team maloof with stern

Have the Maloofs threatened the NBA’s billion dollar arena subsidy industry?

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What do Faye Vincent, George Steinbrenner, and David Stern have in common?

They’re each relevant characters in the relocation saga of the Maloof family, owners of the Sacramento Kings, who are increasingly becoming a liability for the NBA.

That’s because Chris Lehane, executive director of arena group Think Big Sacramento and big-time political consultant to be played by Rob Lowe in the upcoming film Knife Fight – mashed those characters together when he sent a scathing letter to U.S. Attorney General Eric Holder on Monday. In that letter, he described the Maloofs’ harassment of at least one Sacramento business owner using an ex-FBI agent and asks for a federal investigation into the matter.

On Friday night, CBS13, the local CBS News affiliate, reported that the Maloof Family is employing a former FBI Agent whose purported activities appear designed to intimidate citizens of the Sacramento region who in recent weeks have expressed their concerns about the Maloof Family’s ownership of the Sacramento Kings.

If accurate, the report that the Maloof Family is potentially party to such unscrupulous conduct shocks the conscience at any number of levels.

First, in an era where professional sports organizations have been heavily punished for engaging in “spying” on opposing teams and putting “bounties” on opposing players – the idea that a professional sports team’s ownership group would target its own fans, including prominent and respected local business leaders who are financial supporters of the team, is simply unconscionable.

Lehane then goes in on what happened when Steinbrenner got caught paying Howie Spira, a man with an extremely questionable background, $40,000 to dig up dirt on then Yankee Dave Winfield.

Second, given the history of professional sports owners being severely sanctioned for the use of private detectives involved in comparable activities, it would appear that the Maloofs are possibly exposing themselves to sanctions. Former New York Yankee owner George Steinbrenner was permanently suspended by Major League Baseball for hiring a private detective to dig up dirt on Dave Winfield.

And for the cherry on top, Lehane asks for the federal investigation:

And, third, in deploying a former FBI Agent to engage in what was reported to be acts of intimidation and harassment, various federal criminal statutes are potentially implicated.

The complete text of the letter can be found here. It goes on to identify federal harassment statutes that could apply to the use of a private investigator, it poses the question of whether or not a federal law enforcement official was impersonated, and to tie a bow on things Lehane points out that the act occurred in Sacramento and the Maloofs reside in Las Vegas – creating a jurisdictional argument to be made in favor of federal prosecution.

Even though this seems jarring when taken at face value, unless there is a real smoking gun that could translate into serious charges against the Maloofs this is just a way to shine a light on their behavior. It’s more likely the audience here was really Stern and the other 29 NBA owners.

Furthermore, the real reason why Lehane brought the Steinbrenner incident into focus is the “best interest of the league” clause found in each of the major sports’ constitutions and by-laws. Vincent used the clause to give Steinbrenner a lifetime ban for the Spira incident (among other factors), though Steinbrenner later exerted enough pressure to be reinstated after two years of riding the pine.

There has already been some talk, some published and most of it unpublished, that Stern could or should use the NBA’s version of the best interest clause to force the sale of the team or nicely encourage ‘the boys’ to negotiate in good faith with Sacramento. The motivation is simple. The Maloofs don’t appear to have the money to run an NBA team, the NBA doesn’t need another Sonicsgate, and the NBA itself has gone to great lengths to preserve the Sacramento market.

The questions (in order) are, however, can he do it, will he do it, and at some point does he have to do it?

According to the Marquette Sports Law Review, the commissioner’s office is installed within the framework of a “monopolistic business association,” shielding the NBA from being bogged down by litigation so long as the commissioner’s office provides “due process” for disputes between players, owners, and the league itself. The office is supposed to act as a disinterested reviewing body with the power and independence to sanction players and owners alike. This body gives the owners the ability to ‘obviate judicial interference,’ which is a fancy way of saying the courts stay out of their business on a multitude of legal issues. From the league and owners’ perspectives, a commissioner can resolve certain conflicts faster and more effectively (read: cheaper) than the courts can.

This “due process” is also an important mechanism required for the league to avoid antitrust suits in relocation disputes. If you recall during Stern’s press conference just hours after George Maloof and his antitrust attorneys torched the Sacramento deal, he said “I am very sensitive of the rights of the Maloofs to do what they did.” That’s because in past relocation disputes, leagues have lost cases because they did not give owners, such as Al Davis and Donald Sterling, an appropriate forum and process to apply for their relocation requests. As distasteful as the Maloof’s actions were, honoring the application and due process of a relocation request is paramount and the likely motivation behind Stern’s comments.

This doesn’t mean, however, that the Maloofs get to unilaterally hurt other NBA owners or the league as it considers their relocation request. Moreover, the ‘best interest’ clause sits side by side with antitrust law to determine how much, if at all, the Maloofs can hurt the NBA and its other owners with their relocation activities. While all of this gets fleshed out inside of Stern’s due process, not to mention outside of the due process with all of the various arm-twisting that goes on behind the scenes, it’s the due process itself that upholds the commissioner’s office as a viable mechanism to obviate judicial interference.

And none of that interference may be as important to obviate as the monopolistic protection the NBA receives as it leverages limited supply (teams) against tremendous demand when it threatens to leave cities if public subsidies are not provided for owners.

These subsidies are a billion dollar item on the balance sheet over multiple years, and it is in the best interest of the league to ensure that it places its best foot forward in how it markets its product to municipalities and their taxpayers.

Should any NBA owners be found to be negotiating in bad faith during arena discussions, as it appears the Maloofs may have, the association could be found liable for losses derived from a failed negotiation – in this case over $500,000 for Sacramento and thousands of hours of time by its city staff and representatives. And because of the tax dollars at play nationwide, both lawmakers and the courts will look to the commissioner’s office to see that due process is being carried out on behalf of all parties, from owner to taxpayer.

As if the overall issue of the Maloof’s relocation wasn’t enough, it was learned earlier this week that the proprietor of a Sacramento website called Ransacked Media both personally met with the Maloof’s private detective and later released confidential emails between NBA attorney Harvey Benjamin and George Maloof. While all leaks are not created equally, if it is found that the Maloofs materially harmed the league’s ability to negotiate with future municipalities because they leaked this information it is just more trouble for Stern and the 29 other owners to consider right now. And it can’t reflect well that discussion of the team’s television deal with Comcast was made available for the masses, as Benjamin put it “We agree regarding Comcast, but no one thought it would be wise as a public matter to put this in a public document.”

Well, it’s public now.

Clearly, there are questions surrounding the Maloofs’ end-game strategy and why they would want to own a basketball team amidst serious concerns about their finances. The NBA’s owners told us repeatedly over the summer that very few teams are making money. As the Kings have been among the league’s lowest spending teams for years, they’ve shown that they can’t or won’t spend the money needed to be a title contender. By some reports the Kings are enjoying an approximate $10 million revenue sharing stream and while ticket sales and sponsorships may hold steady for now, the chance for another PR blunder to destroy whatever goodwill is left in Sacramento remains high. As for that revenue sharing, Stern alluded to the fact that the owners could always vote to change their mind about the Maloofs’ continued receipt of their share.

Politically, the Maloofs have all-but destroyed any chance of getting a publicly-funded arena in Sacramento that would meet the needs of the NBA and the city. Their solution to renovate the current arena is an obvious attempt to produce evidence in an antitrust lawsuit, as they will likely seek public funds that will be denied because the current arena is nearing the end of its useful life. Putting any money into it, let alone public money, has been decried as ludicrous by every third-party that’s not a puppet for the Kings. But the family will say they did all they could to make a deal work in Sacramento and that everybody else let them down.

So after burning every bridge in California’s capitol, the only option on the table for the Maloofs that doesn’t include them financing their own facility is to move and/or sell the team. And none of the options to keep the team present the Maloofs with a tremendous financial advantage over this last deal that the NBA negotiated alongside them.

Moving a team to Anaheim, for example, will return at least a $300 million relocation fee as the result of infringing upon the Lakers and Clippers’ markets and render the family upside-down in their investment without some serious help. Seattle just reached a Memorandum of Understanding agreement on Wednesday with investor Chris Hansen that is pending, and the city’s investment of up to $120 million for an NBA-only arena will need to clear all the red tape that Sacramento’s did. Regardless, Hansen isn’t spending over $500 million to roll out the red carpet for the Maloofs. Otherwise, you can add Vancouver, Louisville, Columbus, and Kansas City to the list of cities whose names have landed on the radar, and none of them provide the Maloofs a path to improve their financial standing or support their entertainment holdings. All they provide is a lukewarm bidding war to raise the sales price of the team.

Talking with sources close to the negotiations, it’s clear that many of them are done trying to understand what the Maloofs are doing right now. Exasperated would be the appropriate word. Did the Maloofs threaten an antitrust suit and did the NBA respond by threatening a relocation fee in Orlando? Did the Maloofs leave Orlando with an agreement in principal only to decide days later to leverage their antitrust rights? Are they buying time in hopes that a game-changer comes through the pipeline? Has all of this simply been an exercise in selling the team? Does it even matter at this point? The damage is done. Sacramento has spun its wheels for a family with all questions and no answers, and could very well be left without a team if nothing is done about it.

Now, in their apparent pursuit of evidence for an antitrust case, it appears they may have crossed more lines and bitten off more than they can chew. Whatever their motives may be – they continue to encumber the league’s standing with customers, cities, its own owners, and eventually with lawmakers and the courts.

The appropriate question for the league and its owners is – at what point does the behavior become a recognized liability and at what point do they figure out that holding the line isn’t the smartest play.

Ultimately, it’s in the best interest of the league that they figure this out quickly. Billion dollar subsidies don’t grow on trees.

Joel Embiid to start in Sixers first preseason game

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Here’s a little bit of good news for beleaguered Sixers fans:

Joel Embiid will start the Sixers first preseason game next Tuesday. Embiid was the No. 3 pick and a very highly rated prospect coming out of Kansas, but foot injuries sidelined him the entirety of his first two seasons. Now he’s healthy and going to get a start next Tuesday, according to coach Brett Brown.

This will be a process. It will be two steps up and one step back all season for Embiid, but at least he’s healthy enough to take those steps now.

Now the focus shifts to when Ben Simmons will be able to take his first steps.

Another report Donatas Motiejunas, Rockets nowhere near deal as deadline approaches

LOS ANGELES, CA - DECEMBER 17:  Donatas Motiejunas #20 of the Houston Rockets is fouled as he shoots by Julius Randle #30 of the Los Angeles Lakers during the first half at Staples Center on December 17, 2015 in Los Angeles, California.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and condition of the Getty Images License Agreement.  (Photo by Harry How/Getty Images)
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Donatas Motiejunas and his agent had given the Rockets a Saturday deadline to make a contract extension offer they liked.

But the sides aren’t even talking in a serious way.

That was reported early on Friday, and now comes another report — this was from Calvin Watkins of ESPN — that the two sides are nowhere close to a deal.

With the deadline to sign a qualifying offer approaching, restricted free-agent power forward Donatas Motiejunas and the Houston Rockets have exchanged contract proposals but remain far apart on an agreement, multiple sources told ESPN.

Motiejunas is seeking a larger financial deal from the Rockets, but the two sides haven’t had serious contract discussions in a month, the sources said.

Motiejuas, a restricted free agent, has a $4.4 million qualifying offer on the table that expires Sunday. He likely will sign it — if so he will have the ability to veto trades during the season then would be a free agent next summer.  Motiejuas could let the deal expire then sign a new one-year deal with the Rockets, but he would make less money.

Last season the Rockets agreed to trade Motiejunas to the Pistons. However, Pistons voided the deal after he failed his physical. Motiejunas hammered Detroit for how it went down. That left Motiejunas a restricted free agent this summer, but he didn’t land any offers from other squads (many thought the Rockets would just match).

That gets us to where we are today, where Motiejunas appears headed to signing the qualifying offer, then testing the market next summer as an unrestricted free agent.

Sacramento Kings prepare to open state-of-the-art downtown arena

This photo taken Tuesday, Sept. 27, 2016, is the new Golden 1 Center in Sacramento, Calif. The 17,500-seat arena, the new home of the NBA's Sacramento Kings basketball team features among other things, the NBA's first 4k ultra HD video board that stretches 84 feet above the court with more than 38 million pixels. The Kings' first game in the arena will be a preseason match against Maccabi Haifa, of Israel, Oct. 10. (AP Photo/Rich Pedroncelli)
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SACRAMENTO, Calif. (AP) — After years of searching for a new home, the Sacramento Kings are set to open a new venue that raises the bar of what an arena can be.

Along with some of the modern accouterments that have become commonplace like smartphone apps that allow fans to order food or watch replays from their seats, giant screens to watch the game and high-speed connections that let fans post photos almost instantaneously, the Golden 1 Center also has many first-of-its-kind features.

There are the airplane hangar doors that can open to turn the venue into an indoor-outdoor arena and the “smart turnstiles” that will allow fans to enter at more than triple the usual speed. But perhaps most important to Kings owner Vivek Ranadive are the environmental features that make it the first indoor venue to receive LEED Platinum certification – the highest level of recognition for environmentally conscious buildings.

The 17,500-seat arena will be the first professional sports venue powered completely by solar energy, will save about 1 million gallons of water a year compared to a typical venue of its size, was built with recycled material from the mall that stood at the site before construction began and will get 90 percent of its food and beverages from within 150 miles.

“We felt we had to set a new bar,” Ranadive said. “We have to be cognizant of the kind of planet we want to leave our kids and next generations. This had to be the greenest arena ever built. … I fully expect that arenas in the future will be even better, be even more sustainable. Hopefully what we have here is an example of how to build a great arena and still be responsible to the environment.”

Ranadive bought the team in 2013 for $534 million, saving the franchise from a planned move to Seattle. The next task was getting the new downtown arena built.

Ranadive wanted an “iconic” venue that would anchor a revitalized downtown and he believes the nearly $600 million facility that opens this weekend has achieved that goal.

The arena is part of a $1 billion development project that includes 1.5 million square feet of mixed-use property that will have a hotel, restaurants, retail shops, offices and condos. About $500 million in outside investment is also expected in the area.

“This arena is the 21st century cathedral,” Ranadive said. “It’s the communal fireplace where people used to gather in old times. For us, it’s always been about more than basketball.”

Befitting a team owned by a tech mogul who made his billions in Silicon Valley, the arena was built with enough technology to “future proof” it. It has enough bandwidth for a small city, allowing fans to post 250,000 Instagram photos per second and 500,000 Snapchats per second, according to chief technology officer Ryan Montoya.

It has the NBA’s first 4K ultra HD videoboard – providing a picture four times clearer than HD – that stretches 84 feet long. The in-stadium app will give fans the best driving instructions based on traffic and parking spots. It will allow them to order food or merchandise to their seat, watch live-streamed video on their phone and even place non-monetary bets on the outcomes of plays that can earn fans points that can be redeemed for prizes.

There will even be facial recognition software that will allow players to enter secure areas and could one day be expanded to fans if they opt in to that option, making a more “frictionless” experience.

“Our arena is more about code than it is concrete,” team President Chris Granger said. “The idea is to create a platform that allows us to grow and expand and change the fan experience as the technology adapts.”

Overseeing all of the technology is a mission control room that will feature law enforcement and emergency medical services personnel, building operations officials, social media and guest services workers and others who will monitor all aspects of the arena on game days.

Perhaps the most unique feature will be the hangar doors, which can open to allow the delta breeze to cool the building and provide the option for concerts – or eventually even basketball games – with an indoor-outdoor feel.

The Kings have had talks with the NBA about what conditions would need to be met before they could play a game with the open doors but the team believes it will be able to control the temperature, humidity and wind well enough to make the conditions on the court comparable to a fully indoor arena.

The team plans to hold its open practice with the doors open and could do the same for an exhibition game against a non-NBA team. The Kings also could open the doors for college or high school games in order to gather enough data to show the league.

“They know we want a home-court advantage and they know that we want to enjoy the indoor-outdoor arena,” Ranadive said. “I fully expect we’ll figure out a way to get that home-court advantage.”

Chris Bosh on Heat’s young talent: ‘It’s their time’

CHARLOTTE, NC - APRIL 23:  Chris Bosh #1 of the Miami Heat talks to teammates Justise Winslow #20 and Udonis Haslem #40 against the Charlotte Hornets during game three of the Eastern Conference Quarterfinals of the 2016 NBA Playoffs at Time Warner Cable Arena on April 23, 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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Justise Winslow eventually wants his own team.

That day may be here.

LeBron James is with the Cavaliers. Dwyane Wade is with the Bulls. And now Chris Bosh – the last of the Heat’s big three still in Miami, embroiled in a dispute with the team over his health that likely has him moving on from Miami (and he’s not thrilled about it).

That said, Bosh sounds ready to defer to a younger generation led by Winslow and Hassan Whiteside.

In introducing his latest video, Bosh wrote this on his personal website:

I remember just a few years ago when the Big 3 were together and we were having a ball playing the game we love with some of the most professional, talented guys the NBA has ever seen.

I remember the fans of Miami coming out to see the show every night. The love, the compassion and the energy we felt was second to none. I want to thank the city of Miami from the bottom of my heart because things may change but the good times will last forever in my memories. Thank you!

Things are different now and Miami has incredible young talent with a tremendous upside. These are not only talented ball players but great people and friends. I enjoyed playing with those guys and doing my best to mentor them by being an upstanding role model and veteran player. It’s their time to go through the ups and downs of the game with this great city.

Bosh is not accepting that his career is over.

However, he sounds like a guy who likes the Heat’s young stars.