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

7 Comments

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.

Report: ‘Significant amount of pessimism’ NBA will restart season

Getty Images
Leave a comment

The idea of creating a “bubble” in Las Vegas to restart the NBA season sounds enticing. They have the hotel rooms in the city and the facilities at the UNLV campus (where Summer League takes place), it may need to be a condensed playoffs, but it’s something. It provides hope.

That hope is fading, however. They have tried to use the bubble idea to restart the Chinese Basketball Association — and twice China has had to push back the start of the league as the coronavirus has refused to fade away.

China’s experience has added to a growing pessimism that the NBA can pull off any part of this season, ESPN’S Brian Windhorst said on SportsCenter:

“I think there was optimism about progress a week ago. Some things that have happened this week have turned it south about what could happened…

“The Chinese are finding that asymptomatic carriers are causing maybe a second wave in that country and they’re just slamming the breaks on sports…

“It is clear that the NBA is angling to set up a deal that enables them to shut the season down. They don’t have to do that yet. The way they’re negotiating, they’re leaving an option either way. But they’re not having talks about how to restart the league. They’re having financial talks about what would happen if the season shuts down. I think there’s a significant amount of pessimism.”

That pessimism only grows when you consider the potential impact on the United States from COVID-19, with the White House’s own projections having 100,000 dead on the low end. Add to that the significant economic costs that our nation is just starting to experience and, while a return to basketball and its distraction sounds enticing, it’s also hard to picture.

For example, the idea of putting a “bubble” in Las Vegas (or Orlando or the Bahamas or wherever) is a promising theory on a surface level but becomes a logistical nightmare when trying to make it work in practice.

Are you going to get all the players, coaches, trainers, equipment managers, camera operators (these games will be broadcast), and the rest to self-quarantine for two weeks before they come to the bubble in Vegas? Or, will there be the many hundreds of tests (maybe a 1,000?) needed to screen everyone? What is the rate of false negatives with this test? Can players bring families (they would have to be tested and live in the bubble) or will everyone separate from their family for 6-8 weeks? The league will need about a three-week training camp in the bubble before you can start games, then there would be weeks of games, and all that time the bubble has to be secure. Is that realistic? Do the hotel staff and cooks feeding everyone in the bubble have to stay in the bubble?

That’s not even all of the challenges and it’s daunting. And that is for the “faster” answer of playing all the games in one location and without fans. Who knows how long it will be before teams can fly around the country to play in packed arenas again.

The NBA does not have to make a decision now or even soon, it can wait into May and June and see where things stand with the virus, the economy, and the nation. Still, it’s harder and harder to be an optimist with all of this.

Sacramento Kings turning former arena into coronavirus surge hospital

Getty Images
Leave a comment

If you’re old enough, you might remember Arco Arena as the home of the Sacramento Kings when they were a playoff team. Chris Webber, Mike Bibby, Peja Stojaković, and company pushed the Shaq/Kobe Lakers to seven games in 2002 and won huge playoff games in the arena. Arco was where Jason Williams was dropping dimes without looking, and arena which later became known as the Sleep Train Arena, Power Balance Pavilion, and eventually the current Natomas Arena.

Now, it’s about to be a coronavirus surge hospital.

The Kings are making the arena available and it will house about 360 beds, the team announced on Friday. The team also is donating $250,000 to support area community organizations providing services to families in need in the area, plus donating 100,000 medical masks to state and local health agencies.

“On behalf of the entire Kings family, our hearts are with all who have been affected by this pandemic,” said Sacramento Kings owner Vivek Ranadivé in a statement. “California always leads the nation and the world, and we applaud Governor [Gavin] Newsom’s strong and decisive leadership to keep Californians healthy and safe during this crisis…

“Our community has always come first, and that is more important now than ever,” Ranadivé continued. “The Kings are proud to help by providing additional space to accommodate a predicted surge in patients. We are also donating masks to help keep people healthy, and critical resources to area organizations that are addressing food insecurity and other issues as a result of the coronavirus. I have always been in awe of the resilience and ingenuity of the American people and firmly believe that together, we will defeat this invisible enemy.”

The Kings moved to the Golden 1 Center in downtown Sacramento in 2015 and since then their former home and practice arena has mostly sat vacant. The Kings’ G-League team practices there at times, but like the rest of basketball they find their season suspended.

Hopefully, this arena helps save some lives in the California capital. That would be the most important thing ever to happen in the building.

WNBA postpones season

WNBA
Ashlee Espinal/NBAE via Getty Image
Leave a comment

Mavericks owner Mark Cuban backed off his belief that the NBA could resume in May.

It’s just already clear, amid the coronavirus pandemic, it’ll be unsafe to hold professional basketball games that soon.

WNBA release:

WNBA Commissioner Cathy Engelbert released the following statement:

“As developments continue to emerge around the COVID-19 pandemic, including the extension of the social distancing guidelines in the United States through April 30, the WNBA will postpone the start of its training camps and tip of the regular season originally scheduled for May 15.  While the league continues to use this time to conduct scenario-planning regarding new start dates and innovative formats, our guiding principle will continue to be the health and safety of the players, fans and employees.

Many top female players – including Los Angeles Sparks guard Sydney Wiese, who tested positive for coronavirus – play overseas during the WNBA offseason. That frequency of travel makes it even riskier for WNBA teams to gather any time soon.

The WNBA will still hold its draft April 17, conducting proceedings virtually. That could provide lessons to the NBA as it determines how to handle its draft.

Joel Embiid, 76ers owners pledging $1.3M for fighting coronavirus

76ers owner Josh Harris and Joel Embiid
Mitchell Leff/Getty Images
Leave a comment

Joel Embiid just showed up 76ers owners Josh Harris and David Blitzer by pledging to pay team employees who were set to have their pay cut. Amid widespread backlash, the 76ers backtracked on their salary-reduction plan.

Now – with a portion of Embiid’s coronavirus-related donation unallocated and Harris and Blitzer looking to change the narrative around them – those three are working together.

Noah Levick of NBC Sports Philadelphia:

Joel Embiid, Sixers managing partner Josh Harris and co-managing partner David Blitzer are contributing a combined $1.3 million to Penn Medicine, establishing a funding campaign for COVID-19 antibody testing of frontline healthcare workers.

According to a Penn Medicine press release, “The pledge from Embiid, Harris and Blitzer will provide a much-needed boost for efforts to quickly identify health care workers who may have immunity to the new virus.”

This is great.