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.

Shaq’s list before leaving Magic for Lakers also included Knicks, Pistons, Heat, Hawks

1 Nov 1996:  Los Angeles Lakers center Shaquille O''Neal moves down the court during a game against the Phoenix Suns at the Great Western Forum in Inglewood, California.  The Lakers won the game, 96-82.    Mandatory Credit: Jed Jacobsohn  /Allsport
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Shaquille O’Neal said he regretted leaving the Magic for the Lakers as a free agent in 1996.

So, why did he bolt Orlando?

It was an intriguing high-stakes saga, and agent Joel Corry — who helped represent O’Neal at the time — retells it with behind-the-scenes detail at CBSSports.com.

One part I found particularly interesting was the rest of Shaq’s list besides the Lakers:

The idea was this: Identify the teams that could get to at least $9 million under the cap without gutting the roster in order to offer a seven-year, $100 million contract voidable after three years, when Shaq would have Bird rights with these teams and could thus opt out to take advantage of his presumably increasing value. Also, if he left Orlando, his preference was to go to a big market. There weren’t many teams that fit all these requirements. This is the list we came up with:

  • NEW YORK KNICKS: This was a longshot from the start, as it was contingent on New York being able to trade Patrick Ewing. The Knicks also went after Jordan, who promptly re-signed with the Bulls on a one-year, $30 million deal. The market was there. But moving Ewing was never really an option. And when they signed free agent Allan Houston for $56 million over seven years, the cap situation just became unworkable. Nothing ever really materialized.
  • DETROIT PISTONS: Detroit was attractive because of 1995 NBA co-Rookie of the Year Grant Hill, who had already earned All-NBA honors in his brief pro career. Allan Houston was also starting to emerge, and the thought of putting Shaq with a scorer like Hill and a shooter like Houston was attractive. But when Houston made his move to New York, this pie-in-the-sky scenario went with him. Plus, frankly, the Pistons never really showed much interest in making a deal for Shaq happen. Detroit was out.
  • MIAMI HEAT: The Heat had the most roster flexibility and potentially the best cap situation of the bunch, but renouncing the rights to Mourning, who was also a free agent, to wipe out his cap hold of 150% of his 1995-96 salary was going to be a necessity. Mourning became a central barometer for all of our negotiations. Mourning had gone No. 2 in the 1992 draft, right behind O’Neal, and their careers had been linked ever since.People casually put them in the same conversation as big men, but Mourning wasn’t the player Shaq was. When Miami signed Mourning to the aforementioned seven-year, $105 million deal, not only did it end any chance of O’Neal going to the Heat, it also served as an easy benchmark contract for Shaq’s personal market.

    No way was O’Neal going to get a penny less than Mourning, and in fact, Armato was adamant that O’Neal get substantially more than Mourning for he did not see them as anything close to the same class of player.

  • ATLANTA HAWKS: While Atlanta wasn’t on our initial list, the Hawks quickly became a viable option when I, along with a colleague, took a call from current Los Angeles Dodgers CEO and President Stan Kasten about the Hawks’ interest in Shaq. Kasten, who was president of both the Hawks and Atlanta Braves at that time, indicated that the merger between Hawks owner Ted Turner’s broadcasting companies (CNN, etc.) and Time Warner would be able to generate significant ancillary income for Shaq.On the basketball side, he viewed Shaq as the missing piece to a championship in Atlanta and was comfortable offering him a seven-year deal averaging somewhere between $10 and $15 million per year. He was not, however, interested in breaking up much of his team to do so.

    This is kind of crazy to look back on, but in 1996, Kasten considered Mookie Blaylock and Christian Laettner to be the Hawks’ foundational players. They weren’t going anywhere. Two other players from a group consisting of Stacey Augmon, Alan Henderson, Grant Long and free agent Steve Smith also needed to be retained.

    This was the snag. After running all the numbers, Smith, an All-Star caliber player, was probably the odd man out, and we didn’t like the idea of losing Smith. Eventually, Atlanta, which had become a legitimate contingency option, fell completely out of consideration when it signed Dikembe Mutombo to a five-year, $50 million deal.

I suggest reading Corry’s account in full.

Suns GM: Phoenix will likely preserve most of $13 million cap space into season

Ryan McDonough
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The Suns have more than $13 million in cap space remaining.

Don’t count on them spending it anytime soon.

Phoenix general manager Ryan McDonough, via Paul Coro of The Arizona Republic:

“I’d be surprised if we spent a lot of that cap space now or over the summertime,” Suns General Manager Ryan McDonough said. “More likely, we’ll preserve most, if not all of it, and go into the season and look at either in-season signings or probably more likely in-season trades that are lopsided where we take back more money than we send out. There are a decent amount of advantages to operating as an under-the-cap team in terms of player aggregation and trades and things like that.”

There’s certainly a logic to maintaining cap space for in-season deals. But the value is far less this year, when multiple teams will have room due to the skyrocketing salary cap. If they have their eyes on getting positive assets in salary dumps, the Suns will have to compete with other teams — and settle for weaker positive assets.

That still might be the right course if Phoenix doesn’t like any remaining free agents. (This removes one possible destination for Maurice Harkless, whose standoff with the Trail Blazers appears more likely to drag on.)

The Suns have 15 players — the regular-season roster limit — though John Jenkins and Alan Williams have unguaranteed deals. Phoenix could sign another low-priced player or two to compete in training camp, but that’s small potatoes. The Suns appear set to hoard their cap space.

The catch: This is also what cheap teams say. They hide their frugality by saying they’re maximizing flexibility. It’s impossible to tell the difference at this stage. So, keep an eye on Phoenix’s in-season moves.

Brandon Ingram far from soft, but going to have to get stronger to do what he wants in NBA

Los Angeles Lakers' Brandon Ingram shoots against the Cleveland Cavaliers during the first half of an NBA summer league basketball game, Thursday, July 14, 2016, in Las Vegas. (AP Photo/John Locher)
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When you see Brandon Ingram in person, you can’t help but have your first thought be “man, is he skinny.”

When he starts to play then you see why he went No. 2 in last June’s draft to the Lakers — he has a smooth, fluid game, can shoot the three, good IQ,  he even ran the offense at points, and looked like a modern NBA four who can do a lot of damage down the line in the league.

Once he gets stronger. Teams at the NBA Summer League tried to cover him often with shorter but physically stronger players — the Sixers’ Jerami Grant, for example — and Ingram struggled with that. It will only get worse once real NBA games start.

Just don’t confuse his physical strength with being soft, scouts and coaches of other teams told Broderick Turner of the Los Angeles Times.

“It’s a difference between being soft and being weak. He’s just weak right now. He’s not soft, by any stretch of the imagination,” a Western Conference head coach said of Ingram. “The kid is skilled. He’s got a good basketball IQ. He’s going to be more than fine. I think the Lakers got themselves a big-time player who is going to be around a long time.”

“I saw a good-looking prospect,” an Eastern Conference scout said of Ingram. “There were some games where he excelled, and there were some games where he struggled. But overall . . . he’s a matchup nightmare.”…

“Every time somebody got physical with him or leaned on him, he just wilted. He just kind of folded. And he was kind of like that the rest of the summer league,” a Western Conference assistant coach said of Ingram. “It’s going to be interesting to see how he adjusts to the NBA. The summer league is not the league.”

It’s going to take Ingram a season or two to put his imprint on the NBA. He’s got to get stronger, and like every rookie he’s got to see how his game and skill set fits in the league. What can he do, what should he stay away from.

What you had to like if you’re a Laker fan is how hard he continued to play, how he got better as Summer League went on. Then he stayed in Las Vegas as was part of the USA Basketball select team, where he was pushed around by the Olympians and challenged by the other guys just starting in the NBA. It’s a great learning experience. Both those situations were also chances to bond with Laker star D'Angelo Russell, both on and off the court.

There’s a lot to like with Ingram. Now someone get that kid a protein shake.

 

Report: Some in Chris Bosh camp suspicious of Heat’s intentions

CHARLOTTE, NC - APRIL 25:  Chris Bosh #1 of the Miami Heat watches on from the bench against the Charlotte Hornets during game four of the Eastern Conference Quarterfinals of the 2016 NBA Playoffs at Time Warner Cable Arena on April 25, 2016 in Charlotte, North Carolina.  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 Streeter Lecka/Getty Images)
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Pat Riley said he’s open to Chris Bosh playing this season.

Not everyone is convinced of the Heat president’s authenticity.

Barry Jackson of The Miami Herald:

Some in the Bosh camp remain angry and suspicious of the Heat’s intentions, wondering if Miami was motivated by clearing cap space. A Heat source insists this is not the case, that Miami wants him to play if doctors are comfortable with it.

An NBA-employed friend says Bosh very much wants to play and believes he should be cleared. If the Heat fights him on this, it wouldn’t be surprising if Bosh takes this issue to the players union

one issue that has been discussed is whether Bosh should come off blood thinners or continue taking them, according to a person briefed on the matter.

If Bosh comes off the medication this summer, there’s no reason why he couldn’t play.

But even if he stays on the thinners, Bosh has tried to convince the Heat to allow him to play while taking a new medication that would be out of his system in 8 to 12 hours, or by game-time, thus lessening or eliminating the inherent risks of playing a contact sport while on thinners.

It’s hard to believe the Heat have nefarious intentions — not just because they reportedly expect Bosh to play next season, but because a salary-cap workaround would likely fail.

If Bosh goes a year without playing (last game:Feb. 9), Miami waives him and a doctor approved by the NBA and players union says Bosh’s condition is career-ending, the Heat could exclude Bosh’s salary from team salary. He’d still get paid. He just wouldn’t count toward the cap.

So, the $75,868,170 Bosh is owed the next three years is protected. It’s just a matter of whether Miami frees cap space.

But even the Heat sitting Bosh for a year and convincing a union-approved doctor of Bosh’s inability to safely play wouldn’t be enough.

If Bosh plays 25 games for another team after an injury exclusion, his salary would be put back on Miami’s books. That might allow the Heat temporary cap room to sign someone, but with Bosh’s salary applied, their luxury-tax bill would be prohibitively enormous.

So, we’re probably back to the previous questions:

Can Bosh safely play while on blood thinners? Probably not, though there might not be total agreement on that.

Does Bosh need to continue taking blood thinners? That’s a much more complicated question. Hence, the lack of a resolution to this issue.