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

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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.

PBT mid-season awards: Defensive Player of the Year, Rookie of the Year and more

Defensive Player of the Year Rudy Gobert and Ja Morant
Brandon Dill/Getty Images
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The 2019-20 NBA season reached its midpoint by games played last night. So, we’re naming winners for mid-season awards. Yesterday, we picked Most Valuable Player and All-NBA. Now, we’re onto the other major honors.

Defensive Player of the Year

Kurt Helin: Rudy Gobert (Jazz)

This is the hardest award for me to pick mid-season, but the Jazz put more on the plate of Gobert this season and he has responded amazingly (even if the Jazz’s defense is a little off from its usual highs this season). A lot of other players still in the mix here for me including Joel Embiid (if he plays enough games), Giannis Antetokounmpo, Jimmy Butler, Anthony Davis, Kawhi Leonard, and Marcus Smart.

Dan Feldman: Rudy Gobert (Jazz)

Even as reigning back-to-back Defensive Player of the Year, Gobert doesn’t have the final award sewn up. Anthony Davis, Giannis Antetokounmpo, Brook Lopez and Kawhi Leonard are in the mix. But in a tight race, Gobert gets the benefit of the doubt. Utah’s strong defense is built entirely around Gobert’s rim protection.

Rookie of the Year

Kurt Helin: Ja Morant (Grizzlies)

This is a runaway award, but not for the guy we expected to run away with it. Zion Williamson makes his debut next week and maybe he could climb to third in this race, but he’s not winning the award. Morant and his fluid athleticism have turned Grizzlies into must-watch television, and he looks every bit the franchise player. Kendrick Nunn is a clear second in this race.

Dan Feldman: Ja Morant (Grizzlies)

Some rookie point guards put up big numbers. Some rookie point guards produce electric highlights. Some rookie point guards show promising flashes of winning basketball. Few rookie point guards are actually good. Morant is actually good. His athleticism, shooting and overall offensive control form an incredible package for his age. Sure, Morant is sometimes too reckless. He doesn’t completely break the mold of a young point guard. But Memphis has a gem.

Most Improved Player

Kurt Helin: Devonte' Graham (Hornets)

Last season, Graham was an end-of-the-bench guy in Charlotte. This season, he’s averaging 18.7 points a game, hitting 38.7 percent from three and is the team’s best player. Nobody saw that coming and it’s a radical improvement. Also in the mix for this award are Bam Adebayo and Luka Doncic — yes, the MVP candidate, he as made a massive leap this season.

Dan Feldman: Luka Doncic (Mavericks)

It’s a two-man race between Doncic and Devonte’ Graham. As the reigning Rookie of the Year, Doncic will get overlooked. He’s a second-year player. He was supposed to be this good. BS. The leap into superstardom is generally more difficult than the climb from non-rotation player to good starter, which Graham made. For Doncic to get this good this quickly is unprecedented.

Sixth Man of the Year

Kurt Helin: Montrezl Harrell (Clippers)

Harrell was in the mix for this award last season and came back this season as a better defender and more efficient on offense. He’s a critical element for a contending Clippers team, and closes games for them at the five. However, this is not a decided race by any means, both Derrick Rose and George Hill deserve serious consideration. Also, Spencer Dinwiddie in Brooklyn could be in the mix, but likely starts too many games to qualify.

Dan Feldman: Montrezl Harrell (Clippers)

I nearly chose Harrell for this award last season. Since, he has improved his offensive skill and defensive effectiveness. His big role in L.A. gives Harrell the edge over another highly productive reserve, the Bucks’ George Hill. Derrick Rose and Harrell’s teammate, Lou Williams, also warrant consideration.

Coach of the Year

Kurt Helin: Erik Spoelstra (Heat)

This is a wide-open race and my spreadsheet goes eight deep with worthy candidates: Nick Nurse has done an impressive job in Toronto, same with Brad Stevens in Boston and Frank Vogel with the Lakers, and the list goes on. Spoelstra, however, leads for me because of a combination of player development — Kendrick Nunn, Bam Adebayo, Tyler Herro, etc. — and smart utilization of the players’ he has. Plus, Spoelstra is getting it all to mesh around Jimmy Butler.

Dan Feldman: Nick Nurse (Raptors)

Nurse kept Toronto humming when Kawhi Leonard and Danny Green left. Nurse kept Toronto humming when key players, including breakout star Pascal Siakam, got hurt. Nurse kept Toronto humming when unproven young players had to join the rotation. Nurse’s defenses are particularly exemplary – both his creativity and ability to get everyone up to speed. The Heat’s Erik Spoelstra and the Pacers’ Nate McMillan aren’t far behind.

DeAndre Ayton got the start for Phoenix, put up 26 and 21 (VIDEO)

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Coach Monty Williams changed things up as Phoenix went into Madison Square Garden Thursday:

Deandre Ayton got the start at center and Aron Baynes came off the bench.

The result? Ayton had his first-ever 20/20 game — 26 points and 21 rebounds — as the Suns blew out the Knicks 121-98.

Phoenix also got a big night from Ricky Rubio, 25 points and 13 assists. He kept finding Ayton in places the second-year big man could do damage.

It’s one step in a long road for the Suns’ big man, but it was good to see.

Here’s video of Klay Thompson getting up shots in an empty Chase Center

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“I would love to get out there… But I’m trying to make sure this type of injury never happens to me again. So, I’ll be very patient because I want to play at a high level until I’m in my late-30s.”

That’s how Klay Thompson recently described his recovery, making sure there was no specific timeline mentioned. He’ll be back when the doctors clear him to be back — which could be next season. He will be re-evaluated next month. 

That said, Thompson is getting in work on the court and putting up shots. As you can see from the video above, he’s doing it headband on in the Chase Center pregame.

What does that mean? Nothing. It’s not like Thompson is moving at NBA speeds in this video, and ultimately it’s the people who spent years in medical school who get to make this call. Considering where the Warriors are in the standings, management may decide to give Thompson the entire season off. Even if he wants to return.

For now, just enjoy the video.

 

Three Things to Know: Brandon Ingram has earned an All-Star nod and max contract

AP Photo/Gerald Herbert
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Every day in the NBA there is a lot to unpack, so every weekday morning throughout the season we will give you the three things you need to know from the last 24 hours in the NBA.

1) Brandon Ingram has earned an All-Star nod and max contract. There were legitimate reasons the Pelicans were hesitant to give Brandon Ingram a contract extension last summer.

He was coming off a blood clot issue that, if it returned, would threaten his career. He wasn’t a guy who took or made a lot of threes. He had most of his offensive success in isolation or as a pick-and-roll ball handler, how would he fit in coach Alvin Gentry’s offensive system that required ball movement and catch-and-shoot skills? How would he fit next to Zion Williamson?

Ingram made a leap this season and blew all those questions out of the water (except the Zion one, that starts to get answered next week).

Ingram is averaging 25.8 points per game and is shooting 40.6 percent from three on 6.2 attempts from deep per game. He has dramatically improved his jump shot, fit in brilliantly with Gentry’s system, and become the Pelicans’ best — and go-to — player. Exactly the guy the Lakers envisioned when they drafted him No. 2 out of Duke in 2016.

That peaked on Thursday night when Ingram dropped a career-high 49 on the Utah Jazz and led the Pelicans to a win that snapped Utah’s 10-game win streak.

This leap would not have happened if the Lakers had not traded Ingram, he was never going to be a comfortable fit next to LeBron James (even if Ingram has improved off-the-ball in Gentry’s system).

“[The Lakers] have such a rich history of winning, a lot of pressure goes on the shoulders of those young guys,” said the Clippers’ Lou Williams, who spent half a season as a teammate of then-rookie Ingram. “Different organizations have more of a patience to develop more guys. The Lakers want to win right away. So some of the pressure was deserved because [Ingram and Lonzo Ball] was high picks, and they should be good quality basketball players, but at the same time they’re young guys trying to figure it out.”

Ingram figured it out, but things might have been different, he might not have made this leap if Zion had stayed healthy. The Pelicans offense would have been different with the No. 1 pick (also out of Duke).

Forget the “what ifs” however — Brandon Ingram has made the leap and now the rewards should be flowing. NBA coaches should select him as a reserve for the All-Star Game in Chicago. He’s earned it.

Next summer, Ingram will get a max contract — almost certainly from the Pelicans. While New Orleans has not seen Ingram next to Williamson in a meaningful way (the preseason doesn’t count), it can’t afford to lose the restricted free agent and other teams will undoubtedly be lined up with max offers.

Ingram is about to get PAID. That comes with the respect he’s earned.

Ingram was also at the heart of the wild ending in New Orleans Thursday night. The Pelicans thought they had won the game in regulation on Ingram’s off-balance jumper with 0.2 seconds left.

Utah had just 0.2 left to make a play, which by NBA rule means it had to be a tip. The Pelicans packed the paint, but rookie Jaxson Hayes was called for holding Rudy Gobert as the Utah center attempted to free himself for the desperation tip-in (the Last Two Minute report in this game is going to be fascinating, but because there was a little hold — not enough to get called in this situation, but it was there — expect the report to back the refs).

The holding call was upheld after video review.

That gave Gobert a chance to win it by making two foul shots, but he split them, tied the game, and sent it to overtime. In the extra frame, Gobert fouled out on an Ingram drive (another very questionable call) and behind a final five points from Ingram — plus seven from Derrick Favors — the Pelicans got the home win.

2) We have a trade Hawks/Timberwolves trade… that sets up other trades. If one were to grade this trade as a stand-alone move, The Timberwolves would fail the test.

The first trade of the deadline season sees Minnesota sending Jeff Teague and Treveon Graham to Atlanta, and getting Allen Crabbe in return.

For Atlanta, they get a much needed backup point guard behind Trae Young (it’s a short-term fix, but they told a frustrated Young they would get him help). When Young is running the show and bombing deep threes, the Hawks have a respectable offense. However, when Young sits, the Atlanta offense scores far less than a point per possession (90.7 offensive rating) and those stretches end up costing the team games. Teague is a solid point guard who can organize the Hawks offense and keep things from dropping off a cliff while Young rests.

For Minnesota, this trade only makes sense if it’s seen as the precursor to a second trade (maybe involving Crabbe, who makes $18.5 million this season). It clears out a roster spot, something the Timberwolves needed to do to go big game hunting. They are still interested in Golden State’s D’Angelo Russell (to play with his good friend Karl-Anthony Towns) and but lose some flexibility in how to make that trade happen. Whether they should trade for Russell is another question — Wolves GM Gersson Rosas said he wants a playmaking point guard, not a scoring one, except that’s not Russell — but the Timberwolves are moving to try and make that a reality. It’s hard to judge this trade for the Timberwolves until we see what other shoes drop.

3) Giannis Antetokounmpo, Bucks remind everyone they are beasts of the East with a win against the Celtics. Boston has joined the long list of teams — pretty much 29 of them — that have no good answer to slow Giannis Antetokounmpo.

The Greek Freak scored 32 points and pulled down 17 rebounds, and that plus Khris Middleton’s 23 was enough for Milwaukee to knock off the Celtics 128-123 on Thursday night. The Bucks have now won five in a row and remain on pace for a 70-win season (even if their GM says they will not chase a record number of wins).

Kemba Walker scored 40 points to lead Boston. The bigger concern for the Celtics is Jaylen Brown, who suffered a sprained right thumb against Detroit and sat this game out, plus he could miss more time.