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 to name All-Seeding Games Teams, Player of the Seeding Games

Pacers forward T.J. Warren and Suns guard Devin Booker
Mark J. Rebilas-USA TODAY Sports
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The NBA already held voting for its main awards, retroactively ending the regular season March 11 and defining the eight games for each of the 22 teams continuing at Disney World as “seeding games.”

So, the league found a new way to honor standout players from this portion of the season.

NBA release:

The NBA announced today that it will name the … NBA All-Seeding Games Team and the … NBA Player of the Seeding Games to honor top performers for games played July 30 – Aug. 14 during the 2019-20 season restart at Walt Disney World Resort in Florida.

A panel of sportswriters and broadcasters who have been on site covering the season restart will select the … NBA All-Seeding Games Team and the … NBA Player of the Seeding Games.  The media panel will vote for five players for the All-Seeding Games First Team and five players for the All-Seeding Games Second Team, choosing a total of 10 players at any position from either conference.

The … NBA All-Seeding Games Team and the …. NBA Player of the Seeding Games will be announced Saturday, Aug. 15 before Game 1 of the Western Conference Play-In, which tips off at 2:30 p.m. ET on ABC.

Is it silly to to give awards for such a small sample of what effectively amount to regular-season games? Yes.

Is it also fun? Heck yes.

My early picks:

Player of the Seeding Games

All-Seeding Games First Team

All-Seeding Games Second Team

Kyle Kuzma: ‘Jesus could be in front of me, and I’d probably still shoot’

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Lakers forward Kyle Kuzma hit a game-winner over the Nuggets’ Bol Bol, who’s 7-foot-2 with a 7-foot-7 wingspan.

Bill Oram of The Athletic:

Kuzma has overcome so much to reach this point. Of course, he’s confident.

Would Kuzma start on some teams that don’t have LeBron James and Anthony Davis at forward? Yes. Most teams? That’s a stretch.

Regardless, Kuzma doesn’t want to find out what his role would be on a lower-profile team. And the Lakers are happy to have him, too.

LeBron, via Oram:

“In order for us to win a championship, he has to be our third-best player,” James said. “And if I’m struggling or A.D.’s struggling, he has to be our second-best player on any given night. We can’t win a championship if Kuz doesn’t play well.”

It’d work well if Danny Green is the Lakers’ third-best player. His perimeter defense and spot-up 3-point shooting complement stars like LeBron and Davis.

Kuzma creates his own shots in a way Green can’t, and Kuzma’s size makes him an effective defender at times. But he doesn’t mesh quite as neatly with stars. Kuzma can better provide a boost when LeBron or Davis is having an off night. There’s value in that. But how often will the Lakers want to have the ball in Kuzma’s hands rather than LeBron’s or Davis’ – even as much as Kuzma believes in himself?

Donald Trump: NBA ‘in big trouble, bigger trouble than they understand’

President Donald Trump
Jabin Botsford/The Washington Post via Getty Images
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In an interview on Fox Sports Radio, President Donald Trump played all his greatest hits on the NBA – teams kneeling for the national anthem, the league’s involvement in China.

Trump on NBA teams kneeling for the national anthem:

I think it’s been horrible for basketball. Look at the basketball ratings. They’re down. They’re down to very low numbers – very, very low. People are angry about it. They don’t realize. They don’t want – they have enough politics with guys like me. They don’t need more as they’re driving down, going up for the shot. They don’t need it. And there was a nastiness about the NBA, the way it was done too. So I think that they –   the NBA is in trouble. I think it’s in big trouble, bigger trouble than they understand.

And frankly, ice hockey which is doing very well, they didn’t do that. They respected the mores. They respected what they’re supposed to be doing. And they’re actually doing very well, as I understand it.

You have to stand for your flag, and you have to respect your flag and your country. You’re making millions of dollars a year to be playing a sport you’d be playing anyway if you didn’t make – they’d be playing it on the weekends. And they have to respect their country.

Kneeling during the national anthem is a patriotic gesture that calls attention to serious problems plaguing our country – racism, particularly through police brutality. The United States would become an even better country by addressing those issues.

In a United States that values freedom, the president should not be saying “you have to stand for your flag.” That runs toward authoritarianism.

NBA ratings are down because [insert a reason that fits your agenda here]. It’s a complicated situation with numerous factors.

Are some people turned off by the NBA’s increasingly visible political actions? Yes. Would some people lose interest in the NBA if the league shut down players and coaches who kneeled during the national anthem and spoke about the most important issues confronting the country? Yes.

NHL players did kneel during the national anthem. Not like the mass demonstrations by NBA teams. But some NHL players have kneeled.

Yet, Trump and many of his followers give more credence to some protesters than to others.

Which gets to China.

Trump on NBA players and coaches criticizing him:

I haven’t noticed them sending things back at me but I will say that I wouldn’t be that surprised. Some are very nasty – very, very nasty – and frankly, very dumb. But I haven’t noticed that. But I will say this: The way they cater to China, the way they bow to China, it’s a disgrace frankly. And they make a lot more money here than they do from China. But we have a system that allows you to disrespect your system, and that’s too bad for them. Too bad for them. They don’t appreciate what they have here.

The NBA has been complicit in abuses in China. It is disgraceful. The way otherwise-outspoken NBA people have been silent on China and Hong Kong – given the financial incentives – has been suspect.

But the NBA is far from the only American entity with business interests entangled in China. The league shouldn’t become a punching bag that distracts from a far wider issue.

The next two questions Trump faced in the interview practically begged him to denounce China for reducing freedom in Hong Kong. He did not.

Clippers’ Montrezl Harrell Tweets he’s back inside NBA bubble

Clippers big Montrezl Harrell
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The Clippers, who have coasted to a 3-3 record at the restart, are about to get a burst of energy off the bench.

Montrezl Harrell is back in the bubble. He Tweeted this out Monday:

Harrell was granted leave from the bubble to help take care of his grandmother — who he was very close to — when she fell ill. She eventually died, and Harrell poured out his emotions on social media for fans. The Clippers told Harrell to take as much time as he needed before coming back.

Harrell is back now, and if he tested negative the last seven days outside he bubble he will be in quarantine on the Walt Disney World Resort property for four days, then he can rejoin his team — possibly for Friday’s seeding game against Oklahoma City, but certainly in time for the playoffs.

Harrell is a leading Sixth Man of the Year candidate who averaged 18.6 points and 7.1 rebounds a game for the Clippers this season. More than the numbers, he brought an improved defense and relentless energy off the bench that lifted the Clippers nightly. The Harrell/Lou Williams pick-and-roll remains one of the smoothest and most dangerous in the league.

Harrell also gives Doc Rivers a lot of versatility and options on how to close games — the Clippers can go big, go small, and do either well. It’s that versatility that makes them a dangerous playoff team.

The Clippers needed Harrell back to unleash all of it, and now he is there and ready to go.