chris hansen seattle

Will Seattle billionaire Chris Hansen drastically overpay for the Sacramento Kings?

11 Comments

News of billionaire Chris Hansen striking a deal with the Seattle City Council hit the wire late Monday night, as the sides have agreed to a framework on an arena deal that moves them a few smaller hurdles away from becoming an NBA-ready city (courtesy of Chris Daniels of King 5 in Seattle).

In a bit of twisted irony, the city that had its team stolen away will now set its sights on any available team, and there is no team that is more available than the Sacramento Kings, who nowadays have a different rumored destination every week.

This most recent news solidifies Seattle’s place on the top of that list, though they still need the Maloofs to sell, and they still have to outdo Sacramento. Neither task should be considered a slam dunk, or even likely at this point.

The idea that Sacramento could lose its team, of course, is a black eye for the league as the city has supported its team in every conceivable way, including where it counts financially and at the ticket gate. The only reason we’re having this discussion is because the Maloof family, internal squabbles aside, doesn’t want to be there.

Their roots are in New Mexico, Los Angeles, and Las Vegas, and being broke in relative NBA owner terms they’re looking for a short-term infusion of cash, which they hope to find by moving the team to another city that will both build them an arena and also let them keep the profits from it.

Cities such as Virginia Beach, Louisville, Vancouver, Kansas City, and the like are potential candidates if anything because they’re willing to pay to be on the NBA map. But the math starts to get fuzzy because the markets are smaller than Sacramento, and the Maloofs end up no better off than they were in Sacramento over the long haul.

That, and the NBA doesn’t really want those markets, at least not at the expense of Sacramento, where the league enjoys the No. 20 sized TV market without interference from other sports leagues. When you factor in the public relations hit of moving the team – it’s hard to see the league supporting a move and to date we have not.

Even when considering a larger market like Anaheim, the league isn’t falling all over itself to allow a move. The NBA blocked the Maloofs’ relocation attempt last year after Sacramento mayor Kevin Johnson raised over $10 million in untapped sponsorships at the drop of a hat and promised a viable arena deal. Things seemed to be moving along reasonably well and a deal for a new arena was agreed to in principle during All Star weekend in Orlando.

But that was before George Maloof created a how-to-guide for burning bridges in Sacramento. He torched the deal live on public television in a tirade for the ages, and any goodwill that was leftover at the league offices was probably lost. Commissioner David Stern has used measured words in describing the arena situation since then, and none of them have painted the Maloofs in a flattering light.

In fact, the commissioner would probably like to see the family sell the team, but as usual the issue comes down to money, antitrust law, and the other 29 owners that one day will be negotiating with both the league office and their home city about something.

Aside from not wanting anybody to tell them what to do, owners want the right to move their teams to the cities they feel they can make the most money in. Leagues don’t like to allow this as it creates a number of problems, and the courts have found that the intersection of those opposing ideals lies in the concept of a relocation fee. Relocation fees are the amount that a league can charge to indemnify parties that are damaged by an owner’s decision to move.

The law is much more detailed than this, and the case law that has been favorable to relocating owners isn’t an exact match to the situation in Sac, but one thing is clear – neither party wants to land in court over this.

And that’s why the Kings arena situation has been allowed to play out, to the detriment of the league’s image, and as an affront to the other 29 owners that one day will have to negotiate with their municipalities.

While it’s unclear right now what impact the Maloofs’ apparent bad faith dealings in Sacramento will have on other team owners seeking public subsidies, a small shift in public sentiment could cost the league and its players tens of millions of dollars and a large scale shift could put the billion dollars the league has received in subsidy back on its balance sheet.

But even with the Maloofs’ name now toxic inside the league and out, to the point it’s being pulled off the signage at the Palms, the league cannot afford a bad ruling in an antitrust case. Aside from treble damages the Maloofs would seek, which are significant, a bad ruling would be held over all sports leagues’ heads by owners wanting to play franchise free agency.

The best hope for the league has always been to see the issue play out on its own, with the Maloofs realizing that they have no options besides going back to the city with its hat in its hand, or selling the team outright.

And with Seattle standing in the on-deck circle and doing what they need to do to land itself an NBA franchise, the question on everybody’s mind is whether or not Hansen will be able to drastically overpay for the Kings.

The Maloofs owe about $70 million to the city of Sacramento and well over $100 million to the NBA, and a sales price in excess of $400 million is needed to give the 43 percent stakeholders an easy way out of Dodge. Considering the franchise is valued at $300 million by Forbes, which is a generous valuation, Hansen would need to hope that the bump of moving to a larger market in Seattle and owning land near the arena would justify the Maloofs’ likely asking price.

But more importantly, when you factor in a relocation fee, which sources tell me will be assessed to give Sacramento buyers a fair shot at buying the team, Hansen could be looking at $500 million or more to buy the Kings. After paying $300 million and counting to build an arena, that’s approaching a billion dollars to get in the game.

It’s possible that the man known for his patience will wait for a less toxic situation to pop up, and it’s fair to wonder now if the league would reconsider expansion now that multiple cities have expressed interest in NBA clubs.

As for Hansen’s involvement with the Kings, he said weeks ago that he had not made an offer to purchase the Kings after a local report emerged saying otherwise. If he decides to make a play for the team, and assuming the Maloofs are ready to cry uncle, it probably puts Sacramento on notice that it’s time to formalize an offer to buy the team.

Sources on the city’s side have indicated that they have more than one buyer lined up, and ultimately Seattle’s progress could force some sort of endgame here. If the goal is to sell for the Maloofs, then they will likely have squeezed the best sales price out of Sacramento that is possible, and anything close to a Seattle offer (after the relocation fee) will likely be supported by the league.

If the Maloofs still don’t want to sell, they’ll continue to play the dating game with other cities and the league will continue to deal with a public relations nuisance. The family will not get a different arena deal in Sacramento, and any talk of renovating the unrenovatable Arco Arena with public funds has been met with collective laughter both inside and outside of the city.

Even if the Maloofs can find a sweetheart deal somewhere else, it’s unlikely that they’ll have the clout to force a move the league doesn’t want. Sure, they may have some antitrust law on their side, but they probably can’t afford the lawsuit and even if they win, they’re left in a place where they’re not wanted. They don’t have the fortitude of antitrust victor and deceased Raiders owner Al Davis. And other than George, they want to be wanted.

In Sacramento, the framework for a deal exists not just for the Maloofs but for any owner that wants to pick up the ball and run with it.

The deal that was struck between the city, arena giant AEG, and the NBA is still considered a good deal by each of those parties, and the only thing that would theoretically change are the owner contributions. In a concept the Maloofs cannot come to grips with, if a new owner wants to pay more for arena construction they can enjoy more of the profits.

Unlike anywhere else in the country, including Seattle, an agreement can be reached in Sacramento under the current terms and design could start within about a month according to sources.

As usual, though, the story goes right back to the Maloofs and whether or not they’re ready to face the music. They can’t do nothing, as Arco Arena is dilapidated and barely up to NBA code. They’ll eventually need to do more than polish the concourse floors.  Eventually, they’ll either need to take the Sacramento offer, try to make something out of nothing in an unlikely move out of town, or sell the team.

And when the music stops and the only thing left to do is sell, will Hansen or any other buyer want to drastically overpay for this particular franchise to the extent that Sacramento can’t match the offer?

Until these questions are answered or the Maloofs are nudged out the door with greater efficiency, Sacramento Kings fans have to endure the same fears that plagued Sonics fans before their team was ultimately ripped away.  And that’s just not right.

Mike Krzyzewski: Team USA having too much fun, needs to tone it down

OAKLAND, CA - JULY 26:  DeMar DeRozan #9 of the United States Men's National Team looks on during a break in the action against the China Men's National Team during the second half of a USA Basketball showcase exhibition game at ORACLE Arena on July 26, 2016 in Oakland, California.  (Photo by Thearon W. Henderson/Getty Images)
Thearon W. Henderson/Getty Images
Leave a comment

Mike Krzyzewski hates fun (even more than he admits).

So, the coach wasn’t thrilled after Team USA’s exhibition win over China, which included DeMar DeRozan nearly 360-degree dunking on someone.

Marc J. Spears of ESPN:

I want to see Team USA make highlight plays. Dunk from the free-throw line. Shoot from halfcourt. Throw behind-the-back passes. Show up weaker competition.

So, it’s hard for me to get behind Coach K’s criticism.

But I also want to see the Americans win gold medals in the Olympics, and I’ll blame Krzyzewski if they’re not adequately focused.

Fair? Not one bit.

Doesn’t change what I want, though.

Report: Kevin Durant told Russell Westbrook he’d re-sign with the Thunder

OKLAHOMA CITY, OK - MAY 28:  Kevin Durant #35 of the Oklahoma City Thunder and Russell Westbrook #0 look on prior to game six of the Western Conference Finals against the Golden State Warriors during the 2016 NBA Playoffs at Chesapeake Energy Arena on May 28, 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 Maddie Meyer/Getty Images)
Maddie Meyer/Getty Images
2 Comments

Kevin Durant said he had to distance himself from Russell Westbrook entering free agency. Yet, Durant listened to the Warriors recruiting him all season and had clearly been interested in Golden State for months.

The writing was on the wall.

Except, a few days before taking meetings in the Hamptons (which led to signing with the Warriors), Durant dined with Westbrook.

Royce Young of ESPN:

Three weeks ago, Kevin Durant’s sitting there at dinner, telling him “Hey, I’m coming back, man. Don’t worry about it.” And now, Russell Westbrook has been kind of thrown into this in having to decide his future a summer earlier than expected.

Kevin Durant, more so than even that, was telling people, “Hey, yeah, I mean I’m coming back.” Like I said in there, a week before Kevin Durant sat down in the Hamptons, he was in Oklahoma City ready to make an offer on a multi-million-dollar house. So, the guy was pretty serious about coming back, and then things turned rather quickly for him to leave. And there’s no doubt that the organization felt a little bit burned by this.

Maybe Durant said that. Maybe he meant it in the moment. Maybe he was just trying to appease someone he didn’t want to let down. Maybe he was unclear. Maybe Westbrook read too much into a more clear statement.

There’s a lot of room for imperfect recollection/interpretation. We’re dealing with human beings.

Likewise on the house. Who says Durant was “ready” to make an offer? That’s an awfully difficult assessment to make outside his head. Just as the Celtics had a list of players Durant wanted them to add, it seems he was preparing for all contingencies. It’s hard to nail down rather he was house hunting because he was certain he wanted to stay in Oklahoma City or whether he just wanted a new place if he stayed in Oklahoma City.

So much of what we know about Durant’s process for picking the Warriors suggests a rational decision. He considered them for months, met with multiple teams, conferred with his inner circle then made a choice.

If Durant told Westbrook or anyone else he’d re-sign with the Thunder, that obviously changes the equation. But I’m left wondering:

How many people in Oklahoma City heard what they wanted to hear rather than what Durant actually said?

How many people are incentivized to paint Durant as impulsive, because the alternative — Durant thoughtfully deciding the Thunder weren’t his best option — indicates deeper flaws in the franchise?

Watch Carmelo Anthony put up 16 points in third quarter on China

Leave a comment

Kyrie Irving, Klay Thompson, Kevin Durant, and DeMarcus Cousins are pretty much locked in as four of the Team USA starters come the Olympics. But who gets that fifth slot, the one for a wing player? Paul George? Jimmy Butler?

Don’t be shocked if Carmelo Anthony gets that slot.

He helped make his case Tuesday, scoring 16 in the third quarter alone on China in an easy Team USA victory in a pre-Olympics exhibition. Mike Krzyzewski likes to reward veterans, and ‘Melo is one of the old guy leaders of this team who has collected two gold medals already. Don’t be surprised if ‘Melo is a starter in Rio (Draymond Green started Tuesday, but only because the game was at Oracle Arena and Coach K likes to give guys a bigger role in front of the local crowds where they play).

DeMar DeRozan just missed spectacular in-game 360 poster dunk (VIDEO)

6 Comments

Can a missed dunk attempt be brilliant?

DeMar DeRozan says yes.

The Toronto Raptors guard almost pulled off an in-game 360-dunk over a defender during the USA’s latest rout of China in an Olympics tune-up game. How impressive was the dunk? Ask LeBron James.