Kevin Johnson to Maloofs: There will be no negotiations during critical Friday meeting

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I wrote on Thursday about the recent developments in the Sacramento Kings arena situation, and namely the Maloofs’ recent actions that amount to a legal full court press designed to land the franchise in Anaheim. The quick and dirty to catch you up is this – the Maloofs, Sacramento, AEG, and the NBA came to an agreement in principle on a $391 million Entertainment and Sports Complex during All Star weekend. A few weeks ago, the Maloofs publicly refused to pay for pre-development costs totaling $3.26 million that were agreed upon during that time. The Maloofs are the only party that disputes that they agreed to the amount, and the dispute has landed at the NBA Board of Governors meeting, which is where we pick up.

The Maloofs pitched at the BOG meeting for about 90 minutes yesterday, and afterwards they disappeared through a side exit not to be found by reporters guarding the various orifices of the St. Regis Hotel in Manhattan.

Dale Kasler of the Sacramento Bee provided this report following the meeting:

In particular, the Maloofs have said they never agreed to contribute $3.26 million toward environmental studies and other “pre-development” costs, as the term sheet says. Spokesman (Harvey) Englander declined to elaborate on the Maloofs’ presentation, other than to say the topic of relocation didn’t come up. “They asked good questions and it was a very good meeting.”

Earlier, Englander said the family would present a “historical analysis of the transaction” to owners, and hoped to have a clear path set toward a deal by the time the meetings end on Friday. Englander said it could take days or weeks, however, to come to a resolution.

On one hand, if you take the statement at face value, it’s encouraging for Kings fans that the topic of relocation didn’t come up.  But the last part about ‘days or weeks’ is where the rub lies, as it reflects the Maloofs’ position that there is still more to discuss about a deal that was already supposed to be done. During this departure from the handshake agreement, the Maloofs’ actions have become increasingly adversarial and this has culminated in Sacramento business leaders asking commissioner David Stern to remove them as owners. From the city-side, nothing is up for grabs, and the parties opposite the Maloofs have stood united in maintaining that the major elements of the deal aren’t going to change.

So what exactly transpired during the closed door session at the BOG meetings on Thursday? We’re still flushing that information out, but David Stern apparently setup a meeting between mayor Kevin Johnson and the embattled family. This was announced mid-day Thursday after the meeting had concluded, by Maloof family spokesman Englander, no less:

“The commissioner said the mayor (Kevin Johnson is) flying out, taking the red eye, (and) suggested we meet with him. And we are,” said Englander.

Questions swirled once the vague itinerary of events was disclosed to the public. What did Stern and the owners tell the Maloofs? Did they tell them to go kick rocks, to take the deal that they had already negotiated? Did they tell the Maloofs that they could indeed try to make a change to the main elements of the deal after the fact? And under what pretenses would Johnson and the Maloofs be meeting?

Clearly, there had to be a plan other than to stick the two parties in a room only to see them storm out 20 minutes later.

After about six hours of radio silence, Kevin Johnson’s office released to PBT a letter they sent to the Maloofs regarding Friday’s meeting. In the letter, Johnson made it entirely clear that he does not plan on negotiating when the sides meet up. Here are selected excerpts and the entire text:

I understand that during today’s NBA Relocation Committee you and your team made a presentation. During the discussion, it was suggested that a meeting with me tomorrow might be beneficial. As has been my commitment throughout this process, I am always happy to meet in the spirit of open communication and partnership. However, in advance of our conversation, I believe it important to make clear several key points:

First, all parties agreed to a deal in Orlando on February 27th, codified in the term sheet subsequently approved by our City Council. At the time, George Maloof explained the Maloof Family’s reason for agreeing to the deal, saying to the Sacramento Bee that it is a “fair deal…worth taking.”

Any representation that a deal was not reached is simply not consistent with the perspective of every other party to the negotiation nor the actual statements of the family.

Second, throughout this process, we have worked closely with the NBA as a valued partner at your request, as documented by the following Kings’ public statements that the “NBA take the lead on this” while remaining “in very close contact with the league” and being “apprised of everything that’s going on.”

Third, and most critically, under no circumstances will the City make material adjustments to the current terms of the deal. Put simply, we have done our part. And there should be no expectation in tomorrow’s conversation that this deal is subject to further negotiation.

We take you at your word that you are committed to Sacramento as you’ve said repeatedly in recent weeks. The best – and only – way to demonstrate that commitment is to honor the “fair deal” as all other parties have done. Your handshake is your handshake. Your promise is your promise.

So let the games begin. The Maloofs’ statement that it could take days or weeks to come to a resolution reeks of haggling over the price of clear coat, and it remains to be seen how much negotiating the NBA is going to actually permit here. For example, negotiating over a small stipulated clause involving little to no dollar value is probably on the up-and-up. On the other hand, should the Maloofs say they want to pay $25 million and not the $73 million they’ve already committed – that would definitely be a non-starter.

Right now, the argument is over $3.26 million in pre-development costs, or one year of Travis Outlaw’s salary. Before the Maloofs’ legal maneuverings started to resemble that of a family that wanted to get out of Dodge, I had surmised that the family’s argument over pre-development costs was really designed to extract a concession down the road.

And now it doesn’t matter if it’s up-front costs or back-end revenues, though, because Johnson is not negotiating. Sources in several different arena camps have made this much clear, and if it wasn’t clear Johnson’s letter was loud and clear. The only real question is – how much juice does Johnson have?

This is one of two things for him. One less settling possibility for Kings fans is that this is Johnson’s line in the sand, a way for him to say to his constituents that he wouldn’t back down. In this case Johnson believes (and he is right) that the city of Sacramento has done enough, and for better or worse he’s going to stand on that principle at least for now. So he draws the line in the sand with the hopes that the odds are in his favor, that the NBA and other owners will recognize that the city has done their part, and not allow the Maloofs to exit stage right.

Then there’s possibility No. 2, which is much more likely in my opinion, and that is that Johnson has already taken his cues from commissioner Stern. He isn’t gambling with the years of work completed by all of the various stakeholders. He isn’t gambling with all of the political capital he has spent on getting an arena deal done. He isn’t gambling with the political capital spent by all of his colleagues and he certainly isn’t putting the entire project on the line with a take-it-or-leave-it demand that isn’t rooted in reality.

In other words he knows that his price is firm, and he’s not buying the clear coat.

We’ll see later Friday who had the juice and for the Maloofs, if the juice of owning an NBA franchise is worth the squeeze.

Joseph Tsai to buy rest of Nets, Barclays Arena for $3.4 billion

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NEW YORK — Joe Tsai has agreed to buy the remaining 51 percent of the Brooklyn Nets and Barclays Center from Mikhail Prokhorov in deals that two people with knowledge of the details say are worth about $3.4 billion.

Terms were not disclosed Friday, but the people told The Associated Press that Tsai is paying about $2.35 billion for the Nets – a record for a U.S. pro sports franchise – and nearly $1 billion in a separate transaction for the arena. They spoke on condition of anonymity because the transactions have not yet been completed.

Tsai is the co-founder and executive vice president of the Alibaba Group, the Chinese e-commerce giant. He already had purchased a 49 percent stake in the team from Prokhorov in 2018, with the option to become controlling owner in four years.

Instead, he pushed up that timeline for full ownership of a team on the rise after signing superstars Kevin Durant and Kyrie Irving in July.

Prokhorov, a Russian billionaire, became the NBA’s first non-North American owner in 2010 and oversaw the Nets’ move from New Jersey to Brooklyn two years later. He spent big in the first couple years after the move in a quest to chase a championship, but the team soon became one of the worst in the NBA before rallying to return to the playoffs last season.

“It has been an honor and a joy to open Barclays Center, bring the Nets to Brooklyn, and watch them grow strong roots in the community while cultivating global appeal,” Prokhorov said in a statement. “The team is in a better place today than ever before and I know that Joe will build on that success, while continuing to deliver the guest experience at Barclays Center that our fans, employees, and colleagues in the industry enjoy.”

The deal is expected to be completed by the end of September and is subject to approval by the NBA’s Board of Governors.

That would put Tsai, a native of Taiwan, in full control of the team by the time the Nets head to China to play two exhibition games against the Los Angeles Lakers in October. That comes at the start of a season of renewed excitement for the Nets, who just three seasons ago won an NBA-worst 20 games but are set to make a big move up the standings after landing two of the best players on the market when free agency opened.

“I’ve had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail started a few years ago. He hired a front office and coaching staff focused on player development, he supported the organization with all his resources, and he refused to tank,” Tsai said. “I will be the beneficiary of Mikhail’s vision, which put the Nets in a great position to compete, and for which I am incredibly grateful.”

Brett Yormark, the CEO of BSE Global, which manages the team and the arena, will oversee the transition before leaving for a new role.

Jazz coach Quin Snyder tells Donovan Mitchell to ‘be a sponge’ around Gregg Popovich

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While other players continue to pull out of the USA Basketball roster — De'Aaron Fox was the latest, and P.J. Tucker before him — Utah’s Donovan Mitchell has been outspoken in his commitment to the team.

“Me, I’m 22, some guys are older and got to rest their bodies and I understand that…” Mitchell said Friday night after Team USA’s exhibition game win over Spain. “For me, I’ve never been part of USA Basketball and I’m honored to be here, I’m honored to have this privilege to go out and compete.”

A lot of players have left — or just not put their names in the hat in the first place — saying they wanted to focus on preparing for the regular season, especially players in the Western Conference, which is deep with outstanding teams. The Utah Jazz, now with Mike Conley at the point, are one of those teams with high expectations.

Mitchell, however, has the full backing of his coach Quin Snyder to stay with Team USA and learn from Gregg Popovich, as Snyder told Marc Stein of the New York Times.

“Both Donovan and I have been excited for this opportunity, not just the chance to compete for his country but to play for Pop. I think he has an appreciation for the fact that he’s playing for the greatest coach that’s ever coached…

“Just try to throw yourself completely into it,” Snyder said he told Mitchell. “And try to communicate with Coach as much as you can. Be a sponge.”

Popovich has had an impact on the young players on the roster. For example, there’s more maturity to Kyle Kuzma‘s game, and Popovich recognized him on the court Friday night when Kuzma made a couple of smart plays against Spain.

Just having different coaching voices — not just Popovich but his assistants Steve Kerr, Lloyd Pierce, and Villanova’s Jay Wright — can help a young player. The message may be consistent, but said in a different way, one that better gets through to the player. Styles matter.

Mitchell led Team USA in scoring against Spain with 13, but Snyder and Jazz fans are hoping for more. Not just gold at the World Cup in China starting Sept. 1, but that Mitchell comes back energized and with a broadened game after having been a sponge next to Popovich.

Marcus Smart reportedly cleared to play for Team USA

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Through two weeks of training camp, first in Las Vegas then in Los Angeles, through one intrasquad scrimmage and one exhibition game, Marcus Smart has sat in street clothes.

The Celtics guard has a calf injury that has sidelined him. On Thursday in Los Angeles he took part in the shooting parts of practice during training camp, but not the full-contact scrimmages against the select team. All he could really do was this.

Friday night he never got out of his warmups and did not play against Spain, but he did say on the broadcast he would be back.

Turns out, he was cleared to be back the next day according to Mark Stein of the New York Times.

This takes away a little of the sting of De'Aaron Fox deciding to withdraw from the team just before it left on Saturday for Australia.

It also means four Celtics are on the USA roster: Smart, Kemba Walker, Jayson Tatum, and Jaylen Brown. USA assistant coach Steve Kerr jokingly said to me last week he asked Brad Stevens for a thank you gift for running Celtics mini-camp.

Smart is one of the 13 players headed down under for a series of tune-up games before the World Cup (against Australia and Canada). If he’s fully healthy enough to go, Smart is a lock to make the roster because of his physical perimeter defense and ability to shoot the three (36 percent last season in the NBA, and the international line is a little closer in). He likely would come off the bench at the two behind Donovan Mitchell.

Bill Walton broadcast White Sox vs. Angels game and was nothing short of brilliant

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Bill Walton is brilliant.

The Hall of Fame hippie and big man was in the broadcast booth Friday night — not for basketball, but for the White Sox vs. Angels MLB game. Walton loves baseball even if his understanding of the sport is… unconventional.

I want Bill Walton to narrate my life.

The world missed him while he battled serious back issues, it’s so good to have him out and around and being himself again.