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.

Thompson’s playmaking a steadying force for defending champs

Getty Images
Leave a comment

OAKLAND, Calif. (AP) — Klay Thompson danced unabashedly in China after winning another NBA championship, and it got shared all over social media. He smoked a stogie on the rooftop, letting loose to reveal another side of himself.

“I didn’t plan for that video to go viral,” Thompson said matter-of-factly. “I was just having fun. I’ve always been myself and having fun while doing it and learning to enjoy every day, because it goes by so fast.”

Coming to that mindset, however, has been a process for the seventh-year Golden State guard, who acknowledges for so long he put extreme pressure on himself to be the best.

The quiet, more under-the-radar Warriors All-Star of the bunch, Thompson has provided a steadying hand early on for the reigning NBA champions who are favored to capture a third title in four years.

“I used to stress a lot more at the beginning of my career about my performance,” Thompson recalled. “Now, it’s not like I don’t stress, but I play more carefree and I’m more able, if I play as hard as I can I’m satisfied with the results. … I used to compare myself with all players and want to be the best so badly, but now it’s all about winning and having fun and realizing basketball is more of a team sport than anything.”

After a recent practice, Thompson dazzled right alongside a couple of visiting Harlem Globetrotters, spinning the ball on his finger, rolling it up and down his arms, off his knee and then a foot soccer-style before swishing a short jumper.

“I should’ve been a Globetrotter!” he yelled.

It’s a new look for this hang-loose, beach-loving Splash Brother.

The approach is working for the Warriors.

“He still carries the threat. You have to honor him,” Orlando coach Frank Vogel said. “He’s great at making the right play. Their whole team is. I think he’s trying to fit in with their whole buy-in that ball movement and passing is greater than any one man carrying the bulk of it.”

Still, his numbers are stellar. Thompson has had a fast start this season, which previously hasn’t been the case.

Thompson credits the familiarity with teammates and a comfort in coach Steve Kerr’s offense.

“He’s taken another step in his game. Just the experience that he’s had in his career, every year he’s gotten better and I think this year he’s shown how at the end of the season he carried it over to the beginning of this year,” backcourt mate Stephen Curry said. “Historically he hadn’t started seasons well but this year he’s locked in. He’s obviously shooting the ball well and playing great defense, but I think the biggest thing is his playmaking in situations where he’s drawing a crowd. He’s making great decisions setting guys up and just playing under control for the most part this entire season.”

Life off the court is great for Thompson, too, and that helps him be stress-free on it.

Look closely, and it’s easy to see he has come out of his shell.

On a day off last week, he golfed a popular public course close to Oracle Arena. Thompson signed someone’s toaster last spring, and it became a superstition.

In July, he threw out the ceremonial first pitch at an Oakland Athletics game, then drove an IndyCar in September while serving as Grand Marshal of a series stop in Sonoma.

Thompson shares his training tricks on social media and posts photos with his bulldog, Rocco.

He recently donated $75,000 to relief efforts in the aftermath of the devastating Northern California wildfires, committing $1,000 per point for a three-game stretch during which he scored 69 points – but added to that total.

He is a spokesman for chocolate milk and an obscure – in the U.S. anyway – Chinese shoe company. He signed an $80 million, 10-year extension to wear the sneakers.

“Life’s good,” Thompson said. “I never thought I’d get paid millions of dollars to wear shoes and apparel. I’m very proud to be a part of Anta. … It’s so cool that I’m big in China. I never thought I’d be on billboards and posters in China.”

Thompson has found a balance during the offseason to stay sharp, mixing up his workouts with outdoor activities he enjoys.

“It took years for me to figure out how to prepare the best I can for the season. I finally learned in my sixth year,” he said. “You’ve got to stay in shape almost year-round because as you get older it’s harder to get back into shape. It’s easier to get out of shape than it is to get back into shape. I do other things besides basketball to stay in shape in the offseason. I think that just keeps my mind fresh.”

He hopes to do a formal swim from Alcatraz, or even a triathlon. He swims in the ocean – “my favorite place in the world” – whenever he can. Freestyle is his strength, butterfly not so much. He plays hours of beach volleyball or just throws the football around and runs routes through the sand.

At work, he has been a model of consistency. Thompson is determined to be a better passer, creating for teammates whenever possible. He also usually guards the opponent’s top perimeter scorer.

Thompson is off to his best shooting season ever, with career highs of 49.4 percent shooting from the field and 45.6 percent on 3-pointers.

“I think his playmaking has been the best it’s been in his career,” Kerr said. “He’s really doing a good job of putting the ball on the floor and moving it on, drive and kick game, finding the centers in the pocket for little floaters. … It’s been his best passing season so far.”

Thompson used to get teased for his lack of assists, and it remains a running joke.

“I got thick skin,” Thompson quipped, “honestly I don’t really care.”

That carefree approach has taken time, and the Warriors are better for it.

 

Report: Mark Cuban in process to buy Mavericks’ G-League team

Getty Images
Leave a comment

There will come a day, in the not too distant future, when every NBA team will have an owned and affiliated G-League team. It will be a place for them to develop young players — guys they drafted but need more run than they’d get in the NBA, guys on two-way contracts, and just players they like and want to give a chance. The NBA is more and more becoming a development league — and if the one-and-done rule is replaced with something akin to the baseball rule for players going to college, having a strong G-League team will matter even more.

Which is why the news that Mark Cuban is about to buy the G-League team already affiliated with the Mavericks makes sense. Marc Stein of The New York Times broke the news.

While the name of the guys signing the checks will change with the Texas Legends, little else will.

It’s just another sign of the future in the NBA.

Isaiah Thomas is up for a Cavaliers vs. Celtics playoff clash

Getty Images
1 Comment

Isaiah Thomas says he has moved on from the trade this summer that caught him off guard, shipping him from Boston — where he was a fan favorite — to Cleveland.

Sort of. Like a lot of sudden relationship ends, Thomas says he’s moved on, but it doesn’t sound like he totally has yet. Look at what he told Sam Amick of the USA Today in an interesting Q&A.

“I’ve put it behind me, and I’ve continued to try to do that… But other than that, every day that I’m in the gym or that I’m on the court or in the weight room or doing whatever I have to do to get back to who I was, and get back to being 100 percent healthy, yes I do use it as motivation.”

Thomas has yet to set foot on the court as a Cavalier, spending the start of the season rehabbing a hip injury. He’s expected back next month.

It’s very early in the NBA season, we’re not at 20 games or even Thanksgiving yet, but it has become evident that the Cavaliers have some legitimate defensive concerns, and that the Boston Celtics are a legitimate threat to them.

That would set up a series between Thomas’ old team that he’s still a little angry at, and his new team in Cleveland. And Thomas is good with that.

“Oh, that would be lovely. That would be the story that God made, and it probably will work that way. It always does. It always works – I’m not going to say in my favor, but it seems to always work out no matter what the circumstance is. That would be a special moment. If they make it there, and we make it there, and then we clash, and then you never know what’s going to happen. But I’ll be ready for whatever happens.”

Not enough NBA players use the word “lovely” anymore.

But I’m with Thomas, I want to see that series, too.

Cavaliers’ Derrick Rose out two more weeks due to sprained ankle

Getty Images
6 Comments

With Isaiah Thomas still rehabbing, the Cleveland Cavaliers have had to lean more on Derrick Rose at the point, when he is available (he’s only played in half of Cleveland’s games). More Rose has not been good for Cleveland’s defense, and it’s forced Tyronn Lue to play Kevin Love more at center just to have enough shooting on the floor, so there are driving lanes for LeBron James and Dwyane Wade.

Now we will have to see what Lue and the Cavaliers do without Rose for a couple more weeks. Rose will be out for a couple of weeks with his sprained left ankle, the team announced Friday afternoon.

“Due to continued symptoms, the ankle will be immobilized in a boot for the next week and he will also undergo an extended treatment process over the next two to three weeks.”

Rose has averaged 14.3 points on 47 percent shooting this season in Cleveland.

With Rose and Thomas out, Cleveland has gone with Iman Shumpert technically as the point, although LeBron handles the playmaking duties. He brings some size to the position, but he can’t defend quick point guards well (not that Rose could). This new lineup has won the Cavaliers a couple of games in a row, although that has been far more about their offense making runs rather than their struggling defense (last in the NBA) stepping up.

It’s been tough to get a feel for this Cavaliers team and what they really are this season, in part due to all the injuries. This simply adds to that mess.

The Cavaliers take on the slumping Clippers Friday night.