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


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.

Pacers use late surge to beat Clippers, close in on playoffs

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INDIANAPOLIS (AP) — Bojan Bogdanovic scored 28 points and the Indiana Pacers used a late 9-0 run to hold on for a 109-104 victory over the Los Angeles Clippers on Friday night, putting them on the precipice of clinching a playoff spot.

The Pacers won for only the second time in five games but can clinch a playoff berth with one more win or a Detroit loss.

Los Angeles’ fading playoff aspirations were dealt another blow. The Clippers are now three games behind Utah for the final postseason spot in the Western Conference. Utah was playing later Friday.

Lou Williams led Los Angeles with 27 points and DeAndre Jordan finished with 14 points and 11 rebounds as the Clippers lost for the fifth time in six games.

They certainly had a chance to turn things around.

After the Clippers rallied from an 18-point deficit to take an 88-87 lead with 7:36 left in the fourth quarter, the teams traded the lead 10 times before Victor Oladipo made one of two free throws to leave it tied at 100 with 2:17 to play.

Bogdanovic broke the tie with a 12-footer and the Pacers followed that with seven straight points before Williams made a layup with 12 seconds left to end the run.

The Clippers were making shots early but couldn’t pull away from Indiana.

They led 28-27 after one and allowed Indiana to use a 9-2 spurt midway through the second quarter to erase a six-point deficit and take a 40-39 lead.

The Pacers scored the final five points of the half to break a 53-all tie and broke it open early in the third when Oladipo made his first three shots of the game, including two 3-pointers to make it 66-55.

Indiana then poured it on. Thaddeus Young‘s layup with 9:02 left in the third made it a 12-point game. Milos Teodosic‘s basket briefly halted the run, but the Pacers scored the next nine points to make it 75-57 with 6:19 to go.

Los Angeles closed the third quarter on a 12-5 run to get to 82-76.


LeBron James throws touchdown pass like Cleveland fans hope Sam Darnold can

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Cleveland fans can only hope Sam Darnold is as good a passer as LeBron James.

And that his receivers are better than Jose Calderon. Or at least taller.

LeBron James grabbed a rebound and threw a perfect touchdown pass to a leaked out Jose Calderon as the Cavaliers went on to beat the Phoenix Suns Friday night.

🙌🏽 @kingjames 🎯 @jmcalderon8 🙌🏽

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By the way, LeBron made a nice dish to the returned Larry Nance Jr., too.


Report: Rockets to waive Brandan Wright

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Finally healthy, it was easy to see where big man Brandan Wright would fit on Mike D’Antoni’s Rockets — he’s an athletic big man who can get up and down the court, he knows how to finish lobs above the rim, and could provide some front line depth behind Clint Capela and Nene. That’s why the Rockets picked him up in February after he was bought out by the Grizzlies.

It didn’t work out that way. Wright played in one game with Houston before his sore knee forced him to shut it down. He has not played since.

The Rockets are moving on, waiving Wright and bringing in forward Le’Bryan Nash out of the G-League on a 10-day contract, reports Jonathan Feigen of the Houston Chronicle.

With center Brandan Wright unable to return from his knee issues this season, the Rockets will release Wright, who signed as a free agent last month, a person with knowledge of the move said…

He had a minor procedure and will work on his rehab with the Rockets staff, the individual familiar with the plans said.

 “Brandan did everything positive,” Rockets coach Mike D’Antoni said. “He just wasn’t physically able to hang in there. We hate it that the guy isn’t part of this.”

Wright has played in just 28 total this season averaging 5 points and 3.4 rebounds in 13.6 minutes. He’s battled knee issues for a few seasons now and has not played more than 28 games in the last three. If healthy he can help teams, but we’ll see if he ever gets back into the NBA.

The Rockets use Ryan Anderson as their backup center, using Nene less of late, although how much D’Antoni can use Anderson in the playoffs due to his defensive challenges remains to be seen.

Nash, who played a season at Oklahoma State, will get his first taste of the NBA. He was a highly recruited kid out of high school, and this season has averaged 8.5 points in 19 minutes per game for the Rio Grande Vipers this season.



Cavaliers get Nance Jr., Thompson, Hood back from injuries

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CLEVELAND (AP) — The Cavaliers are closer to being at full strength.

Forwards Larry Nance Jr., Tristan Thompson, and Rodney Hood all returned from injuries on Friday night as Cleveland, which has been riddled with injuries all season, hosted the Phoenix Suns. Acting coach Larry Drew said none of the players will start and all will be on minutes’ restrictions.

Drew, who is filling in while coach Tyronn Lue is on leave to address his own health, plans to keep his starting lineup intact and ease the returning players into the rotation.

LeBron James, Jose Calderon, George Hill, Jeff Green and Kevin Love were scheduled to started against Phoenix, which has lost nine in a row. Drew said he and Lue will talk again Saturday about lineup changes for the upcoming trip to Brooklyn, Miami and Charlotte.

“I really didn’t want to disrupt the starting five that we have out there right now and those guys will be playing limited minutes, so I wanted to get them slowly back and acclimated to what we’re doing,” Drew said. “There’s a chance that there could be some early substitutions to get the guys in there. I’m not ruling that out, but right now I just kind of want to stay with the flow, stay with what we’ve done the last couple of ballgames and then we’ll probably after tonight we’ll see as far as where we stand as far as starters are concerned.”

Thompson missed nine games with a sprained right ankle, Nance Jr. was out four with a hamstring issue and Hood was out the past three games with a bad back.

Drew said he did not know if Lue will accompany the team on its trip.

But while the Cavs are healthier than they’ve been in weeks, the team is still missing Kyle Korver, who is with his family in Iowa following the death of his brother, and rookie Cedi Osman, who is sidelined with a left hip flexor strain.