Sacramento City Council has votes for arena if reachable criteria is met

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The Sacramento Kings and their fans will hold their breath on Tuesday night, as the Sacramento City Council holds the first of at least two critical votes that will determine whether or not the team leaves town.

Let me be the first to tell you that tonight’s vote will pass.  Sources close to the situation report that the council is all but certain to have the votes necessary to move the process forward.

Specifically, the vote will allow the council to finalize proposals with ten competing private parking operators that will provide upwards of $200 million toward the cost of the estimated $387 million Entertainment and Sports Complex.

This will setup a vote on February 28 that will decide the Kings’ future.  It is at this time that the council, in cooperation with mayor Kevin Johnson’s Think Big Sacramento coalition, will vote to approve a term sheet that will signal to the NBA that Sacramento can indeed fund an arena.

I’m also told by sources with knowledge of the situation that as long as a laundry list of criteria is met, the council will have at least the four votes necessary (not counting Johnson’s tie-breaking vote) to approve the term sheet.

This laundry list includes guarantees that the city’s general fund will be replenished by the approximate $9 million annual revenue stream currently provided by city-owned parking operations, a plan for some or all of the city’s employees to be transferred into the new parking company’s operation, a mechanism to cap rate hikes for parking in the future, an option for an agreement shorter than 50 years, and a mechanism to provide kickbacks to the city if parking revenues exceed certain benchmarks.

It is believed that within that framework, the city can meet or exceed their $200 million target.

The last major item on the laundry list is who will be responsible for cost overruns if the $387 million project goes over its budget.  I’m told the city will approach the developer, David Taylor, to potentially provide that guarantee.  While it is unclear whether or not Taylor would shoulder such responsibility, he will likely be given incentive to do so by an offer of development rights near the arena.

Taylor has been working on the arena deal for years and has evaluated the project for Sacramento at a significant cost to himself, and it would be surprising if he told the council that he would not be responsible for cost overruns on a project he evaluated and promoted – particularly if there is further incentive in the form of development rights.

Adding the estimated $200 million or more from parking, an estimated $30 million from local hotels, an estimated $50 million from an arena operator (AEG), and an estimated $80 million from the NBA and the Maloofs — sources tell me that the city is well in the ballpark of securing the financing necessary for the arena.

In other words, the city of Sacramento has both the will and the way to secure a ‘yes’ vote for an arena.

As far as the timing goes, while February 28 is potentially the date for a deciding vote, it is likely that the NBA will allow for an extension on the March 1 deadline so they can properly evaluate Sacramento’s findings.  That announcement could come during All Star weekend.  The NBA and the Maloofs could theoretically act on the city’s proposal quickly and provide their terms in time for a February 28 vote, but sources stress the important part is that the city will have communicated that it is ready to vote on a deal.

From there it is on David Stern and the Maloofs to pull the trigger on the estimated $80 million price tag, which amounts to about $3 million per year in rental payments for 30 years, all paid up front.

As for any talk of selling the team, The Maloofs have been consistent with their message that it’s not an option, and their sale of the Palms can be seen as either a sign that the ship is sinking or a sign that they were moving money for the purposes of an arena.  In the unlikely event they do want to sell, Think Big Sacramento executive director Jeremiah Johnson told Seattle’s King 5 News that the city has “a number of ownership groups willing to keep the Kings in Sacramento.”

It’s not going to come to that.

The Maloofs and/or the NBA could try leverage the city of Anaheim against Sacramento, who recently made improvements on their NBA-ready facility, but after Jerry Buss and Donald Sterling just agreed to revenue sharing with small market clubs it’s less likely that the NBA will place another team in their backyard.

As for Seattle, despite their clear efforts to bring an NBA team back home, they are well behind Sacramento in their pursuit of an arena.  They too would have to approve public funds for a new building, and Stern and the Maloofs will have to weigh the $80 million cost of a sure thing given a ‘yes’ vote, and a nebulous offering in Seattle that is 1-2 years away while Key Arena is a stop-gap solution at best.

With all of the support David Stern and the NBA has given Sacramento in its fight to keep the Kings – from manpower in the front office to people on the ground helping make the arena deal a reality – it just doesn’t make sense for them to pass up a viable option for two that have problems.

This is a complex situation and it is not a done deal, but the once half-court shot turned 3-pointer doesn’t even seem like a free throw at this point – it seems like a layup.  The Party of Five that voted down a public vote that would have sent the Kings packing are interested in a deal that addresses the aforementioned criteria.  That criteria reportedly can be met and still provide the project with the money that it needs to be green-lighted, assuming the private parties each put in amounts that seem reasonable, achievable, and already written in pencil.

Kings fans will probably wait until the shovels hit the dirt before they celebrate.  Let this prediction be the first bottle of Dom Perignon.

The Kings aren’t going anywhere.

Report: Lakers feel they got played in Kawhi Leonard pursuit

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The Raptors reportedly felt Kawhi Leonard‘s advisor and uncle, Dennis Robertson, made unreasonable requests of them before Leonard signed with the Clippers.

The Lakers, the other team that waited for and missed out on Leonard, also apparently has misgivings about the process.

Brian Windhorst of ESPN:

I’ve heard complaints in the days after the signing. I heard complaints from the Lakers that they got played. I heard complaints from the Raptors that Kawhi came in and asked for the sun, the moon, the stars then left them at the altar.

The implication: Leonard knew all along wasn’t signing with the Lakers, waited a week into free agency so other top free agents would commit elsewhere then announced his decision just to sabotage the Lakers.

I don’t think Leonard did that. That’d be so calculating and sinister.

But I don’t know. We really don’t have much insight into how the famously secretive Leonard operates. I can’t rule it out.

Also, if Leonard did execute a devious plan to spite the Lakers, it’d look a lot like his actual free agency went.

Of course, nobody forced the Lakers to wait a week for Leonard. There had been longstanding reports Leonard didn’t want to play with LeBron James. The Lakers could have followed the Knicks model of dropping the Leonard pursuit to sign other players.

This is the calculus small-market teams must do frequently. They often bow out of star races, lacking confidence about succeeding.

The Lakers (often incorrectly) believe they can get anyone.

In this case, they were correct to chase Leonard until the end. He’s that big of a prize. Leonard is arguably the NBA’s best player. He can transform any franchise. The Lakers could also offer Leonard his desired Southern California locale and an opportunity to inform an incredible top trio with LeBron and Anthony Davis. For better or worse, that differentiated the Lakers from the Clippers.

The plan just didn’t work. Getting to the Clippers was clearly Leonard’s priority. He convinced George to join him, even moving a meeting with the Lakers so he could meet nearby with George unseen. That probably adds to the Lakers’ suspicion.

I don’t mind the Lakers venting. It must have been frustrating to miss out on Leonard.

Most importantly, they took care of business in the aftermath. The Lakers signed some good role players, chiefly Danny Green.

Their roster would likely look better now if they never pursued Leonard. But that opportunity cost was absolutely worth the potential upside of landing Leonard.

Report: Celtics complained about 76ers tampering with Al Horford

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Kyrie Irving was thinking about leaving the Celtics in December, according to Nets guard Spencer Dinwiddie. Rumors of Irving leaving Boston had gotten so intense by February, he practically admitted he was open to leaving. Even Celtics president Danny Ainge said he got the impression by March or April that Irving could leave. By early June, it was apparent Irving wouldn’t re-sign. By mid June, it was clear he’d sign with Brooklyn. Irving announced July 1, the second day of free agency, he chose the Nets.

Al Horford‘s exit from Boston came more suddenly.

He declined a $30,123,015 player option that had to be exercised by June 18. The Celtics were on board with that, hoping to re-sign him to a long-term deal, presumably with a cheaper starting salary but more overall compensation. But the same day, a report emerged he’d leave Boston. Horford reportedly believed a four-year, $100 million contract awaited him in free agency. On the first day of free agency, he agreed to a four-year deal with the 76ers that guarantees $97 million and could be worth $109 million.

Brian Windhorst of ESPN:

The Celtics were, from what I am told, one of the teams that kind of stomped their feet about what they felt was tampering. Not with Kyrie, although that looked like it was lined up pretty far in advance. But with Horford. What happened with Horford – again, from what I am told – really upset the Celtics, that they were thinking they were going to be able to negotiate with him, talk to him about a new contract, and all of a sudden, it was like he already knew what his market was and was out of there.

The Celtics are hypocrites.

By June 26, Boston had become clear favorite to sign Kemba Walker. By June 29, he had reportedly told the Hornets he’d sign with the Celtics.

Again, free agency began June 30.

How does that happen without Boston tampering?

This is the game. Teams are generally clear to talk to players after the season, even though that’s technically against the rules. The Celtics cut the same corners as nearly everyone else. It’s ludicrous for Boston to complain about Horford’s departure, as if Walker didn’t arrive the same way.

The NBA hasn’t announced any fine for Philadelphia. But the league doesn’t announce all tampering violations.

NBA commissioner Adam Silver is correct: This system is broken. The league’s tampering rules are vague and arbitrarily enforced. The NBA should set realistic rules then enforce them fully.

Rumor: Marcus Morris left agent Rich Paul over backing out of Spurs deal to join Knicks

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Thes are the facts on the ground: Powerful agent Rich Paul negotiated a two-year, $20 million contract for Marcus Morris with the Spurs, and he verbally agreed to it. The Spurs made a series of moves to clear out the cap space to honor that agreement. However, by the time the moratorium ended and players could sign deals, Morris had started to move on and soon reached a new, one-year, $15 million contract with the Knicks. A few days later, Morris and Paul parted ways.

Now the rumors are starting to come in around how that went down.

The buzz at Summer League was Morris was disappointed with the market for his services, which he thought would be more robust. He took the Spurs offer that Paul set up, but when the Knicks came with $5 million more per year on a one-year deal — which makes Morris a free agent again in a much weaker class next summer — he wanted it. Paul, however, was not part of those talks and urged him to stick with the original Spurs deal, according to Marc Berman of New York Post.

Morris’ super-agent, Rich Paul, was not involved directly in Morris breaking his verbal agreement with the Spurs, according to a source, and the Knicks and Morris worked on a new deal together. The source reports Paul preferred Morris stick to his original agreement and the two are headed toward a breakup over the incident.

Morris’ move did not sit well with teams executives I spoke to at Summer League. Not because he backed out of a deal, that does happen (it’s not common, but it’s not unheard of), but because in this case the Spurs moved on from Davis Bertans and made roster moves to clear the cap space for Morris they would not otherwise have made.

Morris has made a bet on himself that there is a bigger, better contract for him next summer after he puts up numbers in New York (plus he gets $5 million more this season). We’ll see how that plays out.

Reports: Tristan Thompson will not play for Canada at World Cup; Rui Hachimura will play for Japan

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With national teams getting close to heading to training camp for the FIBA World Cup (which starts at the end of August), rosters are starting to shake out. For example, we know Anthony Davis will not play for Team USA, and Ben Simmons is out for Australia.

Now comes some more updates.

First, big man Tristan Thompson will not suit up for Canada, reports Shams Charania of The Athletic.

Canada will still field a team made up almost entirely of NBA players. They should have a deep run in the World Cup.

Meanwhile, Wizards rookie Rui Hachimura will suit up for Japan, according to the Wizards official website.

Now, his attention turns to the 2019 FIBA World Cup, where Hachimura will lead the Japanese national team ahead of the 2020 Summer Olympics in Tokyo.

The FIBA World Cup tips off August 31 in China, and is not only the world championship but this time around also the primary qualifier for the 2020 Olympics in Tokyo.

Close to home, USA Basketball is scheduled to begin its pre-World Cup camp in Las Vegas Aug. 5, with an intrasquad exhibition game at the T-Mobile Arena on Aug. 9. Then the team heads to Southern California for more training followed by an exhibition against Spain on Aug. 16 at the Honda Center in Anaheim, Calif.