Breaking: Deal between Maloof family, Seattle’s Chris Hansen for Kings struck, to be announced

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While Sacramento will get a final shot to convince NBA owners that this is not something they want to approve, sources have told ProBasketballTalk that Seattle’s Chris Hansen is ready to announce a tentative agreement to purchase the Sacramento Kings in the coming days.

Following this come reports other teams have been notified of a sale, something PBT can confirm. The sale price is $525 million of which the new owners will get 65 percent.

Adrian Wojnarowski reported a week ago a deal between the Maloof family and Hansen was “at first and goal from the one,” and furthermore that the Kings moving to Seattle was a done deal. That report had been echoed by CSN Bay Area’s Matt Steinmetz and David Aldridge of NBA.com, though each reporter left a little wiggle room in case the Maloofs changed their minds.

According to our sources, any deal sending the Kings to Seattle would not be a done deal because any deal would be subject to an approval by the NBA’s Board of Governors.  In addition, sources tell PBT that Sacramento has been approached by at least three groups of “heavy hitters.”  Sacramento could be getting close to announcing a group that meets NBA criteria that has the “vision to transform one of the NBA’s most proven markets into a top NBA franchise.”  This, they believe, will help win the NBA’s support for keeping the Kings in Sacramento.

As we’ve followed this story for the last two years, the city of Sacramento has bent over backwards to accommodate the Maloofs according to sources from all sides of the situation. One league source called their offer of public funds to build an arena for the Maloofs a “model offer of public funds,” and the NBA itself supported the failed deal from last year that the embattled Maloof family backed out of.

Since reports of the Kings’ move to Seattle have hit the net from very reputable sources, Sacramento has been firing on all cylinders in what has been a long-term initiative to respond in the event the Maloof family was willing to sell the team. Indeed, sources close to the situation in the California capitol have told PBT that preparing for this contingency has been a prime focus of the city, and that when it comes time to present Sacramento’s offer to the Board of Governors that they believe it will be a compelling and competitive offer.

It will be up to the Board of Governors — made up of the 29 other NBA owners — to make that determination.

We reported in September that Seattle’s Chris Hansen would need to put up more money to beat Sacramento’s offer, and that is one of the main sources of the city’s confidence according to sources speaking on condition of anonymity.

We calculated that an offer from Sacramento of $425-450 million for the overall price of the Kings franchise would put more money in the Maloofs’ pockets than the reported $525 million offer from Hansen, because a Sacramento owner would not need to worry about the Maloofs’ outstanding loan to Sacramento (~$75 million).  The city also doesn’t have to worry about the league’s relocation fee, which was $30 million when the Sonics moved to Oklahoma City and became the Thunder, although the Board of Governors can set that fee at whatever level they wish. USA Today’s Sam Amick confirmed Sacramento’s target offer in his exclusive interview with Sacramento Mayor Kevin Johnson last week.

The biggest point in Sacramento’s favor according to sources is the “model offer” of public funds itself, an offer that was in excess of $200 million in a California climate that normally doesn’t support public funds for sports facilities.

Sources close to the situation tell PBT that this, along with the league’s fear of another Sonicsgate, will be the deciding factors should Sacramento be able to provide an actionable offer that is competitive with Seattle.

The Maloofs themselves have reached the point where they have to sell the team, something that doesn’t really help their leverage. Their financial struggles are well documented and in May they asked their minority owners for a $10 million cash call. Along with the threat of having a lame duck year in Sacramento, nobody with knowledge of the situation has said that there is a realistic chance that the family decides not to sell.

This means that this story is coming to a head, and if the Board of Governors pushes the Maloofs toward the Sacramento offer they will have to listen. Because a Sacramento offer can put the same type of dollars in the family’s pockets, sources in Sacramento like the city’s chances to pull this out.

Favoring Seattle is the fact they have a larger television market than Sacramento (Seattle is 14th, Sacramento is 20th), and that a relocation fee assessed to Seattle could put money in each owners’ pockets, but Sacramento isn’t without ammunition here.  They have no competition from other sports teams and have a long and storied history of supporting their franchise.  They are also arguably further along in their arena building process, as Seattle is still facing two relatively toothless lawsuits and an environmental review while Sacramento’s arena deal was ready for approval last year.  In addition, as SB Nation’s Tom Ziller points out, there are several reasons that expansion could benefit the league and owners would also benefit from an expansion fee in that case as well, which would theoretically give the Hansen group a better price point to join the club.

Sacramento has been working for a long time and has not been caught off guard by the Maloofs’ intentions to sell. As long as Mayor Kevin Johnson can deliver the package he has been foreshadowing, it will be up to the league to decide whether or not they want to turn their back on Sacramento.

As usual, it comes down to showing the league the money. Fortunately for Sacramento, this is something that Mayor Johnson has a great track record with.

Sacramento Mayor Kevin Johnson will reportedly get that chance, but he’s going to have to convince the owners to reject a deal put before them. While those same owners did that in the case of a proposed Kings move to Anaheim, this may be a tougher pitch for Sacramento.

Report: Magic’s search firm inquiring about Larry Bird

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Larry Bird resigned as Pacers president.

Not just today, but also in 2012. A year later, he was again running a front office (Indiana’s).

Could he make an even quicker leap back into NBA team presidency – with the Magic?

Adrian Wojnarowski of Yahoo Sports:

This strikes me as more as Orlando’s search firm trying to prove its usefulness than a viable option.

Whether they’re trying to generate excitement, getting used for leverage or actually serious, the Magic keep getting linked to big-name replacements for the fired Rob HenniganDoc Rivers, David Griffin and now Bird. If the Magic are willing to pay major money for name recognition, they could get plenty of people to at least listen. But I’m unconvinced about that spending.

It’d be a little weird for Bird to inherit Frank Vogel, whom Bird fired as the Pacers’ coach. But Bird did everything he could to show that was more about seeking change than losing faith in Vogel.

Report: Larry Bird stepping down as Pacers president

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Larry Bird put his stamp on the Pacers in the last year –  firing Frank Vogel and trading for Jeff Teague and Thaddeus Young to join hand-picked Monta Ellis and Myles Turner as Paul George‘s supporting cast on an up-tempo, offensively dynamic team.

The plan fell flat.

Indiana played at a below-average pace and produced a middling offense. The Pacers got swept by the Cavaliers in the first round of the playoffs.

Now, Indiana’s uncertain future – with Paul George a year from free agency and the Lakers courting – gets even more chaotic.

Adrian Wojnarowski of Yahoo Sports:

Bird had already resigned once as Pacers president, in 2012. He returned the following year.

Bird’s patience and pain tolerance for the job due to lingering back issues from his playing days has long seemed to waver. I wouldn’t write him off for good.

Indiana promoted Kevin Pritchard in 2012, when Bird previously stepped down. Pritchard previously worked as the Trail Blazers’ general manager, and he’s a qualified replacement.

The work begins immediately with a decision on George. If he doesn’t make an All-NBA team, the Pacers won’t gain as much financial advantage in his contract offer. That could open the door to a trade and rebuilding around Turner — or making a last-ditch push to convince George he can win in Indiana.

Report: Clippers expect Chris Paul to re-sign

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Chris Paul reportedly verbally committed months ago to re-sign with the Clippers. There have been mixed signals about Blake Griffin‘s intention to re-sign.

But they can’t formalize the deals until July, and the Clippers are now one game from another demoralizing first-round exit.

Where do they stand now?

Kevin Arnovitz of ESPN:

Sources close to the Clippers say that they expect Paul to re-sign with the Clippers. He’ll be eligible for a five-year contract in excess of $200 million. Griffin’s return is less certain, sources say. This summer is his first foray into unrestricted free agency. Given his snakebitten tenure with the team and the possibility of another early exit, the prospect of exploring what’s out there will be alluring. One premise volunteered in good humor suggests that Paul is more likely to take a slew of meetings in a public process but ultimately re-sign with the Clippers, while Griffin is more likely to mull the decision privately under the guise of night, but announce he’ll be playing elsewhere in 2017-18.

Clippers president/coach Doc Rivers has made clear his desire to re-sign Paul and Griffin, and the playoffs won’t change that. This is the right call. It’s so difficult to assemble a team this good, the Clippers shouldn’t throw it away for the sake of change. Just because the Clippers haven’t gotten the breaks in previous seasons doesn’t mean they won’t get the breaks in future seasons.

But Paul and Griffin – and J.J. Redick, who’ll also be an unrestricted free agent – will determine the franchise’s fate. If they want to leave, they’ll leave.

Can the Clippers lure them back? They apparently think they’ll keep Paul, but there’s an uncertain dynamic in L.A. that Arnovitz explores in great depth. I highly recommend reading his full piece.

Nike, Adidas, Under Armour pass on potential No. 1 pick Lonzo Ball

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NBA teams reportedly aren’t dinging potential No. 1 pick Lonzo Ball over all the wild stuff his dad says and does.

Shoe companies are apparently taking a different approach.

Darren Rovell of ESPN:

An endorsement deal with Nike, Under Armour or Adidas is not in the cards for Lonzo Ball.

Ball’s father LaVar confirmed that the three shoe and apparel companies informed him that they were not interested in doing a deal with his son. Sources with the three companies told ESPN.com that they indeed were moving on.

In his meetings with the three, LaVar insisted that the company license his upstart Big Baller Brand from him. He also showed the companies a shoe prototype that he hoped would be Lonzo’s first shoe.

“We’ve said from the beginning, we aren’t looking for an endorsement deal,” LaVar told ESPN. “We’re looking for co-branding, a true partner. But they’re not ready for that because they’re not used to that model. But hey, the taxi industry wasn’t ready for Uber, either.”

“Just imagine how rich Tiger (Woods), Kobe (Bryant), Serena (Williams), (Michael) Jordan and LeBron (James) would have been if they dared to do their own thing,” LaVar said. “No one owned their own brand before they turned pro. We do and I have three sons so it’s that much more valuable.”

Is there more upside in this approach? Yeah, I guess.

But the traditional shoe companies bring valuable infrastructure and experience. There’s value in forfeiting upside for those resources. Lonzo Ball, who has yet to play in the NBA, is also missing out on guaranteed life-changing money.

On the risk-reward curve, this seems like a mistake.