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


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.

Before season starts, watch top 10 dunks of preseason

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Starting Tuesday night, the games matter. The dunks matter.

But before we move onto those dunks, let’s have some fun with the top 10 dunks of the meaningless preseason. They may not matter, but they certainly were fun.

Of course there are some expected highlights — can you have a dunk reel without Russell Westbrook? — but game-winning dunks always get the top slot.

Carmelo Anthony says rather than take knee during Anthem he wants action in communities

NEW YORK, NY - MARCH 26:  Carmelo Anthony #7 of the New York Knicks looks on against the Cleveland Cavaliers during their game at Madison Square Garden on March 26, 2016 in New York City.  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 Al Bello/Getty Images)

Colin Kaepernick certainly fired up a discussion — not always the conversation he intended, but a discussion of the treatment of African-Americans in our society was part of that conversation.

No NBA player has taken that same step through the preseason, taking a knee during the national anthem (only anthem singers have done that). Some teams are locking arms during the anthem in a show of solidarity, but they stand in two orderly rows.

Carmelo Anthony explained in an interview with Bleacher Report that what he and many others want to see is the next step in Kaepernick’s protest — action in the community.

“I’m past the gestures,” New York Knicks star Carmelo Anthony told B/R Mag. “I’m past that. It’s all about creating things now and putting things in motion. So, that’s what I’m on. I’m trying to get guys on board with that and help them understand that—enough of the gesturing and talking and all of that stuff—we need to start putting things in place….

“He’s done it,” Anthony said of Kaepernick. “He was courageous enough to do that. He created that. He created the kneeling and that protest. And people fell in line with that. Some people supported it. Some people didn’t. But at the end of the day, and I’m not taking nothing away from him…I just don’t think the gesturing is creating anything. I think it’s bringing awareness, but I think doing stuff and creating awareness in the communities [is more effective].”

What are those things? Players, the players’ union, the NBA itself, and it’s teams are all working to figure that out. This is not something where one blanket program fits all — what is needed in communities in New York is different from the needs in Milwaukee, is different from the needs in Sacramento. This needs to be local, with players involved.

There have already been some steps. The Bulls held a basketball tournament between police and a mentoring agency, which was followed by a panel discussion. Dwyane Wade biked with police through Miami. The Grizzlies have revived the Police Athletic League in Memphis. And that’s just the tip of the iceberg, there are teams from New Orleans to Los Angeles are working to bring youth and police together to talk.

It’s a start. A good start.

There is no one magic gesture, no one simple measure that can heal the deep divides in our nation right now. There are no easy answers, and as a nation we can be too dependent on easy answers. We need to listen. We need to talk to each other, not at each other. We need to practice empathy.

NBA players can help lead that effort, that conversation. It would be the next step after a protest — to act on those steps. Good on Anthony and the NBA for attempting to go down that road.


Rockets change from earlier reports, waive Pablo Prigioni, keep Tyler Ennis

HOUSTON, TX - MAY 17:  Pablo Prigioni #9 of the Houston Rockets celebrates in the third quarter against the Los Angeles Clippers during Game Seven of the Western Conference Semifinals at the Toyota Center for the 2015 NBA Playoffs on May 17, 2015 in Houston, Texas. 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 Scott Halleran/Getty Images)
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The Rockets traded for Tyler Ennis., sending Michael Beasley away in the deal.

Which is why it was a bit of a surprise on Monday when early reports had the Rockets waiving Ennis, but either the report was off or the Rockets changed their minds.

With Patrick Beverley out injured, this leaves the Rockets thin at the traditional point guard spot. However, in practice James Harden, Eric Gordon and others will initiate Mike D’Antoni’s offense, so the bigger challenge will be defensively. Prigioni was not much help there at this point in his career.

I wouldn’t be surprised if a team snaps up Prigioni as insurance, or he certainly can make money overseas. Prigioni played last season as a backup point guard for the Clippers.

Want some dance lessons from Hassan Whiteside? We got that.

MIAMI, FL - SEPTEMBER 26: A portrait of Hassan Whiteside #21 of the Miami Heat on September 26, 2016 in Miami, Florida. (Photo by Rob Foldy/Getty Images)
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Miami’s Hassan Whiteside is a lot of things: An elite shot blocker, up-and-coming NBA star who worked hard for the right to be that, a Heat cornerstone.

Dance instructor?

I’m not sold, but he’s showing off his groove in this Twitter video.

When you get a $98.6 million contract, you can do whatever you want. So he can be a dance if he wants to.