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Future of NBA arena subsidies, market comparisons to decide Kings’ fate

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As Sacramento Mayor Kevin Johnson has been advertising for the past month, we did indeed get confirmation of the identity of his ‘whales’ at his State of the City address on Thursday.

Reiterating parts of his four-part plan that included bringing together a local ownership group, finding big equity investors (whales), putting together a downtown arena deal, and demonstrating the value of the Sacramento marketplace – Johnson would announce that 24 Hour Fitness founder Mark Mastrov and billionaire Ron Burkle would put in a bid to keep the Kings in Sacramento.

“With all due respect to Seattle, I do hope they get a team someday, but let me be perfectly crystal clear, it is not going to be this team,” said Johnson.

Johnson also announced that former Kings great Mitch Richmond would join the local ownership group and that the city’s proposal would include an option to return WNBA basketball to Sacramento.

Sources close to the situation told PBT that the framework of the offer delivered to the NBA on Friday was very close to Seattle’s $341 million offer for a controlling 65 percent interest in the club. NBA spokesman Tim Frank confirmed delivery of the offer on Friday, the day of the deadline.

Over the next month Sacramento will continue to iron out the details on a public subsidy and arena deal locally with the Sacramento City Council, which will ultimately vote on a term sheet to be delivered to the Board of Governors in time for their April 18-19 meeting.

Sources tell PBT that the Sacramento offer will be conveyed by the group to the NBA’s joint committees in charge of reviewing the situation on or around April 1. It is expected that Seattle’s group will also meet with that committee around that time, though no meeting has been publicly acknowledged.

According to sources, the two issues that will drive the conversation is the league’s strategy for securing arena subsidies in the future, and the impact each market will have on team revenues and the league’s financial model as a whole. Also under consideration are timelines to deliver an arena, ownership groups, and the precedent the league could set by blocking an owner from selling to a group of their choosing.

The league blocked a sale of the Minnesota Timberwolves to a group headed by boxing promoter Bob Arum in 1994, but a well-placed source told PBT that the league views this transaction as “unprecedented,” citing that never before has the league relocated from a city that has supported its team both at the gate and with public subsidy dollars.

The Maloof ownership group reportedly has “little to no leverage” in NBA’s decision-making process. They also reportedly owe the NBA in excess of $100 million on a line of credit they’ve used throughout their ownership. If called in, the family’s financial woes could give the league an opening to use the ‘Best Interests of the League’ clause, similar to the way Major League Baseball removed Dodgers owner Frank McCourt.

Sources do not expect the Maloof family to push back on the league’s decision to back either Sacramento or Seattle, citing the prohibitive costs of an antitrust lawsuit, and the potential for the family to lose a chance to cash out in Sacramento or Seattle.

The issue of market comparisons between Sacramento and Seattle is cloudy, but sources expect Sacramento to be competitive in that area because it has one major sports team in their No. 20 TV market, while Seattle could have six major sports teams in its No. 12 TV market. We will cover this in a bit more detail later in the next few weeks.

While details about Sacramento’s ownership group are a bit hazy at this time, it has been expected that Mastrov would be the front man. The more private Burkle reportedly would focus on the development of the Downtown Plaza location. Sources indicate the duo will share in the ownership of a potential deal, though it’s unclear what those percentages will be. Both owners have been vetted by the NBA, and Mastrov finished second in the Golden State Warriors bid that recently went to the Joe Lacob group.

While Seattle’s Chris Hansen-Steve Ballmer group has enormous wealth, another well-placed source speaking to PBT under condition of anonymity said the league is happy with both ownership groups and not to expect a deal to hinge on any comparison between them.

If a showdown comes to the owners’ deciding vote, some sources hinted at a scenario in which the league tells the Hansen group that they’re going to choose Sacramento – allowing the Hansen group to bow out gracefully and avoid a divisive ownership vote.

Should the league favor Sacramento, sources say the work the city has done to fight for its team and the narrative it will give the league to sell to future cities in arena negotiations will have played a critical role in the NBA’s decision-making process.

Seattle’s deal contains a greater percentage of private funds due to local initiative-91 requiring public funds to return a guaranteed profit, which is a trend the league wants to avoid.  On the other hand, Sacramento’s deal fits the public-private model the league is selling to cities, with a larger public subsidy going toward a new state-of-the-art building in a downtown revitalization effort.

We will cover that issue in greater detail in the coming weeks.

In order to keep their team, Sacramento will need eight votes out of 29 other owners to block the transfer of ownership to Seattle’s Hansen/Ballmer group.

Hassan Whiteside gets triple-double as Heat hold off Hornets

Miami Heat center Hassan Whiteside (21) reacts to his team scoring a basket during the second half of an NBA basketball game against the Dallas Mavericks Wednesday, Feb. 3, 2016, in Dallas. The Heat won 93-90. (AP Photo/LM Otero)
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CHARLOTTE, N.C. (AP) — Miami Heat center Hassan Whiteside did his part to prevent the Charlotte Hornets from scoring inside.

Mix in a couple of key steals in the final seconds, and the Heat had a nice win on the road.

Whiteside had 10 points, 10 rebounds and 10 blocked shots, and Miami beat Charlotte 98-95 on Friday night.

Dwyane Wade scored 22 points and Chris Bosh added 20 points for the Heat, who have won six of seven. Goran Dragic had 12 points, nine assists and eight rebounds.

Whiteside, a native of nearby Gastonia, North Carolina, posted his third triple-double of the season and No. 4 for his career.

“I was at the YMCA around the corner two years ago; now I’m here,” Whiteside said. “When a ball is around my elbow area, I’m going to try and catch it.

“The last three minutes, they were so worried about pump-faking, pump-faking. I told the guys to just stay with the 3-point shooters.”

Marvin Williams scored 27 points for the Hornets, and Nicolas Batum added 21. Kemba Walker had 20 points.

“Whiteside just dominated every aspect of that game,” Hornets coach Steve Clifford said. “Right now, he’s the premiere rim protector in the league. It changed the game when he came in; they were a totally different team when he was out there.”

The Heat were coming off a close 93-90 win at Dallas on Wednesday. The last time Miami played at Time Warner Cable Arena on Dec. 9, Charlotte won 99-81.

“It’s hard not to notice what they’ve done on this home court,” Heat coach Erik Spoelstra said. “It seems that every top team in the East that comes in here walks out of here with a double-digit loss.

“It was something that we wanted to collectively do – get a win to put us at .500 on the road, and in a building that we haven’t played well.”

The Hornets led 93-90 with 1:10 remaining, but Wade made a layup and Bosh added a three-point play to make it 95-93 with 23.5 seconds left.

Charlotte had a chance to tie it, but Justise Winslow‘s steal set up a free throw by Luol Deng for a 96-93 advantage with 13.2 seconds left.

Wade then stole the ball from Walker and passed to Deng for a fast-break dunk with 4.3 seconds remaining and the Heat’s biggest lead of the game.

Before Miami’s flurry at the very end, neither team was able to grab much of an advantage. There were 26 lead changes and 12 ties, including 47-47 at halftime.

“We know we have to get stops,” Wade said. “We know we have enough offensive firepower down the stretch to get great looks. Tonight, Hassan was incredible down the stretch with protecting the basket.”

TIP-INS

Heat: Winslow had eight points and 10 rebounds. … Miami finished with 12 blocked shots. … The Heat outscored the Hornets 64-32 in the paint, and also enjoyed an 18-6 edge in second-chance points thanks to eight offensive rebounds.

Hornets: Shot 44.4 percent from the field (36 of 81), and made 10 of 26 3-pointers. … Also shot 13 of 15 from the free-throw line. … Charlotte’s reserves scored just 12 points, while Miami got 29 points from its backups.

 

HONORING `ZO’

Former Hornets star and 15-year NBA veteran Alonzo Mourning, now the vice president of player programs and development for the Heat, was honored by the home team during halftime of Friday’s game.

While he spent only three seasons in Charlotte (1992-1995), Mourning still holds franchise records for career blocks (684) and blocks per game (3.2), and is second in career scoring (21.3 points) and rebounds (10.1 per game).

 

Paul Millsap, Al Horford pace Hawks past Pacers 102-96

Atlanta Hawks center Al Horford dunks against the Indiana Pacers during the second half of an NBA basketball game Friday Feb. 5, 2016, in Atlanta. Atlanta won 102-96. (AP Photo/John Amis)
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ATLANTA (AP) — Hawks coach Mike Budenholzer wasn’t terribly concerned that his team gave up 19 offensive rebounds.

Not when Atlanta held on for a third straight win.

“Obviously we’d like to be better, but I think just because you give up a rebound doesn’t mean automatically they’re going to score two points,” he said. “Overall, our defense is a lot of times what’s giving us a chance.”

Paul Millsap scored 24 points, Al Horford added 21 points and the Hawks beat the Indiana Pacers 102-96 on Friday night.

Paul George finished with 31 points for Indiana, which has lost 17 of its last 19 regular-season matchups in Atlanta. Lavoy Allen added 13 points and a game-high 14 rebounds.

The Pacers missed their first six shots of the fourth quarter before C.J. Miles‘ runner cut the lead to 78-74 with 8 minutes remaining.

George’s 3 with 4:49 left gave Indiana its last lead at 86-84. He hit another 3 with 1:02 left, falling back and heaving the ball over his right shoulder for a 35-footer that brought the Pacers within two.

But Jeff Teague‘s jumper and Kent Bazemore‘s two free throws pushed the lead to six with 22 seconds left. Teague had 16 points. Bazemore had 15 points and tied for a game-high eight assists.

Neither team led by more than six until the closing seconds. The lead changed hands 12 times.

It was a particularly frustrating night for Indiana, which out-rebounded the Hawks 53-32 and outscored them on second-chance points.

“Our bigs did a great job of rebounding,” George said. “It’s hard to make plays when they’re getting whacked all day at the rebounding, but it’s another game that we should have had – one that we didn’t do so late in the game and put it away.”

Horford had two consecutive dunks to push Atlanta back in front 73-72 in the last minute of the third. Dennis Schroder hit a 3 to make it a four-point lead early in the fourth.

“I think guys were pretty excited about the dunk(s),” Horford said. “I felt like that defensively fueled us going into the fourth.”

Millsap, at 6-foot-8, and the 6-10 Horford caused problems for Indiana’s big men all night on the perimeter with their passing skills and athleticism. They helped the Hawks outscore Indiana by four points in the paint.

“We did some good things but we didn’t handle their pressure well enough offensively,” Pacers coach Frank Vogel said. “They got some very, very difficult coverages with Horford and Millsap out there spacing the floor we didn’t handle well enough either.”

The Hawks stayed in third place in the Eastern Conference with a 30-22 record. Indiana, at 26-24, fell to eighth place.

TIP-INS

Pacers: Indiana has dropped six of its last eight on the road. … George has scored at least 30 points in 15 of his 50 games. … G Monta Ellis, who averaged 20.5 points in the previous four games, scored 11.

Hawks: Atlanta has won nine of its last 11 at home. … The Hawks improved to 25-3 when scoring at least 100 points. … Led by Schroder’s nine points, the bench scored 20 – 60 less than the reserves combined for in Wednesday’s win at Philadelphia, the team’s highest total since 1987-88.

 

Bulls’ Jimmy Butler leaves game with sprained knee (VIDEO)

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This is not good.

With just more than a minute to go in the second quarter in Denver, Jimmy Butler drove the basket, absorbed some contact, and hit the ground hard. Butler — who seems to bounce back up from everything — stayed down. He hobbled out to take his free throws (the only way he could potentially return to the game) but then left it in a wheelchair. He did not return to the game.

The Bulls announced he has a left knee sprain. This is the same knee where he has been battling tendonitis.

Butler will have an MRI to assess the damage. As of now, there is no timetable for his return, but it seems he will miss at least a few games.

The up-and-down Bulls can’t afford to lose him for an extended stretch.

Celtics’ Avery Bradley’s three at buzzer beats Cavaliers (VIDEO)

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After two Kyrie Irving nailed free throws, the Cavaliers were up 103-99 on Boston with :07 left in the game. They had this.

Then J.R. Smith fouled Evan Turner on a driving lay-up with four seconds left, giving the Celtics the chance at an and-1. Turner missed the free throw, but the rebound bounced off LeBron James out-of-bounds, and Boston was going to get one last shot.

Avery Bradley nailed it from the corner. Celtics win.

Cleveland led this game by 22 at one point; they collapsed. This one is going to sting.