Sacramento mayor Kevin Johnson lays out framework for Kings to stay put

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With reports swirling that the Kings’ move to Seattle is a mere formality at this point, the story on the ground in Sacramento is much, much different.

In the end, this story comes down to three things:

1. Can Seattle’s Chris Hansen close a deal with the Maloofs to buy the Kings? (According to reports, it was first and goal at the one-yard line about a week ago)
2. Can Kevin Johnson secure the opportunity to meet or beat that offer?
3. What will the NBA’s Board of Governors decide to do?

As we reported in September, in order for Seattle to be able to beat Sacramento’s offer financially they would have to drastically overpay for the team. This is because Sacramento owners do not have to worry about the Maloofs’ loan to the city, relocation fees, or moving costs.

The offer in Seattle has been reported to be $525 million based on the overall valuation of the franchise, so Sacramento can pay $425-$450 million based on the overall valuation of the franchise and still end up providing more money to the Maloofs than Seattle can.

With sources speaking to PBT on the condition of anonymity saying Sacramento has multiple buyers that meet both the city and NBA’s criteria for owning a franchise, the pertinent question has been whether or not David Stern and the other owners would allow Sacramento to present their offer.

We got that confirmation today at the State of Downtown Sacramento Breakfast when mayor Johnson announced that Stern had indeed approved Sacramento’s request to speak at the Board of Governors meeting in April.

This is an extremely significant development in this story. First, it displays the trust that has grown between Stern and Johnson, as well as between Stern and the city of Sacramento, who has met every deliverable that has been asked of them in the Maloof debacle.

Second, it shows that Stern and the other owners are willing to let this relocation issue play out at a more visible level. If they had no intention of giving Sacramento a chance, then it would be a curious decision to give the critical voices blasting the NBA for its relocation practices the oxygen to continue bashing them.

Indeed, the city of Sacramento has presented a “model offer of public funds” according to one league source, and for a complete rundown of what a decision to move the team from Sacramento would look like, you can check out previous write-ups about the NBA’s billion dollar subsidy industry and how that plays into the league’s decision-making here.

In short, the league has leveraged cities into providing $3 billion of public money since 1990 for the creation of state-of-the-art arenas – all predicated on the assumption that a long-term partnership would be honored so long as both parties are acting in reasonable good faith.

If Sacramento has done everything it can to keep their team, a fact that is not in dispute, then leaving them at the altar because the Maloof family ran their own finances into the ground is going to be a major problem the next time they go to ask a city for money.

Most importantly, with sources close to the situation confident that they will have an actionable offer that will reasonably meet or beat the amount of money that Hansen can put into the Maloofs’ pockets — assuming he and partner/Microsoft CEO Steve Ballmer don’t turn into the drunk guys at an auction — then Stern and the other owners are going to have to make an unprecedented decision to move the team out of Sacramento.

Not only would a Sacramento offer likely break the NBA record purchase price of a franchise, and include an actionable plan to build a brand new arena with a league vetted public-private partnership, but a decision to move the team would mark the first time a mid-market city had been poached for a larger market when the original city had everything the league could ever ask for in place at the time of the move.

Looking at the Maloof side of the equation, they are both driving this discussion but are also operating at an extremely weakened position in this debacle. Owing as much as $200 million by various reports and facing a financial crisis of their own (they just made a cash call to minority investors according to NBA.com’s David Aldridge), it would be a shocking move if they did not sell the team at this stage of the game.

Furthermore, both the family and the NBA could be in for a messy breakup should Sacramento not be given a fair chance to buy the team.

Any lawsuit filed by the city to stall the deal for what legal sources say could be any number of criteria relating to the improper moving of the franchise, including but not limited to union workers’ rights and the lack of a local bidding process, would necessarily put the Maloofs into a lame duck season in Sacramento.

When considering the Maloofs’ messy financial situation and considering the league’s likely desire not to get into a protracted battle over the Kings, all signs point to Sacramento getting a chance to present their offer with everybody at the table willing to vote their way should the deal points pan out as Sacramento sources say they will.

For all of the talk about the Maloofs not wanting to sell to a Sacramento buyer, and confirming Sam Amick’s must-read report about the situation, the talk of Ron Burkle appears to be overstated at this point.

There are sources in Sacramento that believe he could still be a party to these talks, but that the KJ camp is not relying on any one white knight at this time. It has been reported here and elsewhere that the Maloofs don’t want to sell to him because of their dislike for the billionaire, who they believe ruined their chances to move to Anaheim in March of 2011.

The reality here is that they are going to have to fall in line with what the NBA’s BOG decides or face the prospect of a lame duck season going heads up against both the NBA and Sacramento, and in their financial situation that is a non-starter according to most sources with knowledge of the situation.

These sources aren’t going to predict what the Maloofs will try to do, but most believe that the family will take a financially favorable offer in Sacramento and also that if the league decides to back Sacramento in a relatively close deal that they family will back down and take the offer.

With the decision to have Kevin Johnson out to the BOG meetings already made, the focus of this story shifts to the work at hand for Sacramento. They have to get their ownership group finalized and ready for presentation.

Those following the situation should not be surprised if a deal is announced in Seattle, but like the San Francisco Giants’ eventually blocked sale to Tampa Bay in August of 1992 this will be decided by the owners once Johnson’s deal is finalized should Hansen come to an agreement with the Maloofs.

And for those handicapping the action, Kevin Johnson is not going to make that presentation without having owners in place that meet the shared criteria of both his camp and the NBA office. He will come boasting a ravenous No. 20 television marketplace with some advantages and disadvantages compared to Seattle, but nobody will deny Sacramento’s appetite for NBA basketball.

In 24 hours since announcing their grassroots effort, Here We Buy has received pledges totaling nearly $10 million from local individuals and businesses toward season tickets under the new ownership group.

Johnson will come armed with the ability to force the Maloofs into a lame duck season if he has to, but mostly he will arrive at that meeting with yet another stirring example of his city stepping up with all odds against it.

The images of the Sign Lady, Carmichael Dave on a ladder telling crying Kings fans that ‘this is not over by a long shot,’ and the 600-1000 arena workers that are going to lose their jobs are not going to be lost on the proceedings, and for the owners without tear ducts in their eyes they will look at the financial risk of a decision against Sacramento side by side to the incremental benefit of a very qualified Seattle offer.

That decision to rip out Sacramento’s heart is all risk and marginal gain, assuming Kevin Johnson has one more career-defining slam dunk left in him.

And since he hasn’t missed a shot yet, it seems silly to bet that he’s going to fall apart in the fourth quarter.

Jimmy Butler trade sets the stage for looming free agency

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(AP) — As draft night approached, some of the heavy hitters in the NBA – Cleveland, San Antonio, Houston, Boston, the Clippers among them – were jockeying, making calls and looking for deals to try to position themselves to make a run at the Golden State juggernaut.

The Warriors’ greatness has forced the rest of the league to do deep self-examination and be aggressive in upgrading their rosters if they’re even going to have a chance to compete. The Celtics and Cavaliers were looking hard at Pacers star Paul George and Bulls guard Jimmy Butler, the Rockets and Spurs were looking at clearing cap space to make a run at some big-name free agents next week and the Knicks were, well, the Knicks.

Draft night always lays the groundwork for what will happen when the circus (officially known as free agency) begins on July 1. And with all of those contenders looking to make a splash, the biggest move was made by … the Minnesota Timberwolves.

The Wolves reunited Tom Thibodeau with Butler, giving up two promising young players in Zach LaVine and Kris Dunn and the No. 7 overall pick to land one of the best two-way players in the game. The move should jumpstart Minnesota’s pursuit of its first playoff spot since 2004 and, the Wolves hope, pave the way for success in free agency.

“I think it will (help) a lot,” Thibodeau said. “With players, they look around the league, they see the makeup of the team, they see how they play, play together. That’s the main thing. Both offensively and defensively.”

The Timberwolves have long had difficulty attracting free agents to a relatively small market that spends four months of the year covered in ice and snow. Landing a top-15 player like Butler to team with Karl-Anthony Towns and Andrew Wiggins sends a sign of how aggressive the teams could be.

The Bulls plunged head-first into a rebuild with the decision, and now it’s up to the Pacers to decide if they want to do the same.

Much to the dismay of Pacers GM Kevin Pritchard, George let it be known last week that he did not plan to re-sign in Indiana when he becomes a free agent next summer. Most of the league assumes that he wants to play for the Los Angeles Lakers, who appear to be in a tug-of-war with the rival Celtics for George’s attention.

“I’m confident we’ll get something,” Pritchard told reporters in Indianapolis on Friday.

One of the big markets affected on Thursday night was at point guard, the deepest position in the league. Philadelphia, the Lakers, Sacramento, New York and Dallas all drafted point guards in the top 10, which could diminish the options for veterans like Jrue Holiday, George Hill, Jeff Teague and Patty Mills.

The elite point guards available – Chris Paul and Kyle Lowry – should have no trouble finding significant contracts. With Tony Parker suffering a serious injury in the playoffs, the Spurs were reportedly trying to clear space to make a run at Paul, who is widely considered the best point guard in the league. Paul has spent the last six seasons with the Los Angeles Clippers, but has yet to advance to the Western Conference finals.

The Clippers are trying to make a decision about retooling around the core of Paul, Blake Griffin and DeAndre Jordan, but really it’s a decision that depends largely on Paul’s thinking. He has long struggled to win big in the postseason, and heading to San Antonio to join with Kawhi Leonard or Houston to team up with James Harden could prove to be more attractive.

Lowry figures to remain in Toronto with a Raptors franchise that he has helped put back on the map, but after that there will be few teams in the market for a high-priced starting point guard. Denver, Utah, New York and Indiana could wade into those waters. But if they look at themselves as still being a couple of year away, they might be hesitant to spend big bucks on a veteran.

Other big names available include Gordon Hayward, Paul Millsap and Andre Iguodala. And while some of the very biggest names like Kevin Durant and Steph Curry figure to stay put, it only ramps up the sense of urgency for teams that have big holes to fill.

The clock is ticking and Thursday night provided the first steps toward making big improvements to the roster.

The Timberwolves rocked the boat with Butler, but the waters were calm after that, which should only mean one thing: It’s about to get real choppy when the clock strikes midnight on July 1.

 

Report: Dallas picks up option on Yogi Ferrell for next season. As expected.

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When teams sign a guy out of the D-League, or late second-round picks/undrafted guys as you see this summer, they are often announced as “a three-year deal.” The reality, this is a non-guaranteed contract (or at most a guaranteed contract for a short period of time) with team options for future years.

Why teams do that is guys like Yogi Ferrell.

Dallas snapped him up out of the D-League last season when they needed a point guard, and Ferrell proved to be a solid rotation-level player to bring off the bench. With that Dallas now has the option to bring him back at a good price next season, and they will do just that, reports Tim MacMahon of ESPN.

Sources say the Mavs have informed PG Yogi Ferrell that they are picking up his team option for next season, an easy decision after he proved himself capable of being a rotation player after his promotion from the D-League.

Ferrell will make $1.3 million next season, a steal for a rotation player. Dallas needs that, because the cost of keeping Nerlens Noel could push the Mavericks close to the luxury tax.

If Ferrell keeps playing like he did last season, and his big payday is coming in a couple of years.

What exactly was on the table for Bulls in Jimmy Butler trade?

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It’s been the cry since the Bulls’ front office traded Jimmy Butler for Zach LaVine (coming off an ACL surgery), Kris Dunn, and the No. 7 pick (Lauri Markkanen):

Why didn’t the Bulls get more?

I’m in the camp they didn’t get enough, starting with the question why did they give Minnesota the No. 16 pick in the deal? Even if the Bulls keep that pick, it doesn’t feel like they got enough for an All-NBA player, a top-flight wing defender who can also get buckets with the ball in his hands. The Bulls could have been patient and waited out a better offer, one of this quality would always have been on the table.

However, the deals for Butler may not have been as rich as fans assume. Here is part of what ESPN’s Zach Lowe wrote breaking down the trade.

It’s not as if Chicago didn’t canvas the league, either. The Bulls talked to Phoenix about a package centered around Eric Bledsoe and the No. 4 pick, but nothing came close, according to league sources. (Those talks may have been linked at one point to Cleveland’s pursuit of Butler, which apparently fizzled Thursday as Dan Gilbert, the Cavs’ owner, tried to hire a new president of basketball operations on the freaking day of the draft.)

They poked around with Denver, but the Nuggets drew a line at Jamal Murray, sources say. Those teams had to weigh the possibility of Butler bolting in 2019, which cooled the market a bit, sources say.

Boston has danced around Butler for almost a year now, and would not include the No. 3 pick in any package for him as the draft approached, sources say. Other reports suggest they refused to offer next year’s Nets pick, or the Lakers-Kings pick they snagged from Philly in the Markelle Fultz deal.

Boston’s Danny Ainge wanted a deal, a bit of a discount, and the Bulls were not going to give it. Those pick requests are reasonable for a Top 15 player, but Ainge knows he can be patient and the Celtics will still win more than 50 games next season and be a contender in a couple of years. Ainge knows he has a real shot at Gordon Hayward as a free agent this summer. He knows it’s not Butler or bust, so he didn’t go all in. He can afford to be patient right now, but eventually he will have to make a move.

The lack of a better market for Butler speaks to a couple of things. Phoenix, Denver, and other teams are correct to worry about overpaying for a player that could leave in a couple of years. Maybe they can win him over with their culture, maybe a team like Denver becomes very dangerous with Butler in the mix with Nikola Jokic, but is that enough. This is also where the looming shadow of Golden State, the Mount Everest looming over all things in the West, comes into play — how much do teams want to pay to try to contend right now?

Still, the Bulls could have done better. At least know a direction is set, the Bulls are rebuilding. Can Gar/Pax pull that off is another question entirely.

Klay Thompson goes up for 360 dunk in exhibition… and he’s not a dunker (VIDEO)

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Klay Thompson has an amazing skill set — one of the best pure shooters in the league, he can put the ball on the floor and create, and he’s a very good perimeter defender.

He’s not a dunker. Oh, he can dunk, but he’s not the guy you’re inviting to the Dunk Contest.

Case in point, this video out of China where Thompson was part of an exhibition and tried to show off his dunking skills.

Thompson’s shoe sponsor is China-based Anta, which explains why he’s there playing some exhibition ball. In case you missed it, Thompson had a Finals shoe released.

Those are about as good as the 360 dunk.