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.

PBT Podcast: What went wrong and what’s next for Trail Blazers?

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It was embarrassing, and left both fans and players of the Trail Blazers angry and frustrated — Portland was unceremoniously swept out of the playoffs by the New Orleans Pelicans.

Now what happens in Portland? Is Terry Stotts in danger as the coach? What about GM Neil Olshey? Would they consider trading C.J. McCollum? Is there any way to offload the contract of Evan Turner?

Kurt Helin and the Northeast’s own Dane Carbaugh of NBC Sports break it all down in this latest podcast, and Blazers fans may not like the answers. The pair also touch on other series around the league, like do the Pelicans have a shot against the Warriors? And, as required by NBA law, they touch on the Sixers run.

As always, you can check out the podcast below, listen and subscribe via iTunes at ApplePodcasts.com/PBTonNBC, subscribe via the fantastic Stitcher app, check us out on Google play, or check out the NBC Sports Podcast homepage and archive at Art19.

Pacers head to Cleveland looking to put pressure back on Cavaliers

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CLEVELAND, Ohio (AP) — The Indiana Pacers are in no better position to pull off a historic upset in this first-round playoff series with the Cleveland Cavaliers than when they awoke Sunday morning.

The Pacers had a chance to put the Cavs, at the time reeling with playoff inexperience and the crushing weight of expectations with LeBron James, squarely behind the eight ball in this series by winning Game 4.

But Indiana fell behind by a huge deficit in the first half for the second consecutive game, erased it in the third and early fourth quarters again, but couldn’t sustain the momentum. Kyle Korver and James made enough plays down the stretch for the Cavs to win, 104-100, tying this series at 2-2 with Game 5 on Wednesday in Cleveland.

James has never lost a first-round series in 12 previous playoffs. Now, he has two of the next three games at home to try and keep his streak alive.

“I think just tying the series up and coming back home is something we feel good about,” said Kevin Love, who like every other Cav not named James has mostly struggled in this series. “We feel like it’s a best-of-three type series and at the end of the day, if it comes to it, we have two games at home. We like our advantage and we’re going to use that to our advantage (Wednesday) night.”

The Pacers trailed by 17 at halftime of Game 3 but steamrolled the Cavs in the second half and pulled out a 92-90 win behind 30 points from Bojan Bogdanovic, a playoff career high. They were down 10 through two quarters in Game 4 but fought back and were ahead 93-91 with 3:49 remaining before Korver connected on two deep 3s.

Indiana won Game 1 behind a playoff career-high 32 points from Victor Oladipo, who has struggled since (19-of-53 shooting in the last three games). Domantas Sabonis played a big role in the Pacers’ comeback Sunday, scoring a playoff career-best 19 off the bench.

The Pacers are getting the best night of someone’s playoff career almost each game of this series, and it’s been good enough for two wins. Then again, the Cavs’ two wins were by a combined seven points, and outside of James (32.5 ppg this series) almost no one is scoring.

Love is the next closest at 12.0 points in this series and JR Smith is third with 10.0 points.

“We’re not losing confidence,” point guard Darren Collison said, according to the Indianapolis Star. “This team is the defending Eastern Conference champions. Whatever you want to say about them, this is a very good team. They’ve been through a lot over the last few years. We’re fine. There’s no need to overreact or panic. We’re going to go into their building and we’re going to give the same effort.”

The Cavaliers say point guard George Hill (back spasms) is questionable to play in Game 5. He missed Game 4 with the same injury — four injections before the game were not enough to ease the pain to the point where he could play.

Jose Calderon started for Hill on Sunday and scored five points in 19 minutes. The Cavs are 24-9 this year (regular season and playoffs) when Calderon starts.

Hill is the only player on either team listed on the injury report. But Love suffered an injury to his left thumb in Game 1 and it’s affected him. He’s shooting 17-of-47 in the series with 11 turnovers. Catching and gripping the ball have been obvious problems.

“I’ve been able to get up a lot of shots,” Love said. “I think initially it was painful and in the few days that followed, but now it’s kind of subsided and I’m just getting my feel back in my left thumb.”

Report: Kawhi Leonard to return to San Antonio around exit interviews. Then…

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Nobody is sure how the Kawhi Leonard situation is going to play out with the Spurs. As is the nature of the NBA, the GMs of other teams are starting to circle the Spurs like vultures, on the chance that this time Gregg Popovich cannot smooth out the relationship with his star player and needs to trade him. Leonard spent the playoffs away from the team, working out and talking to doctors in New York while “his group” shielded him from attempts from San Antonio to reach out.

Now has come the time for the sides to talk, and that will happen soon reports Jabari Young of the San Antonio Express-News.

What happens during and after that meeting is anyone’s guess.

The Spurs will only move Leonard as a last resort, and they have two things on their side. First, Gregg Popovich, who has maintained a healthy relationship with his star pupil through all of this. LaMarcus Aldridge told Popovich he wanted to be traded last summer, and over the course of some dinner meetings and self-reflection, Popovich was able to both keep Aldridge in the fold and put him in positions to be an All-NBA level player this season. The key is that both sides were willing to talk with an open mind, are Leonard and his advisors open to that?

Second, the Spurs have the ultimate hammer — the $219 million designated veteran extension (the contract James Harden and Russell Westbrook signed this year). Put that on the table and Leonard will sign it. The question is will the Spurs put it out there? Probably not if Leonard makes it clear he doesn’t want to be in San Antonio any longer. That’s when the trade talks start to gain traction.

But we’re not there yet. Not even close. Let the meetings play out first.

Back home, Thunder try to avoid elimination against Jazz

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OKLAHOMA CITY (AP) — Oklahoma City was built this offseason around three All-Stars with the hopes of contending for the Western Conference crown.

The Utah Jazz started the year 18-26 without center Rudy Gobert. However, Gobert returned and the Jazz rolled off 11 straight wins into Valentine’s Day with the help of a surprise rookie of the year contender.

One more win and the Jazz will reach the second round for the second straight year. They’ll send the Thunder home with a second straight first-round exit — despite Oklahoma City’s overhauled, star-studded roster.

After losing the first game on the road, Utah won decisively in each of the past three games, including a 17-point victory in Game 4 — a game the Thunder called a must-win in Salt Lake City.

“It’s the playoffs, it’s gonna be war,” Utah point guard Ricky Rubio, who had a triple-double in Game 3, told the Salt Lake Tribune after Utah’s 113-96 victory in Game 4. “We know that it’s gonna be another war next game. We just have to be tough but at the same time, mentally ready for that.”

Game 5 is set for 9:30 p.m. EST Wednesday at Chesapeake Energy Arena.

Jazz rookie Donovan Mitchell, who averaged 20 points per game during the regular season, has averaged 27.6 points during the past three games — taking his play to another level to lead a balanced Jazz attack that has five players averaging in double figures. Mitchell, who was the 13th overall pick in last year’s draft, has scored 110 points through the first four games, the most by a rookie in his first four games since Michael Jordan’s 117 in 1985, according to nba.com.

“To be honest, a lot of this is surreal. I’m just taking it game-by-game and not really getting caught up in the big picture,” Mitchell told the Salt Lake City Tribune. “Just focusing on game-by-game. My teammates have helped me out a lot as far as that goes. But we’re playing together.”

Oklahoma City point guard Russell Westbrook picked up four fouls before halftime in Game 4 and was fined $10,000 for an altercation with Gobert late in the game. Luckily for the Thunder, he was not suspended following his altercation with the Utah center.

Westbrook’s foul trouble has hardly been the Thunder’s biggest issue.

Oklahoma City was inconsistent much of the year, but it has had to contend with shooting woes from offseason acquisition Carmelo Anthony, who has hit just 25 percent of his 3-pointers in the first four games of the playoffs.

“We gotta win, nothing to it,” Anthony said after the Game 4 loss. “We’ve just gotta win. We can sit here and say what we gotta do, or what we didn’t do or what we did do, but it comes down to having the will to win that game Wednesday and forcing a Game 6 back in Utah.”

Winning in Utah won’t to be easy, where the Jazz have won six straight. Oklahoma City has to get back to Salt Lake City first and stave off elimination. But Utah hasn’t lost three straight games since Gobert’s return to the lineup in mid-January.

“Every game’s been physical,” Gobert said to reporters. “We just got to watch the tape, see how much better we can get and get ready to play basketball.”