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 scores 29, Clippers beat Jazz 98-93 to force Game 7

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SALT LAKE CITY (AP) — Clippers coach Doc Rivers put it simply when he said Chris Paul willed his team to victory with the season on the line.

Paul scored 29 points and the Los Angeles Clippers forced a Game 7 in their first-round series with a 98-93 victory over the Utah Jazz on Friday night.

The Clippers will host the only do-or-die game of the first round Sunday, with the winner advancing to face the Golden State Warriors.

“It’s just Chris,” Rivers said. “He is as competitive as a human being as I’ve ever been around. When you put that with the talent and the will, that’s why he has performances like this in big games.

“Chris was amazing. He just willed the game for us.”

Los Angeles began to edge away in the third quarter and appeared to be in control when Austin Rivers capped a 9-2 run with a step-back 3-pointer that pushed the lead to 91-77 with 3:58 remaining.

He hit another with 1:29 left to make it 96-86, but Gordon Hayward scored seven straight to bring the Jazz within three before Joe Johnson missed a 3-pointer in the waning seconds.

Paul pushed Los Angeles throughout the night and just wouldn’t let the Clippers lose. The nine-time All-Star dominated and finished with eight assists, three rebounds and two steals. DeAndre Jordan added 13 points and 18 rebounds.

“We do it together,” Paul said. “I came to (Jordan) during one of those timeouts in the fourth and said let’s find a way. We’ve been in these situations time and time again. Some of us since we were kids playing AAU. You’ve just been in that situation. High school basketball. College basketball. It’s the same game, it’s just a lot more people at the games. You just go out there and try to stay in the moment.”

The Clippers overcame a slow start to finish at 49 percent shooting from the field. The Jazz went in the opposite direction, getting sloppy with the ball in the third quarter and making numerous defensive mistakes. They also shot just 41.0 percent from the field and were 7 for 26 from behind the arc.

Hayward led the Jazz with 31 points, George Hill added 22 and Rudy Gobert finished with 15 points and nine rebounds.

“I thought we were competing,” Jazz coach Quin Snyder said. “I’m not sure if we got tired or got tired of missing. They were the more energetic team. Their physicality on the defensive end, we didn’t respond offensively the way that we needed to, or as forceful as we needed to be.

“When you’re not aggressive enough with your frame of mind, I don’t think you shoot the ball as well.”

The Clippers took a 47-45 lead into halftime after closing on an 8-2 run, including a pair of jumpers by Luc Mbah a Moute.

The Jazz jumped out to a 22-13 lead and looked to be on the brink blowing the game wide open before the offense went cold and the Clippers ripped off an 11-0 run. Utah shot just 3 for 13 from 3-point range in the first half and missed several wide-open attempts.

“Some days are diamonds, some days are stones,” Hayward said. “We didn’t shoot the ball well tonight. We got the looks we wanted, which is a positive thing for us. I think that’s the important part, we found the open shots, found the good looks.

“Dug ourselves a hole there and it’s hard to dig out of it. I don’t think we were nervous, we just couldn’t find it tonight.”

TIP-INS

Clippers: Austin Rivers started for the first time this series after missing the first four games with a hamstring injury. … Jordan’s six double-doubles in the first six games are a playoff high. … The Clippers held Johnson to 3-for-9 shooting.

Jazz: Utah is 5-1 all-time when leading a playoff series 3-2. … The Jazz opened the game as the only team in the playoffs ranking in the top three in field goal percentage and 3-point percentage.

GOBERT OK

Gobert was taken out of the game in the fourth quarter after suffering a mild left ankle sprain. X-rays were negative and he’s expected to be fine for Game 7.

PAINT POINTS

The team with the points-in-the-paint advantage won the first five games. That streak came to an end as the Jazz outscored the Clippers 42-36 in the paint.

Report: Magic will offer team president job to David Griffin after Cavaliers’ season ends

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David Griffin has been the man pulling  the strings for Cleveland since LeBron James returned to town — he made the trades for everyone from Kevin Love through Kyle Korver, he fired David Blatt mid-season to bring in Tyron Lue, and he locked up the Cavaliers’ core for years — but apparently that hasn’t been enough. Even with LeBron’s endorsement.

Griffin doesn’t have a contract past the end of this season in Cleveland.

However, the Orlando Magic plan to offer him one, reports Brian Windhorst of ESPN.

The Orlando Magic intend to offer their president of basketball operations position to Cleveland Cavaliers general manager David Griffin, multiple sources said.

The Magic can engage Griffin in contract talks at the conclusion of the Cavs’ season, sources said.

Griffin’s contract with Cleveland is up at the end of the season, and he and the team have not held meaningful discussions on an extension.

One of two things is happening here.

First, this could be a leak out of Griffin’s agent in an attempt to get the Cavaliers to pony up. The threat of competition might get Cleveland to up its offer, or at least to move more quickly than the very deliberate pace they are on now.

Second, the Magic are serious while the Cavaliers are ready to move on. To a degree what LeBron wants LeBron gets in Cleveland, but there could be dynamics pushing the Cavaliers to move on from Griffin. The fact there have been not substantial talks with Cleveland suggests a rift.

The Cavaliers can work out a deal quickly. The question is will they? It’s going to be an interesting summer on the lake.

Avery Bradley scores 23, Celtics eliminate Bulls 105-83

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CHICAGO (AP) — Avery Bradley scored 23 points, and the hot-shooting Boston Celtics pounded the Chicago Bulls 105-83 to win their first-round series 4-2 on Friday night.

The top-seeded Celtics simply torched Chicago to finish off a tougher-than-anticipated series and advance in the playoffs for the first time since 2012. Boston regrouped after dropping the first two games at home and will meet Washington in the Eastern Conference semifinals. Game 1 is Sunday.

Bradley finished one point shy of a playoff career high he set in Game 5. He nailed three 3-pointers and the Celtics hit 16 of 39 from long range.

Gerald Green scored 16 and Isaiah Thomas had 12 before heading home to Washington state for his sister Chyna’s funeral on Saturday. Her death in a car accident the day before the playoff opener dealt a blow to the Celtics. But Boston rallied around its star player and regrouped when it looked like the series might slip from reach.

Jimmy Butler led Chicago with 23 points. But the Bulls never really found their rhythm over the final four games with point guard Rajon Rondo sidelined by a broken right thumb.

Dwyane Wade shot just 1 of 10 in a two-point effort that could be his final appearance for the Bulls. He has a $23.8 million option on the two-year deal he signed last summer to leave Miami and come home to Chicago.

The Celtics led by 13 at the half and outscored the Bulls 34-18 in the third quarter to put this one away. Things got so bad that loud boos started ringing through the United Center.

TIP-INS

Celtics: Bradley said he was planning to attend Chyna Thomas’ funeral. That hinged on the flight options and whether the Celtics were playing on Sunday. “If I’m not able to be there I’m going to make sure I’m supporting him however I can to let him know I’m here for him during this time,” Bradley said.

Bulls: Hoiberg said there is no structural damage in Butler’s right knee. He also had this response when asked what soreness means: “Uh, that it hurts.” … New Bears QB Mitchell Trubisky, the No. 2 pick in the draft, got a rude welcome from the Chicago crowd. He was booed when he was shown on the videoboard in the third quarter.

“Fire Hoiberg” chants break out as Bulls eliminated from playoffs

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The problems with the Chicago Bulls — the ones that led to a mediocre season and a first-round exit from the playoffs after being up 2-0 on the Celtics — are certainly not all coach Fred Hoiberg’s fault. Blame starts with the roster that GarPax put together.

However, Hoiberg didn’t have the respect of his stars, his rotation management was bizarre at points, and there just seemed to be no consistent structure. What kind of team where the Bulls trying to be? What was Hoiberg doing to get them there?

As the Bulls were being eliminated by the Celtics Friday night, “Fire Hoiberg” chants broke out at the United Center.

Bulls fans are understandably frustrated, but they are not going to get this wish. Not this summer.

Hoiberg was the handpicked replacement for Tom Thibodeau, the guy Gar Forman and John Paxson — the Bulls front office brain trust — had their eye on and plucked out of the college coaching ranks. They bet big on him, and to admit that was a mistake after two years could endanger their jobs. So Hoiberg will stay.

What the Bulls roster will look like next season is another, more vexing question. Will Dwyane Wade be back? Jimmy Butler? With the seeming lack of a plan by GarPax, it’s all just speculation where they might go.

Whatever happens, Hoiberg will be coaching Chicago next season. Sorry Bulls fans.