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.

Chris Paul’s son joins him on Clippers bench in rout of Lakers (video)

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Is this disrespectful to the Lakers? Absolutely.

And I love it.

Chris Paul and the Clippers crushed their Los Angeles counterparts, 133-109, last night. The Clippers, who’ve won 13 of 14 in the series, have practically run out of ways to show up their crosstown rival on the court. If it now takes bench visitors, so be it.

This is the best late-blowout bench behavior since LeBron James led the Cavaliers in the water-bottle challenge in a December win over the Knicks. This would rank higher if Chris Jr. didn’t also joined the bench in the Clippers’ November win over the Mavericks, which is the pictured on this post.

Jawun Evans leaving Oklahoma State for NBA draft

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You’ve probably heard of the top college point guards for the 2017 NBA draft: Markelle Fultz, Lonzo Ball, Dennis Smith Jr., De’Aaron Fox and Malik Monk. You might have even heard of French point guard prospect Frank Ntilikina.

Which point guard will be drafted next after those six?

One possibility: Oklahoma State’s Jawun Evans.

Evan Daniels of Scout:

Evans looks like a second-round pick, but a dearth of point guards projected into the latter half of the first round could boost his stock.

He’s ultra quick and ultra aggressive and led the nation’s top KenPom offense. Evans relentlessly attacks the rim, often while forcing transition opportunities. That gets defenses scrambled, creating kickout-passing lanes and offensive-rebound opportunities.

However, the 6-foot Evans doesn’t finish that well at the rim – creating a major question about how he’ll translate to the NBA. The bigger defenders in the paint might limit his kickout passes, too.

His size also presents major problems defensively, though a 6-foot-4 wingspan at least helps.

Evans is good enough on jumpers to keep defenses honest, and at Oklahoma State, he had to create so much for himself. It’d be interesting to see whether limiting his burden improves his efficiency or whether his helpfulness is limited to having the ball in his hands.

My guess is the latter, and I’m unconvinced he’s good enough to demand such a role in the NBA. But the possibility is strong enough that I’d be excited about rolling the dice on him in the second round.

Shabazz Muhammad awkwardly mentions Collective Bargaining Agreement during halftime interview (video)

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The Timberwolves surprisingly led the Spurs by nine at halftime last night, which takes us to Shabazz Muhammad‘s mid-game interview.

Muhammad:

We’re doing a great job on defense, Wiggs, myself, everybody. It’s a tough team, especially Kawhi and the guys. So, we’re doing a really good job and everybody’s collective – Collective Bargaining Agreement.

Um. What?

To be fair, I can’t even imagine what type of nonsense I’d spew in the midst of a taxing workout or a high-pressure situation – let alone something that qualifies as both.

Unfortunately for Muhammad, Minnesota eventually fell to San Antonio, 100-93. But hopefully, he can laugh at this moment. He should, at least.

hat tip: reddit user cjsplash

Duke’s Jayson Tatum, California’s Ivan Rabb declare for NBA draft

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Wednesday a couple of forwards expected to go in the first round of June’s NBA draft said they plan on making the jump to the NBA.

As expected, Duke’s Jayson Tatum and Cal’s Ivan Rabb made their decisions official.

Duke announced Tatum’s decision.

Tatum is expected to be a top-five pick, DraftExpress.com currently has him as the No. 4 pick. The 6’8″ wing can flat-out score the rock, which is why teams are intrigued, as Rob Dauster of NBC’s College Basketball Talk told us in a recent podcast. However, teams wonder if he can create shots for others and not just himself, and if he’s going to be a good defender at the NBA level. He has the physical tools to do be a good defender, but will he put in the work game in, game out?

Rabb is a 6’10” sophomore who has a great NBA build and athleticism to spare, but at the NBA level everyone is a great athlete. Rabb doesn’t have a great perimeter game and needs to develop one and be a consistent defensive force to be a difference maker (or have a lengthy career) at the NBA level. DraftExpress.com has him going 22nd in this draft, and his stock seems to have fallen over the course of the season.