Will Seattle billionaire Chris Hansen drastically overpay for the Sacramento Kings?

11 Comments

News of billionaire Chris Hansen striking a deal with the Seattle City Council hit the wire late Monday night, as the sides have agreed to a framework on an arena deal that moves them a few smaller hurdles away from becoming an NBA-ready city (courtesy of Chris Daniels of King 5 in Seattle).

In a bit of twisted irony, the city that had its team stolen away will now set its sights on any available team, and there is no team that is more available than the Sacramento Kings, who nowadays have a different rumored destination every week.

This most recent news solidifies Seattle’s place on the top of that list, though they still need the Maloofs to sell, and they still have to outdo Sacramento. Neither task should be considered a slam dunk, or even likely at this point.

The idea that Sacramento could lose its team, of course, is a black eye for the league as the city has supported its team in every conceivable way, including where it counts financially and at the ticket gate. The only reason we’re having this discussion is because the Maloof family, internal squabbles aside, doesn’t want to be there.

Their roots are in New Mexico, Los Angeles, and Las Vegas, and being broke in relative NBA owner terms they’re looking for a short-term infusion of cash, which they hope to find by moving the team to another city that will both build them an arena and also let them keep the profits from it.

Cities such as Virginia Beach, Louisville, Vancouver, Kansas City, and the like are potential candidates if anything because they’re willing to pay to be on the NBA map. But the math starts to get fuzzy because the markets are smaller than Sacramento, and the Maloofs end up no better off than they were in Sacramento over the long haul.

That, and the NBA doesn’t really want those markets, at least not at the expense of Sacramento, where the league enjoys the No. 20 sized TV market without interference from other sports leagues. When you factor in the public relations hit of moving the team – it’s hard to see the league supporting a move and to date we have not.

Even when considering a larger market like Anaheim, the league isn’t falling all over itself to allow a move. The NBA blocked the Maloofs’ relocation attempt last year after Sacramento mayor Kevin Johnson raised over $10 million in untapped sponsorships at the drop of a hat and promised a viable arena deal. Things seemed to be moving along reasonably well and a deal for a new arena was agreed to in principle during All Star weekend in Orlando.

But that was before George Maloof created a how-to-guide for burning bridges in Sacramento. He torched the deal live on public television in a tirade for the ages, and any goodwill that was leftover at the league offices was probably lost. Commissioner David Stern has used measured words in describing the arena situation since then, and none of them have painted the Maloofs in a flattering light.

In fact, the commissioner would probably like to see the family sell the team, but as usual the issue comes down to money, antitrust law, and the other 29 owners that one day will be negotiating with both the league office and their home city about something.

Aside from not wanting anybody to tell them what to do, owners want the right to move their teams to the cities they feel they can make the most money in. Leagues don’t like to allow this as it creates a number of problems, and the courts have found that the intersection of those opposing ideals lies in the concept of a relocation fee. Relocation fees are the amount that a league can charge to indemnify parties that are damaged by an owner’s decision to move.

The law is much more detailed than this, and the case law that has been favorable to relocating owners isn’t an exact match to the situation in Sac, but one thing is clear – neither party wants to land in court over this.

And that’s why the Kings arena situation has been allowed to play out, to the detriment of the league’s image, and as an affront to the other 29 owners that one day will have to negotiate with their municipalities.

While it’s unclear right now what impact the Maloofs’ apparent bad faith dealings in Sacramento will have on other team owners seeking public subsidies, a small shift in public sentiment could cost the league and its players tens of millions of dollars and a large scale shift could put the billion dollars the league has received in subsidy back on its balance sheet.

But even with the Maloofs’ name now toxic inside the league and out, to the point it’s being pulled off the signage at the Palms, the league cannot afford a bad ruling in an antitrust case. Aside from treble damages the Maloofs would seek, which are significant, a bad ruling would be held over all sports leagues’ heads by owners wanting to play franchise free agency.

The best hope for the league has always been to see the issue play out on its own, with the Maloofs realizing that they have no options besides going back to the city with its hat in its hand, or selling the team outright.

And with Seattle standing in the on-deck circle and doing what they need to do to land itself an NBA franchise, the question on everybody’s mind is whether or not Hansen will be able to drastically overpay for the Kings.

The Maloofs owe about $70 million to the city of Sacramento and well over $100 million to the NBA, and a sales price in excess of $400 million is needed to give the 43 percent stakeholders an easy way out of Dodge. Considering the franchise is valued at $300 million by Forbes, which is a generous valuation, Hansen would need to hope that the bump of moving to a larger market in Seattle and owning land near the arena would justify the Maloofs’ likely asking price.

But more importantly, when you factor in a relocation fee, which sources tell me will be assessed to give Sacramento buyers a fair shot at buying the team, Hansen could be looking at $500 million or more to buy the Kings. After paying $300 million and counting to build an arena, that’s approaching a billion dollars to get in the game.

It’s possible that the man known for his patience will wait for a less toxic situation to pop up, and it’s fair to wonder now if the league would reconsider expansion now that multiple cities have expressed interest in NBA clubs.

As for Hansen’s involvement with the Kings, he said weeks ago that he had not made an offer to purchase the Kings after a local report emerged saying otherwise. If he decides to make a play for the team, and assuming the Maloofs are ready to cry uncle, it probably puts Sacramento on notice that it’s time to formalize an offer to buy the team.

Sources on the city’s side have indicated that they have more than one buyer lined up, and ultimately Seattle’s progress could force some sort of endgame here. If the goal is to sell for the Maloofs, then they will likely have squeezed the best sales price out of Sacramento that is possible, and anything close to a Seattle offer (after the relocation fee) will likely be supported by the league.

If the Maloofs still don’t want to sell, they’ll continue to play the dating game with other cities and the league will continue to deal with a public relations nuisance. The family will not get a different arena deal in Sacramento, and any talk of renovating the unrenovatable Arco Arena with public funds has been met with collective laughter both inside and outside of the city.

Even if the Maloofs can find a sweetheart deal somewhere else, it’s unlikely that they’ll have the clout to force a move the league doesn’t want. Sure, they may have some antitrust law on their side, but they probably can’t afford the lawsuit and even if they win, they’re left in a place where they’re not wanted. They don’t have the fortitude of antitrust victor and deceased Raiders owner Al Davis. And other than George, they want to be wanted.

In Sacramento, the framework for a deal exists not just for the Maloofs but for any owner that wants to pick up the ball and run with it.

The deal that was struck between the city, arena giant AEG, and the NBA is still considered a good deal by each of those parties, and the only thing that would theoretically change are the owner contributions. In a concept the Maloofs cannot come to grips with, if a new owner wants to pay more for arena construction they can enjoy more of the profits.

Unlike anywhere else in the country, including Seattle, an agreement can be reached in Sacramento under the current terms and design could start within about a month according to sources.

As usual, though, the story goes right back to the Maloofs and whether or not they’re ready to face the music. They can’t do nothing, as Arco Arena is dilapidated and barely up to NBA code. They’ll eventually need to do more than polish the concourse floors.  Eventually, they’ll either need to take the Sacramento offer, try to make something out of nothing in an unlikely move out of town, or sell the team.

And when the music stops and the only thing left to do is sell, will Hansen or any other buyer want to drastically overpay for this particular franchise to the extent that Sacramento can’t match the offer?

Until these questions are answered or the Maloofs are nudged out the door with greater efficiency, Sacramento Kings fans have to endure the same fears that plagued Sonics fans before their team was ultimately ripped away.  And that’s just not right.

Dejounte Murray added to growing Hawks injury report, out 2-3 weeks with sprained ankle

0 Comments

John Collins is out for at least another week with a sprained ankle. DeAndre Hunter has been out with a strained hip flexor.

Now you can add Dejounte Murray to the Hawks’ growing injury report, he is out at least 2-3 weeks with a sprained ankle, Shams Charania and Sam Amick of The Athletic report.

The injury happened on a closeout from RJ Barrett of the Knicks.

The Hawks have already had chemistry and fit issues this season, and missing key players for an extended period only exacerbates the problem. Atlanta looked flat getting their doors blown off by the Knicks Wednesday night, 113-89, a game that added to a string where they have lost 5-of-7. Now they will have to find a way to right the ship without their second-best playmaker.

There also is an update on the Hawks’ play-by-play announcer Bob Rathbun.

NBA, WNBA players react to news Brittney Griner coming home

0 Comments

Brittney Griner is finally coming home.

The WNBA and USA Basketball star has spent 10 months in Russian prisons — including being convicted and sent to a Russian penal colony — for having vape canisters with small amounts of cannabis oil in her luggage as she went through Russian airport security back in February. She became a political pawn in the tensions between the United States and Russia, mostly surrounding Russia’s invasion of the Ukraine, and was freed via a prisoner swap announced Thursday.

The basketball world — WNBA players in particular — had worked to keep her name front and not let Griner be forgotten during this ordeal, pushing President Joe Biden and the government to reach a deal. With the news Griner was freed, NBA and WNBA players took to social media to react.

“Brittney has had to endure an unimaginable situation and we’re thrilled that she is on her way home to her family and friends,” NBA Commissioner Adam Silver said. “We thank the members of the NBA and WNBA community who never wavered in their efforts to raise awareness of Brittney’s unjust circumstances.”

“We are overwhelmed with relief and gratitude that our sister Brittney Griner is finally coming home,” the NBPA said in a statement. “Her strength and courage throughout this last year have been truly remarkable, as have the efforts of her wife Cherelle, our WNBPA sisters, Terri Jackson and the WNBPA staff, who have been relentless in their call to bring Brittney home. We know this homecoming would not have been possible without their unwavering support and continued work to keep BG always top of mind, and our players are honored to have contributed to those efforts. While this is a celebratory moment for our sisters and us, we must not forget the other political prisoners who remain in dire circumstances all over the world. These individuals must be remembered and fought for every single day as BG was so that they too can have this moment. Welcome home Brittney, we are so happy to have you back! #WeAreBG”

PBT Podcast: Lakers, Clippers, and Nikola Jokic as Beethoven

0 Comments

Anthony Davis has played at an MVP level for weeks now, outdueling even Giannis Antetokounmpo recently in a Lakers’ win. LeBron James is still a force at age 37, Russell Westbrook has accepted the role and has been a game-changer as a sixth man, and the Lakers’ role players are hitting their 3-pointers.

It’s been an impressive run, but can the Lakers keep it up and be a genuine threat in the West? Corey Robinson of NBC Sports and I discuss all that, plus whether the now-healthy Clippers can find a groove and become a threat.

In Corey’s Jukebox he dances a little salsa and explains how Nikola Jokic is like Beethoven. Then there is talk of the Kyle Kuzma trade rumors, and what exactly are the long-term plans in Washington.

You can always watch the video of some of the podcast above or listen to the entire podcast below, listen and subscribe via iTunes at ApplePodcasts.com/PBTonNBC, subscribe via the fantastic Stitcher app, check us out on Google Play, or anywhere else you get your podcasts.

We want your questions for future podcasts, and your comments, so please feel free to email us at PBTpodcast@gmail.com.

WNBA star Brittney Griner freed in U.S.-Russia prisoner swap

0 Comments

Russia freed WNBA star Brittney Griner on Thursday in a dramatic prisoner exchange, as the U.S. released notorious Russian arms dealer Viktor Bout but failed to win freedom for another American, Paul Whelan, who has been jailed for nearly four years.

The swap, at a time of heightened tensions over Ukraine, achieved a top goal for President Joe Biden but carried a heavy price.

“She’s safe, she’s on a plane, she’s on her way home,” Biden said from the White House, where he was accompanied by Griner’s wife, Cherelle, and administration officials.

The deal, the second such exchange in eight months with Russia, procured the release of the most prominent American detained abroad. Griner is a two-time Olympic gold medalist whose monthslong imprisonment on drug charges brought unprecedented attention to the population of wrongful detainees.

Biden’s authorization to release a Russian felon once nicknamed “the Merchant of Death” underscored the escalating pressure that his administration faced to get Griner home, particularly after the recent resolution of her criminal case and her subsequent transfer to a penal colony.

The Russian Foreign Ministry also confirmed the swap, saying in a statement carried by Russian news agencies that the exchange took place in Abu-Dhabi and that Bout has been flown home Russian and U.S. officials had conveyed cautious optimism in recent weeks after months of strained negotiations, with Biden saying in November that he was hopeful that Russia would engage in a deal now that the midterm elections were completed. A top Russian official said last week that a deal was possible before year’s end.

Even so, the fact that the deal was a one-for-one swap was a surprise given that U.S. officials had for months expressed their their determination to bring home both Griner and Paul Whelan, a Michigan corporate security executive jailed in Russia since December 2018 on espionage charges that his family and the U.S. government has said are baseless.

“We’ve not forgotten about Paul Whelan,” Biden said. “We will keep negotiating in good faith for Paul’s release.”

Whelan’s brother David said in a statement he was “so glad” for Griner’s release but also disappointed for his family. He credited the White House with giving the Whelan family advance notice and said he did not fault officials for making the deal.

“The Biden Administration made the right decision to bring Ms. Griner home, and to make the deal that was possible, rather than waiting for one that wasn’t going to happen,” he said.

In releasing Bout, the U.S. freed a a former Soviet Army lieutenant colonel whom the Justice Department once described as one of the world’s most prolific arms dealers. Bout, whose exploits inspired a Hollywood movie, was serving a 25-year sentence on charges that he conspired to sell tens of millions of dollars in weapons that U.S officials said were to be used against Americans.

The Biden administration was ultimately willing to exchange Bout if it meant Griner’s freedom. The detention of one of the greatest players in WNBA history contributed to a swirl of unprecedented public attention for an individual detainee case — not to mention intense pressure on the White House.

Griner’s arrest in February made her the most high-profile American jailed abroad. Her status as an openly gay Black woman, locked up in a country where authorities have been hostile to the LBGTQ community, infused racial, gender and social dynamics into her legal saga and made each development a matter of international importance.

Her case not only brought unprecedented publicity to the dozens of Americans wrongfully detained by foreign governments, but it also emerged as a major inflection point in U.S.-Russia diplomacy at a time of deteriorating relations prompted by Moscow’s war against Ukraine.

The exchange was carried out despite deteriorating relations between the powers. But the imprisonment of Americans produced a rare diplomatic opening, yielding the highest-level known contact between Washington and Moscow — a phone call between Secretary of State Antony Blinken and Russian Foreign Minister Sergey Lavrov — in more than five months.

In an extraordinary move during otherwise secret negotiations, Blinken revealed publicly in July that the U.S. had made a “substantial proposal” to Russia for Griner and Whelan. Though he did not specify the terms, people familiar with it said the U.S. had offered Bout.

Such a public overture drew a chiding rebuke from the Russians, who said they preferred to resolve such cases in private, and carried the risk of weakening the U.S. government’s negotiating hand for this and future deals by making the administration appear too desperate. But the announcement was also meant to communicate to the public that Biden was doing what he could and to ensure pressure on the Russians.

Besides the efforts of U.S. officials, the release also followed months of back channel negotiations involving Bill Richardson, the former U.S. ambassador to the United Nations and a frequent emissary in hostage talks, and his top deputy, Mickey Bergman.

Griner was arrested at the Moscow’s Sheremetyevo Airport in February when customs officials said they found vape canisters with cannabis oil in her luggage. She pleaded guilty in July, though still faced trial because admitting guilt in Russia’s judicial system does not automatically end a case.

She acknowledged in court that she possessed the canisters, but said she had no criminal intent and said their presence in her luggage was due to hasty packing.

Before being sentenced on Aug. 4 and receiving a punishment her lawyers said was out of line for the offense, an emotional Griner apologized “for my mistake that I made and the embarrassment that I brought on them.” She added: “I hope in your ruling it does not end my life.”

Her supporters had largely stayed quiet for weeks after her arrest, but that approach changed in May once the State Department designated her as unlawfully detained. A separate trade, Marine veteran Trevor Reed for Konstantin Yaroshenko, a Russian pilot convicted in the U.S. in a cocaine trafficking conspiracy, spurred hope that additional such exchanges could be in the works.

Whelan has been held in Russia since December 2018. The U.S. government also classified him as wrongfully detained. He was sentenced in 2020 to 16 years in prison.

Whelan was not included in the Reed prisoner swap, escalating pressure on the Biden administration to ensure that any deal that brought home Griner also included him.