NBA owners forced to choose between Maloofs and Sacramento in remake of Major League

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Every good story needs a villain, but the NBA probably doesn’t want to remake the movie Major League in order to sell its product.

Indeed, George Maloof and his brothers have done their best Rachel Phelps impression, complete with bottom-four payrolls over the past four seasons and little-to-no improvement to the franchise whatsoever.

In the movie, Phelps is a Las Vegas showgirl that inherits the Cleveland Indians. She purposely set out against her own team to make sure attendance falls low enough to break her lease and move them to sunny Miami.

In this D-list relocation reality show, George is a failed Las Vegas developer that inherited a fortune. He has set out against the city that has done everything possible to keep its beloved Sacramento Kings, all so he can be handed a shiny new arena and keep all of the profits from it, too.

Brothers Joe and Gavin, the ones that cried after an arena deal was reached in Orlando during last year’s NBA All Star game, the same guys that raised mayor Kevin Johnson’s arms at the next home game and told an adoring crowd that it was “all about” Sacramento – they can’t stop brother George now.

He holds all the cards, not by some virtue of leadership or respect from his siblings, but because the family is hemorrhaging money and they can’t afford to be NBA owners without making a last second full-court shot.

They need Sacramento or another city to give them a lopsided deal or they’re out, sooner rather than later. If they do nothing, they will run out of money in a Sacramento market they torched themselves, and if that doesn’t happen first then Sleep Train Arena eventually won’t meet NBA code and the game will be over.

Meanwhile, they’re stuck in a classic Catch-22. The family can’t afford to make the improvements to basketball operations that would in turn bring increased revenues from TV and at the gate.

Fire GM Geoff Petrie or head coach Keith Smart? One needs money to do that and Kings fans probably shouldn’t hold their breath waiting for that to happen anytime soon.

A move to fire one or both of them would be elementary for most franchises given the disastrous state of affairs on the court, where a team of mismatched parts is mismanaged on a nightly basis and looks like the basketball equivalent of the Bad News Bears.  But the Maloofs can’t even afford to remove the signage of sponsors that have long since fled, let alone find replacement leadership, as tarps duct taped over the old signs are allowed to fall onto the basketball court during games.

Of course, nothing says the sky is falling better than when the sky actually falls.

At this rate the Maloofs might appreciate holes in the ceiling of the soon to be dilapidated relic, as it would allow the family to thank their lucky stars that the NBA still deems them fit for the revenue sharing checks that are keeping the operation afloat.

As unsettling as all this sounds, this is all just another year in the life of long-suffering Kings fans, who are forced to swallow story after story about their owners visiting with other cities in hopes of landing a sweetheart deal — a deal that lets them have their red velvet cake and eat it too.

That story chugged along yesterday when the Virginia Beach City Council got an update from arena operator Comcast Spectacor, who has reportedly pledged $35 million toward the cost of a $300 arena that would theoretically draw the Kings out of Sacramento.

George Maloof hasn’t even attempted to hide his interest in the matter, meeting with the governor of Virginia this month to request $150 million in emergency state funds to help move the team east.

Never mind that it was just April when Joe Maloof told Ailene Voisin of the Sacramento Bee point blank that “We’re not selling, and we’re not leaving. Our identity is the Sacramento Kings.”

At this point, we should all know better than to believe a word that comes out of the Maloofs’ mouth, but anybody trying to figure out what is going through their minds is asking the wrong questions.

The only question that should matter to the league, its players, and the fans that make it all possible is how long the NBA and its other 29 owners are going to let the family threaten its billion dollar subsidy industry.

The NBA has received $3 billion in public subsidies for arenas since 1990. In a spectacularly timed story released yesterday, Deadspin provides a visual analysis of the $32.2 BILLION that has been given to pro sports franchises by the public from 1909-2012.

The NBA and other major sports are able to secure this unfathomable amount of money by threatening to leave cities that don’t pay up, and one doesn’t have to look far in this saga to see what happened when Seattle decided to build facilities for the Mariners and Seahawks and not the David Sterns.

In fairness, even the most ardently opposed economist will readily admit that there is a public benefit to having a big league sports franchise around, but the conversation surrounding the use of public funds to fund sports facilities is getting more strained by the day.

Part of it is the lack of data showing that sports subsidies generate jobs and income, but mostly it is good old fashion resentment toward rich folks that drives the opposition. The conversation is much more complex than that, but voters don’t have time to read economic white papers nor do they want to. They’re making less and less money every day, and many of them don’t see the tangible or intangible benefits of having pro sports in town. As a result sports subsidies are being fought with fervor across the United States.

So if you’re an owner of a team in any professional sport, having George Maloof go on television to pitch against a city that is taking money away from cops and firefighters to offer you over $250 million isn’t a good look.

This will be compounded as sports economists, businesspeople and politicians start to do their due diligence on the Sacramento situation. They will all quickly find that Sacramento did everything they could possibly do to fulfill their end of the bargain, and with the NBA readily admitting that, there will only be one story to tell.

That story will be a heartbreaking tale of a city’s long-term partnership with the NBA being discontinued for no other reason besides the fact that the owners were broke.

For Sacramento, if the Kings are allowed to leave 30 years of public investments into the team will have all been for naught. Sure, there were great times and intangible benefits galore. The Kings will have spurred economic activity during that time, and contributions by the Maloofs and prior owners to local charities should not go unnoticed.

But the significant public investment in both dollars and man hours, let alone the emotional investment the citizens have made in the team over time were all predicated on the understanding that as long as the city did what it was supposed to do — the relationship being proposed by the league was to be a marriage and not just a fling.

How will David Stern and Adam Silver reconcile that drama the next time they pitch for public dollars?

‘Give us $300 million, but don’t mind us if one of our owners has two slices of bad pizza and decides to stick a Las Vegas casino one mile off the strip.’

It’s not going to work. If the NBA allows the Kings to be stolen from Sacramento, they’re going to make Sonicsgate look like an NBA Cares spot.

I was present for the Kings’ last game as the Maloofs had two feet out the door on their way to Anaheim, having given their seats to Lakers fans as they left Fan Appreciation Night a few quarters early to beat the traffic. Thousands of fans refused to leave the arena in an organized sit-in after a riveting game, leaving an indelible mark on everybody that witnessed an historic event.

Even after that gut-wrenching sendoff, though, it was more likely that Sacramento and people in general would have been willing to let the issue go. Bad owners force a move – it’s a movie that many of us had seen before and up to that time there was enough ambiguity on all sides of the issue to keep it from escalating in the public consciousness.

But after everything that has gone down in the last year and a half, if this story doesn’t end well it’s going to leave a mark.

There have been multiple team-sponsored celebrations to celebrate keeping the team in Sacramento, which are akin to giving a seven-year old a massive, gift-wrapped empty box for Christmas. There are the mountains that Sacramento moved to get their arena deal done. There are the fans that refuse to give up, that continue to give their hard earned money after all that they have been through simply to show the other 29 owners that the Sacramento market will never go away.

They make documentaries about the ordeal, they go to city council meetings weekly, and they’ve done this under threat of imminent relocation for nearly two years now. They continue to unite their many different groups and they fight for their city. They have nervous breakdowns on Twitter, they get fed up, and then they do it all over again because that’s all they know.

Stealing from the wounded so blatantly on a national stage wouldn’t just be cruel, it would be stupid. The NBA may as well run ads of William Wallace screaming the word ‘freedom’ to sell Kings season tickets.

A slow and eventual execution would be a moment that transcends sports.

Not only will opponents of public sports subsidies cite the curious cases of Sacramento and Seattle in every single negotiation the NBA has going forward, but the NFL and Major League Baseball will quickly move to distance themselves from the business practices of ‘those third-rate NBA owners.’

So while this has become a blood issue for George Maloof, who hates Sacramento, the real blood issue for the other 29 NBA owners is what half or even a quarter of $3 billion looks like tattooed on the wrong side of their balance sheet.

The players, if their leadership even cares to understand the issue, will eventually learn that any percent of $3 billion coming out of the BRI calculation will hit them, too.

If the NBA and its players don’t recognize the risk and they allow the issue of sports subsidies to become more toxic than it already is, politicians are going to have their hands tied by a voting populace that simply won’t budge. Elected leaders will be forced by necessity to ask for less and less until the voters have seen enough documentaries about the NBA fleecing the local underdogs that they simply won’t approve squat.

It’s a compelling reason for David Stern to use the best interests of the league clause to get what he wants in this dilemma. Commissioners in other sports have pulled the trigger, and if explained correctly to the Maloofs’ fellow owners they’ll realize that indeed, it’s in their best interests.

Beyond the best interest clause, the league can also start to stand up to the Maloofs’ implied threats of antitrust litigation.

Antitrust law requires the NBA to provide a very straight-forward relocation request process, and that is why the league appears to be a passive aggressive participant in the drama thus far.

The prevailing legal analysis and prior court decisions have given team owners a strong case to be able to move as they see fit, and courts have found leagues liable for unilaterally blocking relocation without providing some form of due process.

Where the recent court cases haven’t provided guidance, however, is in how leagues can recoup the value of territory that the league itself owns, which is ultimately ‘taken’ by the relocating owner. The same holds true for how other owners within a league are indemnified for a team owner moving into their backyard.

The scope of this relatively untouched area of law has been encompassed by a ‘relocation fee,’ but the courts have provided no guidance on how much a league can charge. Clay Bennett was charged $30 million to move the Sonics to Oklahoma City, and surely the league doesn’t want to go overboard charging an owner a lot of money in any deal that the league itself likes.

But with some legal scholars at Loyola Marymount University believing that relocations fees could range from a small amount like the aforementioned – to the full market value of an NBA franchise or more – the NBA has a leg to stand on in court if they want to price the Maloofs out of the relocation marketplace.

These same scholars have unearthed other strategies that can be used against owners that damage a league because of their relocation aspirations, including the recovery of punitive damages, and with the various missteps the Maloofs have taken it could be a target rich environment.

There are plenty of ways the league can tell ‘the boys’ to shape up or ship out, provided that the league understands and cares that their subsidy dollars are at risk. With this leverage in tow, they can nudge the family to take the original deal that Sacramento offered, or sell the team to one of the local buyers that the city has lined up. From there, if the Maloofs don’t like it they’ll need the money and fortitude to go heads up against the association Al Davis style.

From a league perspective, if the family can’t find duct tape strong enough to keep tarps from falling onto the home floor during basketball games, no owner should be scared of mere millionaires that are threatening to cook the golden subsidy goose live on a social network of your choice.

On Tuesday, as George Maloof preheats the oven, Kings fans tuned into a live video feed of a city council meeting thousands of miles away. Their anxieties and anger played out in the social media world, as Virginia officials scurry to meet the demands of making a full court shot with one second left on the clock.

Virginia Beach mayor Will Sessoms and his arena team have told the Commonwealth of Virginia that they need $150 million in emergency state funds by February or March or “this project cannot move forward.” Sessoms and Maloof are pitching a $300 million arena, which is an incredibly low number that barely passes the sniff test. They are also asking for $42 million to go toward the Maloofs’ claims of lost business revenue in the event of a move, a magically estimated $30 million relocation fee, and $8 million in moving expenses for the team itself.

During the meeting, city council members lobbed criticisms of how the numbers were put together, the lack of public involvement, and the lack of time they had to evaluate the plan.

In just the most recent sign that this plan has been thrown together at the last second, Sessoms backtracked 24 hours earlier when he said that he forgot to include $45.8 million in financing costs in his public pitch a few weeks back.  He also claimed that only the people using the arena would be paying for it through user fees and the like, but his group had to go to the local hotels and get them to agree to a one percent increase in occupancy tax.  As councilman Bill DeSteph expressed, people that stay in hotels aren’t necessarily using the arena so the city’s promises regarding taxation are already being broken.

Clearly there is opposition to the project and there’s nothing like a $45.8 million typo to quell the anxieties of the voting populace, who are led by city and state politicians that appear to have no real interest in the plan. In fact, there aren’t many people in the know that believe that the Virginia Beach plan has teeth, but both the city and the Maloofs benefit from the appearance that a deal could be done.

The family gets imaginary leverage if they can somehow get another city interested in the Maloof experience, and Virginia Beach gets its name on the relocation radar for the next major league sports franchise opportunity. And if these friends with benefits get lucky, and everything breaks their way, they’ll be in bed with one another every night for the next 25 years.

Be careful what you wish for Virginia Beach.  Sincerely, everybody.

Meanwhile, all Sacramento can do is wait. The NBA knows that their No. 20 TV market with no other sports competition is prime real estate for them, and they know that Sacramento has done everything in its power to fulfill their end of the bargain.

A threat for Sacramento ironically looms in Seattle, a threat that is cruel to both sides really, but the Maloofs have shown no willingness to sell and the Emerald City isn’t in the market for tenants – they’re in the market for teams. As I detailed in the past, prospective owner Chris Hansen is going to have to drastically outbid Sacramento owners if the Maloofs finally cry uncle and decide to sell.

These other markets – the Virginia Beaches and the laundry list of fringe cities the Maloofs have approached that are competing with Sacramento – they don’t have the eyeballs, disposable income, or the built-in maniacal fan base that Sacramento or Seattle has.

IF, and this is a pretty big if, the Maloofs can somehow convince one of these cities to part with a revenue split greater than they could get in Sacramento, all while the family contributes nothing toward a new arena – then the NBA still has to decide if it wants to torch a great market for one they can have at any time.

And that’s what this is really about. Is the NBA willing to make a really bad business decision for a family that will be on CBA welfare for the foreseeable future? Will they risk their own good standing with cities across North America just to avoid getting their hands dirty in court, or going against one of their own?

Regardless of the end game here, the NBA will eventually be forced to make a decision about who they value more – Sacramento or the Maloofs.

One of them has a $250 million arena subsidy with well-funded owners ready to pick up the ball and run, and the other is running around North America panhandling with the NBA logo.

It’s your move, NBA. Everybody is watching.

Minnesota’s Wiggins considers contract deal without agent

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MINNEAPOLIS (AP) — Andrew Wiggins says he feels good about a max contract offer that is sitting in front of him with the Minnesota Timberwolves. But he’s in no rush to get it signed.

Wiggins says he is going over the five-year, $148 million offer from the Wolves deliberately to make sure everything is where he wants it before he signs. He is being extra careful because he is operating without an agent after parting ways with Bill Duffy and BDA Sports in August.

Wiggins says he has only positive things to say about Duffy. But he made the decision “from a business point of view.” He says he is leaning on parents, who were both high-profile athletes.

He says he appreciates the level of commitment the Timberwolves have shown and wants to be in Minnesota for the long term.

 

Report: Carmelo Anthony adds Cavaliers, Thunder to list of teams where he will accept trade

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Carmelo Anthony wants most of all to be traded to Houston (and he has leverage thanks to the no-trade clause Phil Jackson/James Dolan gave him). However, to make the deal work the Rockets needed to unload the three-year, $60 million contract of Ryan Anderson — which the Knicks do not want, and neither did any third team without a couple high first-round picks as a sweetener. Also, the Knicks wanted quality you assets back the Rockets didn’t have (or would part with), so the deal was dead. Anthony tried to wait it out, but nothing happened, and at this point the Knicks expect ‘Melo in camp Monday.

In the face of that, Anthony has expanded his list of teams where he will waive his no-trade clause to include the Cleveland Cavaliers and Oklahoma City Thunder, according to multiple reports.

Adrian Wojnarowski of ESPN was first with the news about the Cavs.

Carmelo Anthony, a 10-time NBA All-Star, has delivered the New York Knicks an expanded list of teams — including the Cleveland Cavaliers — with which he’d be willing to waive his no-trade clause, league sources told ESPN.

After the Knicks insisted that they were unable to make a deal with the Houston Rockets, his primary trade destination, Anthony and his representatives honored New York’s request and furnished at least two more teams within the past 10 days, league sources told ESPN.

ESPN’s Ian Begley filled in the details.

Cleveland was on the initial list of teams Anthony gave the Knicks (teams he would waive his no-trade for) but the Knicks wanted Kevin Love and Cleveland shot that down (that was before the Kyrie Irving deal, now Cleveland is even less likely to make that trade). The Cavaliers don’t have a lot of young talent on their roster, and that’s what the Knicks will want back in a deal, picks and players who are on Kristaps Porzingis‘ career arc.

If Cleveland was willing to throw the 2018 Brooklyn Nets pick in the trade it would get done quickly, but I have been told (before this news) Cleveland would not part with that pick, they see it as “LeBron leaves” insurance.

You can bet LeBron James is pushing to get Anthony on the Cavs. Adding him and Dwyane Wade — when Wade is bought out by the Bulls (eventually) — would move the Cavaliers a little closer to the Warriors, although both Wade and ‘Melo are bad defensive matchups against Golden State.

Oklahoma City would likely use Enes Kanter in any trade because his $17 million salary helps balance the money. However, the Thunder are like the Cavs in that this is not a roster with much young talent that the Knicks would want. Guys like Doug McDermott and Kyle Singler are not going to cut it.

It could take a third team to get a deal done with either the Cavaliers or Thunder.

While there had been rumors Portland was still trying to get in — that’s a team with multiple ways to make that trade if they are willing to send Zach Collins and picks to New York — multiple reports out of New York say the Blazers are not one of the teams on Anthony’s list, something first reported by Stefan Bondy of the New York Daily News.

Anthony may well get moved before the start of the season now, but not likely before training camp opens for the Knicks Monday. So that awkward set of questions still gets to take place.

 

We have a (very minor) trade: Troy Daniels to Suns for pick

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Memphis had more than the max 15 guaranteed contracts on the books, and the cost of unloading one of those turns out to be a second-round pick.

Troy Daniels, who is owed $6.7 million over the next two years, has been traded from the Memphis Grizzlies to the Phoenix Suns, a story broken by Shams Charania of The Vertical at Yahoo Sports and since confirmed by the teams themselves. As part of the deal, the teams swap 2018 second round picks (however the Phoenix pick going to Memphis is top 55 protected, meaning it doesn’t move unless the Suns are a top five team ext season). Basically, Memphis has three second-round picks in 2018 and Phoenix gets the middle one as the sweetener for taking on the contract.

This trade is really about Memphis clearing a roster spot and some salary space, and Phoenix being willing to take it on for a second round pick.

Interestingly, Daniels and Suns star Devin Booker got in a little war of words at the end of a game last season.

The Suns consulted with Booker about that before pulling the trigger on the deal.

Pat Riley raves about Dwyane Wade, but avoids all contract talk

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MIAMI (AP) — Dwyane Wade is under contract with the Chicago Bulls, meaning other NBA clubs cannot openly talk about possibly signing him until he is a free agent. As such, Miami Heat President Pat Riley was cautious Friday when asked about Wade’s future.

Wade spent his first 13 seasons in Miami before leaving in the summer of 2016 and going to the Bulls, his hometown team. But Chicago appears in full rebuilding mode after trading All-Star forward Jimmy Butler – someone Wade was close with – to Minnesota this offseason. And since Wade is in the last year of a deal that will pay him nearly $24 million this season, buyout speculation has been rampant for months.

If Wade gets a buyout, he’d be free to join any team.

“I feel great about our relationship that we had over the 13 years,” Riley said. “And anything that happens from a personnel standpoint down the road, or any opportunities that are there, we’re always going to approach that. But right now he’s under contract. He’s under contract with Chicago and I wish him the very best.”

Some Heat players, including longtime close friend Udonis Haslem, have made clear that if Wade becomes a free agent they would definitely want him to consider a return.

“He knows how I feel,” Haslem said this month.

Riley – and every other NBA executive – has to be much more guarded. But Riley made no secret of the affinity he still has for Wade, even raving about his wife, actress Gabrielle Union.

“She was stunning at the Emmys,” Riley said. “And to see him sitting in the seat next to her at the Emmys, I said `Man, we both have come a long way.”‘

The Bulls hold their media day Monday, with camp opening Tuesday. Wade spent at least part of this week in Miami, where he kept his home, and worked out at least once at the University of Miami .

Bulls President John Paxson told CSN Chicago on Thursday he and general manager Gar Forman sat down with Wade when the season ended, and plan to do so again when he returns to Chicago in the coming days.

“We were honest with him. We told him, that we don’t know what’s going to happen,” Paxson said. “At that time we were not shopping Jimmy. But we also said all along that if a deal would come along that would allow us to rebuild, we’d have to look at it. We’ve said that to everybody. So with that said, Dwyane’s under contract. He has been a professional through and through. We want to talk to him when he comes in town, and we will.”

Wade is Miami’s franchise leader in several categories, starred on all three of the Heat championship teams and has kept close ties with several people within the organization since his departure. He was the MVP of the 2006 NBA Finals.

“Probably one of the greatest series that any player has ever had in a Finals,” Riley said.