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.

Report: Kevin McHale also in mix for team president in Orlando

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Cavaliers GM David Griffin — who doesn’t have a contract with the team beyond this year, but who LeBron James has endorsed — is on their radar.

Larry Bird, who is stepping down in Indiana, is a potential target.

You can add Kevin McHale to the list of former NBA executives the Orlando Magic are taking a look at in their search for a new head of basketball operations, reports Sam Amick of the USA Today.

The Orlando Magic have serious interest in Hall of Famer and TNT analyst Kevin McHale for their team president position, according to two people with knowledge of the situation….But McHale, who served as Minnesota Timberwolves vice president of basketball operations from 1995 to 2008 while also serving as the team’s head coach on two occasions, is known to be on the Timberwolves’ short list as well. The Magic would strongly prefer someone who has previously been a general manager for the president position.

But McHale, who served as Minnesota Timberwolves vice president of basketball operations from 1995 to 2008 while also serving as the team’s head coach on two occasions, is known to be on the Timberwolves’ short list as well. The Magic would strongly prefer someone who has previously been a general manager for the president position.

McHale made some franchise-defining moves as the head man in Minnesota — he drafted Kevin Garnett and he brought Flip Saunders into the organization, he brought in Sam Cassell and Latrell Spreewell and that got the Timberwolves to the conference finals in 2004, to use a few examples.

He had his share of mistakes, too. Like drafting Ray Allen then trading him for Stephon Marbury, or drafting Brandon Roy and trading him for Randy Foye.

The Orlando roster has talent on it — Aaron Gordon, Evan Fournier, Nikola Vucevic, maybe Elfrid Payton — and a quality coach in place with Frank Vogel. That said the talent on the roster does not fit and Orlando desperately needed someone willing to shake things up, who wasn’t too invested in “their guys” to realize the roster’s serious shortcomings.

McHale could do that. It looks like we are a month or more from finding out, however, as Griffin isn’t going anywhere until after the Cavaliers season — which likely extends into June. If the Magic are serious about him, this process is going to drag out.

Joel Embiid was hanging out with Philly fans at the NFL Draft

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Joel Embiid is a man of the people.

And last night the people in Philadelphia were all Eagles fans, watching the NFL Draft unfold.

Embiid was out there with them. Literally.

Ben Simmons was there as well with Embiid, according to CSNPhilly.com.

Philadelphia fans can only hope the Eagles draft as well — and have WAY better injury luck — than the Sixers.

Moving to new arena, Detroit Pistons submit bids to host 2020 or 2021 All-Star Game

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DETROIT (AP) — The Detroit Pistons have put in bids to host a future NBA All-Star Game at Little Caesars Arena.

The team says in a release Friday that bids were submitted to the league for 2020 and 2021.

Little Caesars Arena is being built just north of downtown Detroit and is expected to open this year. It also will be home to the NHL’s Detroit Red Wings.

In November, the Pistons announced the team was moving back to Detroit from The Palace of Auburn Hills.

The city of Detroit last hosted the NBA’s All-Star Game in 1959. The 1979 game was played in Pontiac when the Pistons’ home court was the Silverdome.

NBA All-Star events include the All-Star Game, NBA Rising Stars Challenge, a celebrity game, skills competition and fan events.

PBT Extra: Does Larry Bird stepping down change Paul George question in Indiana?

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When the Woj bomb dropped that Larry Bird was stepping down as president of the Indiana Pacers, two questions came to mind. First was, “Is he healthy?” Reportedly he is, this was not a healthy-related decision. Which is great news.

Second, what does that mean for Paul George?

Is Indiana more likely to trade him now? Less?

George speculation has ramped up around the league and — while no doubt new GM Kevin Pritchard will say he would love to keep PG13 when he speaks to the media — there is a sense Bird walking away could be a sign that the Pacers are moving into rebuilding mode. That said, Pritchard is known for driving a hard bargain, he’s not going DeMarcus Cousins trade here.

I talk about all of that and more in this latest PBT Extra.