Los Angeles Lakers v Sacramento Kings

Bruski: Sacramento lines up offers in effort to keep Kings

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It has been a whirlwind of a week for Kings fans and the Sacramento Kings relocation story in general.

We reported first in this saga that ‘Kings to Seattle’ was not a done deal, as sources close to negotiations told us there were many hurdles for the deal to clear, and that Sacramento had multiple, qualified buyers that could either meet or beat Chris Hansen’s offer.

This has played out over the last 24 hours as multiple buyer groups have stepped up in Sacramento to buy the Kings, including a group that is connected to Ron Burkle.

In terms of the math and money, as we reported in September the reason Sacramento has a shot against top-tier owner prospects such as Seattle’s Hansen and billionaire deluxe Steve Ballmer is that they don’t have to pay as much for the team.

Anybody moving the team will have to account for at least $100 million in unpaid loans to Sacramento (~$75 million) and relocation fees (~$30 million), and this is a very low estimate. That number increases as you account for moving costs, and the fact that the relocation fee could be more than $30 million. We’re reporting that this number could go as high as $300 million if the league really wants to flex its muscles in getting what it wants.

Our report Thursday estimated a $425-450 million price tag for Sacramento to hit in order to start outperforming Seattle’s offer. Sam Amick of USA Today was able to confirm with Sacramento mayor Kevin Johnson at his charity event that this was indeed the city’s initial target, and also that the mayor would be approaching David Stern to speak at the NBA’s Board of Governors meeting.

In a moment of levity at that charity event, attendee LeBron James was asked by Johnson if he could buy the Kings and keep them in Sacramento and he responded with, “get me my check book.

LeBron isn’t going to have to reach far because Sacramento buyers have been making themselves known over the past 24 hours. Mark Mastrov, former CEO of 24 Hour Fitness and San Francisco investment firm JMA Ventures have thrown their hats in the ring.

JMA Ventures is proposing to buy the team and build a $400 million downtown arena where a downtown mall they recently purchased currently sits. CBS 13’s Steve Large reports that group includes Darius Anderson, who is the same man that connected mayor Johnson to Ron Burkle.

According to sources there are more interested buyers being filtered through the process, too. The Sacramento market is all-but rubber stamped with $200 million or more of public investment toward a new arena and has an extreme level of fan support. Being the No. 20 television market doesn’t hurt, but having no other sports teams to compete with is what puts it in the same category as a larger market like Seattle, which has the Seahawks, Mariners, and Sounders to steal entertainment dollars.

In Sacramento, all they have is the Kings.

Assuming Hansen and his group don’t want to start acting like the drunk guy at an auction, then the NBA is going to be choosing between two similar offers. The owners in Sacramento might not be Ballmer-rich, but Burkle was good enough to drop David Stern’s jaw and Mastrov finished second to Joe Lacob’s group in Golden State, ahead of Larry Ellison.

The NBA isn’t picking between steak and chopped liver, here.

But if for some reason they don’t let California’s capitol city have a shot here, and they allow the team to be moved to Seattle, then the NBA will be the ones left holding the Sacramento’s beating heart after the Maloofs rip it out of their convulsing chest.

Charles Barkley said it best on TNT:

“I’ve always like the Maloof brothers, but they’ve screwed this thing up royally. All these teams try to screw these cities, that’s what the deal is. I don’t think it’s right for all poor people to build these cities all these major stadiums year after year after year. Every ‘x’ amount of years, they screw the fans and the taxpayers and make them build them bigger stadiums and bigger stadiums and bigger stadiums. I think these owners are worth so much money … does a city benefit? Of course a city benefits. But this thing in all sports been screwing these fans for the last 30 years, moving from city to city. Because those people in Sacramento, those were some of the best fans in the world. They screwed Seattle because they wouldn’t give them a new arena, and those fans in Seattle were amazing. But this is all about the owners just being greedy and screwing these fans.”

We’ve reported the NBA’s billion dollar subsidy issue here for nearly two years now, as the league and its players have received over $3 billion in public funds for arenas since 1990.

This happens because the league and its owners pit cities against one another with threats of relocation if a city doesn’t pay up for an arena, but in the case of Sacramento they did everything they could and then some according to multiple league sources.

One league source with intimate knowledge of the situation called it “a model offer of public funds.”

The league is walking dangerously close to the line in which people get fed up and they start to lose those subsidies they love dearly. In Seattle, yes their own politicians screwed up and were culpable in the matter, but the league’s underhandedness and heartlessness was brought to life in the documentary Sonicsgate. It’s not pretty.

But unlike that story that was told after the fact, the saga in Sacramento is playing out in real-time. The NBA media is getting constant updates on their Twitter feed about the incompetent, despicable Maloof family and how they’re leaving the house in worse condition than they found it.

This twisted tale is filtering all the way down to the fans, and when Charles Barkley talks about the deplorable business tactics of the NBA on TNT the cat is out of the bag.

This isn’t just league insider talk anymore, it’s coffee talk.

If the Kings leave Sacramento, it will transcend sport. The story of Sacramento Kings fans, arena workers, and the like will make the morning talk show rounds, ultimately culminating in a national discussion about the role of public money in professional sports.

Seattle — a victim of the system – is excited that their Sonics might be coming home, but the mere exercise of having to replace the team that was stolen from them is a trying experience.

And even if they can secure an NBA team, some Sonics fans are having trouble with their own moral relativism.

For years they’ve railed on the NBA for stealing their team and now they’re trying to steal Sacramento’s team. They’re slowly understanding what it means to have that blood on their hands, and many Seattleites are already speaking out saying the juice isn’t worth the squeeze – especially when they know they stand a very good chance of getting a team down the road under more moral circumstances.

Unlike the Oklahoma City fans that can point at Seattle’s politicians and argue that they slept on the job – Seattle fans have no such target.  Kevin Johnson has moved mountains to keep this team while the Maloof family can’t get out of their own way.

Besides wanting to move the team since they purchased it and ruining every arena deal the city tried to create in good faith, the Maloofs sold profitable businesses to build a pipe dream casino a mile off the strip in Vegas and it led to their downfall.

Rather than atoning for their financial mistakes, the Maloofs have dragged the league through embarrassment after embarrassment through the years, all because they cannot afford to own an NBA team.

Every subsequent episode is their worst one and the shenanigans come with increasing frequency, as just Friday night a report surfaced that their Palms Casino was getting popped with a $1 million fine for a prostitution and cocaine ring (no word if the price of the Kings just went up).

This isn’t a case of Sacramento not deserving the team, or not having the wherewithal to keep the team, but rather a case of a Maloof family that makes Antoine Walker look like Warren Buffett.

Sacramento has been paying for this Maloofery for years, and nobody is comfortable with an indecent proposal leaving Kevin Johnson at the altar. Not Stern, not Seattle, and probably not Gavin and Joe Maloof — whose love of Sacramento has been trumped by brotherly grudges and family needs.

It’s against this twisted backdrop that sources close to the situation believe Sacramento has a chance, and some sources believe they are actually favored to keep their team. I happen to share that belief.

Once again it all comes back to the NBA. They can tell the Maloofs what to do here. If the offers between the cities are close, they can decline the move to Seattle and force the Maloofs to take them to court in an antitrust case if they don’t like it.  There, the league can show a laundry list of claims that show the Maloofs are putting the league’s subsidy industry at tremendous risk by selling to Hansen.

After all, what city or politician can sell their constituents on making a long-term investment in the NBA when Sacramento did everything a city could to protect their investment and got told to kick rocks.

Also in the NBA’s arsenal would be the aforementioned increased relocation fee up to $300 million, and if push comes to shove David Stern can remove the family from the league using the ‘best interest of the league’ clause.

Regardless of what some of their intermediaries might like you to think, the Maloofs aren’t going to wade too far into those waters.

With the family’s debt to the league upwards of $127 million and as high as $217 million by some reports, and their financial situation a total mess, they’re bringing a whoopee cushion to a gun fight if they want to go to court.  And if they do, they won’t have the law on their side unless Hansen can drastically overpay for the franchise, giving the Maloofs the argument that the league is costing them significant money by forcing them to sell to Sacramento.

Even then, the cash-strapped and beleaguered Maloofs would still have to win that battle in court.

Looking outside the courtroom and toward the league office, there has been a lot of talk about the wrongs that David Stern wants to ‘right’ in Seattle, and how he wants to remove that inscription from his tombstone.

You can’t cross out Seattle’s name and simply write in Sacramento’s and change your legacy.  We all learned in kindergarten that two wrongs don’t make a right.

But that’s not what’s really at stake here.

As usual it comes down to the money, and with all things equal in this case the threat of killing the public subsidy goose will be the tiebreaker.

With Kevin Johnson’s legitimate, comparable offer from more-than-reputable buyers in hand, the NBA will have to both look a gift horse in the mouth and sanction Sacramento’s open-heart surgery if they move the team to Seattle.

And if they do, it’s going to leave a mark. A $3 billion mark.

And unless you’re the Golden State Warriors that’s not good for business.

Report: Magic makes first trade, Lakers send Lou Williams to Rockets for first-round pick, Corey Brewer

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Magic Johnson has pulled the trigger on his first trade — and it’s a solid one for the team that will give them another first-round pick.

It may be a better one for a Rockets’ team looking to make a deep playoff run.

The Lakers are sending Lou Williams to the Houston Rockets and getting back what they really want in a pick, reports Adrian Wojnarowski of Yahoo Sports.

Lou Williams seemed to confirm this on Twitter.

We don’t know what year that first-round pick is, most likely 2017 but we don’t know for sure yet.

Williams became a sought-after trade commodity because the guy who used to be a volume scorer still gets plenty of points but now does it efficiently. He leads the Lakers scoring 18.6 points per game, with a very good true-shooting percentage of 60.9, in part because he gets to the line a lot more. He’s doing all that in just 24.2 minutes a night off the bench, which is why he’s a leading candidate for Sixth Man of the Year.

For the Rockets, they now bring the scoring punch of Williams and Eric Gordon — probably the frontrunner for Sixth Man of the Year — off the bench. That will relieve some scoring pressure, and maybe reduce the minutes load, for James Harden.

Williams should blend almost seamlessly into the Mike D’Antoni offense. The only concern for the Rockets is potential playoff matchups where Williams can be exploited defensively, but that team is going to play fast and put up points.

For the Lakers, they get a first-round pick, although if it is a 2017 it will be about pick 27. Corey Brewer makes the salaries match up but he is a below replacement-level player at this point, don’t be shocked if the Lakers try to move him next summer. My only question with the Lakers is could they have gotten a higher first rounder from another team, but this seems a fair deal for Sweet Lou.

PBT Extra: Will Magic run Lakers like his businesses or his Twitter account?

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The Lakers needed a front office change, and they got it — two days before the trade deadline. Jim Buss and Mitch Kupchak are out, Magic Johnson is in.

It’s a good first step, but here is the question I ask in this latest PBT Extra: What kind of leader will Magic Johnson be?

Will he be like he ran his business empire, hiring smart people and getting everyone to collaborate into a greater whole?

Or, will he run the Lakers like his Twitter account?

Magic has said all the right things about it being the former, but soon will come time for action.

Reports: Agent Rob Pelinka set to become Lakers new general manager, finalizing deal

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Golden State broke the mold and hired an agent as a general manager in Bob Myers a few years back. Safe to say that has worked out fairly well for them.

Now the Lakers will try to replicate that experiment — they are on the verge of hiring Kobe’s former agent Rob Pelinka as their new general manager, according to both media reports and the players he has under contract. Adrian Wojnarowski of The Vertical at Yahoo Sports was first with the news.

Backing up those reports, several of Pelinka’s players have come right out and said the agent is taking the job. Via Calvin Watkins of ESPN.

Rockets guard Eric Gordon said his agent, Rob Pelinka, will become the GM of the Lakers. “I think he’s going to be good,” Gordon said. “He had a good reputation as an agent and definitely expect nothing but good things from him. “It’s a different challenge, and I think he’ll be just fine.” Pelinka not only represents Gordon but Trevor Ariza and James Harden.

Pelinka will serve as the right-hand man for Magic Johnson, and will handle the day-to-day operations of the basketball side of the organization. On his first day, Johnson talked about working closely with coach Luke Walton, Ryan West (an assistant GM and son of Jerry), Jessie and Joey Boss (two of the Buss children also working in the front office, and well respected). Pelinka would be part of that collaborative effort — which is how most successful front offices work. While one person with the hammer has to make the final call, the best organizations have teams of guys who provide views from scouts, analytic departments, coaching staffs, capologists, and more (including ownership on the biggest deals). The idea is to synthesize all that information into an informed decision.

Pelinka would bring to the table things Jim Buss and Kupchak did not — he is personable and good in the room with players. Kupchak and Buss were disasters in free agent meetings with stars in recent years, but if you don’t know how to recruit as an agent, you starve. Pelinka also ran a team with his agency of competing personalities, he knows the CBA well, player contracts well, and he has good contacts all over the league.

Plus, Kobe wanted it.

Jeanie Buss says decision to fire brother Jim was so hard “I probably waited too long”

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The question has been for weeks not if but when. Ever since Magic Johnson was brought on as a “consultant to ownership” for Jeanie Buss and the Lakers the writing was on the wall, Jim Buss and Mitch Kupchak were going to be out. Magic’s heavy-handed public campaign to take over Jim’s spot added to the obviousness of the situation.

Nobody expected to be this fast — and certainly not two days before the trade deadline.

Why now? Lakers owner and team governor Jeanie Buss and Magic — the new head of Lakers’ basketball operations — were on the Lakers’ cable network Spectrum Sportsnet in Los Angeles and answered those questions.

“It’s something I thought about for a long time, and once the decision became clear in my mind there was really no reason to wait, Buss said…

“In today’s NBA there is no offseason, you’re constantly preparing for the draft, for the season, for Summer League, so there was no time like the present.”

This was very different from most teams firing a GM and basketball president — Jim Buss is Jeanie’s brother (and will remain part owner), Mitch Kupchak has been a loyal Laker front office soldier for decades. For Jeanie Buss, this was emotional and was not just business.

“This was a very difficult decision,” Buss said. “It was probably so hard for me to make that I probably waited too long. And for that, I apologize to Lakers fans. But now with clarity and direction, and talking to with Ervin, really knowing a change was needed, and that’s why we’re here today.”

Why did she wait so long, through what she called an “erosion” of what the Lakers should be?

“I wanted for the current (she meant former) front office to show us what Laker basketball was going to be. It just wasn’t going in a direction that was satisfactory for what this organization stands for,” Buss said.

Magic added perspective.

“It really wasn’t about the last couple weeks, it’s been about years,” Magic said.

However, Johnson did say in a later Los Angeles radio interview that he was kept out of the loop on the Lakers’ pursuit of DeMarcus Cousins All-Star weekend. He would not say if that impacted the timing, and he dodged the question about whether he would have included Brandon Ingram in the trade.

Johnson said he has talked to numerous other general managers already, both getting well wishes and talking trades — Los Angeles remains expected to move Lou Williams before the trade deadline, according to sources around the league.

“After we leave (the studio where this interview was taking place) we’re going to go back to the war room with coach Walton, Ryan West (an assistant GM), Jessie and Joey (Buss children working in the front office), we’re all going to sit in a room and evaluate trade possibilities,” Magic said.

Johnson continually praised both Luke Walton and the young core of the team — all of which were put in place by the former front office. He said he wanted to build with this core.

“We have the right coach with Luke Walton and a lot of great young players, that we can build and make sure we develop, and help them turn into the stars we think they can become,” Magic said.

“This isn’t about going back to Showtime, we’re not turning back the clock,” Buss said. “The Lakers have figured out how to win in every era, and certainly the game has evolved, and the rules have changed. We, in our discussions, were looking at evolving with the game and what the modern NBA is about.”

Magic said he wants a GM who can work with him and who also knows the CBA and has relationships with teams, “someone smarter than me.” He also talked about everyone in the organization working together in the front office, in a collaborative way.

“That’s how I built my (business) organization, that’s how I want to build this one,” Johnson said.

As expected, both Johnson and Buss said this was about winning and getting the organization going back in the right direction.

“When we sat down for dinner, and she asked me to come back, I think the timing was right,” Johnson said. “It was right for me to put my businesses aside and focus on Laker business, try to build an organization fans can be proud of, both on the court and in the offices.”