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.

Play vs. Rest: For many NBA teams, it’s still a real battle

CLEVELAND, OHIO - APRIL 13: Kevin Love #0 of the Cleveland Cavaliers and LeBron James #23  watch from the bench during the game against the Detroit Pistons at Quicken Loans Arena on April 13, 2016 in Cleveland, Ohio. The Pistons defeated Cleveland 112-110 in overtime.  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 David Maxwell/Getty Images)
Getty Images
1 Comment

MIAMI (AP) — There are 27 games remaining on Cleveland’s regular-season schedule, and perhaps only one person over that stretch will be able to stop LeBron James.

That would be Cavs coach Tyronn Lue.

He has to protect James from himself.

Finding the right time to rest players is a conundrum that many NBA coaches have wrestled with for years, even more so now given the ways teams have been able to apply technology to the formula and use personalized data to help their medical and athletic training staffs determine when someone simply needs a break. The rest topic seems to become more prevalent as the season winds down, particularly after the All-Star break, with teams in the playoff race trying to ensure top players are healthy for the postseason.

As James nears 50,000 minutes for his NBA career – a milestone that he’ll likely reach during the upcoming playoffs – he abhors the idea of taking nights off. Yet there will almost certainly be nights over the next few weeks where James’ uniform stays on its game-night hanger, and fans who plunked down big money to see him play will have to deal with disappointment.

“Me being a competitor, me loving the game that I’ve loved every single day, I don’t always have the right assessment of me playing a lot of minutes,” James said. “That’s why I have coach Lue and the coaching staff and the training staff to be like `Hey, LeBron … let’s take it easy today.’ Me, I don’t ever want to take a day off.”

Only seven players appeared in all 82 of their teams’ regular-season games in 2015-16. It is becoming more and more of a rarity; in 2005-06 there were 14 players who appeared in 82 games, in 1995-96 the number was 25.

“At times, it may be necessary for a guy to rest whether if it’s on the road or it’s at home,” Toronto guard DeMar DeRozan said. “It’s a thin line.”

Some coaches make no secret about their desire to rest players. Foremost among them, of course, is San Antonio’s Gregg Popovich, he who famously sat Tim Duncan for a game in 2012 citing “old” as the official reason, and who decided that Tony Parker and Manu Ginobili needed rest in the third game of this season – which just happened to be the Spurs’ home opener.

“It’s ridiculous,” Popovich said of the Spurs having to play four games in the season’s first six nights.

The schedule starting next season will have the 82 games played over a longer stretch of time, which NBA Commissioner Adam Silver hopes relieve some of the rest issues. When the Cavs sat James, Kyrie Irving and Kevin Love for a game at Memphis earlier this season, even some Cavs fans in attendance expressed their disappointment .

“The science has gotten to the point where there is that direct correlation that we’re aware of between fatigue and injuries,” Silver said. “And as tough as it is on our fans to miss one of their favorite players for a game, it’s far better than having them get injured and be out for long periods of time. So we’re always still looking to strike that right balance.”

Memphis coach David Fizdale said he listens to the Grizzlies’ medical staff when deciding when the time is right to give one of his players a break. Unfortunately, if there are many Marc Gasol fans in Minnesota, his nights to sit included the ones that fell on both of Memphis’ trips to visit the Timberwolves this season.

“Fans pay their hard-earned money to see you play,” Golden State guard Klay Thompson said. “The young guys like me, I don’t need to rest, but the old guys, the old superstars, they need a game or two off here and there. . Yeah, you feel for the fans.”

The vast majority of players polled at All-Star weekend said if it were up to them and they weren’t dealing with an injury, they’d play every night. Houston’s James Harden, who last missed a game two years ago and that was because of suspension, said he takes pride in not only playing every game but playing particularly well on the second night of back-to-backs.

No one has played more games since the start of the 2010-11 season than James, in large part because he rarely sits and because each of his last six seasons have all gone until the NBA Finals.

He ranks No. 2 in average minutes per night this season – topped by only Toronto’s Kyle Lowry, by a mere 9 seconds.

“I’m comfortable with whatever coach wants me to do out on the floor,” James said. “Whatever he gives me to do, I can figure it out.”

Memphis has healthy roster for playoff push in stretch run

LOS ANGELES, CA - NOVEMBER 16:  Marc Gasol #33 of the Memphis Grizzlies celebrates his three point basket for a lead over the LA Clippers with James Ennis #8 during the final seconds of the fourth quarter at Staples Center on November 16, 2016 in Los Angeles, California.  The Grizzlies won 111-107.   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 Harry How/Getty Images)
Getty Images
Leave a comment

MEMPHIS, Tenn. (AP) — The Memphis Grizzlies’ latest injury reports need a second glance, they appear a bit suspect.

Nobody is listed as hurt or nursing an injury. If someone is out, it’s simply for rest.

No knee problems requiring forward Chandler Parsons to sit. No ankle issues for reserve forward Brandan Wright. No lingering problems from point guard Mike Conley‘s broken back earlier this season, and no more groin issues for defensive stalwart Tony Allen.

There’s not even foot problems for All-Star center Marc Gasol.

Having no injuries to report is a relief for a team that has been hit hard the last two years. The Grizzlies are 34-24 and sixth in the Western Conference heading down the stretch.

“I think our chemistry is starting to come,” forward Zach Randolph said. “Guys are starting to fill into their roles and starting to play a lot better, especially on the defensive end.”

It was just a year ago on Feb. 20, 2016, that Gasol had season-ending surgery to repair his broken right foot, sending the Grizzlies spiraling into a historical season for injuries that finished with Memphis using an NBA-record 28 players . Memphis limped into its sixth consecutive playoff appearance and was mercifully swept out of the first round by the San Antonio Spurs.

Memphis’ injury woes seemed to pick up where last season left off for the first three months of this season. Conley missed 11 games, nine with broken vertebrae in his lower back . Wright, hampered by knee issues after signing with Memphis in 2015, dealt with left ankle issues the first 49 games. Parsons, the Grizzlies’ major free agent acquisition last offseason, missed 17 games with knee problems and still doesn’t look completely healed.

That left Memphis with only nine players for a few games.

“It’s nice to have more bullets, definitely,” first-year coach David Fizdale said. “It was fun winning with the Nasty Nine, but it didn’t feel good going into every game with the Nasty Nine, I tell you that.”

Fizdale, hired away from Miami where he assistant head coach, has had players miss a combined 130 games forcing him to adjust lineups regularly while settling into his first head coaching role. As the Grizzlies prepare for the stretch run, Fizdale says he feels prepared for anything.

“I think that was the good part about everything that has happened to us this year,” Fizdale said. “It has prepared me for different things. Our team doesn’t panic when guys go down or when we have to rest a guy. I think that part of it was good for me from a learning standpoint.”

Gasol has recovered so well that he made his third All-Star appearance Sunday. He is averaging 20.6 points and 6.2 rebounds, along with 4.3 assists. At Fizdale’s urging, Gasol has added a new weapon to his post play and midrange jumpers. The 7-foot-1 Spaniard has converted 77 3-pointers this season – a stark improvement from the 12 combined over his previous eight seasons.

Conley also has improved, averaging 19.3 points and 6.2 assists shooting 41 percent from outside the arc. He says he doesn’t notice the back bones he broke Nov. 28 against Charlotte at all.

“I (don’t) think twice about going in the paint or anything,” Conley said. “I’m excited about that and looking forward to a healthy second half.”

With 24 games left, Memphis is only two games behind the Los Angeles Clippers for the No. 4 seed and home-court advantage to start the playoffs. The Grizzlies, who visit Indiana on Friday night, also have an eight-game lead ahead of Denver for the final playoff spot, putting them on course for a seventh consecutive postseason appearance. Only San Antonio and Atlanta have longer active streaks in the NBA.

If the Grizzlies’ current run of good health continues.

Report: Jazz have some interest in reacquiring Deron Williams, no deal imminent

CHARLOTTE, NC - DECEMBER 01:  Deron Williams #8 of the Dallas Mavericks brings the ball down the floor against the Charlotte Hornets during their game at Spectrum Center on December 1, 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)
Leave a comment

I’m not sold that this trade idea has a lot of legs to it, I’d be surprised if it happened, but it is interesting.

The Utah Jazz have talked to the Dallas Mavericks about trading for — and bringing back — Deron Williams, reports Tim MacMahon and Marc Stein of ESPN.

No deal appeared imminent Tuesday night, sources said, but Utah has registered interest in bringing Williams back to his original team, with Dallas open to trading both Williams and center Andrew Bogut in advance of Thursday’s 3 p.m. ET trade deadline.

Williams can’t be traded without his consent, thanks to his one-year, $9 million deal with the Mavericks after he played the previous season in Dallas. The 32-year-old would have to forfeit his free-agent Bird rights if traded to another team.

The Jazz are considering another point guard they can trust come the playoffs, and someone who can lighten the load for George Hill, who has battled injuries for stretches this season. Williams has had injury issues this season as well, but he does love Utah and still has a home there.

The Mavs are looking to get assets for the post-Dirk rebuilding to come, guys who go around Harrison Barnes. Plus, they have rookie point guard Yogi Ferrell and J.J. Barea, the latter of whom is expected back from injury in the coming weeks.

DeMarcus Cousins says touching goodbye to Sacramento on Instagram

DALLAS, TX - DECEMBER 07:  DeMarcus Cousins #15 of the Sacramento Kings takes on the Dallas Mavericks in the second half at American Airlines Center on December 7, 2016 in Dallas, Texas. 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 Tom Pennington/Getty Images)
3 Comments

DeMarcus Cousins loves Sacramento.

While his reputation is that of a diva personality that can tear apart a locker room — and he has earned some of that — he wears that big heart on his sleeve in every aspect of his life. In Sacramento that meant he has been very active in the community, done a lot of charity work (and not dragging camera crews around to video it), and giving of himself to the people of the city.

The people of New Orleans are going to love that aspect of Cousins. But first Cousins wanted to say goodbye to the only NBA city he has called home, and that’s going to be emotional. Cousins posted this on Instagram.

Words can't even express how hard it is for me to have to leave the city of Sacramento and all of the amazing people that I have met while out here. I gave it my all for you and you gave it right back. The most amazing fans on the planet and I just want you to know that your support has meant everything to me. It's hard to believe that it was seven years ago that this young kid from Alabama showed up in Sacramento scared and not knowing a soul. As I look back upon my time here, I wouldn't trade it for anything. I have met so many amazing people, many of whom went out of their way to make me feel right at home from day one. Each and every one of you have played such an important part in my life and helping me become the person I am today. I don't just consider you all as fans, you all are my family…and a couple thousand miles aren't going to change a thing. Thank you Sacramento. #LoyaltyisLove

A post shared by DeMarcus Cousins (@boogiecousins) on