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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.

Kings GM Vlade Divac on Rudy Gay’s communication complaints: ‘He has my number’

Vlade Divac
AP Photo/Rich Pedroncelli
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Rudy Gay complained about how the Kings are handling the trade rumors swirling around him.

Sacramento general manager Vlade Divac, via James Ham of CSN California:

“He has my number,” Divac told CSN California. “If I do something, I will call him. Obviously, if I didn’t call him, we didn’t do anything.”

“Look, I was a player, 16-17 years in the league, nobody called me everyday and tell me what management is doing,” Divac said. “Management was doing their job. If something big happened, they called and told me. Obviously, nothing big happened (so) I’m not going to call anybody.”

I suppose Divac can take that tack. He’s obviously not obligated to provide Gay regular updates.

But the Kings already have a reputation for putting their players in bleak positions. This doesn’t help.

Even if Divac feels calling Gay is going out of his way, so what? The alternative — Gay either coming to training camp unhappy or spreading word of Sacramento’s mistreatment of players to his new teammates after a trade — is far worse.

It’s not enough for Divac to just wait for Gay to call him — especially because Divac might not be as reliable with the phone as he thinks.

Union to fund health insurance for retired NBA players

LOS ANGELES, CA - FEBRUARY 23:  Professional basketball player Chris Paul commentates during the CP3 PBA Celebrity Invitational Charity Bowling Tournament presented by GoBowling.com at Lucky Strike Lanes at L.A. Live on February 23, 2016 in Los Angeles, California.  (Photo by Imeh Akpanudosen/Getty Images for Professional Bowlers Association)
Imeh Akpanudosen/Getty Images for Professional Bowlers Association
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The National Basketball Players Association has talked for more than a year about covering medical expenses for retired players.

Today, the union announced a formal plan.

NBPA release:

The National Basketball Players Association (NBPA) announced today that its player representatives have voted unanimously to fund health insurance for all retired NBA players with at least three years of service in the league. This program is the first of its kind among North American professional sports. It also exemplifies the NBPA’s focus on the health and welfare of its current, retired and future members.

“The game has never before been more popular, and all the players in our league today recognize that we’re only in this position because of the hard work and dedication of the men who came before us,” said Chris Paul, NBPA President and nine-time All-Star. “It’s important that we take care of our entire extended NBA family, and I’m proud of my fellow players for taking this unprecedented step to ensure the health and well-being of our predecessors.”

The unanimous vote – which took place during the NBPA Summer Meeting in New York on June 26 – established a multi-faceted health insurance program through UnitedHealthcare, the country’s leading health benefits provider. The current proposal includes:

  • Retired players with between three and six years of NBA service time but who are not yet eligible for Medicare would be offered a plan that includes medical, hospital and prescription drug coverage with modest out-of-pocket costs for deductibles and co-pays;

  • Those with between seven and nine years of service would be offered the same coverage with even lower out-of-pocket costs;

  • Retired players with at least 10 years of service would be offered the same coverage as the seven-to-nine year players, and would include coverage for their entire family;

  • Retired players with three-nine years of service who are eligible for Medicare would be offered a $0 deductible and $0 co-pay plan along with a low-cost prescription drug plan; those with 10+ years of service to receive this coverage for themselves and their spouse.

  • The open enrollment period for retired players would begin this fall, with coverage beginning on January 1, 2017.

This is a good thing.

It also could become a bargaining point in Collective Bargaining Agreement negotiations. Should current players face the entire burden of insuring retired players, or should owners split the cost? (The fact that the question is even being posed paints players in a positive light.)

But back to the bigger point: This is a good thing. It’ll help retired players who need it, retired players who helped position the current generation to afford this. Kudos to the union for stepping up.

Report: Bulls’ Cristiano Felicio ‘strong favorite’ to replace Anderson Varejao on Brazilian Olympic team

CHICAGO, IL - FEBRUARY 19: Cristiano Felicio #6 of the Chicago Bulls looks to pass against the Toronto Raptors at the United Center on February 19, 2016 in Chicago, Illinois. The Bulls defeated the Raptors 116-106. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using the photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Jonathan Daniel/Getty Images)
Jonathan Daniel/Getty Images
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Warriors center Anderson Varejao will miss the Rio Olympics due to a back injury.

Where will Team Brazil turn now?

Likely to Bulls center Cristiano Felicio.

Marc Stein of ESPN:

Felicio came on strong late last season. He puts his 6-foot-10, 275-pound frame to good use protecting the paint and rebounding. He showed potential as passer and mid-range shooter, too.

At age 24, he’s a candidate to break out in the Olympics.

If he’s not ready, Brazil can turn to a steady veteran at center, Nene.

Report: Equipment staffer punched by Blake Griffin no longer works for Clippers

Los Angeles Clippers forward Blake Griffin stands on the court as equipment manager Matias Testi, left, stands behind the bench during the second half of an NBA basketball game, Thursday, Feb. 18, 2016, in Los Angeles. Griffin broke his hand last month when he punched Testi in the face. The Clippers won 105-86. (AP Photo/Mark J. Terrill)
AP Photo/Mark J. Terrill
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Blake Griffin broke his hand punching Clippers equipment manager Matias Testi in January.

Make that former Clippers equipment manager Matias Testi.

TMZ:

The L.A. Clippers equipment staffer who was punched in the face by Blake Griffin during a fight in Toronto earlier this year is off the team — and will NOT be back for the ’16/’17 season … TMZ Sports has learned.

We spoke with a rep for the Clippers who confirmed Matias Testi “no longer works for the team.”

#Family