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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.

Report: Heat complained to ‘highest levels of the league office’ about favorable calls for Jeremy Lin and Kemba Walker

Charlotte Hornets' Kemba Walker (15) is congratulated by Jeremy Lin (7) after making a basket against the Sacramento Kings in the second half of an NBA basketball game in Charlotte, N.C., Monday, Nov. 23, 2015. The Hornets won 127-122 in overtime. (AP Photo/Chuck Burton)
AP Photo/Chuck Burton
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The Heat and Hornets are clearly tiring of each other, six games of testiness culminating with Game 7 today.

One particular battle line being drawn is over Jeremy Lin (6.3) and Kemba Walker (5.5), who lead players in this series in free-throw attempts per game.

Marc Stein:

ESPN sources say that one of the factors that ramped up the tension between the teams stems from Miami complaints to the highest levels of the league office after Game 4 about what the Heat deemed to be favorable officiating for Jeremy Lin and Kemba Walker.

Lin and Walker relentlessly driven to the basket. That’s why they’ve attempted so many free throws. If Miami wants to keep them off the line, trap them harder on the perimeter.

That said, this is part of playoff gamesmanship. If the Heat plant a seed with referees – through the league office or otherwise – that Lin and Walker are drawing too many fouls, maybe that affects a call today. With the margins so narrow, every little bit helps.

Watch LaMarcus Aldridge drop 38 on Thunder

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Oklahoma City has more than a few adjustments to make after a brutal defensive effort in Game 1 of their series against San Antonio, but at the top of the list is sticking with LaMarcus Aldridge on defense.

He was killing them from the midrange, and more than half of his looks were uncontested — the Thunder know he can knock down that shot, right?

It was a fantastic performance from Aldridge; we’ll see if he faces tougher defense in Game 2.

NBA: Trail Blazers scored after uncalled illegal screen by Trail Blazers in final minutes

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Should we be preparing for Game 7 of the Trail Blazers-Clippers series today?

If the officials had called the final minutes of the last game correctly, maybe.

Portland won Game 6 to take the series 4-2, but a missed call a key missed call helped clinch.

With 1:45 left, Mason Plumlee got away with offensively fouling Jamal Crawford, according to the NBA’s Last Two Minute Report:

Plumlee (POR) sets the screen on Crawford (LAC) without giving him room to avoid the contact.

A correct call would’ve meant a Trail Blazers turnover. Instead, Damian Lillard ended the possession with two made free throws.

Portland’s advantage when the Clippers began intentionally fouling: two.

Would the Clippers have won if the refs called Plumlee’s offensive foul? Impossible to say. The final 1:45 could’ve played out much differently.

But this missed call, the only error in the Last Two Minute Report, certainly boosted the Trail Blazers’ odds.

Four Things to Watch in two Game 7s Sunday

during game six of the Eastern Conference Quarterfinals of the 2016 NBA Playoffs at Time Warner Cable Arena on April 29, 2016 in Charlotte, North Carolina.  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.
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It’s what the playoffs are all about — win or go home Game 7s. Pressure, drama, unlikely stars Sunday is going to have it all. Here are a few things to watch:

1) Can Miami’s jump shooters have another hot game? Dwyane Wade got the headlines (and he earned them) for his Game 6 performance (everyone except purple shirt guy was impressed), but the real key for the Heat to force a Game 7 was they were hitting their jumpers — or at least enough of them. In their three losses, Miami shot 33.7 percent from 3 feet out to the arc, but in Game 6 the Heat shot 43.5 percent in that range, plus knocked down eight threes. The Hornets have packed the paint all series, when the Heat hit their jumpers they win. It’s that simple.

2) Does Kemba Walker have one more big game in him? Walker was fantastic in Game 6 (37 points), and he’s been very good in the Hornets’ victories. He’s going to penetrate and get some shots inside eight feet, but will he be able to finish? And, more importantly, will he hit his threes when they pack the paint on him? If Walker has a huge game, Charlotte very likely moves on.

3) Is Toronto too far into their own head? No team has more pressure on them to advance out of the first round than Toronto after two previous years of getting bounced in the first round, and they will feel that weight at home in Game 7 against Indiana. Will Kyle Lowry and DeMar DeRozan step up with big games in the biggest moments of their careers, or will they succumb to the moment and the Pacers defense? For all the Xs and Os that do matter in this game, how the Raptors handle the pressure will be key.

4) Can the Pacers again get a few quality minutes when Paul George sits? In the Pacers comfortable Game 6 win, George got a rest in the second quarter and the Pacers were +5 while he sat. That was a huge step up from Game 5, where the Pacers were -18 when he was out for less than 7 minutes. If Indiana — by playing some starters such as Myles Turner — doesn’t have a huge bench drop off when George rests a few minutes their odds of winning go way up. We know Paul George can handle the moment.