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.

After 73 underclassmen pull out of NBA draft, here are the final early entries

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The NBA and NCAA made a smart move a couple years ago, altering the withdrawal date from the draft so that underclassmen could declare, get feedback from NBA teams, then make an informed choice and either stay in or pull out of the draft.

This year, 73 underclassmen got that feedback and pulled out of the draft.

Below is the list of who is still in. Yes, there are far more people there than there are slots in the draft (and we’ve not even gotten to international players, who can pull out later). Some of them are just ready to move on from their college program and start making money overseas, some others will find their route to the NBA will have to go through Summer League, the D-League, and more.

Edrice Adebayo, Kentucky, 6-10, Freshman
Jarrett Allen, Texas, 6-11, Freshman
Ike Anigbogu, UCLA, 6-10, Freshman
OG Anunoby, Indiana, 6-8, Sophomore
Dwayne Bacon, Florida State, 6-7, Sophomore
Lonzo Ball, UCLA, 6-6, Freshman
Jordan Bell, Oregon, 6-9, Junior
James Blackmon Jr., Indiana, 6-4, Junior
Antonio Blakeney, LSU, 6-4, Sophomore
Tony Bradley, North Carolina, 6-10, Freshman
Isaiah Briscoe, Kentucky, 6-2, Sophomore
Dillon Brooks, Oregon, 6-7, Junior
Thomas Bryant, Indiana, 6-10, Sophomore
Clandell Cetoute, Thiel College (PA), 6-8, Junior
John Collins, Wake Forest, 6-10, Sophomore
Zach Collins, Gonzaga, 7-1, Freshman
Chance Comanche, Arizona, 6-11, Sophomore
Tyler Dorsey, Oregon, 6-4, Sophomore
PJ Dozier, South Carolina, 6-6, Sophomore
Jawun Evans, Oklahoma State, 6-1, Sophomore
Tony Farmer, Lee College (TX), 6-7, Sophomore
De’Aaron Fox, Kentucky, 6-4, Freshman
Markelle Fultz, Washington, 6-4, Freshman
Harry Giles, Duke, 6-10, Freshman
Isaac Humphries, Kentucky, 7-1, Sophomore
Jonathan Isaac, Florida State, 6-10, Freshman
Frank Jackson, Duke, 6-3, Freshman
Josh Jackson, Kansas, 6-8, Freshman
Justin Jackson, North Carolina, 6-8, Junior
Darin Johnson, CSU-Northridge, 6-5, Junior
Jaylen Johnson, Louisville, 6-9, Junior
Ted Kapita, North Carolina State, 6-8, Freshman
Marcus Keene, Central Michigan, 5-9, Junior
Luke Kennard, Duke, 6-6, Sophomore
Kyle Kuzma, Utah, 6-9, Junior
TJ Leaf, UCLA, 6-10, Freshman
Tyler Lydon, Syracuse, 6-9, Sophomore
Lauri Markkanen, Arizona, 7-1, Freshman
Eric Mika, BYU, 6-10, Sophomore
Donovan Mitchell, Louisville, 6-3, Sophomore
Malik Monk, Kentucky, 6-3, Freshman
Johnathan Motley, Baylor, 6-10, Junior
Austin Nichols, Virginia, 6-8, Junior
Semi Ojeleye, SMU, 6-7, Junior
Cameron Oliver, Nevada, 6-8, Sophomore
Justin Patton, Creighton, 7-1, Freshman
L.J. Peak, Georgetown, 6-5, Junior
Ivan Rabb, California, 6-11, Sophomore
Xavier Rathan-Mayes, Florida State, 6-4, Junior
Devin Robinson, Florida, 6-8, Junior
Josh Robinson, Austin Peay, 6-2, Junior
Maverick Rowan, North Carolina State, 6-7, Sophomore
Jaaron Simmons, Ohio, 6-1, Junior
Kobi Simmons, Arizona, 6-5, Freshman
Dennis Smith Jr., North Carolina State, 6-3, Freshman
Edmond Sumner, Xavier, 6-6, Sophomore
Caleb Swanigan, Purdue, 6-9, Sophomore
Jayson Tatum, Duke, 6-8, Freshman
Matt Taylor, New Mexico State, 6-4, Junior
Trevor Thompson, Ohio State, 7-1, Junior
Melo Trimble, Maryland, 6-3, Junior
Craig Victor II, LSU, 6-9, Junior
Antone Warren, Antelope Valley CC (CA), 6-10, Sophomore
Nigel Williams-Goss, Gonzaga, 6-3, Junior
D.J. Wilson, Michigan, 6-10, Junior

Will Steve Kerr coach the Warriors in Finals? Still no timetable for his return.

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The Warriors are 12-0 in the playoffs, advancing this far with historic numbers.

They’ve done it with Mike Brown on the bench instead of Steve Kerr, but with the challenge of Cleveland awaiting in the Finals (let’s just admit that’s what’s happening, even if they haven’t closed it out yet) will the Warriors have the architect of their system in a suit on the sidelines for the Finals.

That hasn’t been decided. But don’t bet on it, listening to the tone of what Warriors GM Bob Myers told Tim Bontemps of the Washington Post.

Hopefully, this latest procedure lets Kerr live a pain-free life. Whether he returns to coaching — in the Finals or beyond — is secondary.

Plus just having him in the room planning as the Warriors move into the Finals will be huge. He’s still the architect of this team.

Magic Johnson: “The only player that we… would probably not move is Brandon Ingram”

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The Lakers’ Brandon Ingram had flashes, but he largely struggled through his rookie season. He averaged 9.4 points per game, shot 40 percent from the floor, he had a true shooting percentage of 47.4 and a PER of 8.5, and he finished with the fifth worst “value over replacement player” number in the NBA. Watch him play, and he looked better than those numbers — he did better with the “eye test” — showing some tenacity, and his offense improved toward the end of the season. Still, his rookie season tempered expectations somewhat.

Except amongst the Lakers’ front office.

They have been high on him all the way through, higher than D'Angelo Russell, and that’s what Lakers president Magic Johnson said on ESPN Radio in Los Angeles.

“I would say probably the only player that we would say, hey, we would probably not move is Brandon Ingram,” Johnson, the Lakers president of basketball operations said Thursday in a radio interview with ESPN Los Angeles. “I think that we’re excited about Brandon, his length, his size, his agility, his athleticism. And then when you think about, you know, he was a baby coming in, in his first year last season and we see that he really has a high ceiling and we’re excited about what he can possibly turn into.”

First off, no this doesn’t mean if the Lakers draft Lonzo Ball No. 2 (as expected) they will look to trade Russell. Expect them to see if those two can play together. It means the Lakers think just one of the guys on the roster is a potential key piece of a contender. Russell, Jordan Clarkson, Julius Randle and on down the line may fit into the rotation, but they are not seen as cornerstone pieces that can’t be moved.

Is Ingram really a cornerstone? The jury is still out, but does anyone feel as confident he will be a star as they did a season ago when he was drafted?

Ingram certainly needs to get stronger, something the team and he have worked on (and will focus on this summer). He also was young coming into the league, and with his style of game it was going to take him a little time to find how he fit in the NBA. He wasn’t going to come in and just overwhelm opponents with athleticism, it was going to be a process for him. Like nearly every rookie, his shooting needs to be more consistent.

The questions are how high is his ceiling, and can the Lakers develop him?

This summer and into next season those will come into focus more, but the early returns don’t have some of us as optimistic as Magic.

Josh McRoberts opting into final year of Heat contract

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Heat power forward Josh McRoberts has missed 165 games over the last three years due to injury.

So, the 30-year-old sure isn’t turning down a guaranteed $6,021,175 salary.

Barry Jackson of the Miami Herald:

Any long shot chance of Josh McRoberts voiding his Heat contract was eliminated Tuesday when agent Mike Conley told The Miami Herald that McRoberts will exercise his opt-in and return to the Heat for $6.021 million next season.

Miami will have major cap space this summer with Chris Bosh coming off the books. At this point, McRoberts’ salary is just an impediment to even more room to add an impact player.

The Heat could again try trading McRoberts, but they’ll likely have to attach a positive asset just to dump him. They could also waive and stretch him.

But if his salary doesn’t come between Miami and a big-time free agent this summer, perhaps McRoberts returns for one last chance at helping the Heat on the floor with his passing and outside shooting.