NBA executives, Mayor Johnson, and Gavin Maloof meet

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.

Bulls say Jimmy Butler has knee strain, no timetable for return

<> during the second half at TD Garden on December 9, 2015 in Boston, Massachusetts. The Celtics defeat the Bulls 105-100.
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Exhale, Bulls fans. Jimmy Butler‘s left knee injury isn’t as serious as it looked. The injury, which Butler suffered just before halftime of Friday night’s Bulls loss in Denver, looked bad at the time, and Butler had to be carted off the court. But on Saturday, the Bulls announced that an MRI revealed no tear in the knee, just a strain, and he’ll go back to Chicago to get treatment.

An MRI performed today on Bulls forward Jimmy Butler’s left knee confirmed that he sustained a knee strain in the second quarter of last night’s game against the Denver Nuggets.  The timeline for his return to play will be determined by further evaluation in Chicago and his response to treatment.

Butler will not play tonight in Minnesota. Beyond that, it’s unclear. But the fact that it’s just a strain and not anything more serious indicates that he won’t be out long.

Report: NBA considering expanding rosters for greater D-League integration

NEW YORK, NY - OCTOBER 04:  A detail of the NBA Players Association logo with the slogan " THe Players' Union FIghting for You" is seen on Theo Ratliff of the Los Angeles Lakers as Derek Fisher, President of the National Basketball Players Association, speaks at a press conference after NBA labor negotiations at The Westin Times Square on October 4, 2011 in New York City.  (Photo by Patrick McDermott/Getty Images)
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The NBA Development League is in a weird place right now. It’s growing as more teams are placing importance on it and adding single-affiliate franchises, but it’s still not a true minor league. Players don’t make very much money unless they’re already signed to NBA deals, and teams have to have an open roster spot or waive someone they have currently signed to call someone up. Unless you’re sure you’re going to get called up at some point, it’s smarter for fringe players to sign overseas to make more money than go to the D-League.

The NBA is trying to do something about that. According to a new report, the league is interested in potentially expanding NBA teams’ rosters as part of the next CBA to allow for greater integration between the NBA and the D-League, and allow teams to have a couple of so-called “two-way” roster spots.

From Scott Howard-Cooper of NBA.com:

The NBA likes the idea of expanding rosters from the current limit of 15 to as many as 17 as part of the next Collective Bargaining Agreement with the additional spots designated for two-way contracts that will mean more money for some players and more control of select prospects for the parent clubs.

While it will be one of several major issues on the table as the league and the players’ union eventually ramp up negotiations on the new CBA that could end as soon as the conclusion of the 2016-17 season, if either side opts out by Dec. 15, the concept of a contract that would cover the minor leagues as well as the majors is a pressing topic for the hopeful D-League. And since the NBA runs the executive side of the D-League as well as most of the basketball operations for the minor-league clubs, the D-League and the NBA usually speak as one.

The proposal would mean as many as 60 new jobs for players, if rosters do increase by two and depending how many of the 30 NBA teams utilize both spots. That, in turn, would mean a deeper talent pool for the D-League as it grows from 19 teams this season to 22 in 2016-17 and possibly more in what is projected to be the first season of the new CBA. And that would mean more prospects for the NBA to develop without paying major-league salaries.

According to the report, players signed into these two-way roster spots could make as much as $100,000 to play in the D-League (player salaries currently max out around $25,000), which could incentivize players to stay home and play in the D-League rather than pursue overseas opportunities.

The plan is still early enough in the discussion stage that one of the most bottom-line elements — money — has not been settled. According to insiders, though, the thinking is to set the minor-league portion of the dual contract in the neighborhood of $100,000 a season, give or take $25,000.

That would only be for hopefuls with two-way contracts, not all D-League players with salaries that currently peak at $25,000 if they have no NBA deal. Salaries of players sent down with NBA contracts, usually rookies or second-year prospects, would not be altered. But even with a small number of players in the minors impacted, officials figure the chance to make a minimum of $100,000, while showcasing themselves in front of NBA scouts and executives most every game, while getting to be relatively close to home, will convince 60 players to accept a deal in the minors in North America rather than opt for more money overseas.

If the player with a two-way deal gets promoted, he will make the pro-rated minimum of NBA money. If he is sent back down, it will be with the cushion of $100,000 as the floor for the season, not the $25,000, $19,000 and even $13,000 (based on current numbers) others are making in the minors. There is also the possibility those tiers could increase with the next CBA as well.

Obviously, this isn’t going to happen until the next CBA is announced, if then. But it makes total sense, especially as the NBA gets closer to having true one-to-one affiliation. Right now, there are 19 D-League teams, each affiliated with an NBA team—10 as single-affiliates and nine under hybrid ownership models. Next year, the Bulls, Hornets and Nets are set to have their own D-League teams as well. It’s not hard to imagine that within the next few years, all 30 teams will have their own affiliates. And when that happens, there will need to be a mechanism in place for them to call players up and send them down that’s more in line with a true minor-league system like the one Major League Baseball employs. Even if that involves paying D-Leaguers more money and paying for two extra roster spots, it’s worth the trade-off in the long term if more top basketball talent stays in America rather than going overseas.

Report: Nets progressing in GM search, should have one by trade deadline

NEW YORK, NY - NOVEMBER 23:  Center court sports a projected Brooklyn Nets logo prior to the game against the Los Angeles Clippers at the Barclays Center on November 23, 2012 in the Brooklyn borough of New York City. 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 Bruce Bennett/Getty Images)
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The Nets have been without a general manager since January 10, when Billy King stepped down coinciding with the firing of head coach Lionel Hollins. Since then, a few names have come up in rumors about their search, including Danny Ferry, who appears to be out of the running. But there may be a new GM in place soon.

Via Tim Bontemps of the Washington Post:

Not that the Nets will be able to do much at the deadline, since they don’t really have a lot to trade that will be of interest to other teams, and at 13-38 they’re already essentially out of playoff contention. But having a GM in place will allow them to get a head start on planning for the offseason, which will include free agency, hiring a new coach, scouting for the draft … actually, forget that last part.

Mavs rookie Salah Mejri tries to talk trash, Gregg Popovich and Tim Duncan laugh at him (VIDEO)

DALLAS, TX - OCTOBER 21:  Eric Bledsoe #2 of the Phoenix Suns is fouled by Salah Mejri #50 of the Dallas Mavericks during a preseason game at American Airlines Center on October 21, 2015 in Dallas, Texas.   NOTE TO USER:  User expressly acknowledges and agrees that, by downloading and or using photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Ronald Martinez/Getty Images)
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The Spurs beat the Mavericks by 26 points on Friday night, a game all of the Dallas players would love to forget. But there was a funny moment for rookie big man Salah Mejri: after a dunk, he appeared to yell something at the San Antonio bench. Gregg Popovich and Tim Duncan were completely nonplussed.

For what it’s worth, Mejri later tweeted that he wasn’t intending to be disrespectful.