chris hansen seattle

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

11 Comments

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.

Wizards defend final possession horribly, beat Knicks anyway (video)

Leave a comment

The Wizards – one of the NBA’s most disappointing teams this season – showed why it’s so difficult to believe in them.

They built a 10-point lead over the Knicks with 1:51 left and steadily blew it. New York got within one and trailed by three with 4.3 seconds left.

And Washington went to sleep.

The Wizards – four of whom hung out near the halfcourt line – allowed the Knicks to push the ball and find a wide-open Langston Galloway behind the 3-point arc. Galloway is one of New York’s best 3-point shooters, and he makes 47% of his wide open 3s, per NBA.com

This is horrific focus by Washington.

But if there’s a team less inspiring than the Wizards, it’s the Kurt Rambis-coached Knicks, and Galloway missed to give his new coach a loss in his first game as New York’s head coach.

Five Takeaways from NBA Monday: Watch out for the Utah Jazz

<> at American Airlines Center on February 9, 2016 in Dallas, Texas. 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.
Getty Images
1 Comment

PuppyMonkeyBaby. PuppyMonkeyBaby.PuppyMonkeyBaby. PuppyMonkeyBaby. PuppyMonkeyBaby. PuppyMonkeyBaby. PuppyMonkeyBaby. PuppyMonkeyBaby. PuppyMonkeyBaby. PuppyMonkeyBaby. Just wanted to freak you out. Here is what you need to know from an NBA Tuesday.

1) Gordon Hayward game winner makes it seven in a row for Utah. This team is hitting it’s stride again. The reason Utah was everyone’s favorite pick to leap up into the Western Conference playoffs this season was they were one of the best teams in the NBA after the All-Star break last season — they went 19-10, played lock-down defense allowing just 89 points a game, and got just enough offense to win.

The Jazz are hitting that stride earlier this season. After a dramatic win over the Mavericks on Tuesday, the Jazz have won seven in a row and moved past Houston into the seven seed in the West. Utah is hitting its stride and is not only going to make the playoffs but also be a tough out in them. They are playing great defense again, allowing 87.3 points per game during the win streak (95.8 points allowed per 100 possessions), plus are getting offense when they need it. Like during the dramatic end of the win over Dallas on the road Tuesday. First Rodney Hood hit a three to force overtime:

Then Gordon Hayward hit the step-back game winner.

2) Kurt Rambis drops first game as Knicks coach. Meet the new Knicks: They got off to a terrible start, had no offensive flow, were constantly putting up contested shots late in the shot clock, and didn’t slow the other team down in transition. And they lost (111-108 to Washington). If that sounds a lot like the old Derek Fisher Knicks, well, what did you expect? Kurt Rambis — whatever you think of him as a coach — was not going to be able to make many changes on the fly, and while Carmelo Anthony dropped 33, the reasons this team has struggled of late have not gone away. This roster is not as good as Phil Jackson apparently thinks it is, and people running the show at Madison Square Garden may have been blinded by a better than expected start. This is not a good team, if anything the emergence of Kristaps Porzingis has them playing above expectations. There are some pieces to build on for the future, but there is still a lot of building to do. This coaching change doesn’t change much of anything in the short term.

3) Setback Tuesday: Bulls’ Jimmy Butler out 3-4 weeks with knee strain; Grizzlies Marc Gasol out indefinitely with a broken foot; Pelicans Tyreke Evans to miss rest of season after knee surgery. The basketball gods were handing out injuries Tuesday like Oprah handed out cars.

The Bulls will be without All-Star guard Jimmy Butler for a month due to the knee strain he suffered a couple of games back. The Bulls are already 5-12 in their last 17 and struggling on defense; this is another big step back along those lines. Chicago is just 1.5 games from falling out of the playoffs, and that is suddenly a concern. The Bulls’ Pau Gasol will replace Butler in the All-Star Game (which means the Bulls keep a representative, and Gasol is there for the Kobe sendoff game, which is nice).

Marc Gasol is the hub of what Memphis likes to do on both ends, but he has a broken foot and will be out indefinitely. Gasol’s game has taken a step back this season, but the team is still 3.7 points per 100 possessions better when he is on the court, and the Grizzlies don’t have anyone who can replace what he does at both ends. The Grizzlies have a 4.5 game cushion from falling out of the playoffs, but wins are going to be much tougher to come by now.

This has been a lost season in New Orleans, Tyreke Evans going under the knife because of his knee is just piling on. It does kill the Pelicans’ efforts to trade him at the deadline in nine days.

4) Khris Middleton’s free throw gives Bucks win over Celtics. Wild ending in Boston. First, a Jerryd Bayless foul gives Kelly Olynyk the chance to tie the game with one second left.

Just one second left, so it’s going to overtime, right? Wrong. Avery Bradley with the stupid foul and the Bucks get the win.

5) Miami’s Hassan Whiteside was ejected for elbowing Spurs Boban Marjanovic in the face. It was a made free throw in the fourth quarter of a double-digit game — there wasn’t anything to be battling over. But Marjanovic was working to get his big body in a rebounding position, Whiteside was trying to fight him off and got his elbows up. It was the move of an immature player, which Whiteside can still be at times. Elbow a guy in the face and you’re gone.

Stephen Curry starts ridiculous Warriors fast break (VIDEO)

Leave a comment

Golden State is such a thing of beauty to watch in transition.

This play starts when Stephen Curry slides down to help on post defense on Clint Capela, steals the ball, saves it to a teammate and then gets it back when they start the break. James Harden tries to slow Curry down, cutting him off in the backcourt, Curry just whips a 20-foot behind-the-back pass to Andre Iguodala, who lobs it to Leandro Barbosa for the finish.

Houston fought back from 16 down early to make it interesting for a while, but Golden State pulled away late for the 123-110 win. Curry finished with 35 on the night.

Report: Pelicans’ Tyreke Evans out for season due to planned knee surgery

NEW ORLEANS, LA - JANUARY 19: Tyreke Evans #1 of the New Orleans Pelicans shoots the ball during the game against the Minnesota Timberwolves on January 19, 2016 at the Smoothie King Center 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. Mandatory Copyright Notice: Copyright 2016 NBAE (Photo by Layne Murdoch Jr./NBAE via Getty Images)
Getty Images
Leave a comment

The Pelicans’ just can’t get and stay healthy. Tyreke Evans just can’t stay healthy this season.

Evans — who has averaged 15.2 points and a team-high 6.6 assists per game this season — will be done for the season following planned knee surgery, reports Shams Charania of the Vertical at Yahoo Sports.

The Pelicans had been looking at potential trades for Evans, all of that is dead now. (New Orleans would like to move Eric Gordon, but most other teams are more interested in Ryan Anderson.)

The Pelicans have been 3.2 points per 100 possessions better this season with Evans on the court. However, in recent weeks coach Alvin Gentry has given increasing minutes and increasing responsibilities to Jrue Holiday.

It is possible Gentry keeps Bryce Dejean-Jones starting and bringing Holiday off the bench (as he did last game), just to keep the bench rotations where he wants them. Also, expect Norris Cole to get more run.

None of this matters much, this has been a lost season for the 19-32 Pelicans. They are the current 12 seed, 6.5 games out of the last playoff spot, they are not catching anyone. Don’t be shocked if Anthony Davis is shut down early for the season as well.