seattle arenas

Lawsuits in Seattle give Sacramento head start in race to approve an arena

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The question of which city, Sacramento or Seattle, is ahead in the race to bring the NBA a brand new arena attached to a shiny new public subsidy is unclear at this time, but sources with intimate knowledge of the situation tell PBT that so long as Sacramento Mayor Kevin Johnson delivers on his promises that Sacramento will be ahead in that process.

A lot of that comes down where each city is legally within that process, and how that process is conducted in both Washington and California.

While some early media reports might have led folks to believe that Chris Hansen’s arena deal (and offer to buy the team) were a slam dunk, the documents laying out the framework of his arena proposal are under siege.

Specifically, the Memorandum of Understanding (MOU) and Interlocal Agreement (IA) he entered into with the city of Seattle and King County have been under intense scrutiny locally, as they are currently the target of two lawsuits.  The first of those lawsuits is potentially being decided today at 1:30 PT.

The first suit brought by the International Longshoreman’s Workers Union challenges the site selection process within Washington’s Environment Impact Review (EIR) process, saying that Hansen and the local government conducted a “sham” site review process that did not provide reasonable, actionable alternatives other than Hansen’s hand-picked site.

That site, located in Seattle’s SODO district, has been the battleground of competing arguments regarding traffic and how it might impact Port of Seattle’s operations, and otherwise cause gentrification, loss of business in the area, and impact a large number of family-wage jobs in exchange for temporary construction jobs and a smaller number of low-paying arena jobs.

Arena proponents point out that most of the events at the proposed SODO site would occur after the Port’s business hours. Arena opponents say that the cumulative impact of creating a third large-scale sports and entertainment facility within their maritime industrial area, with an L.A. Live-like experience of retail outlets and restaurants, will necessarily bring more traffic to the region regardless of hour and disrupt Port operations.

These kinds of lawsuits are standard fare in any large-scale development project nationally right now, but they can have impacts on developments. In this case, opponents of the current MOU and EIR process point out that it could take “hundreds of millions of dollars” to mitigate the traffic issues a new arena would face, according to head lawyer for the ILWU suit Peter Goldman.

Hansen has offered $40 million to address traffic mitigation concerns, but in reality the question of who pays what for additional mitigation has yet to be solved because the EIR has yet to address the issue. Should Hansen have to pay for additional mitigation, it could further strap him and his group as it relates to their overall offer for the Kings, but the fear for locals is that the money would have to come from the public coffers.

The ILWU’s suit alleges a number of concerns relating to the site selection process, and asks the court to force Hansen and the local government to declare the MOU and IA “null and void” because they are in violation of the State Environmental Policy Act (SEPA).

It is unclear whether or not this would impact Hansen and the local government’s warranties to the NBA about its current arena situation.

(UPDATE: The judge ruled in favor of Hansen, Seattle, and King county and dismissed the lawsuit.  Hansen and governmental officials argued they did not have an arena agreement in place and that they would look at other locations.)

Goldman said that this suit was “preliminary,” and cited the broad swath of industry that is opposing the arena proposal in its current form. He pointed out that there will be more times for lawsuits to be filed down the road, but that he and his client were concerned that the site selection process wasn’t being conducted according to current state laws.

The second lawsuit relates to Seattle’s in-force Initiative 91 and the contention by its co-author Mark Baerwaldt that the current MOU does not meet the law’s criteria.

Baerwaldt is careful to point out that the courts would decide the matter. His complaints focus on the financing mechanisms that Hansen and the local government are using to meet the statute’s definition of turning a profit on public subsidies for sports arenas. This lawsuit is awaiting response from Hansen, Seattle, and King County.

I-91’s other co-author, Chris Van Dyk, has also been at the center of this discussion, being cited by many Seattle media outlets as being supportive of Hansen and Seattle’s MOU. He addressed those reports exclusively with PBT, saying he “never said it was compliant” and that “if he’s the best cheerleader (Hansen and Seattle) can come up with then they’re in trouble.”

Van Dyk also offered that “he’s looking forward to hearing the expert testimony,” because he didn’t think “I-91 anticipated meeting the type of funding mechanism that Hansen has presented.”

Whether or not the Longshoreman’s suit goes in favor of the plaintiff or Hansen and Seattle, Goldman says to expect more legal resistance down the road.  If they win, Hansen and Seattle has to start over with their MOU and come to the table with alternative sites that they may not like.  Then the city would have to choose between the site that Hansen wants, and a potential site that presents better alternatives in terms of environmental concerns and traffic.

If they lose today, he says that there is a “significant appetite” not just by his clients but a broad swath of industry including the Port of Seattle to appeal the decision and fight the EIR process at every stage. All of the potential delays and injunctions were reflected when David Stern told Jonathan Feigen of the Houston Chronicle that the NBA had “no approved plan for an arena in Seattle.”

Therein lies the rub for the Seattle group. While they seek to convince the BOG that they have an actionable arena plan, they are arguing in court that their MOU and IA just lay out a process for reviewing and financing an arena proposal and do not constitute an ‘action’ under state EIR laws. Therefore, they contend that the Longshoreman’s suit is not “ripe” and are asking for it to be thrown out.

Sources with intimate knowledge of the situation tell PBT that this is a tightrope that the Seattle group can walk, and Scott Howard Cooper of NBA.com illustrated that point by saying the league isn’t overly concerned with legal issues in either Seattle or Sacramento, but the question goes back to points made by TNT’s David Aldridge about which city can get an arena deal done first.

Aldridge, who had previously reported Seattle had a “clear path” to obtaining the Kings, said on Saturday “there are questions about whether or not the Seattle deal is as airtight as they say it is.”

After Stern’s press conference on Saturday Aldridge elaborated, “We have very equal bids here. What it comes down to is the feel the owners have on ownership groups, and which arena can be built the fastest.”

The EIR process in Seattle is underway, but with two lawsuits pending and only the judges in both suits being capable of delivering an up-or-down answer to the litany of issues presented, the uncertainty over what type of delays Seattle could face and what type of mitigation will be needed to preserve other parties’ rights are huge question marks.

On the other side, it’s Johnson’s track record of delivering on promises to the NBA that has insiders optimistic about Sacramento’s chances of delivering that ‘fair and competitive’ offer that will include a significant public subsidy and downtown arena.

That effort has been underway for a while now, as the NBA negotiated the current arena deal that the Maloofs backed out of, a deal that Johnson and Sacramento have maintained is still on the table.

Additionally, proposed arena locations in Sacramento aren’t likely to have the same types of blowback being faced in Seattle, where their sizable maritime industrial economy feels threatened by Hansen’s proposal.

One source with intimate knowledge of the situation speaking to PBT under conditions of anonymity spoke about Sacramento’s pair of proposed locations:

“Both potential Sacramento sites are complimentary to the existing downtown commercial uses, and unlike the fight in Seattle the downtown proposals are being welcomed as a revitalization project. Both are efficient reuses of developed property, and both sites qualify under the expedited state AB 900 CEQA process, which limits the delay from any potential lawsuits. Having already approved a deal structure a year ago with no lawsuits filed, Sacramento has a big advantage to deliver a timely arena facility.”

That AB 900 CEQA process is an interesting wrinkle to Sacramento’s effort to keep their team, as the bill creating that process was recently signed into law and co-authored by Think Big Sacramento supporter and California Senate President pro Tem Dan Steinberg. According to law firm Stoel and Rives:

“The (bill provides) an incentive for applicants to move forward with their projects because any challenge to a leadership project Environmental Impact Report (“EIR”) under the California Environmental Quality Act (“CEQA”) will be venued immediately in the Court of Appeal. The court will then have a maximum of 175 days to issue its decision on the challenged EIR”

Incidentally, the bill was passed in part to help facilitate the potential Farmer’s Field deal to bring NFL football back to L.A. The company driving that proposal is AEG, who is supporting Sacramento’s bid and being pursued for purchase by Ron Burkle, who is one of the ‘whales’ that reportedly stands behind Sacramento’s offer.

“It’s time for big thinking and big projects that put Californians back to work,” said California Governor Brown. “Projects like Farmers Field can create thousands of jobs during a tough economic time, so it is imperative for the state to cut the red tape that could delay projects like this for years. These bills strike the right balance between protecting our environment and kick-starting jobs and investment in California.”

Sources say NBA owners will be weighing the totality of the arena timelines for both sides, and in Seattle’s case how many years a potential Sonics team will have to play at Key Arena, a facility deemed by the NBA to not meet its standards when the Sonics left for Oklahoma City in 2008.

Hansen’s current plan calls for a potential Sonics team to play in Key Arena (with modest improvements) for as little as two years, while arena opponents believe that timeframe could be extended to as many as four years if lawsuits hold up the process. While Sacramento could face similar lawsuits, they didn’t face any during the 2011 arena deal, and the expedited review process and potential for less environmental concerns at the city’s proposed sites have sources pointing at the issue as a point in favor of Kevin Johnson’s expected proposal.

While Seattle’s lawsuits aren’t likely to be the defining factor in this saga – Sacramento’s production of an actionable offer will be that factor –the fact that the Emerald City can’t say with certainly how long they’ll be locked up at Key Arena could be the starting point for their bid to take the Kings to unravel.

Adam Silver says hack-a-player rule changes could come next season

NBA Commissioner Adam Silver speaks before the NBA all-star skills competition in Toronto on Saturday, Feb. 13, 2016. (Mark Blinch/The Canadian Press via AP) MANDATORY CREDIT
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TORONTO — The stat laid out by NBA Commissioner Adam Silver was head turning:

There have been 5.5 times more Hack-a-Shaq (or hack-a-player, if you prefer) fouls this season than last season.

During his annual All-Star Weekend address to the media, Silver again said that winds of change seem to be growing stronger on this issue —  and now the NBA’s television partners are weighing in on the issue. DeAndre Jordan shooting 30 free throws a game is bad television and this is an entertainment business. if television networks want a change, things happen.

We all know how American sports works — if television networks want a change, things happen.

“Well, first of all, change will not be enacted this season. But it’s an issue that we’ve been studying for some time now…” Silver said. “So far, up to the All-Star break this season, we’re seeing the Hack-a-Shaq strategy used at roughly a five and a half times greater rate than it was used last season. So to the extent that the data is coming in, it’s showing there is a clear trend and that clearly our coaches who are smart and using very complex analytics believe it is benefiting them. My personal view, as I said last week, is beginning to change on the issue. As I said last summer, I said I was personally on the fence as well. I’m beginning to feel that a change needs to be made. And that comes in response to conversations with our network partners. It comes in response to fan data that we look at, we’re constantly surveying our fans to get their sense of what they see out on the floor. I’m talking to players and general managers and our owners of course.”

The challenge, Silver said, is building a consensus around an alternative.

“So I think it’s my job right now to at least formulate an alternative together with the Competition Committee to ultimately bring to our Board of Governors (the owners),” Silver said. “I should point out that to change a playing rule in the league it requires two-thirds of the owners to vote in favor of it, so it would require 20 teams voting in favor of it. So we’re nowhere near that point where we’re even starting to count heads.”

By the time the owners meet in July, expect the owners to vote on this. And as those owners are stuffing all those dollars from the new television deal in their pockets, if those networks want a rule change, well, money talks.

And as those owners are stuffing all those dollars from the new television deal in their pockets, if those networks want a rule change, well, money talks.

Silver addressed a variety of topics in his 45-minute talk. Among the other news of note:

• After the All-Star break ends, expect the league to let teams know that when making one of those Hack-a-Shaq fouls by jumping on the back of another player (to make the foul obvious), that player could get hit with a flagrant foul. Silver said this is about player safety.

• Silver said the Collective Bargaining Agreement is working in the sense that the elite talent in the NBA is being spread out more evenly between big and small market teams.

“In terms of the effectiveness of the Collective Bargaining Agreement, yes, we think there is clear evidence,” Silver said. “One, we know that by tightening up the cap and putting in place a harsher tax, we’re seeing fewer teams go into the tax because the financial consequences are so great of going high into the tax and what it would mean for their payrolls.

“In addition, other changes we made in the system were once teams go into the tax, it dramatically limits what they’re able to do in terms of trades and the signing of free agents. So ultimately what that system is about is player distribution. So if you look now at the league, we see the way our stars are distributed throughout the league. You see seemingly no correlation between market size and where the stars are located.”

However, the spike in the salary cap coming up this summer (and the one after) because of the new television deal could change that dynamic. Maybe. Silver is not sure how this will shake out.

“The intention wasn’t that in this system that teams could sign without going above the tax that many max player contracts and that many All-Stars,” Silver said, referring to the rumor the Warriors could chase Kevin Durant this summer. “So if you ask me from a league standpoint, we would prefer that our All-Stars be distributed around the league rather than having so many All-Stars in one market. But we’ll see what happens this summer. I mean, as I’ve said, there will be unintended consequences from all this additional cap room this summer, I just don’t know what those consequences will be.”

• Silver said the NBA Draft could be pushed back in future years — but not much. He said the league wants the Finals and draft to be done before the end of June, and before free agency starts July 1.

• The NBA is “always talking” about the idea of an All-Star Game in Europe, but don’t bet on it anytime soon. The logistics are too complicated.

“It’s logistically more difficult than it may seem because there’s a ripple effect in terms of the number of days we take off on the rest of the schedule,” Silver said. “So right now we play an 82-game schedule in roughly 162 days. When we added the additional time off for AllStar, that took days off. When we added additional days of rest during The Finals days, which we did that season, that took days out of the schedule. If we travel overseas for All-Star, given our experience with largely preseason games, but some regular season games in Europe as well, players will need additional time to readjust their sleep patterns and to get re-acclimated when they come back to the States.”

Silver later hinted the next international All-Star Game could be in Mexico City.

• While there is no “center” designation on the All-Star ballot anymore (three frontcourt, two guards), don’t expect the center spot to go away from the All-NBA Team anytime soon.

Karl-Anthony Towns beats out Isaiah Thomas to take Skills Challenge title

in the Taco Bell Skills Challenge during NBA All-Star Weekend 2016 at Air Canada Centre on February 13, 2016 in Toronto, Canada. 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.
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TORONTO — In a new twist to the Taco Bell Skills Challenge, the NBA made the decision this year to add big men to a competition that has traditionally focused on point guards. The new wrinkle created new layers of intrigue, an unusual amount of controversy and, ultimately, a new champion: Timberwolves rookie center Karl-Anthony Towns.

Towns didn’t know what to expect in the competition, given that it was his rookie season, and practice didn’t fully prepare him.

“Oh, I came in today at I think it was 11:00 in the morning and got a practice run,” Towns said after the competition. “But it doesn’t translate to what it is when you have millions of people watching, thousands of people in the stands and also your heart racing like mine was. So just to have that instance of just a feel of how it was.”

C.J. McCollum beat out Jordan Clarkson in the first round, and Isaiah Thomas took care of Emmanuel Mudiay. In something of an upset, Towns handled Draymond Green, who is the NBA’s leader in triple-doubles.

The other matchup in the first round came with some controversy: DeMarcus Cousins missed all three attempts at the chest pass into the ring but moved on in the obstacle course and ultimately defeated Anthony Davis. This led to widespread criticism on social media for Cousins being allowed to advance without completing all the drills.

But Towns beat out Cousins in the semifinals, thereby preventing a nightmare scenario where a winner might have to have an asterisk next to his title.

Thomas beat McCollum in the guards’ semifinals. McCollum lost his dribble early on in the round and never really recovered.

The final round between Towns and Thomas went down to the wire, but Towns’ three-pointer went down first, giving him the title.

Towns sees his title as validation for the NBA’s decision to add big men to the competition, as well as a victory for bigs who are skilled in more than the traditional ways.

“The bigs were amazing today,” Towns said. “We were able to just come out with a W, and I’m glad I was able to help the bigs come out with this trophy. This is bigger than me. This is for all the bigs out there, with the game changing the way it is, to show that bigs can stand up with guards, skillwise.”

Russell Westbrook on Lakers speculation: “Nah, I like where I am now”

PHOENIX, AZ - FEBRUARY 08:  Russell Westbrook #0 of the Oklahoma City Thunder during the NBA game against the Phoenix Suns at Talking Stick Resort Arena on February 8, 2016 in Phoenix, Arizona.  The Thunder defeated the Suns 122-106.  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 Christian Petersen/Getty Images)
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TORONTO — No matter what Russell Westbrook does, he cannot escape the rumors that have followed him for years. He grew up in Los Angeles and played college basketball at UCLA—so, it’s only logical that when he hits free agency in the summer of 2017, he’ll look to sign with the Lakers, right?

Westbrook did his best to shut that down on Saturday after practice with the Western Conference All-Stars.

“Nah,” Westbrook said. “I like where I am now. Oklahoma City is a great place for me.”

Westbrook admitted that he grew up a Lakers fan, but said he never thought of playing there as a kid.

“I never thought I’d play in the NBA,” he said. “I was just watching them.”

Westbrook has another full season to go before his contract with the Thunder is up, so it’s going to be a while before there’s any resolution here. A lot, of course, will depend on what Kevin Durant does this summer.

If Durant sticks around and the Thunder make another deep playoff run next season, it becomes more likely that Westbrook will stay. But if Durant goes somewhere else, there’s a good chance Westbrook follows suit. For now, all they can do is deflect the speculation that will be there no matter what they say.

Gregg Popovich says he thinks more about Warriors than any team he ever faced

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Gregg Popovich and his Spurs have gone up against some powerhouse teams in the past 17 years. There were the Shaq/Kobe Bryant Lakers, Steve Nash and the seven-seconds-or-less Suns, The Kobe/Pau Gasol Lakers, LeBron James‘ Miami Heat teams, and the list goes on.

But nobody has given him more to think about than Stephen Curry and the Warriors.

That’s what he said on ESPN Radio Friday, as reported by Marc Stein of ESPN.

“I’ve spent more time thinking about Golden State than I have any other team I’ve ever thought about in my whole career,” Popovich told ESPN Radio on Friday. “Because they are really fun. I’d go buy a ticket and go watch them play. And when I see them move the ball, I get very envious. When I see them shoot uncontested shots more than anybody else in the league, it’s inspiring. It’s just great basketball.

“So I’m actually enjoying them very much. You try to solve them, but they’re in a sense unsolvable because it’s a particular mix of talent that they have. It’s not just that Steph [Curry] can make shots or that Klay can make shots or that Draymond Green is versatile. Everybody on the court can pass, catch and shoot. And they all get it.”

When you think about those legendary teams Popovich faced, they may have been a little less mentally taxing to gameplan for. The Shaq/Kobe Lakers ran the triangle (an offense Popovich was familiar with), but most of what made them great was exceptional talent — two future Hall of Famers at their peaks. The Spurs tried to bully the Suns, and then they developed a motion offense that eventually shredded the Heat.

The Warriors are different, and Popovich gets to a fundamental problem in defeating them:

“They’re talented. But they’re also very, very smart.”

That’s what’s hard to plan for — smart players and smart teams adjust, and the Warriors by design loaded their roster with high IQ guys. If you adjust, they counter. And for the last season-and-a-half, that has worked brilliantly.