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.

Report: Bulls telling teams they plan on keeping Jimmy Butler

TORONTO, ON - MARCH 14:  Jimmy Butler #21 of the Chicago Bulls warms up prior to action against the Toronto Raptors in an NBA game at the Air Canada Centre on March 14, 2016 in Toronto, Ontario, Canada. The Bulls defeated the Raptors 109-107. NOTE TO USER: user expressly acknowledges and agrees by downloading and/or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Claus Andersen/Getty Images)
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The Chicago Bulls are trying to find their identity. They used to be a defensive team, but they went and got an offensive coach in Fred Hoiberg and by the end of the season had slid badly on that end of the floor. They are no longer Derrick Rose‘s team, but they didn’t have the personnel to run Hoiberg’s system. The Bulls need to figure out who they are and what players on the roster should be part of that team moving forward.

Expect Jimmy Butler to be part of that future. He’s the best player on the team, but he rubs some teammates the wrong way, and there have been rumors the Bulls would listen to trade offers.

The Bulls are telling teams they plan to hold on to him, reports A. Sherrod Blakely of CSNNE.com.

A league source tells CSNNE.com that the Bulls, while still open to listening to offers for Butler, are telling teams that are inquiring about his availability that their plan for now is to keep him in the fold.

And while there was some thought that a top-3 pick coupled with a few decent players might be enough to entice the Bulls to pull the trigger on a deal to trade Butler, CSNNE.com has been told such an offer would have to include at least one “legitimate, NBA starter” for the Bulls to even possibly consider trading him.

“And that might be a stretch,” the source indicated.

What is the hardest part of assembling a potential NBA title contender? Finding the elite, cornerstone player you need who can lead your team at both ends of the floor. The Chicago Bulls have that in Butler, he’s locked up under contract until at least the summer of 2019 on a good contract (a max before the TV deal money kicked in), why would they trade him?

Stranger things have happened, especially with the Bulls, but unless they want to tear it all down and rebuild — and they don’t — getting rid of Butler doesn’t make sense.

The better question is who will be around Butler come next fall.                                                                                                                                                                                                                                                                                                                                                                                 =

Watch all 25 threes from Cleveland in Game 2 win

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Apparently, all it takes is a little public discussion of LeBron James‘ “broken” jump shot to get him back on balance and knocking down the three ball — he was 4-of-6 from deep Wednesday.

Then again J.R. Smith was 7-of-13, Kyrie Irving 4-of-5, and as a team the Cavaliers knocked down a record 25 threes — while shooting 55.6 percent — as they wiped the floor with the Hawks in Game 2.

In case you’re curious where the Cavs were hitting from, here’s the team’s shot chart.

Cavaliers threes shotchart

Report: Rockets to interview Mike D’Antoni, Frank Vogel for coaching vacancy

LOS ANGELES, CA - FEBRUARY 28: Head coach Mike D'Antoni of the Los Angeles Lakers gestures during the game against the Sacramento Kings at Staples Center on February 28, 2014 in Los Angeles, California.  The Lakers won 126-122.   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 Stephen Dunn/Getty Images)
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The Houston Rockets aren’t in any rush to hire a new head coach, preferring to interview a wide range of candidates to find the right one. Jeff Van Gundy has been widely believed to be at the top of their list, now that Tom Thibodeau and Scott Brooks are off the market, but ESPN.com’s Marc Stein is reporting another name that has entered the mix: Mike D’Antoni, who last held a head coaching job from 2012 to 2014 with the Lakers and currently serves as the Sixers’ lead assistant.

The Pacers, meanwhile, haven’t made a final decision on Frank Vogel’s future with the team, but all signs seem to point to him getting let go in the next few days. And if that happens, Stein reports that Vogel will also be on Houston’s list of candidates.

Given the Rockets’ massive drop-off on the defensive end this season, Vogel would seem to be a better fit than D’Antoni. But it sounds like the Rockets aren’t close to finding a replacement for J.B. Bickerstaff, although it would make sense to have a new coach in place by next month’s draft.

Cavs set single-game three-point record in blowout win over Hawks

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On Monday, the Hawks played the Cavaliers close and even led in the fourth quarter, leading plenty of optimism that Game 2 would be equally competitive, that the Hawks had something to build on.

Nope.

The Cavs dominated from the start on Wednesday, with a 123-98 final score that was far closer than the game actually was — the Cavs led 74-36 at the half and led by as much as 38 at one point in the second half.

The Cavs also hit 25 three-pointers, which is the all-time record for a single game — regular season or playoffs. J.R. Smith hit seven of them, along with four each from LeBron James and Kyrie Irving and three for Kevin Love.

18 of Cleveland’s threes came in the first half, also a playoff record, and this was all Atlanta could do:

That’s the kind of night it was for the Hawks, who now trail 2-0 in the series as it heads back to Atlanta.