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.

Minnesota’s Wiggins considers contract deal without agent

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MINNEAPOLIS (AP) — Andrew Wiggins says he feels good about a max contract offer that is sitting in front of him with the Minnesota Timberwolves. But he’s in no rush to get it signed.

Wiggins says he is going over the five-year, $148 million offer from the Wolves deliberately to make sure everything is where he wants it before he signs. He is being extra careful because he is operating without an agent after parting ways with Bill Duffy and BDA Sports in August.

Wiggins says he has only positive things to say about Duffy. But he made the decision “from a business point of view.” He says he is leaning on parents, who were both high-profile athletes.

He says he appreciates the level of commitment the Timberwolves have shown and wants to be in Minnesota for the long term.

 

Report: Carmelo Anthony adds Cavaliers, Thunder to list of teams where he will accept trade

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Carmelo Anthony wants most of all to be traded to Houston (and he has leverage thanks to the no-trade clause Phil Jackson/James Dolan gave him). However, to make the deal work the Rockets needed to unload the three-year, $60 million contract of Ryan Anderson — which the Knicks do not want, and neither did any third team without a couple high first-round picks as a sweetener. Also, the Knicks wanted quality you assets back the Rockets didn’t have (or would part with), so the deal was dead. Anthony tried to wait it out, but nothing happened, and at this point the Knicks expect ‘Melo in camp Monday.

In the face of that, Anthony has expanded his list of teams where he will waive his no-trade clause to include the Cleveland Cavaliers and Oklahoma City Thunder, according to multiple reports.

Adrian Wojnarowski of ESPN was first with the news about the Cavs.

Carmelo Anthony, a 10-time NBA All-Star, has delivered the New York Knicks an expanded list of teams — including the Cleveland Cavaliers — with which he’d be willing to waive his no-trade clause, league sources told ESPN.

After the Knicks insisted that they were unable to make a deal with the Houston Rockets, his primary trade destination, Anthony and his representatives honored New York’s request and furnished at least two more teams within the past 10 days, league sources told ESPN.

ESPN’s Ian Begley filled in the details.

Cleveland was on the initial list of teams Anthony gave the Knicks (teams he would waive his no-trade for) but the Knicks wanted Kevin Love and Cleveland shot that down (that was before the Kyrie Irving deal, now Cleveland is even less likely to make that trade). The Cavaliers don’t have a lot of young talent on their roster, and that’s what the Knicks will want back in a deal, picks and players who are on Kristaps Porzingis‘ career arc.

If Cleveland was willing to throw the 2018 Brooklyn Nets pick in the trade it would get done quickly, but I have been told (before this news) Cleveland would not part with that pick, they see it as “LeBron leaves” insurance.

You can bet LeBron James is pushing to get Anthony on the Cavs. Adding him and Dwyane Wade — when Wade is bought out by the Bulls (eventually) — would move the Cavaliers a little closer to the Warriors, although both Wade and ‘Melo are bad defensive matchups against Golden State.

Oklahoma City would likely use Enes Kanter in any trade because his $17 million salary helps balance the money. However, the Thunder are like the Cavs in that this is not a roster with much young talent that the Knicks would want. Guys like Doug McDermott and Kyle Singler are not going to cut it.

It could take a third team to get a deal done with either the Cavaliers or Thunder.

While there had been rumors Portland was still trying to get in — that’s a team with multiple ways to make that trade if they are willing to send Zach Collins and picks to New York — multiple reports out of New York say the Blazers are not one of the teams on Anthony’s list, something first reported by Stefan Bondy of the New York Daily News.

Anthony may well get moved before the start of the season now, but not likely before training camp opens for the Knicks Monday. So that awkward set of questions still gets to take place.

 

We have a (very minor) trade: Troy Daniels to Suns for pick

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Memphis had more than the max 15 guaranteed contracts on the books, and the cost of unloading one of those turns out to be a second-round pick.

Troy Daniels, who is owed $6.7 million over the next two years, has been traded from the Memphis Grizzlies to the Phoenix Suns, a story broken by Shams Charania of The Vertical at Yahoo Sports and since confirmed by the teams themselves. As part of the deal, the teams swap 2018 second round picks (however the Phoenix pick going to Memphis is top 55 protected, meaning it doesn’t move unless the Suns are a top five team ext season). Basically, Memphis has three second-round picks in 2018 and Phoenix gets the middle one as the sweetener for taking on the contract.

This trade is really about Memphis clearing a roster spot and some salary space, and Phoenix being willing to take it on for a second round pick.

Interestingly, Daniels and Suns star Devin Booker got in a little war of words at the end of a game last season.

The Suns consulted with Booker about that before pulling the trigger on the deal.

Pat Riley raves about Dwyane Wade, but avoids all contract talk

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MIAMI (AP) — Dwyane Wade is under contract with the Chicago Bulls, meaning other NBA clubs cannot openly talk about possibly signing him until he is a free agent. As such, Miami Heat President Pat Riley was cautious Friday when asked about Wade’s future.

Wade spent his first 13 seasons in Miami before leaving in the summer of 2016 and going to the Bulls, his hometown team. But Chicago appears in full rebuilding mode after trading All-Star forward Jimmy Butler – someone Wade was close with – to Minnesota this offseason. And since Wade is in the last year of a deal that will pay him nearly $24 million this season, buyout speculation has been rampant for months.

If Wade gets a buyout, he’d be free to join any team.

“I feel great about our relationship that we had over the 13 years,” Riley said. “And anything that happens from a personnel standpoint down the road, or any opportunities that are there, we’re always going to approach that. But right now he’s under contract. He’s under contract with Chicago and I wish him the very best.”

Some Heat players, including longtime close friend Udonis Haslem, have made clear that if Wade becomes a free agent they would definitely want him to consider a return.

“He knows how I feel,” Haslem said this month.

Riley – and every other NBA executive – has to be much more guarded. But Riley made no secret of the affinity he still has for Wade, even raving about his wife, actress Gabrielle Union.

“She was stunning at the Emmys,” Riley said. “And to see him sitting in the seat next to her at the Emmys, I said `Man, we both have come a long way.”‘

The Bulls hold their media day Monday, with camp opening Tuesday. Wade spent at least part of this week in Miami, where he kept his home, and worked out at least once at the University of Miami .

Bulls President John Paxson told CSN Chicago on Thursday he and general manager Gar Forman sat down with Wade when the season ended, and plan to do so again when he returns to Chicago in the coming days.

“We were honest with him. We told him, that we don’t know what’s going to happen,” Paxson said. “At that time we were not shopping Jimmy. But we also said all along that if a deal would come along that would allow us to rebuild, we’d have to look at it. We’ve said that to everybody. So with that said, Dwyane’s under contract. He has been a professional through and through. We want to talk to him when he comes in town, and we will.”

Wade is Miami’s franchise leader in several categories, starred on all three of the Heat championship teams and has kept close ties with several people within the organization since his departure. He was the MVP of the 2006 NBA Finals.

“Probably one of the greatest series that any player has ever had in a Finals,” Riley said.