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

29 Comments

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.

Giannis Antetokounmpo out for Bucks-Suns Eric Bledsoe revenge game

Streeter Lecka/Getty Images
Leave a comment

Giannis Antetokounmpoone of the NBA’s best players – won’t help new Bucks teammate Eric Bledsoe in a revenge game against the Suns tonight.

Not only is Milwaukee missing Mirza Teletovic and John Henson (and Matthew Dellavedova and Jabari Parker), Antetokounmpo is out.

Matt Velazquez of the Milwaukee Journal Sentinel:

Antetokounmpo will miss Wednesday’s game against the Phoenix Suns due to right knee soreness.

Antetokounmpo says his knee soreness is the same injury he dealt with in the off-season, which caused him to withdraw from the Greek national team.

“It feels good,” Antetokounmpo said after sitting out shootaround. “I’m just trying to be careful with it and not make any damage. That’s it, because it’s a long season and I’m trying to be careful.”

The Bucks have been outscored by 18.6 points per 100 possessions without Antetokounmpo this season (and are +2.3 without him). Phoenix isn’t good, but neither is Milwaukee without Antetokounmpo.

I don’t think Bledsoe will mind a chance to get more aggressive tonight, though.

Report: Mexico City could host NBA’s 31st minor-league team

AP Photo/Rebecca Blackwell
2 Comments

NBA commissioner Adam Silver said his league would look into placing a franchise in Mexico City.

Meanwhile, the NBA’s minor-league has affiliates for 26 of 30 NBA teams and counting. The league also has youth academies in China, India, Australia and Senegal – and also counting.

Jonathan Givony of  ESPN:

The NBA will announce a new basketball development and training academy in Mexico City during the Global Games December 7th and 9th, in conjunction with CONADE (Mexico’s National Commission for Physical Culture and Sport) and the Mexican Basketball Federation, sources told ESPN.

Mexico City could emerge as the 31st G League franchise, where prospects from the seven academies graduate up to, according to sources.

A minor-league team in Mexico City could be a nice testing ground for an NBA franchise. An unaffiliated minor-league team is also an interesting wrinkle, especially how it’d be stocked.

Ultimately, experimentation is a purpose of the NBA’s minor league. This would be running multiple test cases at once.

Lonzo Ball on his shot: “I feel like they’re going to fall. Just have to keep shooting.”

Getty Images
5 Comments

Lonzo Ball‘s shooting woes this season have been well chronicled. Maybe even beaten to death — but when your father is a hype man, and Magic Johnson says you’re the “face of the franchise” it invites a whole new level of scrutiny. Doesn’t matter if it’s fair, it’s reality.

Rather than a cold recitation of the numbers, a look at Ball’s shot chart for the season says a 1,000 words worth.

Ball has admitted frustration but has said throughout he expects things to turn. He reiterated that in an interview on the Mason and Ireland Show on ESPN LA Radio. He likes the looks he’s getting, thinks they will start to go down. (Hat tip Lakers’ Nation.)

“I’m just missing shots. I definitely like the looks I’m getting. Most of them are wide open, people are going under screens. I feel like they’re going to fall. Just have to keep shooting and shooting with confidence.”

Ball is right. He is shooting 28.2 percent on shots where the defender is 4-6 feet away (22.9 percent from three on those), and 21.3 percent when the defender is 6 or more feet away (19.1 percent from three).

Those shots may start to fall — Luke Walton has preached the same thing to Ball, just keep shooting and it will come around. Right now Ball is in his own head about this, maybe guiding the shots rather than just firing away, but the Lakers aren’t going to rebuild his shot mid-season. He should just keep shooting.

Maybe of more concern is that 42.5 percent in the restricted area — if he isn’t a decent scoring threat on drives, it will hamper his entire passing game. He’s a rookie, he needs time to adjust to the speed, length, and physicality of the NBA, it’s far too early to say what he is and isn’t yet. But those finishing numbers are ones to watch.

Kevin Durant says “I plan on playing” against Thunder Wednesday

Getty Images
5 Comments

After Kevin Durant missed the Warriors’ last game with a sprained ankle, there was some question about whether he would play on his latest return to Oklahoma City on Wednesday.

Doubt no more, he will play. Like we all expected.

Durant has a ring now and says he wants to move on from the drama surrounding his departure from Oklahoma City, but you can be sure plenty of Thunder fans don’t feel that way. KD will again have boos rained down on him all game.

This is obviously a very different Thunder team than the one Durant left, with the additions of Paul George and Carmelo Anthony. While the Thunder have stumbled and blown leads (in six of their nine losses OKC had double-digit leads) this is a team with a lot of potential, as Durant discussed.