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.

Rumor: Kawhi Leonard meeting with Clippers set for July 2

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Kawhi Leonard will tip the balance of power this summer.

Whatever the Finals MVP decides with his free agency — stay with the Raptors, come to the Clippers, something else entirely — will change the landscape of the NBA. Wherever he goes that team will be an instant contender, with the Raptors and Clippers long having been the frontrunners and everyone else trying to get their foot in the door.

His decision likely will not drag out, but it’s not going to be LeBron James last summer “let’s do this so I can go on vacation” instant, either, if we believe this report from Frank Isola of The Athletic.

Of course, this report would be unofficial/off the record because teams cannot yet officially reach out to players or agents, and we know there is no tampering in the NBA. (Read that last sentence again in your best sarcastic voice to get the full impact.)

In Los Angeles, the Clipper hype has led to billboards.

If the Clipper meeting is July 2, in Los Angeles we presume, the question becomes when is the Toronto meeting? June 30/July 1 in Toronto, giving the Clippers the last shot? Or, are the first couple of days meetings with other teams that are longshots — Knicks, Lakers, Mavericks, etc. — just to get them out of the way.

It has long been rumored to be a two-team race for Leonard’s services. On the one hand is the chance to return home and become the leader of a 48-win Clippers team poised to be a threat for years to come if they land a superstar. (The Lakers have never been a serious consideration for Leonard, according to sources, for a variety of reasons. Let’s just say he’s not a superteam kind of guy.)

On the other hand is a Raptors team where he was given room to recover and be himself, and where he just won a ring. A city where he was fully embraced by the fans.

Also remember Leonard is at eight seasons of NBA service, meaning the max of this next contract is for 30 percent of the cap (a starting salary around $33 million next season). After two more seasons, he will have 10 years of service and be eligible for 35 percent of the cap (a starting salary of $38 million right now, and with the cap expected to go up the next couple of years it will be higher than that in reality). Despite the injury history, is Leonard willing to bet on himself and sign a two-year contract to get to the larger max, then re-sign?

The leading theory floating around the league now is Leonard signs a short deal in Toronto, then re-enters the market in a year or two. But it’s just a theory. Nobody really knows because Leonard does not tip his hand. About the only thing we seem to know his he will meet with the Clippers on July 2.

Ex-Sacramento Kings exec gets 7 years for siphoning $13.4M

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SAN FRANCISCO (AP) — A former top Sacramento Kings executive was sentenced Monday to seven years in prison for siphoning $13.4 million from the team.

Jeffrey David, 44, the team’s former chief revenue officer, pleaded guilty in December to wire fraud and aggravated identity theft.

David diverted the sponsorship payments of five companies to a bank account he controlled from October 2012 through July 2016, using the money to buy and remodel Southern California beachfront properties, pay for a private jet membership and pay off credit card bills.

“The brazen scheme involved forgeries, stolen corporate executive identities, money laundering and even instructing a former colleague to destroy evidence,” U.S. Attorney McGregor W. Scott said in a statement. “Today’s sentence should deter others from committing substantial frauds such as this one.”

David’s lawyer, Mark Reichel, disagreed with the sentence from U.S. District Judge William Shubb.

“We see no appropriate purpose served by a sentence this lengthy,” Reichel wrote in an email, citing David’s “tremendous life work” before and after his crimes as cause for a reduced sentence.

“The Kings received back every single penny of the previously purloined money, and Mr. David worked very hard to make sure that happened. He is tremendously remorseful,” Reichel said.

The Kings have received over $13.2 million in restitution to date, according to the Department of Justice.

David is scheduled to begin his sentence on Aug. 20.

Lakers’ Jeanie Buss: “I have 100 percent confidence in Rob Pelinka”

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Internally, the Lakers believe they are on the right track: They signed LeBron James as a free agent, they spent years acquiring assets then turned those assets into Anthony Davis, and they believe the roster that will take the court next season will bring vindication for the front office and ownership group. The Lakers believe they will be back on top, where they belong.

From the outside, um, let’s just say there are doubts around the league. Doubts about all the picks — particularly the pick swaps and deferments — that the Lakers gave up to get Davis and now that could hurt them in the future. There are doubts about the ability of Rob Pelinka to build out a roster around LeBron and Davis that is truly a threat.

Jeanie Buss has no such doubts. Speaking to Tania Ganguli of the Los Angeles Times (and other reporters) at the NBA Awards show Monday, Buss expressed nothing but confidence in Pelinka and the Lakers’ staff.

“I’ve always had confidence in Rob, whatever the speculation is out there,” Buss said. “We don’t need outside media to validate the things that we do. I’m very happy and I think we’re on the right path.”

“I have 100% confidence in him in running his basketball operations,” Buss said. “He’s brought us a great new head coach in Frank Vogel, whose teams have had a lot of success in the playoffs and who have played consistently ranking high in defense, which means not only does he emphasize defense but the players buy into his defensive schemes.”

The question isn’t Vogel’s credentials, although how a staff with Jason Kidd, Lionel Hollins, and other veteran coaches with big egos will mesh together is going to be interesting.

The question is talent.

The Lakers have the high end of that with LeBron and Davis, but when you think about the Laker title teams of the past it wasn’t just Shaq and Kobe, it was also Derek Fisher and Robert Horry and Rick Fox and a host of others. The same thing was true in this past Finals — the deeper team won because the Raptors could adapt and handle their star not being 100 percent.

Are the Lakers going to chase another star and then complete the roster with minimum salary players? Or, get two or three quality role players with their cap space to have a deeper team? Has this all been planned out and thought through? Maybe Rob Pelinka builds this roster out beautifully, but we only have one year of experience to judge him on, and that did not go well.

Buss may have confidence, she should, the rest of us are in wait and see mode.

The Greek Freak has arrived, Giannis Antetokounmpo wins NBA MVP

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Mike Budenholzer came in with a plan — an offense built around the fact no one man on the planet can guard Giannis Antetokounmpo.

It worked. The Bucks won 60 games and had the best record in the NBA. Budenholzer picked up Coach of the Year hardware for his efforts.

Now Antetokounmpo has won the NBA MVP award, edging out James Harden (who chose not to attend the NBA’s awards show in Los Angeles Monday). He was emotional in thanking teammates for helping him reach this point, then talking about his father.

It was a long road to this point, Antetokounmpo was playing second-division ball in Greece when the Bucks drafted him at No. 15 back in 2013. The word we used to describe his game at the time was “raw” — he was a long way from the player he would become. What he also turned out to be was driven. Willing to put in the work, be coached, and put in the long hours to get better and maximize his potential. Antetokounmpo earned the chance to walk up on that stage and accept the MVP award.

Antetokounmpo averaged 27.7 points and 12.5 rebounds a game, but it was his ability to destroy any defender one-on-one that made the Bucks offense work. Either the Greek Freak got to the basket and finished, he drew a foul, or he drew so much attention the shooters that surrounded him on the floor had clean looks of their own. He also was the Bucks best defender, a guy tasked with tough assignments nightly.

Antetokounmpo was the best player on the best team.

Antetokounmpo won the award handily with 941 points to Harden’s 776. The Greek Freak had 78 of the 100 first-place votes.

James Harden — who averaged 36.1 points, 7.5 assists, and 6.6 rebounds per game — finished second in the voting, Paul George of Oklahoma City was third. Harden has finished first or second in the voting for four of the past five seasons. Harden believed he deserved to win and was frustrated with another second.

Antetokounmpo is the first player from Europe to win the MVP award since Dirk Nowitzki in 2007.

Nikola Jokic came in fourth in the voting, Stephen Curry was fifth. Here are the full results: