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.

Nets’ Jeremy Lin: ‘We’re making the playoffs. I don’t care what anybody else says’

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The Nets went 20-62 then traded their best player (Brook Lopez) for a worse player (D'Angelo Russell). Brooklyn’s biggest free-agent signing this summer (Otto Porter) plays for the Wizards. Rondae Hollis-Jefferson and Caris LeVert are nice developmental pieces but hardly seem on the verge of breakthroughs.

Still, Nets guard Jeremy Lin expects big things next season.

He set expectations in an Instagram Live video (hat tip: AJ Neuharth-Keusch of USA Today):

We’re making the playoffs. I don’t care what anybody else says.

The Nets are on the right track given their asset constraints. Though worse than Lopez now, Russell – eight years younger and on a low-paying rookie-scale deal – is more valuable. Brooklyn made the favorable swap by absorbing Timofey Mozgov‘s awful contract, a wise use of assets considering the difficulty of attracting free agents. An aggressive offer sheet for Porter was a reasonable swing in that situation, as well.

But that’s all helpful in the long run. In the short term, the Nets are almost certainly stuck as lousy. Maybe they can sneak into the playoffs in a weak Eastern Conference, but even that is a huge longshot.

Not that Lin cares what I say.

Check out Top 10 blocks from Summer League (VIDEO)

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When you think of Summer League basketball, sharp defensive rotations is not the first thing that comes to mind. Defense, in general, tends to be an after thought.

But there were some great blocks.

Here are the top 10 blocks from the Las Vegas Summer League. Enjoy the flashes of defense from Vegas.

 

Memphis Grizzlies sign former Oregon forward Dillon Brooks

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MEMPHIS, Tenn. (AP) The Memphis Grizzlies have signed former Oregon forward Dillon Brooks, a second-round pick in last month’s NBA draft.

Shams Charania of Yahoo Sports:

Brooks was selected by the Houston Rockets with the 45th overall pick. The Grizzlies acquired him in exchange for a future second-round pick.

Brooks, 21, averaged 16.1 points, 3.2 rebounds and 2.7 assists as a junior at Oregon last season. He was named the Pac-12 player of the year and helped Oregon earn its first Final Four berth since 1939.

 

Report: Even after Kyrie Irving requests trade, Carmelo Anthony still focused on Rockets, not Cavaliers

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Carmelo Anthony was reportedly willing to waive his no-trade clause for the Rockets or Cavaliers. Cleveland never seemed overly interested, but Houston was. Anthony became set on the Rockets, even reportedly expecting a trade to Houston.

Then, Kyrie Irving requested a trade from the Cavs.

That has thrown everything for a loop. Maybe Cleveland is more keen on trading for Anthony now? The Knicks are reportedly interested in trading Anthony and draft picks for Irving.

But any deal still depends on Anthony’s approval, and it’s now unclear he’d still grant that for the Cavaliers.

Frank Isola of the New York Daily News:

However, a source close to Anthony said late Friday that the All Star forward is focused on getting a deal done with Houston.

Consider this another indication LeBron James will leave Cleveland next summer. Of course, Anthony might have other reasons for preferring Houston. But when reading tea leaves on LeBron’s future, this is a clue.

I doubt LeBron has completely decided his plan, and he hasn’t even necessarily shared his thinking with Anthony, a close friend. Remember, LeBron edited his coming-home essay while on a flight with an unknowing Dwyane Wade, another close friend. But it was one thing for LeBron to strand Wade in Miami, a desirable city where Wade was happy even before LeBron arrived. It’d be something else entirely for LeBron to ditch Anthony in Cleveland. If LeBron is considering leaving, maybe he’d tell Anthony to stay clear.

Anthony could also be operating without hearing directly from LeBron. But if LeBron’s friend believes LeBron might leave, that’d still say something (though obviously not as much).

Back to the possibility that Anthony prefers the Rockets for other reasons. What happens if New York and Cleveland agree to a trade? Does Anthony still hold out for his top choice? Or does he relent and accept what was once his second choice? For now, it seems as if he’s still angling for Houston and will cross other bridges if he reaches them.