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.

Spurs honor Richard Overton, the oldest living U.S. veteran at Military Appreciation Night

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San Antonio is a military town, and on Thursday night against the Memphis Grizzlies the Spurs held a Military Appreciation Night. The team donned their camouflage uniforms, then held court for a very special guest: Richard Overton.

Mr. Overton is the oldest living U.S. veteran at age 110. He was in the Pacific theater during WWII and served in the Army with the 1887th Engineer Aviation Battalion.

The team honored Mr. Overton during the game, and he received a standing ovation during a timeout.

Via Twitter:

Plus, Mr. Overton got to hang with the Spurs dancers:

Pretty neat of the team to do.

James Harden has been fouled on 3-pointers more than any single NBA team

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Houston Rockets star James Harden is a leading candidate for the 2017 NBA MVP, and for good reason. The Arizona State product has been exceedingly efficient, unburdened by Dwight Howard clogging the lane and fueled by a Mike D’Antoni offense that treats the ball like it’s radioactive.

But Harden has a new claim to add to his statistically-important season. He has been fouled more times on 3-point shots than any team in the NBA.

Not player. Any team.

This revelation is the result of some serious digging by ESPN’s Chris Herring. In an article published to 538, Herring outlined the situation in great detail. It’s worth reading in full, but the shocker comes here:

Harden has drawn a whopping 108 shooting fouls from distance this year with 11 games left to play. For context, consider that, outside of the Rockets, no team has garnered more than 73 of those calls.

If you subtract Harden’s numbers from the rest of the league’s, the average NBA player has drawn fouls on 1.6 percent of his 3-pointers this season, according to BigDataBall, which tracks the league’s play-by-play logs. Harden is drawing 3-point shooting fouls at a 16.7 percent clip, or more than 10 times as often.

Herring’s article goes into how Harden draws the contact (hint: he’s the one initiating it) and why he’s so good at it. Just like on his drives, Herring says Harden uses his arms to his advantage. It’s best to read 538’s article so you can see the visual cues on how Harden does it, but it’s suffice to say it’s impressive.

The immediate discussion here is whether Harden is “gaming” the system by adding this to his already foul-reliant arsenal. The answer is absolutely he is, and that’s why he’s one of the top MVP candidates this season.

Change the rules or change how officials respond to the game. Until then, James Harden is a basketball wizard.

Derrick Rose, his agent both say winning more important than money in free agency

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Lets’s start with a disclaimer: Nearly every player and agent say for them free agency is not about the money, it’s about winning/fit/style of play. Then they go to the team that gives them the most money, even if it’s not very good or plays a style that doesn’t fit with their game.

That said, as players get along in the league, winning does matter more and some players will sacrifice dollars for rings.

Derrick Rose is a free agent this summer, and both his agent and Rose himself said that finding a winning team is what will guide the process.

“Derrick wants to win,” Rose’s agent B.J. Armstrong told NBCSports.com as part of a PBT Podcast (which will drop Friday morning). “That’s who he is, whether he’s playing pick-and-roll or not. In the end, what I found as a player, what I found as an agent, is it’s much easier to play when you’re winning….

“This is his first time, in his nine years of playing in the league, that he’ll actually have an opportunity to select the people he thinks he can work best with. As long as you’re playing in a good spot and healthy, money and the rest of it will take care of itself. Where you get in trouble in this league is when you start trying to do things strictly for money.”

Here is what Rose himself said about his free agency this summer, via ESPN.

“Not even thinking money. I’ve got more than enough money saved. If I stopped playing basketball now, I’ll be all right,” Rose told reporters in Utah on Wednesday night. “I want to win. I want to be happy and feel at peace with myself wherever I’m at. But being at the negotiating table, you never know. I’m not going to negotiate with people where money is the No. 1 thing I’m asking for. I want to win.”

It’s going to be an interesting market for Rose, the number of “winning” or quality teams in need of a point guard and with enough cap space to sign Rose is a limited market. While he has said he would love to stay in New York and the Knicks have not given up on the idea of re-signing him, if they are committed to the triangle offense that may be an awkward fit (and it’s not exactly a winning team). The sands will shift this summer and something will open up, but will Rose take less money — and maybe a lesser role — to be on a team that’s a threat to do deep in the playoffs?

He says so. His agent said so. We’ll see what happens when the money hits the negotiating table.

Charles Barkley says if he was dying he would kill fellow talking head Skip Bayless

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Charles Barkley knows how to get ratings. He said weird stuff all the time. He’s feuded with LeBron James and made fun of LaVar Ball. Now Barkley has said that if he had some kind of terminal illness, he would want to kill former ESPN and current Fox Sports talking head Skip Bayless.

Uh, what?

It was the end part of a conversation Barkley had on The Dan Patrick Show this week, with Barkley quickly cramming it into the final minute of the show.

“You know what we should do for ratings?” said Barkley, “If I get a disease and I’m gonna die, how about you get Skip Bayless in here and I kill him live on national television.”

Bayless makes a living being abrasive, but this feels pretty clumsy. Then again, Shaquille O’Neal saying the Earth is flat is also simply testing the waters of how to get instant buzz around you.

Let’s hope Barkley stays healthy, if only for Bayless’ sake.