Harvey) Englander declined to elaborate on the Maloofs’ presentation, other than to say the topic of relocation didn’t come up. “They asked good questions and it was a very good meeting.”

Earlier, Englander said the family would present a “historical analysis of the transaction” to owners, and hoped to have a clear path set toward a deal by the time the meetings end on Friday. Englander said it could take days or weeks, however, to come to a resolution.

On one hand, if you take the statement at face value, it’s encouraging for Kings fans that the topic of relocation didn’t come up.  But the last part about ‘days or weeks’ is where the rub lies, as it reflects the Maloofs’ position that there is still more to discuss about a deal that was already supposed to be done. During this departure from the handshake agreement, the Maloofs’ actions have become increasingly adversarial and this has culminated in Sacramento business leaders asking commissioner David Stern to remove them as owners. From the city-side, nothing is up for grabs, and the parties opposite the Maloofs have stood united in maintaining that the major elements of the deal aren’t going to change.

So what exactly transpired during the closed door session at the BOG meetings on Thursday? We’re still flushing that information out, but David Stern apparently setup a meeting between mayor Kevin Johnson and the embattled family. This was announced mid-day Thursday after the meeting had concluded, by Maloof family spokesman Englander, no less:

“The commissioner said the mayor (Kevin Johnson is) flying out, taking the red eye, (and) suggested we meet with him. And we are,” said Englander.

Questions swirled once the vague itinerary of events was disclosed to the public. What did Stern and the owners tell the Maloofs? Did they tell them to go kick rocks, to take the deal that they had already negotiated? Did they tell the Maloofs that they could indeed try to make a change to the main elements of the deal after the fact? And under what pretenses would Johnson and the Maloofs be meeting?

Clearly, there had to be a plan other than to stick the two parties in a room only to see them storm out 20 minutes later.

After about six hours of radio silence, Kevin Johnson’s office released to PBT a letter they sent to the Maloofs regarding Friday’s meeting. In the letter, Johnson made it entirely clear that he does not plan on negotiating when the sides meet up. Here are selected excerpts and the entire text:

I understand that during today’s NBA Relocation Committee you and your team made a presentation. During the discussion, it was suggested that a meeting with me tomorrow might be beneficial. As has been my commitment throughout this process, I am always happy to meet in the spirit of open communication and partnership. However, in advance of our conversation, I believe it important to make clear several key points:

First, all parties agreed to a deal in Orlando on February 27th, codified in the term sheet subsequently approved by our City Council. At the time, George Maloof explained the Maloof Family’s reason for agreeing to the deal, saying to the Sacramento Bee that it is a “fair deal…worth taking.”

Any representation that a deal was not reached is simply not consistent with the perspective of every other party to the negotiation nor the actual statements of the family.

Second, throughout this process, we have worked closely with the NBA as a valued partner at your request, as documented by the following Kings’ public statements that the “NBA take the lead on this” while remaining “in very close contact with the league” and being “apprised of everything that’s going on.”

Third, and most critically, under no circumstances will the City make material adjustments to the current terms of the deal. Put simply, we have done our part. And there should be no expectation in tomorrow’s conversation that this deal is subject to further negotiation.

We take you at your word that you are committed to Sacramento as you’ve said repeatedly in recent weeks. The best – and only – way to demonstrate that commitment is to honor the “fair deal” as all other parties have done. Your handshake is your handshake. Your promise is your promise.

So let the games begin. The Maloofs’ statement that it could take days or weeks to come to a resolution reeks of haggling over the price of clear coat, and it remains to be seen how much negotiating the NBA is going to actually permit here. For example, negotiating over a small stipulated clause involving little to no dollar value is probably on the up-and-up. On the other hand, should the Maloofs say they want to pay $25 million and not the $73 million they’ve already committed – that would definitely be a non-starter.

Right now, the argument is over $3.26 million in pre-development costs, or one year of Travis Outlaw’s salary. Before the Maloofs’ legal maneuverings started to resemble that of a family that wanted to get out of Dodge, I had surmised that the family’s argument over pre-development costs was really designed to extract a concession down the road.

And now it doesn’t matter if it’s up-front costs or back-end revenues, though, because Johnson is not negotiating. Sources in several different arena camps have made this much clear, and if it wasn’t clear Johnson’s letter was loud and clear. The only real question is – how much juice does Johnson have?

This is one of two things for him. One less settling possibility for Kings fans is that this is Johnson’s line in the sand, a way for him to say to his constituents that he wouldn’t back down. In this case Johnson believes (and he is right) that the city of Sacramento has done enough, and for better or worse he’s going to stand on that principle at least for now. So he draws the line in the sand with the hopes that the odds are in his favor, that the NBA and other owners will recognize that the city has done their part, and not allow the Maloofs to exit stage right.

Then there’s possibility No. 2, which is much more likely in my opinion, and that is that Johnson has already taken his cues from commissioner Stern. He isn’t gambling with the years of work completed by all of the various stakeholders. He isn’t gambling with all of the political capital he has spent on getting an arena deal done. He isn’t gambling with the political capital spent by all of his colleagues and he certainly isn’t putting the entire project on the line with a take-it-or-leave-it demand that isn’t rooted in reality.

In other words he knows that his price is firm, and he’s not buying the clear coat.

We’ll see later Friday who had the juice and for the Maloofs, if the juice of owning an NBA franchise is worth the squeeze.

Draft is next up during NBA’s dizzying days of deals

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NEW YORK (AP) — Markelle Fultz is ready for the NBA draft. He’s already learned about life at the trade deadline.

During a dizzying few days of deals around the NBA, the presumed No. 1 pick had his Saturday plans – not to mention his future destination – change when the Philadelphia 76ers brought him in for a workout. They then completed a trade with the Boston Celtics and are expected to take the Washington guard to begin the action Thursday night.

And if the last few days are indication, what follows might be a wild night inside Barclays Center.

“It’s been a little crazy last couple days,” Duke forward Jayson Tatum said Wednesday.

Teams seem to have one eye on the draft and future stars like Fultz and Lonzo Ball, while the other is firmly focused on jockeying for proven veterans. Former and future No. 1 picks have already been dealt this week in what feels like the trade deadline, free agency and draft all rolled into one frenzy.

“It just shows you what the NBA is about. I mean, you can get traded in the blink of an eye, without knowing,” Fultz said. “It just shows you how this business is and like I said, I just go with the flow. I’ve got an opportunity to play basketball and that’s all I ask for.”

Though Fultz heads what’s widely regarded as a strong draft class, the young stars have had to share the spotlight this week with veterans who are – or could be – on the move. All-Stars and Olympic champions such as Paul George and Jimmy Butler are front and center in trade talk that usually isn’t this heavy until February. Dwight Howard was dealt and D'Angelo Russell – who just two years ago was on the same stage the players will walk Thursday as the No. 2 pick – was dealt by the Los Angeles Lakers, presumably to clear the point guard spot for Ball and salary cap space for the future.

“I’ve been seeing a lot of crazy things. They’ve been coming through my phone with the ESPN app,” Kentucky guard Malik Monk said.

“I knew right before the draft something crazy was going to happen. It happens almost every year, so I wasn’t shocked about it.”

Things are expected to settle down a bit for at least the first two picks. The 76ers, selecting first for the second straight year, should take Fultz before Magic Johnson takes Ball with the Lakers again in the No. 2 spot, which is exactly what the UCLA guard and his father, LaVar, want.

“It would mean a lot to play for my hometown and learn from the best point guard ever,” Ball said.

From there it could be Tatum, Josh Jackson of Kansas, Kentucky’s De'Aaron Fox or some other player in the mix at No. 3, where the Celtics will now pick after the deal with the 76ers. Celtics President Danny Ainge said after making the trade he thought he could get the player he wanted two spots lower.

“It’s a very loaded class and I feel like especially whichever guys go at the top four, five, there may not be that much separation between (them) because everybody’s just so talented,” Tatum said.

Many of them, as usual lately, are freshmen. A record 14 were taken in the first round of last year’s draft and that number should be threatened Thursday. The Sacramento Kings have two top-10 picks, while NBA champion Golden State and runner-up Cleveland have none in the first round.

Teams chasing those two squads may make up ground quickest with a veteran player they can only get through free agency or a trade, so that may have to wait until July.

But they should be able to find someone good Thursday.

“This, I think, has a chance to be a historic draft,” Minnesota Timberwolves general manager Scott Layden said. “You look at the top end of the draft and I think there’s a chance that there’s going to be a lot of very good players, but it also runs deep into the late first round. I think that’s why there will be a lot of activity at this draft, because I think teams see potential to get a great player.”

 

Report: Cavaliers offer Chauncey Billups job running front office

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Not quite the news Ice Cube broke, but the Cavaliers are a step closer to hiring Chauncey Billups.

Jason Lloyd of The Athletic:

Owner Dan Gilbert has offered Chauncey Billups a five-year contract to head up the Cavaliers front office, but Billups has yet to accept, sources with knowledge of the talks told The Athletic.

Billups has long desired a front-office after retiring as a player. It’d be difficult to find a more exciting opportunity.

The job comes with potential peril. LeBron James could leave in 2018, Gilbert isn’t always a treat to work for.

But the Cavs are championship contenders right now, Billups – with a little tweaking and, given the Warriors’ dominance, luck – could deliver Cleveland a title next year. Connect with LeBron and convince him to stay, and Billups could keep the window open a while longer.

Billups never shied from pressure as a player. Will he again embrace it as an executive?

Steve Kerr on Warriors visiting White House: ‘It might be a good statement for us to go’

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Steve Kerr reportedly stated in November a plan to decline an invitation to Donald Trump’s White House if the Warriors won a title.

Now that Golden State won the 2017 championship and players are talking about not going to the White House, Kerr is striking a different tone.

Kerr on The TK Show:

The biggest thing, for me, is it’s about the players. This is a visit that is about the team. We have not met about it, because we haven’t been invited.

But I would want to make sure the players gave this really a lot of thought. And everybody knows I’ve been a very outspoken critic of Trump, and as a result, maybe we won’t even get the invitation. But I do think it’s very important to consider a potential invitation because I think it could have really positive ramifications if we did go.

And it’s a different way to look at it. I, like many of our players, am very offended by some of Trump’s words and actions. On the other hand, I do think there’s something to respecting the office, respecting our institutions, our government. And I think it could make a statement in a time where there’s so much divide and everybody seems to be angry with each other. It might be a good statement for us to go and to show that, hey, let’s put this aside, put all this partisan stuff aside and personal stuff aside, respect the institution.

And maybe even if one of you players wants to voice your concerns over what’s happening, what better opportunity to do so? Now, that may be incredibly idealistic. But I would want to at least bring that up with our players as an option rather than just coming out and saying, “No way. I’m not going.”

Among Kerr’s mistakes:

  • Implying that his players haven’t already considered the positives of visiting the White House before reaching their conclusions
  • Believing the Warriors visiting the White House would be significant enough to reduce partisanship
  • Thinking Trump has any interest in hearing comments that challenge his worldview

Phil Jackson: Carmelo Anthony said he prefers to stay with Knicks

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Knicks president Phil Jackson said Carmelo Anthonywould be better off somewhere else.”

That drew a huge uproar – from the players’ union with a statement, from Kristaps Porzingis with a skipped exit meeting, from other players with leaked discontent.

From practically everyone but Anthony himself.

But Jackson revealed the response of Anthony, who holds a no-trade clause.

Jackson on MSG Network:

Here’s a guy that’s really special, Hall of Fame player who’s done a lot for our organization. We know that we value him highly, and we know that the NBA does, and other teams do.

This is something that is on the long-term kind of situational thing. We’ve expressed the fact that – we’ve done a lot of things to try to put teams together than can win, and we haven’t been successful. And it might be time for him to find an opportunity to go somewhere else. He’s come back and said he’d just as soon stay.

We’re trying to start growing from the youth aspect of it. There will be conversations after the draft and after the free agency, as teams start reorganizing their rosters. So, there will be other conversations in the process.

I don’t know whether it sounds phonier for Jackson to talk up Anthony’s value to the Knicks or to the rest of the league. If Anthony were so valuable to the Knicks, they wouldn’t be trying to trade him – especially because he’ll return so little. He’s 33 and due more than $54 million over the next two years. Potential trade partners know its a closed market, Anthony’s ability to pick his destination through his no-trade clause eliminating desperate losing teams in small markets.

Resisting a trade is the same approach Anthony took before the trade deadline. Apparently, according to Jackson, Anthony hasn’t changed his stance – and that’s what matters.

Anthony controls this process.

Good luck changing his mind, Phil.