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.

Marcus Morris explains his change of plans from Spurs deal to Knicks

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Marcus Morris‘ move built up some hard feelings around the NBA. Players have verbally agreed to contracts with one team only to change their mind before, but in this case the Spurs had made roster moves — including trading Davis Bertans go to the Wizards — to clear out space for Morris, leaving San Antonio in a tough spot when Morris changed his mind and signed with the Knicks. The Spurs were pissed at the Knicks about this. Executives with other teams did not like the potential precedent the move set.

Morris offered his first explanation of what happened to Shams Charania of The Athletic.

It starts here: Morris’ agent at the time Rich Paul negotiated a three-year, $41 million offer from the Clippers at the start of free agency. Morris turned it down, and he admitted that was against Paul’s advice.

“All this stuff that (Paul) didn’t want me to go to the Clippers and didn’t want me to go against LeBron (James), that’s not true,” Morris said. “He never told me not to take the deal. For as long as I’ve known Rich — and that’s still someone I have love for and that’s still my guy — he has been great in terms of advice. He told me he wanted me to take the Clippers deal. He gave me his advice. It was my decision and I had to make the best decision for me and my family.”

Things moved very fast at the start of free agency (more than 50 contracts were agreed to in the first 24 hours) and that left Morris not wanting the music to stop without him having a chair. That’s when he accepted the two-year, $20 million offer from San Antonio. Morris said he didn’t expect another offer, but when the Knicks came through with one year, $15 million he wanted it and tried to be up front about the situation.

“I have a good relationship with those guys and I have so much respect for (head coach) Pop (Gregg Popovich), (general manager) RC (Buford) and (assistant GM) Brian Wright,” Morris told The Athletic. “The first thing that I did when I knew I would be going another direction, I called and made sure they knew. There was no shade. There’s no disrespect. I had great conversations afterward, and as long as I feel that I’m clear with them and gave them my truth, I feel good about moving forward.

“I was under the impression that I didn’t have anything left. I thought at the time that the Spurs deal was all that I had. The process wasn’t what I expected and it didn’t go the right way.”

Morris has split ways with Paul as an agent, reportedly over this incident.

Morris has now essentially bet on himself. The Knicks are not going to win a lot of games, but Morris is going to have a significant role and should get a lot of touches. Have a strong season and he will enter a much weaker free agent class next summer as one of the better players in it. That could lead to a bigger payday. Plus he makes more per year now.

 

 

Karl-Anthony Towns: “I’m planning to be in Minnesota for a long time”

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A few years back, Minnesota looked like a team on a fast rise in the West, mostly because Karl-Anthony Towns looked like a young dominant force starting to come of age in the league.

It hasn’t worked out that way, even though Minnesota finally made the playoffs back in 2018. Andrew Wiggins has not developed into a No. 2 options (even though he is getting paid like a No. 1 option), Towns has not consistently owned the defensive end, and under Tom Thibodeau there were a lot of chemistry issues highlighted by Jimmy Butler blowing up last training camp and essentially torpedoing the season before it started.

In today’s NBA news cycle, driven by rumors and speculation about player movement — and the player movement itself — all those issues in Minnesota has people looking at Towns. That despite the fact his five-year max extension just kicks in this season.

Towns isn’t looking to move. There’s a new coach (Ryan Saunders) who Towns has a good bond with, there’s a new head of basketball operations (Gersson Rosas) who is aggressive and who Towns likes, and the two-time All-Star center told Jon Krawczynski of The Athletic he is happy right now in Minnesota.

“The biggest thing when you have that conversation [about a star switching teams] is you say, ‘Is he happy here?’” Towns said. “I’m tremendously happy. I love my front office. I love my coaching staff. I think we’ve made great moves and great changes. I love the culture we have here. If you want to leave, you have to be miserable somewhere. I am not there. I’m planning to be in Minnesota for a long time.”

What makes Towns happy is he can see the plan now — and it’s finally to build around him. Towns is the top dog and this summer the Timberwolves made a push to land D'Angelo Russell to be his No. 2 (since it’s not Wiggins). That, however, fell short as Russell is in Golden State. (For now at least, if the fit with Stephen Curry is not right Russell could be on the move, and Minnesota would be interested.) Still, there was an organized plan of attack and a shuffling around of players to give Minnesota more flexibility. Towns says he is comfortable this is a franchise on the right path. Even if it’s going to take some time to get there.

In a deep West, Minnesota looks to be a team on the outside of the playoff chase that needs a lot of things to go right to get in it. They have some good players, but also a lot of youth and questions.

“We all can’t rush in and think we’re going to win 75 games right now,” he said. “We have to take it day by day. We have to be patient with the process and accept the process and go through the cycles. I think we’re going to have a really good team and we have to go out there every single night and try to accomplish it. My job as a leader, I’ve got to get the best out of every single player.”

Marcus Smart, Thaddeus Young reportedly added to USA Basketball training camp roster

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Elite NBA players have not dropped out of playing for Team USA like this since 2004, when nobody wanted to play for Larry Brown and rumors of potential terrorism in Athens had the NBA’s best backing out.

For the 2019 World Cup in China, USA Basketball has watched James Harden, Anthony Davis, Tobias Harris, Bradley Beal, Eric Gordon, and CJ McCollum all back out, robbing the American team of a lot of star power. Zion Williamson, who was projected to be part of the “select team” of young stars Team USA goes against also dropped out.

The Americans were down to 14 players heading into training camp (12 will be chosen to travel to China), and they needed more players. Enter Boston’s Marcus Smart and Thaddeus Young, reports Shams Charania of The Athletic.

Don’t be surprised if another veteran name or two is added before training camp opens.

Smart and Young are a couple of smart selections, elite defenders who can shut down the best wing players on other teams (and in FIBA competition only a couple of teams have more than one top-flight wing player to handle).

So who is on the USA roster now? Let’s break it out by position:

GUARDS:
Damian Lillard
Kemba Walker
Kyle Lowry (questionable coming off thumb surgery)
Marcus Smart

WINGS:
Khris Middleton
Donovan Mitchell
Jayson Tatum
Harrison Barnes
Kyle Kuzma
PJ Tucker
Thaddeus Young

BIGS:
Andre Drummond
Myles Turner
Brook Lopez
Kevin Love
Paul Millsap

(We could argue about whether Mitchell is a guard or a wing, if Tucker is a big or a wing, but you get the basic picture.)

After Lillard, that roster does lack star power.

But the USA talent pool is so deep that it will overwhelm all but a couple of teams in the tournament. Serbia — led by Nikola Jokic and Bogan Bogdanovic — is the biggest threat to the USA and has good depth. Spain is impressive as well, but older.

The USA is and should be the World Cup favorite, but an improved rest of the world and a depleted USA roster is going to make things a lot more interesting in China.

USA Basketball is scheduled to begin its pre-World Cup camp in Las Vegas Aug. 5, with an intrasquad exhibition game at the T-Mobile Arena on Aug. 9. Then the team heads to Southern California for more training followed by an exhibition against Spain on Aug. 16 at the Honda Center in Anaheim, Calif. Then the team heads overseas for the World Cup, which begins in China on Aug. 31.

Tim Duncan joins Gregg Popovich’s coaching staff with Spurs

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The Tim Duncan era in San Antonio is over quite yet.

The future Hall of Famer has been added full time to Gregg Popovich’s coaching staff with the Spurs, the team announced Monday.

“It is only fitting, that after I served loyally for 19 years as Tim Duncan’s assistant, that he returns the favor,” Popovich said.

Duncan was around the Spurs practice facility a lot last season, helping out informally. Now it is formal.

Expect more bank shots from the Spurs big men next season.

Duncan was at the heart of the Spurs historic NBA dynasty the past couple of decades. The future Hall of Famer is a five-time NBA champion and three-time Finals MVP, 15 time All-NBA teams, 15 times NBA All-Defensive teams, 15-time All-Star, and way back when the Rookie of the Year. However, his impact was greater than just that insane resume, he was the guy who set the tone and the work ethic for those Spurs teams. Duncan worked as hard as anyone, won as much as anyone, but did it without trying to draw attention to himself. If fact, he wanted to deflect it.

The Spurs will be competitive for a playoff spot in the deep West this season — they still have LaMarcus Aldridge and DeMar DeRozan, plus Dejonte Murray gets healthy and returns — but are poised to start a rebuilding process in the coming years.

We will see if Duncan wants to be part of that, or if he is only around while Popovich remains the coach (somebody has to go to dinner with Pop). But he has earned the right to pretty much any role he wants.

The Spurs also announced that Will Hardy will be added to the bench as an assistant coach.

“Will Hardy is a talented, young basketball mind who has earned a great deal of respect from everyone in the organization thanks to his knowledge, spirit and personality,” Popovich said.