Sacramento Kings arena funding plan to be released Sept. 8

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We don’t know the specifics of how the city of Sacramento plans to pay for the proposed $387 million Entertainment and Sports Complex (ESC), but we do know when they plan to announce those plans.

According to Ryan Lillis of the Sacramento Bee, a menu of funding options will be presented to the public on September 8, with a more detailed report being released on September 13 to both the public and City Council.

According to Lillis:

While precise details of the financing plan are still unknown, Chris Lehane, the chair of the task force, said in a new release this morning that it will include “contributions from both the public and private sectors, including the Kings ownership group, arena developers and operators.”

He also added:

It’s also expected that an arena operator – a company such as AEG – will be approached to help with the construction costs.

While the city of Sacramento’s efforts to keep the Kings have appeared at times to be as desperate as a 55-foot game-winner, the framework for the proposed funding options has been a relative constant, and has always been envisioned to be a mix of private and public funds.

Hotel and airport taxes have been discussed, but more recently the pencil has been sharpened to include user fees such as ticket surcharges and parking fees, in addition to the sale of city-owned properties, corporate sponsorships, and revenues originating from cell phone towers and electronic billboards placed on the ESC.

In short, every dollar will count as they tally up the funds, and the inclusion of a company like AEG to both fund the project and operate the arena sounds like a must at this point. That their name continues to come up in on-the-record and off-the-record discussion is a great sign for Kings fans.

And as we posted in June, the Maloofs liquidated most of their interest in the Palms to enhance their financial flexibility. While they could have done that simply to free up money for their continued involvement in the Palms, as George Maloof said was the case at the time, it stands to reason that being relieved on a $400 million note will help them be able to pitch in.

So where does the rubber meet the road here?

First, the Think Big Sacramento coalition, which includes 70-some odd politicians, businesses, community leaders, and the original grassroots leaders such as Carmichael Dave and Here We Stay — they will need to procure support within the Sacramento City Council, and then also have enough public support to marginalize attacks from any opposition groups. Attacks could come in the form of lawsuits seeking injunctive relief, most likely on the grounds that the use of public funds will require a public vote. The Kings arena effort would likely come up short if a vote is needed, so avoiding such a challenge will depend on the exact nature of the public funds being used and the appetite for opposition groups to go through a costly legal and political fight.

A lot of that appetite will be derived from what the folks in the Sacramento region actually think about this public subsidy. Losing the Kings will necessarily be a blow to the area, and most believe they will not be able to get an NBA team back should they lose this one. In the battle to attract businesses and the new-age worker that values a city’s identity, this could be a defining moment for the entire region.

And that is where the battle for public opinion is taking place. The Think Big Sacramento group is doing a commendable public relations job, with interactive campaigns targeting not just Kings fans, but folks that may be more inclined to see Disney on Ice than five shooting guards and one basketball. Between the town hall meetings, the dominant social media work they’re doing, and local events featuring non-basketball types such as world-renowned artist David Garibaldi (seriously, check out his work) – it’s safe to say that they’re not making the mistakes of the ill-fated arena tax campaign from 2006 that was easily rejected by the voters.

But as with anything else, you have to follow the money, as public funds come with questions about tax allocations, economics, and the like. Today, I spoke with leading sports economist Brad Humphreys (and expert witness in the Sonics vs. Seattle case no less), who has been outspoken about the problems with sports stadium subsidies (as are most of his colleagues), and the takeaway is that this isn’t just a Sacramento issue – it’s a United States issue.

Due to the artificial lack of supply (teams) in the major sports leagues, a De facto monopoly, teams have the leverage to demand public subsidies. If the city of Sacramento wants to belabor the point, the Kings will have a new address in Orange County – and that scenario has played itself out a number of times.

I’ll be scratching together another post about my conversation with this economist, which covered everything from sports subsidies to the Kings to the lockout. Interestingly, he said he wasn’t against the Kings’ arena subsidy, and in one (not yet peer-reviewed) white paper 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.

While most economists are mostly aligned in saying that no empirical evidence has been found to show that the presence of sports teams and so-called big sporting events (i.e. the Super Bowl) actually bring in additional tax revenue, let alone to cover the cost of the subsidy — it doesn’t mean that the proof doesn’t exist.

Sacramento County had a $40 million reduction in budgetary revenue this year due to the drop in property values in the area, which is money that they’re not getting back. That loss of revenue comes from the fact that people aren’t willing to pay as much to live in the Sacramento region.

So assuming, annually, the county gets the 1% property tax revenue on a theoretical ‘hundreds of millions of dollars (of increased property value) within a mile of the facility,’ this unexplored area of sports economics could answer the question as to why cities continue to ignore economists’ clamoring. While people may spend their entertainment dollars elsewhere (the substitution effect) if the Kings are not in town, they won’t necessarily pay as much to live there. The intangible benefits of living by your favorite sports team or having the option to go to an A-list show – those benefits may be being capitalized in ways economists have yet to find (or in this case, may be on the precipice of finding).

Humphreys took great care to point out that the case of Sacramento is unique, and that cities with downtown revitalization projects have had both success and failure. But in the world of data that economists live by, one thing is clear – they’re simply not ready to buy the economic impact reports that teams are selling, but they’re also not ready to rule out that the sports subsidy could be a good thing.

After all, everybody is doing it.

NBA Orlando restart: What players can expect as they arrive at bubble

NBA bubble
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Today we start to find out if the NBA can build a bubble on its Walt Disney World campus and play out the end of the season, crowning a champion.

For the next three days, Tuesday through Thursday, teams will be arriving in Orlando and will be taken to the Disney property and the ESPN Wide World of Sports complex. There are 113-pages of protocols and regulations laid out by the league — not all of them popular with players, expect some fatigue as the restart wears on — to create this bubble.

Here’s what players can expect, starting today:

ARRIVAL

• Teams will board charter flights from their home market to the Orlando airport, where after they land and go through security they will directly board a chartered bus that will bring them to the Walt Disney World complex. Team arrival dates are:

Tuesday: Brooklyn, Denver, Orlando (no flight), Phoenix, Utah, Washington
Wednesday: Boston, Dallas, L.A. Clippers, Memphis, Miami, New Orleans, Oklahoma City, Sacramento
Thursday: Toronto (from Florida), Houston, Indiana, L.A. Lakers, Milwaukee, Philadelphia, Portland, San Antonio

• When they check-in at the hotel, each player will be given a “MagicBand” — a rubber bracelet with a chip that serves as a room key (and wallet, if needed) throughout the hotel. The NBA also will use it to check players in for coronavirus testing.

• Soon after they arrive, players will be tested for the coronavirus. After taking the test (and awaiting results), players must quarantine in their hotel rooms for 24-48 hours until they pass two tests 24 hours apart — they may not be in physical contact with team members, and they will only eat room service meals. Portland’s CJ McCollum had wine shipped from Oregon to his room in Orlando just to pass these 48 hours.

• Once cleared by the initial tests, players will be tested daily for the virus, at least at first, according to NBA Commissioner Adam Silver. The NBA’s operations handbook for the restart says players will be tested” regularly.”

• What hotel teams will stay at was determined by seeding. Here is the list of which teams are staying at what hotel.

-Grand Destino: Milwaukee, L.A. Lakers, Toronto, L.A. Clippers, Boston, Denver, Utah, Miami
-Grand Floridian: Oklahoma City, Philadelphia, Houston, Indiana, Dallas, Brooklyn, Memphis, Orlando
-Yacht Club: Portland, Sacramento, New Orleans, San Antonio, Phoenix, Washington

If a lower seed team advances to the conference semi-finals, they likely will be asked to move to the Grand Destino from their hotel (Disney wants to free up those hotels for other guests to the resort).

• All team and league staff — including coaches — will be required to wear a “proximity alarm” that will notify the wearer if he or she spends more than five seconds within six feet of another person who also has the band. The idea is to remind people to social distance. Players will have the option of wearing the alarm band.

• Players also will be given the option to wear the Oura smart ring, which tracks the wearer’s temperature, breathing, and heart rate. The makers says could help indicate if a player has some of the early symptoms of COVID-19 before they realize it, but players are skeptical of wearable technology from the league in general. We will see how many players take the league up on their offer.

LIFE INSIDE THE BUBBLE

• Everyone — players, team staff, Disney employees, probably even Mickey Mouse — will be required to wear a facemask, except when eating, at a workout or practice, in their room, or if they are swimming or doing something more than six feet away from another person (laying out by the pool with nobody around).

• Food will be prepared on site by Disney chefs. Each team has the chance to work with a “culinary team” to design a healthy menu that fits the dietary needs of players. A number of players have private chefs, and they can prepare meals off-site then have those brought into the players.

• Games inside the NBA bubble will take place at one of three facilities:
1)The HP Field House will be the primary game court.
2)The Arena will have a game broadcast court plus has a couple of side practice courts.
3) The Visa Center has a court that can be used for game broadcasts, but this will primarily be a practice facility.
• All three areans have weight and training areas for teams to get in additional work.

• Team hotels will have amenities for players and staff, such as pools, bicycles (there are bike paths), players-only lounge area (with televisions and gaming areas). The hotel will have barbers, manicures and spa services, and more. There also will be movie screenings, some DJ sets, bowling, and other games such as ping pong — just don’t play doubles. Seriously.

• There will be golf available, but no caddies.

• Players can leave the bubble whenever they want. If this is an excused exit for a family emergency — Gordon Hayward and several other players have wives/partners with babies due during the bubble — and players are tested daily while outside the bubble, they face only a four-day quarantine upon return. However, if a player just chooses to leave the bubble without an approved reason, he faces a 14-day quarantine upon his return and will have to have two negative tests. Also, the player will not be paid for any games missed.

• Any team staff that violates the rules of the NBA bubble or leaves the bubble without prior approval will be removed and cannot return to the Disney campus.

WHAT HAPPENS IF/WHEN A PLAYER TESTS POSITIVE

• The NBA has made it clear: Games are not going to stop for a few positive tests

• If a player tests positive inside the NBA bubble, he is immediately be moved to “isolation housing” off the Disney property. That player will spend at least 14 days outside the bubble and must pass two coronavirus tests a dau apart.

• Anyone the infected player came in contact with will face increased testing and will be monitored.

• Teams and the league will more closely monitor and test anyone who was in close proximity to that player between tests.

Dwight Howard will join Lakers for restart, donate check to social justice cause

Lakers Dwight Howard
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“Basketball, or entertainment period, isn’t needed at this moment, and will only be a distraction… I would love nothing more than to win my very first NBA Championship. But the unity of My People would be an even bigger Championship, that’s just too beautiful to pass up. What better time than now for us to be focusing on our families? This is a rare opportunity that, I believe, we as a community should be taking full advantage of. When have we ever had this amount of time to sit and be with our families? This is where our unity starts. At home! With Family!!”

Those are the words of Dwight Howard, who was among the players questioning the NBA’s restart in Orlando.  He was grieving the loss of Melissa Rios, the mother of his 6-year-old son, David, and was looking at his family as the biggest priority in his life. As it should be. Howard also is committed to the Black Lives Matter movement and, as he stated, saw the NBA’s return as a distraction.

In the end, he has decided to play in the NBA restart and donate his checks the rest of this season to charity, something Howard announced on CNN (hat tip Dave McMenamin).

Here is Howard’s full statement to Shams Charania of The Athletic.

That is about a $700,000 donation by Howard to Breathe Again.

Howard played a central role as a big man off the bench on a Lakers’ team that is the odds-on favorite to win it all. A ring would be the cherry on top of his Hall of Fame career.

Howard wants to be a part of that, but it means sacrificing time with family. He said it was not an easy decision, and he is putting his money where his mouth is donating his earnings to charity.

The thoughtfulness behind those decisions shows the kind of maturity Howard has grown into, even if fans never see it.

Jaylen Brown heads to restart with Boston, plans to use voice for social justice

Jaylen Brown Boston
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The Celtics’ Jaylen Brown has been one of the most active NBA players in the Black Lives Matters movement — even driving from Boston to Atlanta to lead a protest.

That’s not changing because he’s going to Orlando for the NBA restart.

Brown admitted he considered not playing in Orlando due to the pandemic, but the opportunity the NBA’s platform provided to speak on social issues was too great to pass up, Brown said in a conference call with reporters Monday, via the Associated Press.

“Once I thought about the opportunity that the organization and the NBA presented to play for something bigger than myself, I was signed up,” he said. “I plan on using my voice while I’m down there. I plan on spreading light on things that are getting dimmed and hopefully the NBA and our organization can understand.”

Brown is not alone in thinking that. Portland’s CJ McCollum is on the executive committee of the National Basketball Players Association as well and said a lot of players see the same opportunity.

“But now [the talk is] more around what impact we can make to support what is going on in the real world, to continue to support Black Lives Matter and the things we’re facing as a society,” McCollum told NBC Sports. “Those are the calls we’re having now. How can we impact? How can we spread awareness on certain things in the world that are going on?…

“The biggest thing is to take advantage of the platform [in Orlando], to coincide with the NBA and figure out productive ways we can continue to spread information, to continue to educate, to continue to put light on things that have often been behind closed doors and never been brought out to the public eye, so I think those are the conversations we’ll continue to have.”

One way players can make a statement is by replacing the name on the back of jerseys with a message pre-approved by the league. Brown, like 76ers forward Mike Scott, is not a fan of how the NBA handled it.

“I think that list is an example of a form of limitations,” Brown said. “I think we should be able to express our struggle just a little bit more…

“The bottom line is there are improvements that need to be made,” Brown said. “The NBA has a great voice, a lot of resources and a lot of influence. We’re appreciative that they’re helping and aiding in a lot of those things that we care about. That’s really important.”

Brown understands the NBA’s voice, and he heads to Orlando planning to use his.

76ers’ Mike Scott on social-justice messages on NBA jerseys: ‘That was terrible. It was a bad list’

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The NBA approved a list of social-justice messages players can wear on their jerseys:

  • Black Lives Matter
  • Say Their Names
  • Vote
  • I Can’t Breathe
  • Justice
  • Peace
  • Equality
  • Freedom
  • Enough
  • Power to the People
  • Justice Now
  • Say Her Name
  • Sí Se Puede (Yes We Can)
  • Liberation
  • See Us
  • Hear Us
  • Respect Us
  • Love Us
  • Listen
  • Listen to Us
  • Stand Up
  • Ally
  • Anti-Racist
  • I Am A Man
  • Speak Up
  • How Many More
  • Group Economics
  • Education Reform
  • Mentor

76ers forward Mike Scott, via Paul Hudrick of NBC Sports Philadelphia:

They gave us some names and phrases to put on the back of jerseys,” Scott said. “That was terrible. It was a bad list, bad choice. They didn’t give players a chance to voice their opinion on it. They just gave us a list to pick from. That was bad. That’s terrible. Just voice your opinion, how you feel.

“I don’t know how you can use your platform. I don’t know. Vote. Of course, vote. See what laws we can change. But I’m all about just doing, instead of just saying or posting or putting something on the back of your jersey. I don’t think that’s going to stop anything. I don’t know how you do it. I don’t know.

Celtics wing Jaylen Brown, via Darren Hartwell of NBC Sports Boston:

“I would like to see — because I think it can still happen — more options available to put on the back of our jerseys,” Brown said Monday in a video conference with reporters. “We understand anything vulgar our league doesn’t necessarily represent, but for histories and causes such as now, I think that that list is an example of a form of limitation. I think we should be able to express our struggle just a little bit more.

” … I was very disappointed in the list that was agreed to. I think things were tried and attempts were made to add to that list, but the NBA agreed that that list was satisfactory. Hopefully we can get some more names on that list.”

“Maybe ‘Break the Cycle,’ ‘Results’ — that’s what everybody is really playing for — ‘Inequality by Design,’ ” Brown said, “things like that I think may have a deeper impact than some of the things that were given to us. I think it was a little bit limiting.”

As far as Scott’s complaint about players not having a voice in the list, the plan was presented as developed in conjunction with the National Basketball Players Association. Perhaps, this is another example of union leadership not being on the same page as its members. But to be fair, it’s difficult to satisfy everyone. Scott and Brown don’t necessarily speak for players en masse.

Of course the NBA – a multi-billion-dollar company – was going to allow only sanitized phrases. The middle has shifted, but not enough for mainstream support for a sharp criticism like Brown’s “Inequality by Design.” (He’s right, though.) The NBA doesn’t want too much controversy.

However, simply by operating, the league gives players platforms and resources .

Nobody should have expected these jersey messages to be the primary means of change. They’re fine and can help draw attention.

But players can do more outside the league’s formal structure, including speaking up in interviews – like Scott and Brown did today.