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.

Five things Thunder did to go from good to brink of reaching NBA Finals

OAKLAND, CA - MAY 16:  Billy Donovan of the Oklahoma City Thunder high fives Serge Ibaka #9 and Kevin Durant #35 during game one of the NBA Western Conference Finals against the Golden State Warriors at ORACLE Arena on May 16, 2016 in Oakland, California. 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 Christian Petersen/Getty Images)
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Oklahoma City was a 55-win team — most season’s that win total would have them entering the playoffs considered a contender. They have Russell Westbrook and Kevin Durant, two top five players in the league. But with the 73-win Warriors and 67-win Spurs ahead of them, the Thunder felt more like a good but flawed team doomed to an early exit and a summer of speculation.

Now the Thunder are one win away from knocking off the Spurs and Warriors back-to-back.

What changed? Here are five things the Thunder are doing better now than they did all season, the things propelling them to new heights.

1) Defense. The Thunder were an okay defensive team this season, allowing 103 points per 100 possessions they ranked 12th in the league. That got worse after the All-Star break when the Thunder allowed 105.7 points per 100 possessions, 16th in the league. Over the final month, they would show flashes of how they could play lock down defense, but they could not sustain it.

Now, this is a team that has held the feared Warriors offense to 88.9 points per 100 possessions Tuesday, 98.1 in Game 3. What changed was they have become fluid at switching on picks — both on and off the ball — and they are communicating. More importantly, they are smart in doing it, knowing when to go under or when to ignore the pick whatsoever. Their athleticism lets them make up ground, and their length allows them to get into passing lanes and create turnovers. Mostly the Thunder are playing with a sustained focus and energy on that end of the floor we haven’t seen ever. It has flummoxed the Warriors, who are rushing shots or trying to do things in isolation more than moving the ball.

“I think you have to build up stamina for that,” Warriors coach Billy Donovan said of the improved defensive energy and attention. “I think you have to have stamina to concentrate and focus and do what these guys do.”

2) Dion Waiters. Dion Waiters, in his entire career, has played as well as he has the past couple weeks. He’s like a new player. This is a guy who had a PER of 9.4 this season, the kind of number associated with being sent to the D-League. Credit to Billy Donovan and the Thunder coaching staff, Waiters gets it. Too often before he wanted to shoot like he was Russell Westbrook, now he has accepted the third (or fourth) man role. His shot selection has improved, and with that he is knocking down his jumpers. Like the entire team from item No. 1, his usually unfocused defense has suddenly become good almost every time down. He has become the third perimeter player the Thunder have needed for years.  With Waiters making plays, and more importantly accepting his role, the Thunder become that much harder to stop. The Warriors have not been able to.

3) Solving the Andre Roberson problem. The Golden State Warriors decided to treat Andre Roberson like they did Tony Allen from Memphis last season — put a big on him (Andrew Bogut or Draymond Green), then have said big ignore him to stay near the basket to protect the rim. If Roberson wanted to shoot from the outside, the Warriors would let the notoriously poor shooter (31.1 percent from three this past season) have all the wide open shots he wanted.

Billy Donovan made a great adjustment — he turned Roberson into a power forward/center, then surrounded him with shooters. This allows the active Roberson to set the pick for Westbrook (or whomever), then roll right down the lane to the basket for a dunk.  That and some backdoor cuts had Roberson scoring a career-high 17 points and giving the Thunder the support they need around their big stars.

“It’s funny because after Game 2 people were saying to me ‘is this guy even going to play anymore?’” Donovan said. “Andre’s a good basketball player, and I think one of the things that go missing with him is he makes winning plays and he’s a winning player. There are a lot of things he can do, offensive rebounds and slashing to the basket, I have confidence in him shooting the basketball.”

4) They are one team that could play small and run with Golden State. The Warriors small-ball lineup was so feared around the league it earned the nickname The Death Lineup. It killed teams. Nobody could keep up the scoring machine that was the Warriors going small.

Until the Thunder went small in Game 3 and ran right past the death lineup (which was -22 for the game). The Thunder are the one team with the depth of athleticism to go small with the Warriors and hang, but this lineup had been destroyed by the Spurs so it was a risk to roll it out again. It worked this time around becuase the Thunder become so much faster. The Thunder defense didn’t suffer —  Serge Ibaka (or Steven Adams), plus guys like Kevin Durant have done a fantastic job protecting the rim.

“It’s not about what is or is not going to work, sometimes you just got to put stuff out there based on teams. You’ve got to be willing to take some risks and do that…” Donovans siad postgame

“Sometimes you’ve got to evaluate things within the series you’re playing against. So, why were the numbers bad? And was there any way with adjustments could we make those numbers better.”

5) Billy Donovan has been fantastic. Donovan went toe-to-toe with Gregg Popovich, and now Steve Kerr, and it is the NBA rookie who is making the right adjustments. Like the small ball lineup, or using Roberson like a center.

But more than that, he has gotten buy-in from the team. The Thunder were never this focused, Durant and Westbrook both fought staggering their minutes in the past, and waiters did whatever it is Waiters wanted to do. Donovan has solved all those problems, but none of it works if the players don’t buy in. After a season where Donovan had to learn on the job the hard way — because Monte Williams (the tragic death of this wife) and Maurice Cheeks (injury) — Donovan has figured it out. He’s getting the kind of buy in Scott Brooks never seemed to have.

And with that, Donovan and the Thunder are within a game of the NBA Finals.

Watch Russell Westbrook drop 36 on Golden State in Oklahoma City win

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Once again, Russell Westbrook was the force of nature the Warriors could not solve.

The athletic point guard forced turnovers, threw it down in transition, and drove right past Stephen Curry or  was guarding him. The result was 36 points, 11 rebounds, and 11 assists — Westbrook’s first triple double of these playoffs.

“He’s got such great force and great will,” Thunder coach Billy Donovan said after the Thunder’s Game 4 win. “And he’s really a high IQ basketball player, he sees a lot of things going on out there… As a coach, you have great respect and admiration for a guy who plays the game that hard and gives to our team what he gives.”

He helped give them a win that has the Thunder on the verge of a return to the NBA Finals.

Russell Westbrook, Thunder defense again overwhelm Warriors 118-94, take commanding 3-1 lead

OKLAHOMA CITY, OK - MAY 24:  Russell Westbrook #0 of the Oklahoma City Thunder reacts in the first half against the Golden State Warriors in game four of the Western Conference Finals during the 2016 NBA Playoffs at Chesapeake Energy Arena on May 24, 2016 in Oklahoma City, Oklahoma. 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 J Pat Carter/Getty Images)
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One year ago, it was the Warriors’ adjustments, the Warriors’ defense that was propelling the franchise to its first title in 40 years.

This season, the Thunder turned the tables on the champs.

The length and switching of the Thunder defense resulted in 16 steals Tuesday night — and that means easy transition buckets for OKC. That swarming defense had an off Stephen Curry open the game 1-of-10 shooting, turning the ball over six times on the night, and finishing 6-of-20 shooting, 2-of-10 from three. The Thunder defense has made the Warriors shooters tentative; they are hesitating before making a play rather than just shooting in the flow, something that has seemed impossible to do to Golden State for a couple of seasons now. As a team, the Warriors shot just 30 percent from three and 41.3 percent overall, with Klay Thompson in the second half being the only guy who could knock down shots.

Curry was also asked to guard Russell Westbrook for long stretches of the game and that didn’t go well. Westbrook was the Thunder engine again and finished with a triple-double of 36 points, 11 assists, and 11 rebounds.

Once again the Thunder played fast, aggressive and beat the Warriors at their own game — a 118-94 Thunder win. Oklahoma City now leads the series 3-1 and can close it out Thursday night in Golden State. If not, it feels like Saturday night will be the end of the Warriors 73-win season.

And maybe just the beginning for a talented Thunder team that is just now coming together.

Right now, everything the Thunder try works.

For example, on offense, Billy Donovan made another smart adjustment — if the Warriors were going to ignore Andre Roberson (allowing bigs like Draymond Green or Andrew Bogut to patrol around the rim), the Thunder would start using Roberson like a power forward who set picks, rolled to the rim, and surrounded by shooters he and his teammates could make plays. Roberson finished with career high 17 points on 12 shots.

“He’s a pretty active player so he got some offensive boards and he snuck behind our defense a couple times and we did not guard him correctly,” Warriors coach Steve Kerr said.

It all worked in the first half again, when the Thunder were attacking the rim — leading to 28 first half free throws from the Thunder — and after a tight first quarter OKC stretched the lead out to 20 points behind a 16-point quarter from Westbrook. This is when the Thunder took charge of the game.

“He’s got such great force and great will,” Thunder coach Billy Donovan said of Westbrook. “And he’s really a high IQ basketball player, he sees a lot of things going on out there… As a coach, you have great respect and admiration for a guy who plays the game that hard and gives to our team what he gives.”

Golden State made a comeback in the third that was all Klay Thompson — he had 19 consecutive points for the Warriors, and the lead got cut down to 6 at one point. Thompson finished the night with 26 points on 17 shots and was clear and away the best Warrior (with Harrison Barnes second).

But then Westbrook led a push back that again stretched the lead out, and he got help from Dion Waiters with a three (Waiters played well again and had 10 points on the night). The Thunder never looked back.

Kevin Durant added 26 points (but on 8-of-24 shooting, not his best night), while Serge Ibaka added 17. The Thunder may be the only team in the NBA with the depth of athletes to run with Golden State, and they are doing it and making it work.

The Warriors defense has no answer for the Thunder attack, and Golden State is getting away from some of their identity. They have always switched nearly every pick with their small lineup, but because of rebounding concerns this series they have gotten away from that. The Thunder have figured out how to exploit that.

The Warriors have just not adjusted to the length of the Thunder defense — Golden State turned the ball over 21 times, 19.9 percent of their possessions. If you give it away one every five times down the court to a good team, you lose.

“I thought we competed again tonight, I just thought we didn’t play very intelligently,” Kerr said postgame. “Too many turnovers, careless passes. This is probably the longest team in the league we are facing and we continue to try and throw passes over the top of their outstretched arms. Probably not a great idea.”

In addition to Curry, Draymond Green had his second poor game in a row — 1-of-7 shooting with six turnovers, and again he was out of position on defense too often. He has played like a guy flustered by the opponent.

A lot of the Warriors have, while the Thunder just gain confidence. The kind of confidence that will carry them back to the NBA Finals.

 

Thunder’s Russell Westbrook, Kevin Durant put on first-half show at Warriors’ expense

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I’d say Warriors fans are stunned, but more than that Warriors players look stunned — they are getting steamrolled by Oklahoma City again, giving up 72 first half points and being down by 19.

I guess we tell Warriors’ fans what we have told the fans of teams they have steamrolled the past couple years — enjoy the show, you don’t get to see many like this.

Above was a Kevin Durant to Russell Westbrook fastbreak assist and bucket. Now check out the fantastic Steven Adams pass, and a highlight package of Westbrook dropping 16 in the second quarter on the Warriors (21 in the first half).