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

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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.

PBT Extra: Rockets vs. Spurs far more than Kawhi Leonard vs. James Harden

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Kawhi Leonard vs. James Harden. Two MVP candidates matching up in the second round of the NBA playoffs.

However, the San Antonio Spurs vs. Houston Rockets is much more than that.

It’s a battle of pace. It’s a chess match between two of the best coaches in the game. It’s about which team’s role players are going to step up.

I talk about all of that in this latest PBT Extra. Plus, of course, when Leonard will guard Harden.

How to start your Saturday night: Watching 15 minutes of best plays from NBA season

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There are no NBA playoff games Saturday night, the first night since the start of the postseason there hasn’t been one game. Don’t worry, there are two games on Sunday, including Game 7 between the Jazz and Clippers.

But if you need a Saturday night fix, this will have to do: 15 minutes of the best plays from last season, as compiled by NBA.com.

Go ahead, watch it. You’ve got nothing better to do.

 

Paul Millsap says the expected, he will “most likely” opt out of contract

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This is ranked right next to “overeating can lead to weight gain” on the list of surprising things, but we will dutifully report it anyway:

Paul Millsap is going to opt out and officially become a free agent this summer.

Atlanta’s owner as well as Mike Budenholzer, the coach and head of basketball operations, have both said they plan to do whatever it takes to re-sign Millsap with the Hawks. Millsap didn’t sound like someone eager to leave after the Hawks were eliminated from the playoffs Friday.

“It’s been great. I’m looking to expand this and see where the franchise can go. These last four years has been great. I couldn’t ask for anything more.”

Even with both sides singing Kumbaya, keeping Millsap in Atlanta likely means a five-year contract at or near the max, which for a 32-year-old player means the Hawks would regret the last year or two of that deal.

Not that the Hawks have much of a choice here, they have to come in big and keep him. For one, they can’t afford to lose Al Horford and then Millsap for nothing in back-to-back years. If they were going down the rebuilding road, they needed to trade Millsap at the deadline (or last summer) to make sure they got something in return. Atlanta explored trade options at the deadline, but then pulled back (rumored to be because of an edict from ownership, which didn’t want to see the team blown up after the Kyle Korver trade).

By not making that trade the Hawks signaled their intention to remain a good team — a 43-win team this season that got them the five seed — with Dennis Schroder and Dwight Howard, one that draws well at an arena that historically has not been that full, and see if they can add on. They strike me as a team that will win between 42-50 games a year and be middle of the pack in the East for the next few years, unless they can find a way to add an elite player (which is incredibly difficult).

But if the Hawks can’t re-sign Millsap, then the plan gets blown up. So expect them to come in with a big offer come July 1.

Milwaukee Bucks eager to build after strong finish to season

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ST. FRANCIS, Wis. (AP) — With the sting of their frantic but failed Game 6 comeback effort still fresh in their minds, the Milwaukee Bucks returned to their practice facility Friday morning to pack their things and head their separate ways.

The Bucks consider themselves a team on the rise in the Eastern Conference, a belief no doubt reinforced by a furious 14-4 run late in the season that propelled them to sixth place in the East and solidified by a strong, though inconsistent, effort against Toronto in the playoffs.

“We thought we were the better team,” forward Giannis Antetokounmpo said. “We thought we could beat the Raptors and go to the second round. We feel like we got the Raptors’ attention so hopefully next year … we can go deeper in the playoffs.”

To get to that next step, which includes gaining home-court advantage and winning a playoff series for the first time since 2001, a lot of work needs to be done. Milwaukee needs Antetokounmpo to continue his rapid development, but will be looking to young additions like Thon Maker and Malcolm Brogdon, the Bucks’ two picks in last year’s draft, to refine their bodies and their games this summer.

Maker was one of the biggest surprises in the league. The 15th overall pick was a relative unknown and figured, at the outset, to be a draft-and-develop pick. Instead, he made a strong impression on the coaching staff with his commitment to defense and made opposing teams panic with his ability to shoot the 3 and wound up starting all six playoff games.

“It was amazing,” Maker said. “Unexpected. I thought I was just going to be on `Project: Build Maker’ and build my body but that’s (what I’m doing) this summer now. I thought that’s what this year was going to be about but everything turned around. I worked hard and it turned out to be way more than I expected. I don’t like the end results – it could have been way better – but you live with the results and you learn.”

Brogdon might have been an even bigger surprise. He was Milwaukee’s second-round pick and began the season on the bench behind free agent acquisition Matthew Dellavedova. But he, too, put in the work and by season’s end, was not only the starting point guard but a key piece of the Bucks’ core.

“I think it’s strong,” Brogdon said of Milwaukee’s nucleus. “I think it’s going to be one of the strongest in the NBA, as long as we’re able to stay together and as long as we’re able to stay healthy. I think we’re going to be one of the best teams in the NBA.”

The Bucks have been in this position before. They were considered a team on the rise in 2010, when they forced the Hawks to seven games but stumbled the next season and didn’t return to the postseason until sneaking into the eighth spot in 2013.

Two years later, Milwaukee was thought to be a sleeper after the Bucks finished .500 in Kidd’s first season at the helm, but again they faltered the next season and missed the playoffs.

Maintaining the momentum will be a major focus as preparations begin for the next season.

“My first year we had seven or eight free agents, so we knew that wasn’t going to be the same team,” forward John Henson said. “(The) second year we had a new coach, more free agents.

My third year coach Kidd coming in, we knew there was going to be some stability. He’s had the same core guys and this is what happens; not have a letdown like we did the year before.”

Milwaukee should benefit with some roster stability. The team’s young core appears set in place with Antetokounmpo, Henson and Khris Middleton locked into long-term contracts, as are Dellavedova and Mirza Teletovic.

Tony Snell, who went on to start 80 games after being acquired late in training camp, is a restricted free agent. Greg Monroe, who became one of the league’s best sixth men, holds a player option for next season.

The Bucks will likely be open to bringing back veteran guard Jason Terry for a 19th season, too.

“I think that’s how you become a team that doesn’t regress next year – keeping some of the pieces together,” Henson said.

General manager John Hammond also faces a tough question with Jabari Parker, who will miss at least the first half of the 2017-18 season after tearing his ACL in February. The No. 2 overall pick in the 2014 draft is eligible for a contract extension this summer and was in line to earn something close to the $100 million Milwaukee gave Antetokounmpo last year.