team maloof with stern

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

15 Comments

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.

Clippers guard Chris Paul leaves game with sprained thumb, more tests coming

Leave a comment

The Clippers have now won seven games in a row, but if they don’t have Chris Paul in the lineup that streak is going to turn around very quickly (remember just a couple of weeks ago when he missed seven games with a hamstring strain?).

Which is why Paul leaving the game with what the team has called a sprained thumb is potentially troubling news. Paul was trying to get over the top of a Joffrey Lauvergne screen when he ran into Russell Westbrook who had pulled up to take a three, Paul’s hand hitting Westbrook’s hip and seemingly getting caught up in his shorts. Paul walked off the court and went straight to the locker room, making it seem worse than the team said it is so far.

From the press release from the Clippers:

X-rays during the game were negative, but further tests still need to be done to determine the extent of the injury, which occurred in the second quarter after Paul jammed his left hand on Russell Westbrook’s right leg.

The Clippers held on without Paul for the comfortable win over the Thunder, 120-98.

The Clippers are the four seed in the West but could fall down that ladder if Paul is out for any stretch of time. Starting Saturday The Clippers have 10-of-11 games on the road — and the one home game is the Warriors. That’s going to be a tough run of games even with Paul.

Kevin Durant scores 21, Stephen Curry 20 to help Warriors cruise past Cavs (VIDEOS)

Leave a comment

Pretty much everything the Warriors did Monday against the Cavaliers worked — transition buckets, pull-up threes, drive-and-dish plays, curls off screens, you name it and the Warriors got enough space to get a shot they wanted. Then they knocked them down. Which is why the Warriors won going away.

Stephen Curry had a big night with 20 points and 11 assists, which you can see highlights of above. It was a big night for Curry’s confidence: In the Cavaliers four-straight wins against the Warriors, Cleveland trapped Curry off picks, were physical, and when Curry tried to make the playground passes that worked against other teams Cavaliers’ help defenders made steals and were off in transition the other way. Monday night Curry took the pressure in stride, used his handles to create space, used his gravity to draw defenders to him, then he whipped smart passes around the floor. Curry had 10 assists and zero turnovers in the first half.

Kevin Durant benefitted from some of those passes and had 21 points on the night, and he chipped in three blocks.

 

Get out of my head: Golden State routs Cleveland in last regular season meeting before Finals

2 Comments

No regular season game is going to erase the memory of blowing a 3-1 NBA Finals lead.

No January game is an accurate crystal ball into an NBA Finals matchup.

But the Warriors can put to rest the “Cleveland is in their heads” rhetoric and take a little confidence away from an absolute drubbing of the NBA Champions on national television Monday night.

Golden State caught fire midway through the first quarter and led by 15 after one, put up 78 points in the first half to lead by 29 at the break, and it all happened so fast it left Tyronn Lue’s face as the meme of the night.

https://platform.vine.co/static/scripts/embed.js

From there, the Warriors cruised in (sloppily at times, but cruised) for the 126-91 win.

“It was very important to come out and get off to a good start, but more importantly to hold on to that, to continue to keep our foot on the gas,” Draymond Green, speaking to the blown leads issue in his postgame TNT interview. “We did that the entire night, they had one little stretch there, I think it was the end of the third quarter, but other than that we kept our foot on the gas the entire time.”

Everyone in a Warriors uniform looked sharp. Klay Thompson had 26 points and hit 5-of-11 from three. Kevin Durant had 21 points on 9-of-16 shooting. Stephen Curry had 20 points and 11 assists. Green had a triple-double with 11 points, 13 rebounds, and 11 assists.

Conversely, for the Cavaliers LeBron James, Kyrie Irving, and Kevin Love were a combined 13-of-43 (30.2 percent shooting), with just five assists to 13 turnovers between them. As a team, the Cavaliers shot 35.2 percent overall and 9-of-34 from three (26.5 percent). Love didn’t play in the second half due to lower back soreness.

The Cavaliers looked like the team on the last night of a six-game road trip counting the minutes until they got back home, which is exactly what they were.

Neither side thinks this game portends anything going forward.

“It wasn’t about sending a message,” Green said in his interview. “At the end of the day, that’s the defending champs, we played them guys in two straight Finals, you’re not sending a message with a regular season win.”

That doesn’t mean it doesn’t feel good for the Warriors (and is cathartic for their fans).

The only real moment of drama in the game was when Green shouldered LeBron to the ground in the second quarter and picked up a Flagrant 1 for his efforts.

Golden State started the game slow, getting good looks but shooting just 1-of-7 from three. Still, it felt like with the looks they were getting the shots would fall at some point, and they did as the Warriors hit six of their next eight from deep. Cleveland tried to match that but found no rhythm, shooting 2-of-12 from three early. With the hot shooting continuing for them, the Warriors stretched the lead up as high as 22, but the Cavaliers had Richard Jefferson come in and muck the game up, LeBron started attacking off the drive, and the Cavaliers cut the lead down to 14.

Then the Warriors got a couple of live-ball turnovers — including Curry stripping LeBron — and converted those to fast-break buckets the other way, then all that was left was Lue looking dazed. The Warriors were moving the ball and not getting sucked into isolation, racking up 26 first half assists. The Warriors also were out and running and had 34 fast break points in the first half — credit Golden State for pushing the tempo, but the Cavaliers transition defense was a horror show. And not in a cool, “Let the Right One In” kind of way, but in the “Cavs fans never want to see that again” kind of way. Dazed Lue is right there with them.

No more meetings between these teams until the Finals we all expect to see. It’s six months of these teams getting better, trying to stay healthy, and gaining confidence going into that series. Cleveland has plenty of confidence. Golden State just got a little more.

Jeff Teague, Paul George help Pacers hold off Pelicans 98-95

Indiana Pacers' Paul George is defended by New Orleans Pelicans' Jrue Holiday during the first half of an NBA basketball game, Monday, Jan. 16, 2017, in Indianapolis. (AP Photo/Darron Cummings)
Associated Press
Leave a comment

INDIANAPOLIS (AP) — Indiana Pacers guard Jeff Teague figures he’ll eventually get that elusive triple-double.

Until then, he’s content to pile up wins.

For the fourth time in 30 days, the former All-Star guard flirted with his first career triple-double and Paul George scored 20 points to help the Indiana Pacers hold off the New Orleans Pelicans 98-95. Teague finished with 16 points, 10 assists and eight rebounds – the closest he’s come yet this season.

“I’m happy I’m getting some rebounds,” Teague said. “I was one of the worst rebounders last year, so to actually get some rebounds this year is good.”

The Pacers rebounded from Thursday’s embarrassing performance in London by leading almost wire to wire. They trailed only once, at 2-0, and were only tied just three times – twice in the first 66 seconds and at 91 with 4:10 left in the game.

And Teague was a big reason why the Pacers managed to keep the Pelicans at arm’s distance.

The other reason: Anthony Davis‘ injury.

New Orleans’ All-Star center took a hard tumble with 7:08 left in the third quarter when he appeared to be leaping for an uncontested dunk. Myles Turner raced over, hit Davis on the right wrist, sent him sprawling. After Davis got up, he limped toward midcourt before making two free throws and being replaced by Terrence Jones.

Davis finished with a team high 16 points but did not return. Team officials said he injured his right thumb and left hip and that X-rays were negative. Davis left with a slight limp but did not speak with reporters.

“I don’t know anything yet, we’ll check with the doctors,” coach Alvin Gentry said.

Without Davis, the Pelicans couldn’t quite come all the way back from a 14-point deficit in the first quarter or two 10-point deficits in the third quarter.

Teague broke the 91-91 with a 3-pointer with 3:55 to play and New Orleans had three chances to tie the score in the final 20 seconds.

But Jrue Holiday missed a 22-foot pull-up jumper, E'Twaun Moore missed a short runner with 4.8 seconds left and Tyreke Evans fired up an air ball from the corner as the buzzer sounded.

“We let them hang around without their star on the floor,” George said. “We’re floating around .500. We’ve got to get some consistency, we’ve got to find a way.”

TIP-INS

Pelicans: Moore and Jones each had 15 points. Jones also had eight rebounds. … Solomon Hill had four points and four rebounds in his first trip back to Indiana since leaving the Pacers in free agency. … The Pelicans were 6 of 9 on 3-pointers in the second quarter after scoring only 18 points in the first.

Pacers: Myles Turner had his eighth double-double of the season – 18 points and 12 rebounds. He also had four blocks. … Thaddeus Young left in the first half after getting poked in the left eye but returned at the start of the third quarter. He finished with 17 points and tied a season-high with six steals. … Indiana won despite missing four of its last six free throws. … Pacers guard Rodney Stuckey (sore left hamstring) hasn’t played since Dec. 28 and coach Nate McMillan said before the game he isn’t expected to play on Indiana’s upcoming three-game road trip.

FATHER-SON MATCHUP

Pacers coach Nate McMillan didn’t want Monday’s game to turn into an emotional father-son matchup. So after having dinner Sunday with his son, Jamelle, an assistant with the Pelicans, the Pacers coach told his son the same thing he always has.

“We’re both trying to win,” the father said. “That way it’s not a father-son deal. He’s been taught to go out there and win.”

But the elder McMillan was surprised this day even came. When he was asked if he ever discussed the intricacies of coaching with his son, McMillan quipped: “No, I didn’t. I thought he’d be smarter than that.”

HOME, SWEET, HOME

The Pacers have won five straight on their home court and have the second best home record in the Eastern Conference at 16-5. And New Orleans knows how tough it is to play at Indiana. The Pelicans have lost seven straight at Indy since their last win in January 2010.