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.

Kings hire WNBA’s Lindsey Harding as assistant coach

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SACRAMENTO, Calif. (AP) — The Sacramento Kings have hired former WNBA player Lindsey Harding as an assistant and player development coach on Luke Walton’s staff.

The team also hired Stacey Augmon and Rico Hines on Friday.

Harding played nine years in the WNBA before working as a pro personnel scout and then player development coach for the Philadelphia 76ers.

She becomes the latest woman to serve as a coach in the NBA, joining others like Boston’s Kara Lawson, San Antonio’s Becky Hammon, Dallas’ Jenny Boucek and Cleveland’s Lindsay Gottlieb.

The Kings have a history of hiring female coaches, notably Nancy Lieberman and Boucek.

 

Wizards reportedly to finally remove interim tag from GM Tommy Sheppard

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Tommy Sheppard has been doing the work as the Wizards GM since April when Wizards owner Ted Leonsis finally ended Ernie Grunfeld’s run as team GM.

Sheppard was the GM through the draft. Through free agency. All the time with the “interim” tag on his job title. In Las Vegas for Summer League, plenty of other executives wondered why that tag was still on Sheppard’s title.

It’s finally coming off, reports Candace Buckner of the Washington Post.

The Washington Wizards removed the interim tag from Tommy Sheppard’s title Friday, promoting him to be the 12th general manager in franchise history, according to a person with knowledge of the situation…

The promotion of Sheppard, who will be entering his 17th season with the Wizards, mirrors the internal hiring decision Leonsis made with his hockey team. In 2014, Leonsis elevated Brian MacLellan as the Washington Capitals senior vice president and general manager after firing George McPhee. Before the promotion, MacLellan had spent the previous seven years under McPhee as an assistant general manager.

This likely will be made official in the next 48-72 hours.

Part of the delay may have been that a couple of prominent names were linked to the Wizards job at different times. There were reportedly talks with Tim Conley, who built Denver into a real threat, but he decided to stay in the Rockies. There were rumors of Masai Ujiri coming to the District, but he has chosen to stay in Toronto after winning a title.

Making Sheppard the full-time GM provides some stability just as the Wizards reach their most important moment of the summer.

On July 26 the Wizards can offer star two guard Bradley Beal a three-year, $111 million extension. The Wizards have been talking to Beal’s people and the offer will be made.

What Beal decides will decide the Wizards future for years. If Beal doesn’t sign that offer, the Wizards have to look at trading him. If he signs it, they need to build more around him.

Beal has spoken numerous times in the past about wanting to stay with the Wizards. However, there was plenty of informed speculation at Summer League that he is frustrated with the franchise and could choose to not sign it and essentially force his way out.

Either way, Beal’s decision will define the next steps for Sheppard for years.

 

Child tries to call out James Harden for step-back travels, he says it’s no travel

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If you tried this move in a high-school game 10 years ago, you would have been called for traveling.

In today’s NBA, as the rules are interpreted, James Harden‘s step back is not a travel.

At an event on Friday, a young fan tried to call Harden out on the travel and he defended himself. Via Kelly Iko of The Athletic.

Harden’s stepback is not a travel (when he executes it properly). Even if it looks like it is.

Here is the play in question.

The official response — meaning from officials:

I know when you played Junior High basketball in 2002 that was a travel, but the NBA hasn’t called it that way in years.

The NBA rule here (Rule 10, Section XIII) simplified is a “gather and two steps.” Meaning one step while Harden is gathering the ball, plus two more. Nobody pushes the boundary of the gather step like Harden, he has mastered the grey area. But when he executes it properly — and he doesn’t every time — it’s not a travel.

No matter what that young boy’s father tells him.

Justin Holiday reportedly reaches deal with Pacers, will join forces with brother

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The Pacers just added the wing depth and some defense at the position they have been looking for.

It’s through someone they have long had their eye on, Justin Holiday, the six-year NBA veteran who split time last season between Chicago and Memphis. He has reached an agreement to join the Pacers — and his brother, Aaron Holiday — for a season in Indiana. Shams Charania of The Athletic broke the news.

The Pacers have been in touch with Holiday for a while, reports J. Michael of the Indy Star.

Holiday averaged 10.5 points a game last season, shot 34.7 percent from three, and played solid wing defense.

Victor Oladipo is the team’s best wing player, once he returns from injury (the Pacers are hoping around Christmas or a little after). Beyond him there is Jeremy Lamb, C.J. Wilcox, T.J. Warren, Doug McDermott, and Brian Bowen. Holiday can find minutes in that group.

This also sparks the dream of an all T.J./Holiday lineup. The Pacers have two Holidays, Justin and Aaron, as well as three un-related players named T.J. — T.J. McConnell, T.J. Warren, and T.J. Leaf. We need to see those five on the court together next season, if only for a few minutes.