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.

Lakers owner on Lonzo Ball: “He’s going to bring an element that’s very similar to Magic”

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Lonzo Ball has yet to play a minute of professional basketball in the NBA, but fans in Los Angeles sure are happy to have him on board as they get ready for a new era in team history.

An exciting run through the Las Vegas Summer League in 2017 certainly showed us that Ball is ready to meet the challenges of a rookie in the NBA.

Ball won the LVSL MVP award while posting averages of 16.3 points, 9.3 assists, and 7.7 rebounds per-game. Ball and teammate Kyle Kuzma also helped the Lakers beat the Portland Trail Blazers in the championship game to close the tournament.

Lakers owner Jeanie Buss is just as excited about Ball as fans in California are. Speaking on the Petros and Money Show in LA it recently, Buss compared the buzz around Ball to that of Kobe Bryant, saying, “No other draft pick, except maybe Kobe Bryant, has had this kind of excitement about him.”

Buss also has high hopes for Ball’s style of play.

Via Lakers Nation:

“There’s something special about Lonzo […] I think because he just wants to play basketball, he’s selfless. He has a certain charisma and I think the fact that his teammates at UCLA loved playing with him and all the nice things that they have to say about him, I think he’s going to bring an element that’s very similar to Magic Johnson.”

Whatever criticism of his father you want to muster aside, Ball does seem relatively at ease in Los Angeles and in the spotlight. While he will no doubt struggle as a rookie, as even the best do, but it is starting to look up for LA in the post-Kobe era now that Ball is in town.

They seem to have the right coach in Luke Walton to help develop him, and no doubt fans in LA will be hoping that Ball is a superstar sooner rather than later.

Blake Griffin on LeBron James: “I don’t see him coming to L.A.”

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Is LeBron James on his way out of Cleveland? Rumors have it swirled around The King’s exit from his kingdom as of late, which his camp has vehemently denied.

However, LeBron suffered yet another loss in the NBA Finals to the Golden State Warriors in 2017 and his relationship with Cavaliers owner Dan Gilbert has appeared to sour. The history between the two is well-documented, and recently Gilbert failed to renew GM David Griffin’s contract, all without consulting James.

Meanwhile, the rumor has been that James prefers to land in Los Angeles, where he keeps a second home. James can play either with the LA Clippers or Los Angeles Lakers, which would allow him to perhaps add some of his favorite players — Carmelo Anthony, Chris Paul, or Dwyane Wade. The banana boat crew, as it were.

But one player already in Los Angeles doesn’t think that LeBron is on his way to California.

Speaking on a recent podcast with the Sklar Brothers, forward Blake Griffin said he did not think that James would come to L.A. Instead, he thought the best place for James to land would be in New York with the Knicks.

Via View from the Cheap Seats, h/t Complex. The LeBron conversation starts around the 50-minute mark:

“Honestly, I don’t see him coming to L.A. period. Listen, again, I have no idea. I think something is brewing with him and his group of guys. I don’t know what’s going to happen, but I think something’s brewing and they’re going to try to make that work.”

“I could see him going to New York before L.A. I still think, when you go to the Garden, it’s a completely different feeling. The energy, there seems like there’s just a consistent buzz the entire game … even last year when you go play them, it’s still there.”

To give more context to this quote in case you aren’t able to actually listen to the podcast, Griffin is simply speculating based off of what he thinks could happen. He prefaces it by saying it is just a feeling, and my reading of his intonation makes me think Griffin believes there are too many roadblocks to get LeBron to Los Angeles. Couple that with an increasingly difficult Western Conference, and Griffin doesn’t think that The King will give up being able to get to the Finals every year just to come to L.A.

Given all that has happened with the Knicks over the last few decades, it also seems like a fair stretch to think the next best option would be to see LeBron in New York. Remember, with Steve Mills as president a lot of the people who torpedoed the Carmelo situation are still in place even with Phil Jackson gone. If LeBron does indeed want us to pair with Carmelo, or even if he is simply an influence on him as a friend, New York seems like an unlikely destination.

Still, it is interesting to hear the insight of other professionals in this context. It just goes to show you that even NBA players don’t know where LeBron is going to end up.

Report: Nerlens Noel switches agents in hopes of max deal with Mavericks

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Is Nerlens Noel worthy of a max contract? Not on your life.

But will he get it? That remains to be seen after reports that Noel recently fired his agent and will make the switch to Dan Fagen.

According to NBC 5 in Dallas, Noel has done just that and will be seeking a huge deal from Mark Cuban’s organization.

From NBC 5’s Newy Scruggs:

No other NBA clubs tried to sign the restricted 6-11 center. He has a one year qualifying offer of $5.8 million on the table but it’s not to his liking so he switched agents.

“We’re in a holding pattern,” is what Mavericks head coach Rick Carlisle told me back in July on NBC Sports Radio when I brought up the contract talks between Dallas and Noel. The NBA salary cap didn’t go up has high as many previously projected, so the summer of 2017 was not a bonanza some players hoped for.

Even with the increase in the cap, and with big contracts flying around for young talent, Noel has done nothing to prove himself worthy of an offer like that for the Dallas Mavericks. Yes, his advanced numbers from his third season in the NBA looked much better, and that was great news as young big men often take time to develop.

Yet the body of work for Noel is simply not there. Fifty games of good play over a 200 game career does not, or should not, earn you a max contract.

Then again, this could simply be Noel preying on Cuban’s need to rebuild.

With Dennis Smith Jr. at the helm, an aging Dirk Nowitzki, and the team that could soon be irrelevant in a increasingly tough Western Conference, Noel stands as a future franchise piece if he does indeed fulfill his potential.

The question now is, especially after how this summer has gone, do you pay upfront for potential talent to an extent that seems unreasonable to a fault?

I would still doubt that Noel ends up with that max contract, but some positioning here could earn him a few extra bucks.

NBA confirms Lakers under investigation for potential tampering with Paul George

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Paul George is not a member of the the Los Angeles Lakers. Yet.

The California native has one year to go on his contract with the Oklahoma City Thunder after being traded there by the Indiana Pacers. Rumors have been swirling for months about whether George would stay in Indiana, a new city, or if he would bolt for his hometown in LA after the upcoming season comes to a close.

Even more rumors have said that the Lakers have felt confident enough that they are going to get George in the summer of 2018 that they weren’t grabbing him wasn’t considered so urgent that it was a matter of life or death.

Meanwhile, the NBA has confirmed that the Pacers have filed tampering charges against the Lakers, and that the league has hired an independent law firm to conduct the investigation.

From the NBA’s press release:

At the request of the Indiana Pacers, the NBA opened an investigation into alleged tampering by the Los Angeles Lakers. The independent investigation is being conducted by the law firm Wachtell, Lipton, Rosen & Katz. The Lakers have been cooperative and, at this point, no findings have been made. We have asked both teams to refrain from commenting all the investigation is ongoing.

The rumor first broke this weekend when Peter Vecsey published it on his Patreon.

Magic Johnson has spoken publicly about George, explicitly stating that he knows he is not supposed to tamper with players. However, on an episode of the Jimmy Kimmel show, Johnson did say that he would give a wink to George if you happen to see him.

Via Jimmy Kimmel:

“I had to go to school. I had to go to CBA school, salary cap school and tampering school. You can’t tamper with somebody else’s player.”

“We gonna say hi because we know each other. You just can’t say, ‘Hey, I want you to come to the Lakers,’ even though I’ll be wink-winking like, ‘You know what that means, right?’

Punishment from tampering charges are rare in the NBA but are not unheard of. In 2013, the Atlanta Hawks, Houston Rockets and Sacramento Kings were fined for name dropping Dwight Howard and Chris Paul.

According to ESPN, Johnson is at the center of the investigation for tampering with George. If evidence is found, the punishment could be significant for LA, and could include future restrictions when it comes time to acquire George.

Via ESPN:

The Lakers are denying the allegations filed by the Pacers, insisting that there is no evidence of tampering, and they expect to be cleared in the matter, a team source told ESPN.

If the league office’s probe can prove the Lakers were guilty of tampering with George while under contract with Indiana, Los Angeles can be punished in several ways, including a loss of draft picks, financial fines up to $5 million, future restrictions on acquiring George and possible suspensions of offending officials.

It’s still unclear at this point if anything is going to come out of this investigation, but it certainly does seem as though Los Angeles is confident that they are going to be able to sign George next summer.