Tag: Anaheim Kings

team maloof with stern

Sacramento one vote away from losing the Kings last night, but still in control of their destiny


If you build it sticky-fingered shooting guards will come.

And if Sacramento doesn’t approve an arena for the Kings quickly then Seattle has no problem playing Kevin Costner.

And let’s not bury the lede here, Seattle almost got their wish Tuesday night as the Sacramento City Council narrowly voted 5-4 to bury a resolution that would have sent the Kings packing for all intents and purposes. But let’s couch that for a second and start from the top.

Seattle mayor Mike McGinn has been working with multimillionaire Christopher Hansen to bring an NBA team back to the Emerald City, and it’s clear Hansen has been in long-term discussions with power brokers in the Seattle area and probably David Stern and the NBA. How far they are along is debatable, but this week at least some in the Seattle media have gone as far as to say that there is a “70/30” chance the Kings play in Seattle next year and that the announcement could come in April.

That sounds like wishful thinking, because there are way more questions in Seattle than there are answers, and Sacramento appears to control its own destiny when it comes to the Kings.

McGinn, who said he has met with Hansen face-to-face just once, has admitted as much in his various media appearances, refusing to give too much hope to Seattleites that the Kings could indeed be coming. “A lot of things have to align for this to work, and I can’t predict whether everything will align or not,” he said, trying to manage expectations of listeners on ESPN 710 in Seattle.

“My expectation, and this isn’t my side of the equation, that’s gotta come from the folks that are looking to own a team – I don’t think they’re moving forward unless they feel they have commitments from the NBA and the NHL, but that’s their business, and I think that’s one of the things that has to align, as well. They’ve gotta make sure that they have a pathway. My understanding is that given the way that these things work, they probably have some type of pathway but I can’t give you any information about what that looks like.”

That pathway is for the Kings arena effort to fall flat on its face. One way to help agitate the process is to leak news of the city’s very real plans to snatch the next available NBA team in the weeks leading up to Sacramento’s critical stretch run.

Sacramento mayor Kevin Johnson was unfazed in comments made to the Sacramento Bee’s Ryan Lillis.

“I don’t blame them for trying to build an arena. I just don’t think it’s going to be Sacramento,” said Johnson, in reference to which NBA team could move to Seattle. “We have a laser focus on our business at hand, we’re controlling our own destiny and that’s what we’re focusing on.”

If Seattle cannot cash in on the Kings then the next most viable option would be the league-owned Hornets, as the NBA is closer to contraction than it is to expanding anytime soon.

Sacramento has until March 1 to present a viable funding plan to the Maloof family and the NBA, or it’s widely believed that the league will allow the Maloofs to move the team. Anaheim, like Seattle, has taken a wait-and-see approach and has appeared to be elbowed out by Seattle, and one doesn’t have to think hard to figure out what Jerry Buss and Donald Sterling think about that.

The Maloofs, for their part, have appeared committed to keeping the team in Sacramento and multiple sources have indicated that they have no plans to sell the team. They also said in December that they would be willing to be flexible with the deadline if arena talks were moving in the right direction. Regardless, assuming that anything is set in stone on their end is a fool’s errand right now.

While there have been many rumors to the effect that the Maloofs are struggling financially, nobody truly knows how they’re doing. Their sale of the Palms in June could be seen as both a sign that they freed up money to operate the Kings, or a sign that the ship is sinking. And even if they were to sell the Kings, it’s not beyond the realm of possibility that the NBA could continue to work with Sacramento in coordination with another buyer, as the league has spent tremendous time and resources helping the team regain its footing in the California capitol.

Going back to the lede, Kevin Johnson and his Think Big Sacramento coalition are nearing a conclusion to the year-long fight, and they had a critical vote last night that was closer than any arena insiders, including myself, thought it would be.

Councilwoman Sandy Sheedy, the unofficial figurehead of the anti-arena effort on the council, made a motion to bring the Kings arena issue to a vote in June. Her motion would ask the public to vote up-or-down on whether or not the city should turn over its parking assets to a private operator for upward of $200 million to go toward a new arena. This, of course, is a disingenuous position knowing that the NBA’s March 1 deadline would render any June vote useless – and the prevailing belief in and around the city political scene is that she is exacting political revenge upon Johnson. As the story goes, he did not give her a seat in his inner circle after she endorsed his mayoral run. Sheedy has since drawn numerous competitors for her district seat amidst plummeting popularity, and last week announced that she would not seek re-election next cycle.

In following the commentary made by council members throughout the past few months, only two had made strong statements against using public funds for an arena, and I had handicapped the total vote to be in favor of Kings fans. What we saw last night was the most recent ‘call’ in arena poker, with one anti-arena leaning vote (Kevin McCarty) making his position clear after supporting Sheedy’s resolution, one swing vote (Jay Schenirer) swinging hard to the pro-arena side and voting against a public vote, and one arena cheerleader (Bonnie Pannell) going completely off-script with a vote to support Sheedy’s resolution.  The resolution ultimately failed by a 5-4 vote, so there will be no deal-breaking public vote and the decision to keep the Kings will be made by the council itself in the coming weeks.

Combining the new projected anti-arena votes with the old ones, there are four councilmembers that have acted to send the Kings packing, including Sheedy, Darrell Fong, McCarty, and Pannell. Arena supporters Rob Fong and Angelique Ashby join Steve Cohn and Schenirer as leaning yes votes on the eight-person panel, with mayor Johnson as the tie-breaking ‘yes’ vote.  While I suspect this is a group that votes ‘yes’ to keep the Kings in Sacramento, this situation is much too close to call with just one more defection needed to kill the deal.

They will meet on February 14 to discuss the finalized list of parking lot operators that the city will request final proposals from.  Chances are at some point KJ is going to have to get an extension on the March 1 deadline. With those parking numbers in hand, the last step is for all of the public and private funding sources to get in a room and decide finally, once and for all, what everybody is going to contribute to the estimated $400 million price-tag of the new Entertainment and Sports Complex.

Multiple sources tell me that number is going to be reached, and the pieces of the puzzle are falling into place quickly. Earlier Wednesday James Ham of Cowbell Kingdom reported that Sacramento is going to ask the NBA and the Maloofs for $80 million and his cohort Rob McAllister reported that two executive level sources with the Kings have a “strong belief” that if the “numbers are close” that the league will come up with the balance.

While things are coming into focus, for now there will be speculation, and with last night’s close city council vote the vultures will descend and you’ll find more reports trying to pry the Kings from Sacramento’s nowhere-near-dead hands.

“Stern is one of the guys who the group in Seattle is talking to, and he wants a team (in Seattle), and he’s apparently told them that they can play in Key Arena while an arena is being built,” said Steve Kelley of the Seattle Times, who also made the 70/30 comment tying a Kings-to-Seattle announcement to April.

Stern was more diplomatic when speaking to Brian Smith of the Salt Lake Tribune.

“Obviously, we certainly have been supportive of Mayor [Kevin] Johnson’s efforts with respect to the building and we sure would like to see that happen,” Stern said. “But we cannot guarantee or [assume] it, and we’ll have to deal with the realities as we find them.”

Surely the commissioner could take umbrage to Kelley’s reports that he is knee-deep in talks with Seattle, but I’m betting he lets the Emerald City flex its arms and scare the cow poop out of Kings fans and councilmembers alike.

The irony here is that Sonics fans were exactly where Kings fans were when Clay Bennett moved their team away, and the producer of the acclaimed documentary Sonicsgate: Requiem for a Dream, Jason Reid, was outspoken in supporting Kings fans last April – showing up at a Thunder playoff game ringing cowbells for all the cameras to see. But all is fair in love and sports.  When news broke about Seattle’s interest they tweeted out an old 2010 video that states, “No Team Is Safe,” and at the end shows a Seattle Kings logo. Colin White, web and graphic designer for Sonicsgate said, “It is what it is. We want (their) team.”

So, no, Stern won’t put a blanket on the bidding war at this late hour. If anything he’ll ratchet it up. The only difference here is that Kevin Johnson has the ball in the final seconds, and as long as he gets four council members to agree with him he’ll probably hit the game-winning shot.

Sacramento City Council votes 7-2 to go forward with next step in arena process

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City council meetings can be dull, but the Sacramento City Council meeting on Tuesday to decide if the Kings should go forward with a key element of their plan to secure a new Entertainment and Sports Complex (ESC) was anything but.

Alright, it was still pretty boring, but Tuesday’s meeting had everything you could ask for in a five-hour local government showdown, including human PowerPoint presentations, #Occupy protestors, some normal people, the villain city council member, people whose sole purpose in life is to show up at every city council meeting and speak on every issue, people that sang during their two minutes to speak, the transvestite with a keen business acumen, and of course, the mayor that dunked on Hakeem Olajuwon like he was Timofey Mozgov.

On the docket was a vote to determine if the city should go forward with a Request for Qualification (RFQ) from parking lot operators that could end up providing $200 million or more toward the city’s stake in the estimated $400 million arena.  Once the vote passed, the city manager would then be authorized to have parking lot operators produce preliminary bids for the right to operate city-owned parking lots for terms up to 50 years.  This is said to be the funding nut that will push the Kings over the finish line, though it remains to be seen if it will be enough.

What made Tuesday’s meeting critical, aside from the unlikely scenario that the council would vote down this motion, was getting to see once again how each council member would act, as they will ultimately determine the project’s fate. During the last procedural vote in which $500,000 was requested to secure a qualified arena negotiations team, I wrote about how each council member discussed the arena project and said that things looked good for Kings fans.

They voted 7-2 on that day to authorize funding that would move the process to its next step, and on Tuesday they voted the same exact way to authorize this RFQ. Again, the main opposition to the arena plan has come from two council members, Sally Sheedy and Darrell Fong.  After Kevin McCarty talked extensively on Tuesday about how the parking funds could be used in other ways, he also joined my unofficial ‘no’ side of the ballot.  Meanwhile, Sheedy has taken a Judge Judy like role in proceedings, barking out commands to city staff and generally trying to muck up the process.  She is seeking re-election under an anti-arena campaign.

On the other side of the ballot I had identified four arena proponents prior to Tuesday that, as I see it right now, will vote yes when the vote matters in February (Rob Fong, Angelique Ashby, Bonnie Parnell, and Jay Schenirer).

Following Tuesday’s meeting I added Steve Cohn to that list after he offered up this tidbit following an exchange with ‘no’ voter McCarty. After Cohn cited a Green Bay Packers-like stock plan as a creative example of a funding mechanism, McCarty said “It probably helps that the Packers are 13-0.”

To that point, Cohn said “Yeah but they’re going to keep their team no matter what. So we need to keep ours.”

Kevin Johnson’s ‘yes’ vote would only be needed to break a tie, so essentially Kings fans need 4-of-8 members to vote ‘yes.’

All said, I’m predicting a 6-3 vote in favor of funding the arena, but like everything else having to do with Sacramento versus Los Angeles, this will come down to the wire. Assuming my word-parsing, eye-tests, and other voodoo analysis are correct, the deal still has to come to the city council’s desks without any major flaws. Then, it has to provide enough time for council members to vote on it without having any reservations about moving too fast.

As of now, Kevin Johnson has yet to make a mistake and has conducted the campaign to a presidential degree, with a former campaign manager to Bill Clinton, Chris Lehane, at his side co-chairing the Think Big coalition. Until Johnson screws something up, it’s wise to bet that he’ll continue to hit his deliverables.

Meanwhile, Kings fans continue to impress in their role of drumming up public support.  During Tuesday’s meeting, a diverse set of seven Kings fans spoke during the time for public comments, but the twist was that they scripted their comments to fit a theme. The theme was that the city’s need for an arena is “bigger than basketball,” so before each of them spoke they removed their Kings jerseys to reveal a white T-shirt with one of the words ‘Concerts, Regional $, Events, Revitalize, Nightlife, Jobs, and Pride.’

They live-tweeted each person’s talking point and along with the streaming video of the council meeting the entire Kings’ grassroots network trended on Twitter in Sacramento.  Small gestures, big impact.  I’ve said it before, but Save our Sonics needed Twitter to invent itself a few years earlier.

I asked the leader of the group that came up with the idea for the T-shirts why they did it, and Mike Taveres of #FANS (Fund Arena Now Sacramento) said, “We wanted to show this was more than just our Sacramento Kings. They’re a piece of the puzzle but not the only piece.”

What’s going on in Sacramento is much bigger than basketball, indeed. The region has 12 percent unemployment and lost $40 million in tax revenues in the last year alone due to falling property values. The city’s normally stable public sector has been hammered by budget cuts at the state level, and big businesses are leaving with regularity (for places like Anaheim that cater to business no less).

Should Sacramento not fund the arena and they lose their team, they will need to find an anchor tenant before they could entertain the idea of building a game-changing downtown anything district. Their citizens will continue to pour money into other regions when they travel outside of Sacramento for shows and events, property values will likely continue to struggle, and businesses will see the city’s inability to build an arena as a failure of leadership. They already are. The citizens, already slumping through bad economic times, will see their crown jewel going away as a sign that things aren’t working, and confidence will erode all the way around. These aren’t my words – they’re the words of the many citizens I’ve interviewed that desperately want to keep the tumbleweeds outside of city limits.

Yes, there is a discussion to be had about the public funding of sports arenas, but ironically that discussion is in a pending status within the academic community. As I reported back in August, the go-to economist on sports subsidies, Brad Humphreys, is in the middle of a study to address the hundreds of millions of dollars of increased property value a facility like the proposed Kings arena might bring. I spoke with Humphries in great detail, and he said that as long as the Maloofs and the NBA were throwing in the type of money that had been reported, that the Kings deal shaped up as a “good deal.” As for the study, that’s on pause until his co-author can catch a break from his two newborn kids. They’re in no hurry to finish the study and under no societal obligation to do so, but for anybody with so-called claims that they understand the economics behind this – they don’t. Simply put, the experts are still studying it. In the meantime, Humphries and others have noted that the previous approach of building a stadium or arena in the middle of nowhere was flawed, and building them in the middle of downtown hubs is the best way to monetize the value of a sports franchise. He wrote,

A new state of the art facility integrated in a comprehensive urban redevelopment program and located in the heart of a large city might be expected to generate increases in residential property values in the vicinity of hundreds of millions of dollars within a mile of the facility, if the location, planning, construction, and development are carried out carefully.

This is what the Kings fans and community leaders are fighting for. It’s not just the increase in tax revenues an extra ‘hundreds of millions of dollars’ of land value might bring, but rather the overall economic activity the arena will spur. It’s why these normal citizens have given all of their waking hours to a cause, it’s why a documentary is being made about the #HereWeStay guys, it’s why thousands of fans refused to leave after the team’s final game, and it’s why they continue to outpace their opposition at every turn.  Their community literally depends on it.

Kevin Johnson heads to New York on Friday to meet with the NBA and AEG to discuss how much private contribution the league and the Maloofs are going to make. All of this is going to come together in the next 60 days, and ultimately there will be a final vote.

Sure public opposition could pick up, and yes, unappealing deal-points could make the deal go bad, but with Kevin Johnson pitching a shutout and Kings fans handling the public education piece – it sure seems like they’re on track to finally get that win over Los Angeles.

Would lost season increase chances Kings move to Anaheim?


You want to know why NBA owners were willing to cut off the Maloof brothers at the knees, block a Kings move to Anaheim and give Sacramento one more shot to keep its only major league sports franchise?


The owners have understood from the start this was going to be a long and ugly NBA lockout. And even if this were a situation where the league and players had reached a deal this week, the ability of the Kings to win over fans in their new home was compromised. “Hey, we’d love you all to pay to come out and see us play, as soon as we are done arguing about how to split up your money.”

So Sacramento got one more chance — a real chance to get plans for a new arena moving forward enough to keep the team.

But can they pull that off in the wake of a lost season? Mayor Kevin Johnson worked hard to rally businesses and fans, to show the groundswell of support for the team. Now is that all being thrown out with the first months of the NBA season (at least)?

USC Sports Business Institute executive director David Carter told the Orange County Register things just got a lot tougher for Sacramento and look better for Anaheim.

“Missing a meaningful amount of the upcoming NBA season will certainly have an effect on Sacramento’s interest, willingness, and ability to keep the Kings,” Carter said. “Public sentiment about the lockout doesn’t help anyone, but it can really impact any franchises that are in flux.”

Sacramento’s chance to keep the Kings is real, but it already had a lot of challenges. Then this week Billy Hunter threw another big hurdle out there on the track. Like the whole lockout, it doesn’t seem fair, but it’s reality.