Terry Stotts Press Conference

Bucks owner Herb Kohl seeking new investors to keep the team in Milwaukee

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Bucks fans will spend the next 2-3 years looking over their shoulders at Seattle, and that’s because they’re in jeopardy of losing their basketball team should owner Herb Kohl fail at securing a new NBA-approved arena.

For small and mid-markets, having a state-of-the-art arena to maximize revenues is a requirement and any city that isn’t willing to make that type of commitment to the NBA will be threatened by 5-10 other cities that are dying to get into the game. It’s simple supply and demand.

Kohl, the former Democratic senator who is 78, is reportedly looking for other investors to join him in his attempt to keep the team in Milwaukee.

With a net worth that’s better described with an ‘M’ for millions rather than a ‘B’ for the billionaire owners that the NBA is attracting these days, it’s understandable why Kohl needs to deepen the pockets and broaden the influence of his group.

First and foremost he needs to deliver on an arena, and having more investors will help that along in many ways. But just as important to Milwaukee will be the overall value proposition this ownership group will have to the NBA, whether Kohl wants to continue as owner of the Bucks or not. That’s because if there ever comes a time when their arena plans are in doubt, it will be this group that gets measured against Seattle and any other city that wants to get into the game.

The NBA, whether being led by Adam Silver or David Stern, does not like to relocate franchises. In this day and age of information, the damage that relocation can do their brand is much greater than it was when Seattle’s elected officials told the NBA to go kick rocks and thus Sonicsgate was born.

At the same time, the NBA has found a sweet spot in its public subsidy pitch, which has been the target of many economists’ ire over the last 30 years when suburban arenas were all the rage. Economists have maintained that arenas don’t increase local spending because of things like the substitution effect, which simply stated means that people spend money at the game but stop spending their limited funds everywhere else. In essence, they contend, there is no overall gain.

However, economists have recently found themselves at an impasse on the issue with even the most ardent oppositionists still researching newer findings, in an area of study that isn’t exactly brimming with ongoing research.

The new revelations highlight the difference between suburban arenas and what city planners call ‘high density civic attractions,’ which are more likely to be sought after in the small-to-mid market cities that are most susceptible to relocation.  Instead of driving to a suburban arena, watching the game, and then leaving – a downtown arena can attract people for longer visits, attract all-important out-of-town dollars, and encourage use of mass transit.

In terms of increasing land value, a properly developed downtown arena district can increase surrounding land value by “hundreds of millions of dollars” according to a recent study by lead opposition subsidy voice Brad Humphreys. Arguments move into the both the micro- and mundane-levels from there, but an increase in land value around these downtown arenas stands on its face – it’s valuable for a reason.

The NBA has the cachet as an anchor tenant to bring in the private investment needed to make these downtown revitalization projects pencil out, particularly as public redevelopment dollars have dried up around the country.

With the NBA being the winner of over $3 billion in public funds since 1990, they have a massive financial stake in making sure they both polish that pitch and protect their reputation on that front.

For starters they have to maintain that they can be a loyal partner to any city engaging in good faith efforts to maintain a state-of-the-art arena.  Long-term, by building a portfolio of downtown success stories like L.A. Live, downtown Indianapolis and the soon-to-be built arena in downtown Sacramento — the league can keep the public funding narrative from collapsing under a wave of antipathy toward millionaires and billionaires bouncing a leather ball for amusement.

So look for the NBA to work with Kohl and Milwaukee to find the political will (i.e. public dollars) to get an arena deal done. As expected, the league released a statement from David Stern moments ago expressing support for that process. “Senator Kohl bought the Bucks in 1985 in order to ensure the team would remain in Milwaukee. During his extraordinary stewardship his goal remained the same — to bring the fans of Wisconsin high-quality basketball from a team they would be proud to call their ‘home’ team. With this announcement, Senator Kohl continues his mission: to assure continuity of ownership by broadening its ownership base, and assuring that the fans of Wisconsin will enjoy NBA basketball and other events in a new state-of-the-art facility,” said Stern.

And while everything is going to sound fine for Bucks fans until it doesn’t, they’re not going to know that they are indeed keeping their team until much more has been revealed in this slow-moving story.

PBT Podcast: Derek Fisher fired, plus your trade questions from Twitter

Derek Fisher
Associated Press
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Derek Fisher is out as coach of the New York Knicks.

In this latest podcast, NBC Sports’ Kurt Helin and Dan Feldman discuss the odd timing of that move — we expect another shoe to drop as to why. It’s not that Fisher was a great coach, but replacing him with Kurt Rambis mid-season is not an upgrade. And Luke Walton isn’t available until this summer.

After struggling to figure out what the Knicks are thinking, Helin and Feldman answer questions off Twitter from readers/listeners on the coming trade deadline including discussions of Blake Griffin, Jeff Teague, the Pistons, the Jazz, the Knicks, and more.

As always, you can listen to the podcast below, or listen and subscribe via iTunesdownload it directly here, or you can check out our new PBT Podcast homepage, which has the most recent episodes available. If you have the Stitcher app, you can listen there as well.

Warriors’ center Festus Ezeli to have knee surgery, out indefinitely

Golden State Warriors center Festus Ezeli, left, of Nigeria, looks to pass the ball as Denver Nuggets forward Darrell Arthur defends during the second half of an NBA basketball game Sunday, Nov. 22, 2015, in Denver. Golden State won 118-105. (AP Photo/David Zalubowski)
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Festus Ezeli has been a rock-solid backup for the Warriors this season, playing almost 18 minutes a night behind Andrew Bogut giving the team 7.5 points and 5.9 rebounds a contest. Golden State’s defense is 3.6 points per 100 possessions better when he is on the court, and he’s part of the team’s long-term plans.

But he’s going to be out for a while now following knee surgery, the team announced and as reported by Monte Poole at CSNBayArea.com.

http://www.csnbayarea.com/warriors/festus-ezeli-undergo-knee-surgery

The surgery is exploratory, which is why the Warriors say there is no timeline for recovery yet.

The surgery is on his left knee; it was his right one that had reconstructive surgery and forced him to miss all of two seasons ago.

This is a blow to the Warriors’ depth, but little has slowed their march this season. More Mo Speights is not ideal, but the Warriors can just go small more often and run teams out of the building that way.

Ezeli is a restricted free agent this summer and the Warriors would like to keep him on the roster and expand his role, particularly if they do not retain Andrew Bogut. The severity of this knee injury could impact Ezeli’s ability to earn a big contract this summer, but hopefully for him, it’s not that serious.

Russell Westbrook stands behind Kevin Durant, mimics him during interview (video)

Oklahoma City Thunder guard Russell Westbrook, right, gestures after scoring as forward Kevin Durant stands by during the second half of an NBA basketball game, Friday, Jan. 8, 2016, in Los Angeles. The Thunder won 117-113. (AP Photo/Mark J. Terrill)
AP Photo/Mark J. Terrill
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Choose your spin.

This is why Kevin Durant is leaving the Thunder. Russell Westbrook doesn’t respect him.

or

This is why Kevin Durant is re-signing with the Thunder. He and Russell Westbrook have so much fun together.

Report: Magic open to talking Tobias Harris trade, looking to add experience

Memphis Grizzlies guard Tony Allen (9) grabs the uniform of Orlando Magic forward Tobias Harris (12) in the first half of an NBA basketball game Monday, Jan. 25, 2016, in Memphis, Tenn. (AP Photo/Brandon Dill)
AP Photo/Brandon Dill
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Tobias Harris signed a four-year, $64 million contract with the Magic just last summer.

Now, just 50 games later…

Marc Stein of ESPN:

I’m skeptical this is significant. Teams discuss trades for many players for a variety of reasons. That doesn’t mean the player is likely to be dealt.

Orlando in particular has a roster of players who cause significant debate about their value. It’s helpful to know what other teams think of Harris, and soliciting trade offers is a good method to learn his worth.

It’s more intriguing the Magic are looking to add experience. They should probably go the opposite route, but they’ve tried (and failed) for years to accelerate their rebuild. At 22-28 – four games and three teams from playoff position – now is not the time to seek shortcuts. Spend the rest of the season developing young players – and probably securing a higher draft pick in the process.

One of Harris’ best traits is his youth. He’s just 23. See what other teams would offer for him, sure. But, in all likelihood, it’s better to let him grow into the veteran Orlando needs rather than trading him for one when the rest of the team isn’t ready to win, anyway.

My guess is that’s what Orlando will do. Remember, always consider who has incentive to leak this information anonymously and what they’d be positioned to know.