Tag: NBA

Denver Nuggets v Brooklyn Nets

Nets to try and get Disabled Player Exception for Lopez, add player to roster


The Nets are capped out and have 15 guys on the roster — they cannot add another body under the NBA rules. However with Brook Lopez out for the season, they want to. Need to, really, when you consider the injury history of players on the roster.

So the Nets are going to file the paperwork for a Disabled Player Exception according to GM Billy King, as reported by Andy Vasquez of the Bergin Record.

What does that mean? Teams who are over the cap can apply for this exception to add a player when they lose one for the season (something a league doctor has to clear but will in the case of Lopez).

Who can they get? Straight from Larry Coon’s NBA CBA FAQ:

• The team may sign a free agent for one season only, for 50% of the disabled player’s salary or the amount of the Non-Taxpayer Mid-Level exception, whichever is less.

• The team may trade for a player in the last season of his contract only (including any option years), who is making no more than 50% plus $100,000 of the disabled player’s salary, or the amount of the Non-Taxpayer Mid-Level exception plus $100,000, whichever is less.

For the Nets, this means they can sign or trade for a player up to the midlevel exception of $5.15 million (half of Lopez’ salary is $7.35 million).

It should be noted that because the Nets have a full roster they would need to waive a player to make room for another one, even with the DPE (thanks to Devin Kharpertian of The Brooklyn Game for the reminder). They could waive Tyshawn Taylor, Tornike Shengelia or Alan Anderson but they still have to pay those guys’ fully guaranteed deals.

Getting the DPE is one thing, using it is another. They might like to bring in another big man, but the pickings out there are pretty slim (unless they have another future asset they might give up in a trade, but not many of those left). This gives the Nets flexibility but they don’t have a lot of good options right now.

And whatever this player signs for gets added to what is already the highest payroll and tax in the league — they will be pushing $190 million in salary and tax before this signing. But that doesn’t seem to faze Prokhorov.

Otto Porter Jr., the un-sexy prospect

Otto Porter Jr.,

WASHINGTON — If the NBA Draft were dating, Otto Porter Jr. is the one all fathers would approve of. Dad never objects to the guy labeled “safe.” On Thursday, we’ll found out which team covets reliable over risk.

The Georgetown forward can do just about everything on the basketball court. Based on league chatter, that versatility apparently excites no one. That’s not to say the unanimous Big East Player of the Year lacks desirability among pundits and teams picking in slots one through six. It’s just not apparently in a lusty sort of way.

Draft Express:

“Porter appears to be one of the more safe picks in this year’s draft.”

SI.com’s Andy Glocker:

“Otto Porter may be the surest thing in the draft”

NBA scout on Porter:

“I think he’s the safest pick in the draft.”

The 6-foot-8 sophomore’s instinct-rich game with a significant defensive component and nary a trace of jock ego warms the heart, especially by those that catch his act repeatedly.

There just isn’t a high-rising component, though Porter’s 36-inch vertical more than gets the job done.

There just isn’t a textbook shooting stroke, though he improved his 3-point accuracy from 23 percent as a freshman to 42 last season.

There just isn’t any aspect of Porter’s game that is dynamic, at least not in a posterizing sort of way. However, there are no glaring weaknesses, no sense of wasted potential. That’s why his college coach uttered a one-word answer when queried about what kind of questions NBA teams are asking about his guy.

“None,” said a matter-of-fact John Thompson III after a brief pause to realize that oddity of what he was to say considering the million dollar stakes.

Thompson continued: “I’m biased, but I also think I’m right. I think he’s the most complete player in the draft at both ends of the court, the most ready player in the draft. I think people have seen that, he’s displayed that over the last couple of years.”

Indeed, teams know what they get if they draft Porter, as opposed to 7-foot-1 Alex Len, who both wowed and waned last season at Maryland. As opposed to UNLV forward Anthony Bennett, who offers an abundance of offensive weaponry, but often showed little interest in stopping opponents from using theirs. As opposed to Kentucky’s Nerlens Noel, who is a shot-blocking savant but a point-producing novice with already two major knee injuries in his young career.

That’s why with Porter, who led the Hoyas in scoring (16.2), rebounds (7.5), steals (1.8) and 3-point shooting, everyone loves same variation of that “s” word.

ESPN’s Chad Ford on the Wizards’ possible debate at No. 3:

“Do they go with more of a sure thing (Porter) or gamble on the guy with more upside in (UNLV’s Anthony) Bennett?”

Thompson believes a certain “c” word is what makes Porter a potential gem.

“A word that is perhaps used too often, but applies — he’s coachable,” Thompson said. “I’ve told several teams, just figure out what you want him to do if you take him and tell him. Tell him what you want him to be able to do and he’ll be able to do it.”

Geez, where’s the fun, the drama with that?

Perhaps Porter’s closest draft doppelganger is the four inches shorter Victor Oladipo. Like the Indiana guard, Porter entered college under the national radar, is a defensive-minded player who made dramatic offensive strides this past season from long range. Of course, everyone fawns for Oladipo and his 42-inch vertical to the point where even his missed dunks are legendary.

Based purely on positional need, Porter is an obvious fit for the No.1 picking and small forward lacking Cleveland Cavaliers. Some reports have suggested Porter is atop Cleveland’s draft board. According to one source, the Cavs “want to take Porter,” but wanting and doing are not the same. Nary a highly cited mock draft has this scenario unfolding.

Most often projected to the Wizards, Porter recently worked out for the NBA team that plays in the same Verizon Center where Georgetown’s low-key leader starred last season. Washington could use a player capable of defending multiple positions who always seems one step ahead of the play as a passer and when it comes to anticipating tosses from others.

It’s just that on the surface that type of player doesn’t make for part of a desired “Big 3.” The Wizards may have an opportunity to snag a coveted building block center (Len, Noel) or add a potentially dynamic scorer (Bennett) for an offense that tied for last in that category.

Sheridan Sports:

“His ceiling may not be as high as UNLV’s Anthony Bennett, but Porter projects as a much safer pick.”

Oh, if you’re wondering why there are no quotes in here from Otto Porter Jr. himself, let’s just say talking about his own game is not one of the unassuming Missourian’s strengths. Then again, in this kingly era, a player not into self-promotion sounds very appealing. So does his parental-approved game.

Kings ownership documents reveal major potential stumbling blocks for Seattle


CORRECTION:  February 8, 2013

An earlier version of this post incorrectly referred to a May 2003 document as an addendum to the Kings’ 1992 ownership agreement.  The May 2003 document is self-described as a proposal, which, if approved, would constitute a basis for an amendment of the Kings’ partnership agreement.  The version of the May 2003 document viewed by PBT was unsigned.

This item was co-written by Aaron Bruski and James Ham

The fight over the Sacramento Kings is building to a fever pitch.

In one corner, Seattle-based investors led by hedge fund manager Chris Hansen and Microsoft CEO Steve Ballmer have entered into an agreement to purchase the Kings from the Maloof family with the intention of moving to Seattle.

In the other corner, former NBA All-Star and Sacramento Mayor Kevin Johnson is moving comfortably toward an announcement of his equity partners, which will come at some time this week. Sources close to the situation have said that these owners will more than meet NBA criteria and be able to compete with or beat Seattle’s offer. Additionally, these owners will come to the table willing to pay their portion in an arena deal that was previously approved by the NBA, and sources say will be approved by the Sacramento City Council, as well.

USA Today and the Sacramento Bee reported that big money guys Ron Burkle and Mark Mastrov were in serious talks with the city, and USA Today reported that Burkle met with David Stern in New York on Thursday, January 24th. PBT can confirm each of those reports.

Since the Sacramento Bee’s report on the issue January 24, there has been speculation whether Kings minority owners have the “Right of First Opportunity” to purchase the team from the Maloofs.

They well may.

NBC ProBasketballTalk has acquired a copy of the Kings’ 1992 ownership agreement and an unsigned May 2003 proposal to amend the ownership agreement.

Article VII of the 1992 ownership agreement, “Transfer of Partnership Interests” starts off in Section 7.1 “Restrictions on Transfer” with the basic tenet that, “…no sale, assignment, transfer, encumbrance or hypothecation (herein referred to as a “Transfer”) shall be made by a Partner of the whole or any part of its or his Partnership interest (including, but not limited to, its or his interest in the capital or profits of the Partnership).” Section 7.2 permits certain specified sales to “Affiliates,” which in theory covers sales to essentially the same ownership (more on “Affiliates” below).

A little further down in Article VII, Section 7.3 spells out the right of first refusal in plain legalese.

“Section 7.3. Right of First Opportunity.

Notwithstanding the provisions of Section 7.1 hereof, if a Partner desires to assign all or part of his or its interest in the Partnership and such assignment is not specifically permitted under Sections 7.2A or 7.2B above, then the assignment shall be subject to the right of first opportunity hereinafter described in this Section 7.3. Before a Partner (the “Selling Partner”) actually concludes a sale of its interest in the Partnership subject to this Section 7.3, the Selling Partner shall give notice to (a) the General Partner and each other Limited Partner if he Selling Partner is a Limited Partner, and (b) to each Limited Partner if the Selling Partner is the General Partner (such Partner or Partners other than the Selling Partner being individually and collectively herein called “Non-Selling Partner”) setting forth the purchase price for which it will offer such Partnership interest for sale (which purchase price must be payable entirely in cash or part in cash and the balance pursuant to one or more promissory notes).

Section 7.3 further adds that a “non-selling partner” must step forward with its right to match within 30-days notice of the team’s sale. When that authority is exercised, the minority owner would have a 45-day window to complete a purchase.

The language is clear, but perhaps the Maloof family is counting on an earlier clause:

“Section 5.3. Limitations on Authority of the General Partner.

Notwithstanding the provisions of Sections 5.1 and 5.2 hereof:

A. The following decisions shall require the approval of Partners then holding Partnership Percentages aggregating at least 65%:

(1) The moving of the Team from the Sacramento area to another City prior to February 1, 2002;

(2) The sale of all or substantially all of the Partnership Property

Section 5.1 details the “Authority of the General Partner.” It includes language giving the majority owner “exclusive authority to manage the operations and affairs and to make all decisions regarding the Partnership and its business…”

Section 5.2 addresses the “Sale or Financing of Partnership Property.” It includes clear language stating “the General Partner shall have the sole and unrestricted right to and discretion to determine all matters in connection with any sale of the partnership Property or any part thereof…”

In layman’s terms, sections 5.1 through 5.3 establish the potential for a super-majority in the franchise’s decision-making authority. By reaching a 65-percent threshold of controlling interest, the Maloof family and partner Bob Hernreich have accomplished that by purchasing minority shares during the last decade.

While this all seems alarming for the Kings’ minority owners, it is not the end of the story. Nowhere in Sections 7.1 through 7.3 is an exception carved out protecting Section 5.3 and the Maloofs super-majority clause from the right of first opportunity. This means that while the Maloofs’ have the right to sell and/or relocate without minority approval, it doesn’t appear they have the right to sell any portion of their interest in the club without first giving the limited partners a chance to match.

As attorneys do, how an attorney may interpret the document may depend on who is paying their bills. And a judge may get to make the final call.

A May 2003 proposal to amend the ownership agreement proposed to strip the “Affiliate” language that sources tell PBT may have provided a small loophole for a transfer of the team’s majority share while circumventing the rights of the minority owners. The proposal included the following language:

“2. Partners Right of First Refusal

To clarify the issue of First Right of Refusal on purchase of partnership shares, the following is a proposed amendment to the Partnership Agreements:

A. Partner’s Proposal to Transfer. If a Partner proposes to sell, assign, or otherwise dispose of all or any part of the Partner’s Interest, however it is held, i.e. whether or not the interest is owned directly by it, or through another entity, individual, etc. (Hereafter “Such Interest”), then the Partner (“Selling Partner”) shall first make a written offer to sell such Interest to the remaining Partners, pro rata (as not all of the other Partners are required to participate in the purchase) based on their then ownership positions in the Partnership. The price, terms and conditions shall be as mutually agreed by the parties.

The following section goes on to propose that in the case of a third-party offer, the minority owners retain their right of first refusal for 60 days after receiving the selling Partner’s written notice and it finishes with this definitive statement:

“No Partner shall sell, transfer or otherwise dispose of their Interest, even if owned through a different entity and it is the purported different entity selling all or a portion of itself within the holder of the Interest, except in accordance with the provisions of this Article.”

There is one more note of interest in Section 3 of the proposal titled “Sale of an Interest in the General Partner”:

“Any offer received by the General Partners to purchase a portion, or all, of their interest, which was not purchased by the Limited Partners pursuant to their Right of First Refusal, would be considered an offer to purchase that percentage of the total entity.”

Meaning, that if the Maloofs sell their interest to the Hansen-Ballmer group for the reported $525 million and the minority owners do not take up the Right of First Refusal, Hansen and Ballmer would be required to purchase a proportional stake of the minority share as well.

We aren’t looking at $341 million (the Maloof and Hernreich 65-percent share), we would be looking at the entire $525 million. Although whether that sum would make the Seattle group even blink is up for debate.

The proposal language states that if the proposal is approved by the partners, it will constitute a basis for an amendment of the ownership agreement to be drafted and executed by all partners.  The version of the May 2003 proposal viewed by PBT was unsigned but according to a source with intimate knowledge of the situation, the proposal was signed in May of 2003.  PBT is not aware of an amendment to the ownership agreement that was later drafted and executed by all partners.

So the question now becomes, is there a Right of First Opportunity/Refusal and if so, is there a minority owner who is willing to step up and invoke that right? If so, can that owner come up with the financial backing to match the deal from the Hansen-Ballmer group?  What is the backstory of the May 2003 proposal and what became of it?  And lastly, will the NBA continue to back a Seattle deal that may have ignored the rights of minority owners?

It would be surprising if the NBA didn’t have some serious questions for the Maloofs and the Seattle group.

Metta World Peace boasts Lakers want to get 73 wins

Metta World Peace

For the Lakers fifth offensive option (if that), Metta World Peace isn’t afraid to do the talking.

We told you how he said he didn’t think anybody could get past the Lakers. We’ve shown you his latest boast-filled video. We showed you him on Yo Gabba Gabba. He’s kind of everywhere right now.

Then there is this quote from his ESPN Los Angeles radio interview recently (via Sports Radio Interviews), when asked about Lakers goals.

“We definitely want to beat the Bulls record and go 73-9, that’s definitely something that I want to do. Whoever is out there at the beginning of the season then we gotta get it. It’s as simple as that. We just have to go get it. (Host: So that Bulls record is something you’re thinking about?) No question. You try to snatch records before you leave this earth. You gotta try to do a lot of great things so it’s definitely a goal. With Dwight Howard, (Steve) Nash, Kobe (Bryant), myself, Pau (Gasol) and then (Antawn) Jamison and a lot of great additions it’s something that’s possible.”

File this in the “good that he’s thinking this way, will never happen” file. I mean, you want you players to think they can win every game, so good for MWP here. But every year some team or teams foolishly think they have a shot at that record, I wish players would stop saying that. It is not going to happen in this case for a lot of reasons.

First off, the West is too deep with good teams. The Clippers are young, talented, have Chris Paul and Blake Griffin plus Jamal Crawford off the bench and they probably end up being the four or five seed in the conference. Minnesota with Kevin Love, Rick Rubio and a lot of nice young pieces are a bubble team to even make the playoffs. There are just too many tough games.

Second, the Lakers should be good with this roster but if Dwight Howard is out for training camp there is going to be an early season adjustment period that will cost them some games. Third, Phil Jackson (who coached that Bulls team) said no team from the West will break that record because the hours and amount of distance traveled is too great and it wears teams down.

And we could go on and on, but this is a silly topic. The Heat aren’t going to win 72 games and in a less deep East they have a better shot at it.

Comcast-Spectacor hasn’t spoken with Kings at all, arena project barely off the ground


Unless there is more to come in the next few days, the Virginia Beach arena press conference didn’t do much to sway the overwhelming opinion that the Sacramento Kings are nowhere near moving there.

There were no Maloof appearances, but president of Comcast-Spectacor Peter Luukko spoke to the Virginia Beach city council in support of bringing a pro sports franchise into town.

When posing the question of why Comcast-Spectacor would get involved in the Virginia Beach market, Luukko offered two reasons, including the numerous business relationships the company has in the area and that the area “is one of the largest underserved markets (for sports) in North America.”

Luukko and Virginia Beach director of economic development Warren Harris jointly said that they would negotiate with pro sports franchises over the next two months, and that a 25-year lease would be fulfilled by the sports and entertainment giant, assuming a deal can be worked out of course. And in the unlikely event that Virginia Beach wants to stick to that timetable, it’s difficult to see the NBA racing to cooperate with that deadline unless they somehow believe that this is the endgame for the Kings.

Given what we have seen so far, that’s not likely the case, with just one reason being that David Stern loves the No. 20 Sacramento TV market that shares no space with other pro sports teams.

Virginia Beach, on the other hand, is the No. 43 TV market and that fact was not lost upon councilman Bill DeSteph, who quickly and methodically picked apart the presentation made by the city. Pointing out inconsistencies in the criteria used for market size, he called the city’s presentation “misleading” and repeatedly asked for “apples to apples” comparisons of the data used to similarly compare Virginia Beach with Sacramento.

“If we’re talking about Sacramento, let’s go out 100 miles and let’s include the San Francisco Bay Area and let’s include Fresno,” said DeSteph.

If similar radiuses had been used in the presentation then the three million people boasted by Virginia Beach would compare to 10 million on the Sacramento side.

Cost was another issue for DeSteph, who asked and was told that the $350 million price tag for the arena was an estimate and that no cost analysis had been done. He would later ask for a public vote if public funds were going to be used to pay for the arena, which is usually a death-knell for projects of this type.

For his part, mayor William Sessions followed up the emphatic opposition by some council members by pounded his hands on the table in front of him, exclaiming “me and the vice mayor will keep you updated on a weekly basis!”

Regardless of the support from notable local figures that was highlighted in Tuesday’s PowerPoint presentation, it’s clear the city council is at square one with the project. And of the three councilmen that spoke on Tuesday, two of them appeared dead set against the use of public funds and both of them openly questioned the validity of the city’s initial proposal.

On the other hand, Comcast-Spectacor is a big player in the sports and entertainment marketplace and is a serious investor here. They clearly see an opportunity in Virginia Beach, but the city is now at the starting line of a long, arduous race that includes a laundry list of municipalities that want pro basketball.

As for the purple elephant in the room, the Kings, who had not issued any specific denial of the past week’s reports and were instead tweeting out photos of their newly shined concourse floor — Luukko said that Comcast-Spectacor has not talked with them at all.

“We have not had any formal talks with the Kings. We have not had any talks,” said Luukko, which is about as specific of a denial as can be expected.

This would line up with what sources close to negotiations have said is a project being driven by the Virginia Beach side, that just happens to fit the Maloof’s current strategy of waiting and hoping that another city can provide a viable offer to move.

This sentiment was echoed by Carmichael Dave, a well-connected arena proponent and local radio personality whose dismissal from the team-sponsored radio station drew raised eyebrows in Sacramento. On his new show on the CD Networks, sources of his close to the team said that the Maloofs had rejected an offer from Seattle billionaire Chris Hansen which was upward of $400 million.

Dave also added that those sources said the Maloofs were “looking more to relocate than to sell.”

Of course, everything from the Maloof camp is part conjecture and part conundrum these days. Sources close to the situation say that the family is split internally and that George Maloof, in particular, is holding a grudge and wants to leave Sacramento. The family name has been removed from the Palms Hotel and Casino, which doesn’t exactly scream $6 million burger, and sources say that ticket sales and sponsorships continue to suffer as the team remains in limbo.

If there can be any good news for Kings fans during this debacle, it’s that the Maloofs do not appear to have filed any Virginia-based trademark applications for the terms ‘Kings’ or ‘Royals,’ and their trademark attorney Scott Hervey has no new trademark applications on file with the US Trademark office. Their trademark application for the terms ‘Anaheim Royals, Los Angeles Royals, Orange County Royals’ and my favorite ‘Anaheim Royals of Southern California’ has, however, been held up by an opposition from the Kansas City Royals of Major League Baseball.

On the other hand, marketing consultants for the city of Virginia Beach have registered the websites vbkings.com and virginiabeachkings.com, and along with a legitimate partner in Comcast-Spectacor the Virginia Beach threat will continue to loom for Kings fans – no matter how overstated the threat may be at this time.

And until the NBA can effectively shove the Maloofs out the door with the franchise intact in Sacramento, who league sources say has done everything that was asked of them to keep the team, these stories are going to continue to pile up and be a black eye for the league.