chris hansen seattle

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.

Is this the moment DeMarcus Cousins found out he was traded? (video)

NEW ORLEANS, LA - FEBRUARY 18:  DeMarcus Cousins #15 of the Sacramento Kings attends practice for the 2017 NBA All-Star Game at the Mercedes-Benz Superdome on February 18, 2017 in New Orleans, Louisiana.  (Photo by Ronald Martinez/Getty Images)
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NEW ORLEANS — DeMarcus Cousins was set to answer questions after the All-Star game, when a Kings public-relations official said, “All-Star questions first, please. All-Star-game questions.”

“What other questions we got?” Cousins asked, seemingly unaware of his trade to the Pelicans.

The PR person whispered in Cousins’ ear.

“Oh, really?” Cousins asked.

More whispering.

“It’s whatever,” Cousins said.

Then, asked about his All-Star experience, Cousins smiled big and said, “It was amazing, man. I enjoyed the city of New Orleans. I love it here in New Orleans.”

West bench goes wild over Kevin Durant-Russell Westbrook alley-oop (video)

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NEW ORLEANS — Kevin Durant and Russell Westbrook connected on a fantastic alley-oop in tonight’s All-Star game, but the reaction of the Western Conference bench was even better.

Both Durant and Westbrook downplayed the play after the game, but not everyone agreed.

 

“Defining moment in history right there,” All-Star MVP Anthony Davis said.

 

Report: Kings agree to trade DeMarcus Cousins to Pelicans for Buddy Hield, several picks

NEW ORLEANS, LA - FEBRUARY 17: Anthony Davis of the New Orleans Pelicans talks to DeMarcus Cousins of the Sacramento Kings during the NBA All-Star Celebrity Game at the Mercedes-Benz Superdome on February 17, 2017 in New Orleans, Louisiana. 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 Jonathan Bachman/Getty Images)
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NEW ORLEANS — There has been a faction within the Kings organization that wanted to move DeMarcus Cousins for a while, even though they wouldn’t get equal value back, even though it would mean extending their decade-long playoff drought and rebuilding all over again. Despite Cousins’ unquestioned talent on the court, some in the franchise questioned if they could build a consistent, quality team with him as the cornerstone and pointed to the win total in recent years as their example.

For years, Sacramento owner Vivek Ranadive stood in the way of that — he was Cousins’ biggest supporter in the organization.

However, that changed recently according to a source near the Kings, and once it did things moved quickly for Cousins to be traded to the Pelicans in a blockbuster move that few in the league saw coming this quickly or at this low a price. Adrain Wojnarowski of The Vertical at Yahoo Sports broke the trade, while Marc Stein of ESPN followed up with details.

This is a big win for Pelicans’ GM Dell Demps, who has been on the hot seat for his inability to put a good team around his All-NBA star in Davis. It’s a move that comes with risks, but risks the Pelicans needed to take. How well Davis and Cousins can play together remains to be seen, and the team still desperately could use more shooting. The biggest challenge will be re-signing Cousins, who has one year left on his deal after this one (and now cannot be signed to a designated player supermax deal the Kings allegedly were going to offer). Look at what Cousins’ agent said.

Kings GM Vlade Divac was known to be a big Buddy Hield fan heading into the last draft (the Pelicans took him a few spots ahead of the Kings’ pick). Why he still seems to be this high on him is a mystery. If these picks are 2017 ones, as reported, that helps a little as this is considered a deep draft. However, it’s still not anywhere close to equal value and the Kings will take a massive a step back — and they weren’t far forward already. The Kings’ front office reportedly presented Ranadive with the two best choices, and he went with this one. The trade is the first step in a long rebuild for a Sacramento fan base that is understandably hurt. 

The next question for Ranadive is if Divac is the guy to lead that rebuild?

Cousins himself played only two minutes in the All-Star Game Sunday, a sign something was up. Davis, who was the All-Star Game MVP scoring a record 52 points, was asked about Cousins before the trade was announced.

“He’s a great player, dominant in this league, of course, with all the numbers he put up. But I haven’t heard anything,” Davis said.

Cousins also said knew nothing about the deal when he spoke to the media, and added he was just frustrated that once again he was at the All-Star Game and the focus was on trade talk surrounding him.

“Give me a break. I just need one All-Star where it’s just All-Star questions man,” an exasperated Cousins said. “This is my third one and it’s always been something… It’s disappointing I’m spending another All-Star talking about the Kings rather than my All-Star experience.”

As for if he wanted to play in New Orleans (that rumor had been flying around the Smoothie King Center all night), Cousins simply said, “if it happens it happens” and that he was happy in Sacramento.

Cousins said he hadn’t heard from Divac or anyone, and West coach Steve Kerr said that he only played Cousins two minutes in the All-Star Game at Cousins’ request because he is banged up and wanted to rest. Nobody is buying any of this, but that’s what they said.

 

Anthony Davis sets All-Star game record with 52 points, wins MVP, gets DeMarcus Cousins as teammate

Western Conference forward Anthony Davis of the New Orleans Pelicans (23 ) slam dunks during the first half of the NBA All-Star basketball game in New Orleans, Sunday, Feb. 19, 2017. (AP Photo/Gerald Herbert, Pool)
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NEW ORLEANS — After an exhausting game to cap an exhausting weekend, Anthony Davis finally sat down and let his guard down.

“Aw, f—,” Davis said.

The the biggest problem appeared to be that Davis was in front of a room jammed with media, but his harmless lapse to begin his post game press conference was collectively forgiven with a laugh.

The bigger, not-yet-know issue issue: It was too early for the Pelicans star to relax.

After handling All-Star hosting duties in New Orleans, setting an All-Star game record with 52 points and winning MVP, Davis saw the Pelicans trade for DeMarcus Cousins.

“He’s a great player, dominant in this league,” Davis said when the deal was still in the rumored stage.

Cousins will finally give Davis a star teammate and push the Pelicans closer to playoff contention. Davis said he didn’t recruit much this weekend, but he clearly delivered for New Orleans by winning All-Star MVP.

“It was amazing,” Davis said. “That’s what I wanted to do. I stressed that, I think more than enough, to the guys in the locker room before the game. I wanted to get MVP for this crowd, for this city. The guys did a great job of finding me.”

Davis played 31 minutes and 50 seconds — the most in the last three All-Star games. His 52 points broke Wilt Chamberlain’s All-Star record of 42 points in 1962 — the season Chamberlain set NBA records with 50.4 points per game and scored 100 in a single game.

“The next one I’m going to try to do is 100 points,” Davis said.