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

6 Comments

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.

Mike Woodson reportedly has second coaching interview with Knicks

Knicks coach interview
AP Photo
Leave a comment

Let’s start with the reality of the situation: Every source where the Knicks are mentioned, every bit of reporting on this topic, says the New York coaching job is Tom Thibodeau’s to lose. He is the runaway favorite.

But if it’s not him, is it Mike Woodson deja vu?

The Knicks have done their due diligence in this search — they interviewed 11 people — and that now includes bringing back former New York coach Mike Woodson for a second interview, reports Ian Begley of SNY.TV.

Friday was Woodson’s second interview with the club. Woodson and all other candidates had initial interviews with the Knicks last month or in the first week of July. The Knicks’ second-round interviews are expected to conclude in the coming days. It is unclear if any candidates will be asked to interview a third time.

New York plans to make a decision its next head coach before July 31, when the NBA resumes its regular season in Orlando.

Woodson is the last Knicks coach to win a playoff series (2013, if you’re keeping track) and had a 109-79 record in the job. David Fizdale — the coach the Knicks fired this season — wanted Woodson on his staff, but management shot it down, reports Marc Berman at the New York Post.

It’s difficult to imagine Leon Rose‘s first big move as Knicks president would be to reach back in time and restart the Woodson era. That’s not moving the franchise forward.

But Woodson and the Knicks are talking.

Short offseason, uncertain financial outlook may mean fewer coaches fired

76ers coach Brett Brown
Lachlan Cunningham/Getty Images
Leave a comment

Already this season, Kenny Atkinson was out in Brooklyn, the New York Knicks fired coach David Fizdale, and John Beilein was shown the door in Cleveland (with J.B. Bickerstaff hired to replace him). That was just the tip of the iceberg in expected NBA coaching changes this offseason, the buzz around the league was between four and up to 10 more coaches would be fired.

Then the coronavirus pandemic hit.

Now those same teams are looking at a shortened offseason, while at the same time the owners have taken a financial hit and aren’t thrilled about the idea of paying two coaches at once, and suddenly it looks like a lot more coaches are safe. Brian Windhorst and Tim Bontemps touched on that in their story about next season at ESPN.

After much chatter before the stoppage of changes in the coaching ranks, several league executives told ESPN that teams might be more likely to hang on to coaching staffs longer than planned to avoid paying out millions to coaches fired in current market conditions.

A lot front office sources around the NBA are speculating about the same thing.

Expect a few changes. Mike D’Antoni’s contract is up in Houston and few around the league expect him to return next season. Jim Boylen is considered the walking dead in Chicago where there is a new front-office regime. New York and Brooklyn still have to hire their guys.

However, other guys considered almost certainly gone — Brett Brown in Philadelphia or Scott Brooks in Washington, for example — may keep their gig another year because of the uncertain waters of the NBA right now. Maybe not, there could be firings, but don’t expect the tidal wave of coaching changes to wash over the NBA that everyone expected back in February.

Teams forced into difficult choices to trim traveling parties for restart

Joe Murphy/NBAE via Getty Images
Leave a comment

ASSOCIATED PRESS — The 22 teams participating in the NBA restart were all at the Disney campus together for the first time Friday.

None of them, however, made it to the Orlando, Florida, area with their usual travel party.

Leaving families behind for several weeks — or maybe even three months, depending on how deep a team goes in the playoffs — during a pandemic isn’t the only hardship that teams are dealing with during this restart. Space limitations within the quasi-bubble at Disney also meant that teams had to cut their official traveling parties down to 37, including players, so many people who usually travel with a club aren’t on this trip.

“We’re not able to take everybody — and that stinks, because of the amount of work that they all put in every single day,” Boston coach Brad Stevens said. “We’ve tried to identify how to be the most efficient we can be with people that can be excellent remotely as well. I think that that’s one of the things that we’ve had to identify. In some cases, their excellence remotely probably hurt their chances of going initially.”

It’s expected that as the bubble population shrinks after six teams are eliminated from playoff contention and then eight more are ousted in the first postseason round, teams will be allowed to bring in more staff.

But until then, while teams are playing games on-site at Disney, there will be plenty of work done back in home markets and home arenas as well. Some teams left player development coaches behind, some even left assistant coaches, and all teams traveled with only one media relations staffer and one equipment manager. In normal circumstances, some teams travel with as many as three people to handle media requirements and two for equipment.

“You know, it’s tough,” Orlando President of Basketball Operations Jeff Weltman said. “We kind of shied away from some of the language that was being thrown around — the whole idea of essential (staff) and non-essential (staff). It’s not about that. This is a very narrowly defined circumstance, and it requires certain skill sets to address this circumstance.”

Players counted against the list of 37, and most teams brought the full complement of 17 players. That left 20 spots for coaches, assistant coaches, player development, video, security, strength and conditioning, athletic training, media relations and content creators.

Miami coach Erik Spoelstra said the process of figuring out who goes and who doesn’t was brutal.

“We already have had a model of everybody sharing responsibilities,” Spoelstra said. “We already had a meeting about this where there’s an absolute understanding that this is an ‘all hands on deck’ situation. And that means bags, laundry, cleanup, everything … that’s not just for equipment managers, that’s everybody — coaches, trainers, weight room staff, head coach, coaches, we’re all going to be involved in every aspect of it.”

Oklahoma City coach Billy Donovan also expressed disappointment that tough decisions had to be made on the staffing end.

He completely understands the NBA perspective. Keeping the number of people in the bubble manageable is a key part of the NBA’s plan for being able to finish the season; the more people in the bubble, the more risk there is of something going wrong.

“Everybody deserves the opportunity, but for the safety of the league and the players we can’t do that,” Donovan said. “So, what we’ve got to do is understand, whether it’s myself or assistant coaches, we may have to be setting up video equipment, we may have to have one of our coaches filming practice in Orlando. There’s things that we’re going to have to do that are going to be outside the box that will normally been taken care of.”

Chris Paul playing cornhole. Luka Doncic trick shots. Welcome to life in the NBA bubble.

Bill Baptist/NBAE via Getty Images
Leave a comment

Teams have emerged from quarantine in the Walt Disney World campus in Orlando, getting some run in on the court, and are starting to explore life in the NBA bubble.

Then they are documenting it on social media.

For example, Chris Paul and Darius Bazley played some cornhole.

Dallas’ Luka Doncic was hitting trick shots on the court.

Then Doncic and Boban Marjanovic were doing Disney Channel ads.

Complaints about the food by players have died down, in part because they are out of quarantine and get a choice of restaurants, in part because they saw the backlash and realized the complaints looked elitist. Or maybe it’s just the Mickey pancakes.

Everyone is out and exploring the campus and having fun…

Well, except for Robin Lopez, who sees no reason to leave his room.