In depth: Stern fires shot across the bow at the Maloofs, who continue to threaten the NBA’s billion dollar arena subsidy

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A meticulous planner, everything David Stern says is run through a filter of lawyerly instinct and an ever-present awareness of his surroundings.

So when David Aldridge asked him if the NBA would support the Maloofs in their desire to move the Sacramento Kings to Anaheim on Tuesday – don’t think for a second that he hadn’t weighed the legal gravity of the situation or the wishes of his 29 other bosses.

“If there was a vote now, there would be no support for a move,” Stern said.

Stern then went on to poke at the Maloofs for their current plan, which includes staying in the nearly dilapidated Power Balance Pavilion for at least one more season, despite the family threatening to leave town for years because the building is dilapidated.

“That’s their prerogative. As long as it (Power Balance) stands and passes the fire code, I think it’s been a terrific place for the fans of Sacramento,” said Stern in his typical dry wit.

This is the most recent play on the NBA’s relocation chess board, and with the Maloofs overtly implying an antitrust lawsuit against the league for well over a year now, it’s a telling one.

Antitrust suits have been the weapon of choice for owners looking to find greener pastures, and though case law provides limited guidance for courts, it has generally been a favorable area of law for relocation efforts.

On the other side of the coin lies the ‘best interest of the league’ clause found in most sports associations’ bylaws, including the NBA’s. The bylaws allow for the commissioner to take any action they deem necessary to protect the league, and the league’s preferred association status is tied to the commissioner’s ability to show that ‘due process’ has been provided during disputes amongst owners.

The best way to understand this is to know that the courts generally aren’t going to restrain the trade of an NBA owner. They’re also not going to allow an owner unilateral ability to destroy the league that it operates within as a single entity, and the tipping point is somewhere in the middle. The leagues and courts have already found mechanisms (relocation fees) that allow the individual entities impacted by a move to be indemnified to a certain degree.

In the case of the Maloofs’ attempted move to Anaheim, sources with knowledge of the situation have reported that a relocation fee would be upwards of $300 million.

In this case, there are two injured parties in L.A. that would disapprove of the Maloofs’ desire to move into their market, but the more pressing issue for all of the NBA’s owners is what the Maloofs are doing to impact the integrity of the league’s billion dollar arena subsidy.

Since 1990, the NBA and its players have enjoyed a $3 billion public subsidy toward arena costs.

In April, the family backed out of a deal that as anchor tenants required them to pay $73 million toward a $391 million facility – $67 million of which would be provided by the NBA in the form of a loan. George Maloof called it a “good deal,” Gavin Maloof cried tears of joy after the parties emerged from an Orlando hotel room heralding the deal during All Star Weekend, and both Gavin and brother Joe held Sacramento mayor Kevin Johnson’s hands in triumph at the Kings’ next home game.

All of it was a ruse, though. It became clear that the Maloofs had no intention of striking a long-term deal with Sacramento when political crisis consultant Eric Rose was brought on by the family to handle its media strategy, and their antitrust attorneys began sending threat letters to the city that were designed to disrupt its ability to deliver on a tight timeline. Then came the ridiculous requests and demands, and the confidential communications between the family and the NBA eventually were leaked to a Sacramento website that opposed the arena deal.

Eventually, the Maloofs would burn most of their bridges in Sacramento in what Stern would describe later that day as “not the weirdest press conference we’ve ever had.” They hired an economist that twisted enough facts for Stern to say he acted in “ill grace,” and their antitrust attorneys pitched against Sacramento over PowerPoint. With only the Sacramento media allowed in their New York hotel conference room, George Maloof went on a wild tirade that made their economist Chris Thornberg look like a beacon of truth.

The NBA, who was authorized by the Maloofs to represent them in negotiations, thought the deal was fair, but the Maloofs expected to pay nothing and control all of the revenue streams in Sacramento. They expected this because of Anaheim’s long-standing offer to bring the Kings down south. Billionaire Henry Samueli and Anaheim’s city council’s offer to provide cash relief to the family would theoretically allow them to continue operating the team while making big market TV money, with the fallback position of selling the team for more than they could in Sacramento due to the larger market.

But that didn’t account for the minimum $300 relocation fee that the Maloofs or any subsequent owners would have to pay to infringe upon the Lakers and Clippers’ markets, making the deal untenable for the Maloofs if they wanted to keep the team. If their plan was to sell to Samueli or another Anaheim group, the relocation fee would certainly be a big nut for the new owners to take on in addition to the price of the franchise, not to mention a huge deterrent if the new owner senses they’re not wanted by the league.

It has been theorized that this relocation fee was communicated at some point to the Maloofs, who expected to leverage (or take) Anaheim’s offer despite being near the finish line with Sacramento. In that theory, once the Maloofs realized a move to Anaheim was not in the cards they decided to officially muck up a Sacramento deal that reflected their meager contributions, while testing their leverage with antitrust threats.

Regardless of the Maloofs’ intentions, cities that negotiate with the NBA and team owners over arena subsidies will now point to the family’s apparent bad faith dealings. Now, the league will have to explain to its civic partners how and why they should expend political capital and public funds if owners are going to use the scorched earth strategy when they don’t get what they want.

Sacramento spent significant sums of money and staff time in the arena negotiations process during a budgetary crisis only to find they were spinning their wheels – all while offering to pay for 65 percent of the arena’s costs – and the NBA is going to have to wear that issue unless they make it right by keeping a team there under a workable plan.

The timing couldn’t be worse for the league, either, with the Oklahoma City Thunder in the Finals just four years after Stern, former Sonics owner Howard Schultz, and now Thunder owner Clay Bennett stole 41 years of Sonics history from Seattle because the local government wouldn’t pony up. The government there certainly shoulders some of the blame for how that went down, but as the documentary Sonicsgate so handily points out – the principals on the NBA’s side had agendas that aren’t exactly ringing endorsements for the league.

Even if the league somehow makes things right in Sacramento and Seattle, this pulling back of the curtain could shave millions, if not billions of dollars off the NBA’s bottom line if not handled correctly by the owners. Municipalities are going to have a harder time convincing voters to part with tax money as the subsidy shakedown gets exposed, and arena funding campaigns will be forced to seek lower funding amounts as local voters lose their appetite for unsavory business tactics.

Whether it’s in the best interest of the league’s balance sheet, or the best interest of the league’s PR efforts, the Maloofs are killing the association on both fronts.

With Sonicsgate discussion now creeping into the national discourse during the Finals, we saw the first signs on Tuesday that the owners aren’t going to let the Maloofs throw the baby out with the bathwater. By stating publicly that the Maloofs have “no support” for a move to Anaheim, the league has all-but invited the Maloofs to pursue their antitrust suit.

Namely, a decision to not once, but twice inform the family that they cannot move could spawn any number of antitrust damages. If monies or opportunities are lost as the result of the league’s decision to block relocation last year, or if Stern’s public statement this year causes any damages – it adds a yet another critical piece of evidence the family could use when piled on top of the rest of the evidence they’ve been compiling.

This is a decision that does not come lightly, because neither the league nor its owners truly want to face the time and expense of a massive lawsuit like that, nor do they attack their own knowing they will one day be on the other end of the subsidy discussion themselves. At a higher level, the league does not want to see any more case law put onto record that would either weaken its ability to police itself or the various antitrust protections it enjoys. At the top of that list is the ability for the NBA and other sports associations to leverage its limited, monopolistic demand (teams) against cities in the gathering of public subsidy dollars.

Perhaps the league is aware of a solid offer from Seattle billionaire Chris Hansen that nobody out of Sacramento is willing to match, and that is the source of their confidence in saying the Maloofs would have “no support” in moving to Anaheim. Seattle mayor Mike McGinn met with Stern in New York on Monday and Hansen is ready to take on most of the cost of building an NBA-ready arena, assuming of course he can buy a team. That Stern didn’t mention the city in his response to Aldridge is a huge footnote.

Hansen could conceivably justify a higher purchase price than a Sacramento buyer given his land holdings around the proposed Sodo arena site, and the fact Seattle is about 30 percent larger than Sacramento in terms of its TV market. But those advantages are somewhat mitigated by the fact that a Seattle team would have to compete with both the Seahawks and Mariners for local revenues, whereas the Kings are the only show in town in Sacramento.

That said, saying the league decided to open itself up to antitrust exposure because of a bona fide offer it knows about from Seattle assumes a lot – including Seattle’s ability to deliver on an arena while they face local opposition of their own. It’s way more likely that the league has weighed the Maloofs’ ability to impact the league now and into the future, and it has decided that it’s in their best interests to call the family’s bluff.

If the family still cannot afford to spend money on free agents, and they will be losing significant revenue after spending the last few years biting the hands that feed them in Sacramento – Tuesday’s comments suggest the league has determined that the Maloofs cannot afford to play the antitrust card.

As is the case in most legal disputes, the winner isn’t determined by a judge or jury verdict, but which side has the largest stones and deepest pockets. The Maloofs have a large holding in Wells Fargo which many sources say is untouchable, and outside of that they have a fledgling entertainment business and a partnership to sell (OMG!) cell phone cases.

If we’re buying what the NBA sold us last summer, owning a team isn’t a huge money making endeavor. In reality, it’s a complex issue magnified by being in a small market. And unless you have a way to maximize what a basketball franchise can do, there are plenty of ways to make more from the investment it takes to play in the billionaires’ playpen.

To truly justify owning an NBA basketball team, one has to maximize their various holdings through cross promotion, invest in the areas around the arena, and maximize tax breaks before selling at an appreciated gain one day. To do this it takes a minimum level of free agent spending to field a team that will generate revenues to make that work.

The Maloofs don’t have the money to be that type of owner, at least anymore.

The Maloofs once had designs on maximizing the values of their holdings in the Palms and their entertainment empire, but the entertainment empire never panned out and the Palms is no longer theirs. Sacramento gave the family some proximity to help with the promotion of both entities, but now that bridges have been burned there, the only other destination that would supplement what is left of their non-NBA holdings was just rejected during Stern’s press conference.

Elsewhere, Seattle billionaire Chris Hansen isn’t going to build an arena so ‘the boys’ can play around in it, and even if the other cities that have expressed interest in the NBA can offer a sweetheart deal to them, they can’t significantly change the Maloofs’ cash-strapped outlook.

The only plan that makes any financial sense is for them to sell the team to the highest bidder, and with billionaire Robert Pera reportedly paying approximately $350 million for the Grizzlies to keep the team in Memphis and Tom Benson paying $338 million for the Hornets, it’s possible the Maloofs can top the $400 million mark on their way out the door.

Sacramento’s TV market is double the size of both Memphis and New Orleans, and it’s certainly plausible that Pera made an offer to the Maloofs given his Northern California roots. That Pera wasn’t able to buy the team from the Maloofs (or didn’t try) could speak to any number of issues, but finding a price point that would entice the Maloofs to sell is the NBA’s best bet at ridding themselves of their billion dollar subsidy problem.

A $400 million sale would provide $172 million for the Maloofs’ 43 percent stake, and with at least $150 million owed to the city of Sacramento and the NBA, every dollar is going to count if the family is seeking a debt-free break.

By chopping off the Anaheim leg of the Maloofs’ leverage play, the NBA is one Space Needle market away from stealing away all of the family’s leverage in a potential sale. Franchise prices in Vancouver, Columbus, Louisville, or Kansas City aren’t going to top what multiple Sacramento buyers are willing to pay, and with Seattle closing in on a viable offer it will soon be time for those buyers to put their last, best offers in, as well.

Stern loves the Sacramento market, the 20th largest market in the country and one that is devoid of competition from other sports leagues. He goes out of his way to praise the city at every opportunity for the job they did getting an arena deal done. But he’ll have a hard time forcing the Maloofs to take a substantially smaller offer to stay in California’s capitol.

It’s a nasty game of relocation chess right now. Milwaukee is next up on the clock with a year-to-year lease, an aging arena, and an aging owner. The NBA will be right back at it demanding a public subsidy, assuming of course they don’t let the Maloofs cook the goose that lays the billion dollar eggs.

As for the Maloofs, they have yet to respond to Stern’s ‘call,’ and it remains to be seen if they continue their bluff all the way down the river.

Zion and more: Five must-watch intriguing NBA players this season

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At the start of every season, there are the guys you just can’t take your eyes off.

The “will it come together” guys. The “will they break through” guys. The “their team really needs them” guys. We know what most NBA players bring to the table, but the intriguing guys are the ones where we don’t know the answer. Where we’re finding out just as their coaches and teammates are.

Here are my five most intriguing, must-watch players of the season.

Zion Williamson, Pelicans

Kind of a no-brainer — but we’re all going to be watching.

Williamson was given a max contract off the 85 games he played through three seasons, and the questions are clear: Can he stay on the court? And if he does, can he mesh with CJ McCollum and Brandon Ingram, return to being a dominant scoring force inside, and turn the Pelicans into a playoff team?

The early reviews are promising. He came into camp in the best shape we have seen him in, and he showed off his ridiculous explosiveness in his first preseason game following missing last season after foot surgery.

If Williamson can be that guy, if he can play at an All-Star level, lead the league in scoring efficiency, and give the Pelicans a guy who can get to the rim and draw fouls (something they lacked much of last season, McCollum and Ingram are happy to pull up and nail the jumper), it’s not just Zion who is intriguing. This entire team is.

We know we’re not going to be able to take our eyes off Zion all season. No matter what happens.

Ben Simmons, Nets

Another rather obvious selection, but it doesn’t make it any less a reality — we will all be watching. Especially after his ugly exit from Philadelphia last season, only to not play for the Nets.

What will his role be next to Kyrie Irving and Kevin Durant? In the first preseason game, Simmons brought the ball up, initiated the offense a lot, and didn’t take a shot outside the paint (he made his shots at the rim, but his turnaround jumper was… rusty would be the kind word). Simmons brings elite perimeter defense the Nets need, but most scouts picture him in a Draymond Green-style role within the Brooklyn offense, the question is will he play that way  — and will Steve Nash ask him to?

No team has more questions this season than the Nets, and Simmons may be the biggest one.

Precious Achiuwa, Raptors

Achiuwa was a different player after the All-Star break last season. Something clicked for him and he jumped to averaging 12.2 points a game (up from 7.5 pre-All-Star) with a 55.2 true shooting percentage (46.7%), in part because he found his 3-point stroke (39.2%).

Was that stretch a fluke, or did Achiuwa figure things out? The early preseason returns suggest the latter.

After the All-Star break Achiuwa looked like a key young part of the Raptors moving forward, the question now is can he sustain and grow that? The key is his jumper — if that is falling and he is spacing the floor, he becomes a much bigger part of the Raptors’ offense (and gives Nick Nurse another 6’8″ switchable defender for his positionless style). We’ll be watching to see if Achiuwa can take the next step.

Onyeka Okongwu, Hawks

Clint Capela will be the Hawks starting center to open the season — but for how long?

Make no mistake, Capela is a quality NBA starting center, but Onyeka Okongwu — the No.6 pick in the 2020 NBA Draft — has shown flashes of brilliance in his first two seasons. For example, during the 2021 Atlanta run to the Eastern Conference Finals when he was Atlanta’s best option in dealing with Giannis Antetokounmpo. Last season there were stretches where he looked like the future in Atlanta. There’s a sense around the league that this is the season Okongwu puts it together — elite defense with some improved rebounding and a jumper — and Nate McMillan will have no choice but to move him into the starting lineup.

Okongwu will get more minutes this season with Danilo Gallinari gone from the Atlanta rotation and questions about the future of John Collins with the team. He can defend at a high level and is an efficient scorer inside — we’re watching to see if this is the season he breaks out. Combine that with a Trae Young/Dejounte Murray backcourt in Atlanta, and things get interesting.

De'Aaron Fox, Kings

If the Sacramento Kings are going to end the longest playoff drought in major American professional sports (16 years), it will be because De’Aaron Fox found genuine chemistry playing off of Domantas Sabonis, something the two started working on last season.

How is that chemistry now? Does Sabonis working out of his preferred high post make finding driving lanes tough for Fox?

“I mean, it’s still a work in progress, but I feel like I can break down anybody at any time. So for myself getting to the pain is not a problem,” Fox said after the Kings’ first preseason game.

Fox scored 23.2 points a game last season but his efficiency (and 3-point shooting) dipped. That has to change. Fox has to be efficient, and new coach Mike Brown has to find a way for his team to get stops, for them to break the streak. Also, Fox has to stay healthy and on the court — he hasn’t played more than 59 games each of the past three seasons.

The Kings are an interesting team this season, and Fox could be their bellwether.

DeMarcus Cousins looking for NBA return, ‘I just want a fair shot’

2022 NBA Playoffs - Denver Nuggets v Golden State Warriors
Garrett Ellwood/NBAE via Getty Images
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DeMarcus Cousins can still help a team. He did it last season, first in Milwaukee because they needed depth (Brook Lopez was out following back surgery) and he gave them 9.1 points and 5.8 rebounds a game of solid play. Then, the Bucks let him go for financial reasons and the Nuggets picked him up to play behind Nikola Jokic and he was again a solid reserve, with 8.9 points and 5.5 rebounds a game (and he had a 31-point night against the Rockets).

Cousins, however, has not landed with a team heading into this season, with teams more concerned about his character and influence than his game. Cousins told Chris Haynes of Yahoo Sports he has learned from his past mistakes and wants another chance.

“Have I made mistakes? Absolutely,” Cousins told Yahoo Sports. “Have I done things the wrong way? Absolutely. For that, I’m very apologetic. But I’ve done even more things the correct way and I’ve done even more positive things compared to my negatives. I just don’t want those positives to be overlooked. And obviously, whenever it gets to the point where the negatives outweigh the positives, you should probably move away from him. That’s just how life goes. But I don’t believe I’m in that boat. I’m just asking for a chance to show my growth as a man and a player…

“I think the misperception of me is that I’m this angry monster that just goes around bullying people, beating people up, uncoachable, and a cancer in the locker room,” Cousins told Yahoo Sports. “I think it’s all false. I played for coach [John] Calipari, a legendary coach. I was more than coachable. Steve Kerr would attest to that and coach Malone. Obviously, you can always go back to my time in Sacramento. I was a young kid. I was still figuring this business out. I was ignorant to a lot of things. I handled a lot of things the incorrect way, but I’ve also learned from those mistakes…

“So, to hold my time in Sac over my head, I think that’s unfair. I believe we all should have a chance to grow and change and actually have that change be embraced. I just want a fair shot.”

Cousins also said he is working out daily to be ready when the phone rings and understands he is now a role player.

It will ring. At some point an injury will happen and a team will turn to Cousins to be that solid backup big they can give 15 minutes a night (or, a team will realize they need more size than they currently have on their roster). Center has become a bit of a mercenary position in the NBA, one where teams often look to fill roles on the cheap so money can be spent on perimeter players, and teams think low-risk with those spots. Fair or not, Cousins is not seen as low risk.

But his stint with the Warriors before the bubble (and before he tore his ACL) and last season with the Bucks and Nuggets show he can fit in on an established team and contribute. Eventually, he should get that chance.

Report: Draymond Green facing potential discipline after fight with Jordan Poole

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Warriors practice got heated on Wednesday and Draymond Green reportedly escalated some chest bumping with Jordan Poole and punches were thrown. The team is now considering internal disciple, according to The Athletic.

When a heated interaction with guard Jordan Poole escalated, Green forcefully struck Poole and needed to be separated swiftly, sources said. Green and Poole came chest-to-chest, with both players pushing and shoving each other prior to Green’s escalation of the physical altercation, those sources said.

The two players had been jawing at each other when it escalated and Green punched Poole, according to Adrian Wojnarowski of ESPN. There aren’t details of the incident beyond that description (at least so far), although several reporters have confirmed the was a fight and the two had to be broken up. Poole was seen getting up shots after practice when the media was allowed in and reportedly was joking with teammates.

Chris Haynes of Yahoo Sports Tweeted out what feels like the Draymond Green camp spin on the incident.

Warriors elder statesman Andre Iguodala Tweeted out this on the situation, wanting to keep it all in the family, and adding that “it broke my heart… but it fixed my vision.”

There is a history of tension between Green and Poole, including a public flare-up between the duo early last season, but the two talked after and smoothed things over. At least for a while.

What punishment Green will face from the team remains to be seen.

Poole is on the verge of an extension to his rookie contract, one where Tylyer Herro just set the market.

Green had hoped for an extension from the Warriors this offseason but there were limited discussions between the parties. Green can opt out of the final year of his contract at the end of this season and become a free agent.

Wizards’ Kispert likely to miss start of season due to sprained ankle

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The Washington Wizards made fewer 3-pointers than any other team in the league last season. They didn’t take a lot (second fewest) and didn’t make the ones they took (fifth lowest percentage). One goal for Wes Unlseld Jr. this season was to change that dynamic, and second-year player Corey Kispert was a big part of that plan.

Now Kispert is out through at least the start of the season, sidelined 4-6 weeks by a sprained ankle, the team announced Wednesday.

The injury happened on a fluke play in Japan against the Warriors, but Kispert shouldn’t miss much time once the real games start. The Wizards are a little short on the wing right now with Kispert joining Deni Avdija (groin injury) in the training room.

Kispert took 62% of his shots from beyond the arc last season and hit 35% of them, both solid numbers but ones Wizards hoped would improve for the 6’6″ wing this season.