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.

Report: Boston nearing agreement to retain Marcus Smart

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When free agency began, a lot of us said that the restricted free agent market was going to be tough — not a lot of teams had cap space to start with, and those that did were not targeting players where the offer could be matched. Zach LaVine got a deal, but other name RFA were waiting, Clint Capela and Marcus Smart being the biggest names on the board.

We may be able to cross Smart off that list soon, reports Adrian Wojnarowski of ESPN.

That is in the range of what the Celtics had wanted to pay him from the start, around $12 million a season.

Smart expected more — north of $17 million a season — and was frustrated that no offers sheets came in that would force the Celtics to match. He reportedly was “hurt and disgusted” that the Celtics didn’t come in and recruit him or make a larger offer. Welcome to a tight market, the Celtics had leverage.

Smart is one of the top defensive two guards in the league, a switchable defender who can guard any perimeter position, all of which fits with Brad Stevens’ defensive system. He also brings a high motor — he generates steals and gets to loose balls. Offensively he’s a liability — teams can help off him, daring him to shoot — but when healthy the Celtics have the players to cover that up.

This looks like it will get done and be a fair deal for both sides.

Kawhi Leonard may not want to play in Toronto, but he will. For now.

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The moment it was reported that Kawhi Leonard was being traded to Toronto for a package based around DeMar DeRozan,  a second theme followed:

Leonard did not like this.

Leonard and his uncle/management team had tried to force their way to Los Angeles — in Las Vegas for Summer League I heard rumors about him wanting to be with either the Lakers or Clippers, depending on the source. (As with everything around Kawhi’s inexperienced management, there was no clear voice or vision, so there were a lot of conflicting rumors.) L.A. never happened because the Lakers think he will sign with them next summer, so they did not throw their best players into a trade — Brandon Ingram, in particular — while the Clippers didn’t have the assets to get a deal done. The Raptors jumped into that breach.

This has led to online speculation that Leonard will sit out in Toronto, saying he is injured, and try to force another trade.

Don’t bet on it.

Why? Because if he doesn’t play next season, even the Lakers would be very hesitant to jump in with a max contract offer next summer.

Leonard played in just nine games last season due to a quadriceps tendon issue, something that dates back to the season before that (he just played through it then). There was disagreement between doctors (and the sides) about whether this was a muscle or tendon issue, but the injury was real.

Right now, teams do not know how well he has responded to treatment, outside of second-hand reports. The physical Leonard has to undergo to complete this trade will be interesting.

If Leonard sits out all or even much of another season with the same injury, how healthy he would ever be must come into question. Even the Lakers and other teams that want him would have to be cautious about a four-year, $140.6 million contract (the max they can offer) to a guy who had missed a lot of the last two seasons.

To get where he wants to go and get paid, Leonard has to get on the court and play well. He has to look like Kawhi Leonard again, or something close to it.

He knows that, so he will be on the court in a Raptors uniform. If only for a year.

 

Lonzo Ball had arthroscopic surgery on knee Tuesday, should be ready for training camp

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It’s done.

As expected, Lonzo Ball has had left knee surgery on Tuesday and is currently in recovery. He reportedly will be good to go by training camp in September.

Ball averaged 10.2 points and 7.2 assists per game last season and made the NBA All-Rookie second team. This summer he had been working hard on his conditioning and jumper before the injury.

Ball will be asked to push the pace (as he did last season) and be a secondary ball handler who can create shots when LeBron does not have the ball in his hands. They fit together better on the court than some people think (Lonzo did play off the ball some at UCLA), but the challenge for L.A.of teams helping off Lonzo to double/trap LeBron on the perimeter is real.

The Lakers also took a couple of shots across the bow of Ball — and his father LaVar — this summer. First there was the signing of Rajon Rondo, then Magic Johnson said this about Josh Hart at Summer League:

The message is clear, the days of soft-pedaling and catering to Ball are over. He must earn his starting job, and there are legit challengers for his minutes. At some point, if the balance of off-court distractions and on-court production gets out of alignment, Ball’s job and standing with the Lakers are not safe.

But for now, he just needs to get right before the season.

DeMar DeRozan expresses anger at trade to Spurs on Instagram

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DeMar DeRozan has been loyal to Toronto.

He embraced the city when former stars abandoned it and pushed their way out of town. In 2016, as a free agent, he didn’t even meet with another team, he had no intention of leaving. He said he wanted to go down as the greatest Raptor ever. A Los Angeles kid himself — born and raised in Compton — he never pushed to go home, instead becoming incredibly active in the community off the court as well as being a four-time All-Star, two-time All-NBA player on it. He has led the greatest run of Raptors basketball in franchise history.

The Raptors were not loyal to DeRozan — they are shipping him to Texas in a trade for Kawhi Leonard that is being finalized.

DeRozan reportedly hates the move and put this up as an Instagram story.

“Be told one thing & the outcome another. Can’t trust em. Ain’t no loyalty in this game. Sell you out quick for a little bit of nothing… Soon you’ll understand… Don’t disturb…”

It’s not the destination that has DeRozan unhappy, he did not want to be traded, period.

Leonard reportedly also is unhappy with the trade — he wanted to go home to Los Angeles. However, Lakers would not the players the Spurs wanted into a trade (Brandon Ingram, Kyle Kuzma and more), and the Clippers do not have the assets to interest the Spurs in a trade. San Antonio was holding out for other bidders, biding their time, and in came Raptors’ GM Masai Ujiri with an aggressive move.

Leonard’s inexperienced management team, which did not handle this situation well, wanted him in a major market that would boost Leonard’s marketing opportunities. While Toronto is a big market — sixth largest in the NBA, bigger than Philadelphia — and is the team of a nation with fans across Canada, this is not what Leonard’s people wanted. He is a free agent next summer in 2019.

DeRozan has every right to feel betrayed — next time you think of complaining about how players are not loyal to cities/teams/fans, remember this. Loyalty is a luxury in the NBA and one rarely rewarded.

DeRozan also will come around and embrace San Antonio, the Spurs culture, and Gregg Popovich. He will help them win a lot.

Whether the Raptors can win over Leonard becomes one of the NBA’s biggest storylines of 2018-19.