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.

Paul George scores 28 as Thunder beat Raptors 116-109

Associated Press
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TORONTO (AP) — Paul George scored 28 points, Russell Westbrook had 18 points, 13 assists and 12 rebounds, and the Oklahoma City Thunder beat the Toronto Raptors 116-109 on Friday night.

Dennis Schroder came off the bench to score 26 points and Jerami Grant had 19 as the Thunder snapped a four-game losing streak and avenged Wednesday’s 123-114 home defeat to Toronto.

The Thunder made 20 of 43 shots from 3-point range. Oklahoma City made a season-high 22 3-pointers against the Lakers on Jan. 17.

Kawhi Leonard scored 37 points and Pascal Siakam had 25 for the Raptors, who played without All-Star point guard Kyle Lowry.

Lowry missed his second straight game because of a sprained right ankle. Coach Nick Nurse said there’s no structural damage to Lowry’s ankle, but soreness remains following a collision with New York’s Mitchell Robinson on Monday. Nurse said Lowry is expected to return next week.

Danny Green scored 19 points and Serge Ibaka had 11 but Toronto couldn’t hold a double-digit lead in the third quarter for the second straight game. The Raptors gave away a 20-point lead before recovering to win in overtime Wednesday, but weren’t able to match that on their home court.

Oklahoma City trailed by 10 points to start the second half, and was down 13 with 5:23 to go in the third before rallying. Westbrook gave the visitors the lead for the first time since early in the first quarter on a layup with 1:18 left in the period, putting them up 80-79. The Thunder closed the third with a 20-4 run to take an 83-80 lead into the fourth.

Leonard cut the gap to 93-91 on a free throw with 7:33 to play but George hit 3-pointers on either side of a fast-break layup by Grant, giving Oklahoma City a 101-91 edge with 6:21 left.

The Thunder missed eight of their first 10 shots of the game. Toronto was 5 of 6 from 3-point range in the first, with Green making all three of his attempts, and the Raptors led 29-22 after one.

Leonard scored nine points in the second and Green had six as Toronto led 58-48 at halftime.

 

James Harden ties career best with 61, Rockets beat Spurs 111-105

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HOUSTON (AP) — James Harden matched his career high with 61 points, including 27 in the first quarter, to lead the Houston Rockets to a 111-105 victory over the San Antonio Spurs on Friday night.

Harden hit three straight 3-pointers to give the Rockets a 103-100 lead and scored all of Houston’s points in a 13-2 run late in the fourth quarter.

Harden topped the 50-point mark for the eighth time this season, compared with 10 such performances from the rest of the league combined. He matched his career-best total set earlier this season against the Knicks at Madison Square Garden.

The NBA’s leading scorer surpassed the 30-point mark in the second quarter and the 40-point mark with 9 minutes remaining in the third.

Before Harden’s late surge, the Spurs led by six points with 4 minutes left in the game. The Spurs had overcome a 15-point halftime deficit to tie the game at 81 entering the fourth quarter.

Harden was 7 of 10 from the field in the first quarter, including 3 of 4 from the 3-point line, and also went 10 for 12 from the free throw line. His 27 points in the period were the second-most in franchise history, trailing only Vernon Maxwell’s 30 in 1991.

Harden finished 9 of 13 from 3, 19 of 34 from the field and 14 of 17 from the free throw line.

Houston has won 13 of its last 15 games and eight of its last nine at home.

Bryn Forbes led San Antonio with 20 points, while Derrick White added 18 and DeMar DeRozan had 16.

Houston led 36-24 at the end of the first quarter and 62-47 at halftime.

 

LeBron James’ playoff streak ends at 13 years

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The last time LeBron James missed the playoffs, YouTube hadn’t yet launched to the public.

LeBron had reached the postseason every year since 2005, when his Cavaliers went 42-40 and finished ninth in the East – another good marker. The last time LeBron missed the playoffs, it was so long ago, an Eastern Conference team could be that good and not qualify.

But his Lakers were officially eliminated from the playoff race Friday with a loss to the Nets.

That ends LeBron’s postseason streak at 13 years – tied for the 13th-longest of all-time. Karl Malone and John Stockton hold the record, each playing in 19 straight postseasons.

Here are the longest playoff streaks of all-time:

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Obviously, LeBron joining the Western Conference put his playoff streak in greater jeopardy. And the Lakers’ fate has been known for a while.

Still, it’ll be a little jarring to watch a postseason that doesn’t include a player who ruled half the bracket for so long.

That said, LeBron might not have the longest playoff streak snapped this year. Tony Parker, who reached the playoffs in all 17 of his seasons with the Spurs, could fall short in his first season with the Hornets.

If Charlotte misses the playoffs, 76ers guard J.J. Redick is in line to hold the longest active streak at 13 years.

Here are the players with the longest active streaks that could continue this season.

Players are listed with the teams they made the postseason with during their streaks. If they haven’t reached the playoffs in their stint with their current team, that team is listed in brackets.

Players whose teams are currently in playoff position are in teal. Players whose teams are currently outside playoff position but not yet eliminated are in purple. Free agents who’d be eligible for the playoffs if they sign before the end of the regular season are in white:

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There’s no reason to believe Manu Ginobili will come out of retirement. But he has played in every postseason since missing the entire 2009 playoffs due to injury. It’s technically possible for him to play in the 2019 playoffs and keep his streak alive.

Which is more than LeBron can say.

Knicks’ fans chant “Free IT” as Isaiah Thomas sits on Nuggets bench

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Well played, Knicks fans.

Denver went into Madison Square Garden Friday night to be the latest team to defeat the Knicks. Isaiah Thomas, out of the rotation in Denver, was the only dressed player not to play for the Nuggets. That did not sit well with Knicks fans.

Denver has better on court options than IT — Monte Morris should get Most Improved Player votes — but I hope he gets fully healthy and lands somewhere next season where he gets a chance to show what he can still do.