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.

Three Things We Learned Wednesday: LeBron says Cavs lack toughness, or are they bored?

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The NCAA Tournament gets back underway Thursday, but the NBA ball just keeps rolling along. Here are the big takeaways from Wednesday.

1) LeBron James says Cavaliers lack toughness. Is there trouble or are they just bored with the regular season?
Here is the unquestioned fact: The Denver Nuggets trounced the Cleveland Cavaliers Wednesday night, 126-113. There are a number of factors in this, starting with Denver is playing better than people think — the Nuggets are the fifth best team in the NBA since the All-Star break, outscoring teams by 5.6 points per 100 possessions. Jamal Murray is emerging as the ball handling guard of the future for this team, Gary Harris is a sniper, and they have solid veterans such as Jameer Nelson and Wilson Chandler. But at the heart of it all is Nikola Jokic, who is for real. Watch what he does to LeBron James here.

Yes, Cleveland had to go play at altitude in the middle of a long road trip. Still…

What is going on with the Cavaliers?

Opponents have outscored them by 0.9 points per 100 since the All-Star break, and the Cavs are playing terrible defense (second worst in the NBA since the break). Asked in Denver after the loss what is wrong with the Cavs, LeBron said the team lacked toughness, via Dave McMenamin of ESPN.

“It ain’t about a group. It’s about individuals,” James said… “We’ve got to be more, just do more. It ain’t about no group. You can’t preach toughness. You’ve got to have it.”

“Personally? I had opportunities where I could have been better,” James said before firing back with a rebuttal. “Um, one thing about it: I always bring toughness to the game. I know that. That’s for sure.”

LeBron is clearly challenging his team to get serious on both ends and to start getting in playoff mode.

To me, the Cavaliers look bored. As in the real season starts in a couple of weeks with the playoffs, and they feel they can flip the switch then, but right now the regular season feels like a tedious slog. That’s what it looked like in Denver. Before that, I watched the Cavaliers in person against the Lakers Sunday, and LeBron James played well enough all game, Kyrie Irving and Kevin Love were getting theirs, but the team lacked any urgency, and it showed on defense. The tanking Lakers hung around. Then, LeBron seemed to say “screw this” and for a five-minute span took charge of the game, looking every bit the best player on the planet, the rest of the Cavaliers quickly fell in line, Cleveland took control of the game, and they coasted from there to the win.

That was against the Lakers, the worst team in the NBA since the All-Star break and a team playing youth everywhere. Denver is legit right now, they are playing well, and the Cavs couldn’t just flip the switch on Wednesday. Jokic and Mason Plumlee led the way as the Nuggets scored 70 points in the paint.

It’s still hard to picture any team in the East beating Cleveland. However, they have not spent the regular season building good habits to fall back on when the eventual challenge comes in the playoffs. There’s been a lot of comparisons to the 2000-01 Lakers, a defending championship team that battled injuries and didn’t impress in the regular season, looked bored on defense, then flipped the switch in the playoffs and went 16-1 on the way to the title. Maybe. But teams that flip the switch are the exception, not the rule.

The bored Cavaliers are playing a dangerous game, but will it haunt them before June? Can any team in the East make them pay?

2) The Knicks have no answer for Rudy Gobert, Jazz thump Knicks. Rudy Gobert is a defensive powerhouse of a big man, the best rim protector in the game and a man on his way to winning Defensive Player of the Year. That was a problem for the Knicks on Wednesday night. A bigger problem — they couldn’t stop him on offense around the rim. Gobert at 35 points on 13-of-14 shooting, with 11 offensive rebounds. The Knicks went small for stretches (with Kristaps Porzingis, but he isn’t strong enough to handle Gobert), other times Willy Hernangomez tried but could not slow Gobert, and the French big man feasted. Check out Gobert’s shot chart.

Or, just watch what he did to the Knicks.

The Knicks started hot in this game behind vintage Derrick Rose for a quarter, but they can’t sustain that kind of play against a quality team. Utah is a quality team (I think they can beat the Clippers in the first round), and the foundation of that is in the middle.

3) Russell Westbrook notches 35th triple-double with perfect shooting, Thunder attack the rim and get the win. Let us formally acknowledge that Russell Westbrook is very, very good at basketball. He had 18 points, 14 assists, 11 rebounds, and was a perfect 6-of-6 from the field. That would be the first perfect shooting triple-double in NBA history. How’s that for adding to the MVP resume.

As for the game, the Thunder attacked the paint and the Sixers had no answers. OKC won 122–97, scoring 76 points while knocking down just four 3-pointers.

Report: Hawks’ Paul Millsap to opt out, explore free agency

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Before the season, Paul Millsap said he was undecided on opting out.

We’re one step closer to completely dismissing that shaky pretense.

Adam Schefter of ESPN:

There’s no question Millsap can earn more than his $21,472,407 option-year salary. He might even earn the max, which projects to be north of $36 million. The 32-year-old will also have a chance to lock into a long-term contract.

Opting out is an easy call.

The only question is whether anyone will offer a max starting salary and max years.

That’s a risky proposition for a player his age, but for a team ready to win now, the short-term gains might outweigh the long-term risk. (And it’s not really a “risk.” Millsap is extremely likely to be overpaid by the end of a full max deal.) Millsap is an elite defender with an efficient offensive game.

How much would the Hawks pay? They called re-signing Millsap their priority, but they’ve also sent mixed messages about their desire to win now (signing Dwight Howard, keeping Millsap past the trade deadline) vs. rebuilding (trading Jeff Teague and Kyle Korver).

And it’s not unilaterally up to Atlanta. Millsap will be an unrestricted free agent, and if he plans to explore the market, you never know what he’ll find.

Russell Westbrook posts 35th triple-double; Thunder roll past 76ers

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OKLAHOMA CITY (AP) — Add another first for Russell Westbrook – a triple-double without missing a shot.

Westbrook recorded his 35th triple-double of the season with 18 points, 11 rebounds and 14 assists and the Oklahoma City Thunder cruised to a 122-97 win over the Philadelphia 76ers on Wednesday night.

He did so while making all six of his field-goal attempts and all six of his free throws. According to the Elias Sports Bureau, no NBA player previously has had a triple-double without missing a shot attempt or free throw.

“It’s amazing, especially for a point guard, because he’s shooting threes, twos, inside, outside,” said Oklahoma City center Enes Kanter of his teammate’s perfect shooting. “For a point guard, he’s doing an unbelievable job, playing his game, having fun.”

Westbrook’s perfect shooting night could partially be attributed to a conscious decision to not shoot a 3-pointer in a game for the first time since March 14, 2016. He said he wasn’t aware during the game that he hadn’t missed a shot.

“I was just trying to play, trying to take my time,” Westbrook said. “I’ve been watching some film, trying to pick my spots better. I found ways to continue to get my teammates involved throughout the game and it just happened that way.

The Thunder have won 16 straight games against Philadelphia, a run that stretches to the 2008-09 season, the franchise’s first in Oklahoma City. That dominance was perhaps most evident in the final rebounding numbers on Wednesday: Oklahoma City 54, Philadelphia 25.

“It’s a fantastic example for our young guys on the physicality of playoff-type teams,” Philadelphia coach Brett Brown said. “That side of it to me stood out more than it has in a long time. … You look at the discrepancy on the boards, the rebounding differential, and it felt that.

“It’s a reminder. If you want to play late in April, if you want to play in May, maybe June one day, that’s the physicality that the playoffs bring.”

Nik Stauskas led the 76ers with 20 points, reaching the 20-point mark in consecutive games for the first time in his career.

After 11 lead changes in the opening minutes, the Thunder seized control with a 14-3 run near the end of the first quarter that put them ahead 29-22. Oklahoma City pushed its lead to 14 at one point before settling for a 63-50 halftime lead.

Philadelphia scored to start the third quarter, then the Thunder scored the next 15 points to build a 26-point lead and the triple-double watch intensified. Westbrook’s 10th assist came when Taj Gibson rattled in a 15-foot jumper at the 9:10 mark and the 10th rebound came with 7:08 left in the quarter.

It was the 13th time this season, and the 27th time in his career, Westbrook clinched a triple-double in the third quarter. He left the game with 2:39 left in the quarter and didn’t return.

Westbrook has recorded five triple-doubles against Philadelphia, his highest total against any NBA team. He needs six triple-doubles in Oklahoma City’s final 11 games to tie Oscar Robertson’s single-season record, set during the 1961-62 season.

Kanter posted his 17th double-double of the season for the Thunder with 24 points and 11 rebounds. Victor Oladipo (18 points) and Doug McDermott (13 points) also reached double figures for the Thunder.

TIP-INS:

76ers: Jahlil Okafor, who missed Monday’s game at Orlando with right knee soreness, started against the Thunder and played 17 minutes, scoring six points. … Dario Saric scored 12 points, extending his double-figure scoring streak to 21 games, the longest by a rookie this season. … Stauskas matched his season high with five 3-pointers, going 5-of-5 from behind the arc in the first half.

Thunder: With its 41st win of the season, Oklahoma City is assured of a .500 or better record for the eighth straight season. Only two other teams, the Houston Rockets and San Antonio Spurs, have as long a streak. … Westbrook has 72 triple-doubles and needs six more to tie Wilt Chamberlain for fourth on the NBA all-time list.

SURGERY FOR EMBIID

The 76ers said before the game that rookie center Joel Embiid will undergo surgery on a torn meniscus in his left knee. Team spokesman Mike Preston said the 7-footer, who has been plagued with injuries during his professional career, will have the surgery “in the coming days.”

Brown said “there has been tremendous due diligence … and research” about the decision concerning surgery and that Embiid “took an active role” in making the decision. Brown wouldn’t say if he thought Embiid would return by the start of next season: “That’s stuff we will talk more about and learn more about.”

Embiid missed his first two NBA seasons with a foot injury. He played in 31 games this season, averaging 20.2 points and 7.8 rebounds per game but hasn’t played since Jan. 27, when he scored 32 points in a loss to the Houston Rockets.

QUOTABLE:

Philadelphia guard T.J. McConnell on guarding Westbrook: “It’s not a one-person job. It’s an entire team.”

 

Wilson Chandler leads Nuggets past Cavaliers, 126-113

Associated Press
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DENVER (AP) — Wilson Chandler scored 18 points in his return from a four-game absence with a pulled groin and provided stellar defense on LeBron James in the Denver Nuggets’ 126-113 victory over the Cleveland Cavaliers on Wednesday night.

The Nuggets bounced back from consecutive heartbreaking last-second losses to Houston with a signature win that increased their lead to 1 1/2 games over idle Portland in the race for the final playoff spot in the West.

Will Barton scored 20 points, Kenneth Faried added 17 and Jamal Murray had 15 off the bench for Denver, which also got 21 points from Gary Harris and 16 from Nikola Jokic.

Kyrie Irving led the Cavs with 33 points but James had just 18 and the two stars sat out much of the fourth quarter with Cleveland trailing by double digits.

The Nuggets took a 101-90 lead into the fourth quarter after an entertaining third quarter that included a James-fueled 15-4 run by the Cavs and a 15-3 response by the Nuggets that included nine points from Faried.

But the arena-rocking basket in the Nuggets’ big run came not from Faried but from Jokic, who backed down James during a particularly physical possession. His basket gave Denver a 99-83 lead.

Denver grabbed momentum midway through the second quarter when Murray swished three 3-pointers that gave the Nuggets a 50-40 lead.

The Nuggets doubled that cushion thanks in part to Richard Jefferson‘s face slap of Juancho Hernangomez for a flagrant foul. Hernangomez sank both free throws and then Barton swished a 3-pointer on the inbounds, capping a 7-0 spurt that gave Denver a 61-47 lead. The Nuggets pushed their lead to 69-49.

Chandler showed fresh legs and little rust in his return to action.

“He hasn’t played in 10, 11 days,” Nuggets coach Michael Malone said before tip-off. “At least going into the game I feel that we have a body that can match up with LeBron’s physicality. He’s just such a versatile defender for us, so that’s going to be great to have him back.”

TIP-INS

Cavaliers: The Cavs, who fell to 18-17 on the road, had limited the Nuggets to an average of 99 points in their last three trips to the Pepsi Center, all wins. … The teams combined to miss just one free throw in the first half – by James. … Irving, who had 19 points in the first half, topped 20 points for the 19th consecutive game, extending the longest current streak in the NBA.

Nuggets: Danilo Gallinari missed his fourth straight game with a bone bruise on his left knee. … Denver already had 120 points by the time Deron Williams’ three-point play put the Cavs in triple digits at the 3:54 mark of the fourth quarter.

 

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