George Maloof

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.

Another report Donatas Motiejunas, Rockets nowhere near deal as deadline approaches

LOS ANGELES, CA - DECEMBER 17:  Donatas Motiejunas #20 of the Houston Rockets is fouled as he shoots by Julius Randle #30 of the Los Angeles Lakers during the first half at Staples Center on December 17, 2015 in Los Angeles, California.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and condition of the Getty Images License Agreement.  (Photo by Harry How/Getty Images)
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Donatas Motiejunas and his agent had given the Rockets a Saturday deadline to make a contract extension offer they liked.

But the sides aren’t even talking in a serious way.

That was reported early on Friday, and now comes another report — this was from Calvin Watkins of ESPN — that the two sides are nowhere close to a deal.

With the deadline to sign a qualifying offer approaching, restricted free-agent power forward Donatas Motiejunas and the Houston Rockets have exchanged contract proposals but remain far apart on an agreement, multiple sources told ESPN.

Motiejunas is seeking a larger financial deal from the Rockets, but the two sides haven’t had serious contract discussions in a month, the sources said.

Motiejuas, a restricted free agent, has a $4.4 million qualifying offer on the table that expires Sunday. He likely will sign it — if so he will have the ability to veto trades during the season then would be a free agent next summer.  Motiejuas could let the deal expire then sign a new one-year deal with the Rockets, but he would make less money.

Last season the Rockets agreed to trade Motiejunas to the Pistons. However, Pistons voided the deal after he failed his physical. Motiejunas hammered Detroit for how it went down. That left Motiejunas a restricted free agent this summer, but he didn’t land any offers from other squads (many thought the Rockets would just match).

That gets us to where we are today, where Motiejunas appears headed to signing the qualifying offer, then testing the market next summer as an unrestricted free agent.

Sacramento Kings prepare to open state-of-the-art downtown arena

This photo taken Tuesday, Sept. 27, 2016, is the new Golden 1 Center in Sacramento, Calif. The 17,500-seat arena, the new home of the NBA's Sacramento Kings basketball team features among other things, the NBA's first 4k ultra HD video board that stretches 84 feet above the court with more than 38 million pixels. The Kings' first game in the arena will be a preseason match against Maccabi Haifa, of Israel, Oct. 10. (AP Photo/Rich Pedroncelli)
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SACRAMENTO, Calif. (AP) — After years of searching for a new home, the Sacramento Kings are set to open a new venue that raises the bar of what an arena can be.

Along with some of the modern accouterments that have become commonplace like smartphone apps that allow fans to order food or watch replays from their seats, giant screens to watch the game and high-speed connections that let fans post photos almost instantaneously, the Golden 1 Center also has many first-of-its-kind features.

There are the airplane hangar doors that can open to turn the venue into an indoor-outdoor arena and the “smart turnstiles” that will allow fans to enter at more than triple the usual speed. But perhaps most important to Kings owner Vivek Ranadive are the environmental features that make it the first indoor venue to receive LEED Platinum certification – the highest level of recognition for environmentally conscious buildings.

The 17,500-seat arena will be the first professional sports venue powered completely by solar energy, will save about 1 million gallons of water a year compared to a typical venue of its size, was built with recycled material from the mall that stood at the site before construction began and will get 90 percent of its food and beverages from within 150 miles.

“We felt we had to set a new bar,” Ranadive said. “We have to be cognizant of the kind of planet we want to leave our kids and next generations. This had to be the greenest arena ever built. … I fully expect that arenas in the future will be even better, be even more sustainable. Hopefully what we have here is an example of how to build a great arena and still be responsible to the environment.”

Ranadive bought the team in 2013 for $534 million, saving the franchise from a planned move to Seattle. The next task was getting the new downtown arena built.

Ranadive wanted an “iconic” venue that would anchor a revitalized downtown and he believes the nearly $600 million facility that opens this weekend has achieved that goal.

The arena is part of a $1 billion development project that includes 1.5 million square feet of mixed-use property that will have a hotel, restaurants, retail shops, offices and condos. About $500 million in outside investment is also expected in the area.

“This arena is the 21st century cathedral,” Ranadive said. “It’s the communal fireplace where people used to gather in old times. For us, it’s always been about more than basketball.”

Befitting a team owned by a tech mogul who made his billions in Silicon Valley, the arena was built with enough technology to “future proof” it. It has enough bandwidth for a small city, allowing fans to post 250,000 Instagram photos per second and 500,000 Snapchats per second, according to chief technology officer Ryan Montoya.

It has the NBA’s first 4K ultra HD videoboard – providing a picture four times clearer than HD – that stretches 84 feet long. The in-stadium app will give fans the best driving instructions based on traffic and parking spots. It will allow them to order food or merchandise to their seat, watch live-streamed video on their phone and even place non-monetary bets on the outcomes of plays that can earn fans points that can be redeemed for prizes.

There will even be facial recognition software that will allow players to enter secure areas and could one day be expanded to fans if they opt in to that option, making a more “frictionless” experience.

“Our arena is more about code than it is concrete,” team President Chris Granger said. “The idea is to create a platform that allows us to grow and expand and change the fan experience as the technology adapts.”

Overseeing all of the technology is a mission control room that will feature law enforcement and emergency medical services personnel, building operations officials, social media and guest services workers and others who will monitor all aspects of the arena on game days.

Perhaps the most unique feature will be the hangar doors, which can open to allow the delta breeze to cool the building and provide the option for concerts – or eventually even basketball games – with an indoor-outdoor feel.

The Kings have had talks with the NBA about what conditions would need to be met before they could play a game with the open doors but the team believes it will be able to control the temperature, humidity and wind well enough to make the conditions on the court comparable to a fully indoor arena.

The team plans to hold its open practice with the doors open and could do the same for an exhibition game against a non-NBA team. The Kings also could open the doors for college or high school games in order to gather enough data to show the league.

“They know we want a home-court advantage and they know that we want to enjoy the indoor-outdoor arena,” Ranadive said. “I fully expect we’ll figure out a way to get that home-court advantage.”

Chris Bosh on Heat’s young talent: ‘It’s their time’

CHARLOTTE, NC - APRIL 23:  Chris Bosh #1 of the Miami Heat talks to teammates Justise Winslow #20 and Udonis Haslem #40 against the Charlotte Hornets during game three of the Eastern Conference Quarterfinals of the 2016 NBA Playoffs at Time Warner Cable Arena on April 23, 2016 in Charlotte, North Carolina.  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 Streeter Lecka/Getty Images)
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Justise Winslow eventually wants his own team.

That day may be here.

LeBron James is with the Cavaliers. Dwyane Wade is with the Bulls. And now Chris Bosh – the last of the Heat’s big three still in Miami, embroiled in a dispute with the team over his health that likely has him moving on from Miami (and he’s not thrilled about it).

That said, Bosh sounds ready to defer to a younger generation led by Winslow and Hassan Whiteside.

In introducing his latest video, Bosh wrote this on his personal website:

I remember just a few years ago when the Big 3 were together and we were having a ball playing the game we love with some of the most professional, talented guys the NBA has ever seen.

I remember the fans of Miami coming out to see the show every night. The love, the compassion and the energy we felt was second to none. I want to thank the city of Miami from the bottom of my heart because things may change but the good times will last forever in my memories. Thank you!

Things are different now and Miami has incredible young talent with a tremendous upside. These are not only talented ball players but great people and friends. I enjoyed playing with those guys and doing my best to mentor them by being an upstanding role model and veteran player. It’s their time to go through the ups and downs of the game with this great city.

Bosh is not accepting that his career is over.

However, he sounds like a guy who likes the Heat’s young stars.

Pat Riley’s response: It was Bosh who cut off communication

WASHINGTON, DC - MARCH 28:  Pat Riley looks on during the East Regional Round of the 2013 NCAA Men's Basketball Tournament at Verizon Center on March 28, 2013 in Washington, DC.  (Photo by Win McNamee/Getty Images)
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“I didn’t see my career in Miami ending like this. I didn’t get a call or a test or anything like that.”

That was Chris Bosh‘s comment in his latest self-directed video, one where he learns that he failed his physical with the Heat and they are not looking to bring him back. In that video he says that his career is not over, and along the way he takes some shots at team president Pat Riley and the Miami organization, saying they did not communicate with him.

Riley countered that it was Bosh who cut off communication, as told to Manny Navarro of the Miami Herald.

Bosh has never been cleared by the team.

Bosh’s time in Miami is over, and those bridges are aflame right now. There is no going back. The problem is there are no good alternatives for him or the team moving on from this situation (unless he wants to forfeit a vast majority of the $75 million he is owed to facilitate a buyout). This situation is going to drag out for a while.