Sacramento mayor Kevin Johnson lays out framework for Kings to stay put

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With reports swirling that the Kings’ move to Seattle is a mere formality at this point, the story on the ground in Sacramento is much, much different.

In the end, this story comes down to three things:

1. Can Seattle’s Chris Hansen close a deal with the Maloofs to buy the Kings? (According to reports, it was first and goal at the one-yard line about a week ago)
2. Can Kevin Johnson secure the opportunity to meet or beat that offer?
3. What will the NBA’s Board of Governors decide to do?

As we reported in September, in order for Seattle to be able to beat Sacramento’s offer financially they would have to drastically overpay for the team. This is because Sacramento owners do not have to worry about the Maloofs’ loan to the city, relocation fees, or moving costs.

The offer in Seattle has been reported to be $525 million based on the overall valuation of the franchise, so Sacramento can pay $425-$450 million based on the overall valuation of the franchise and still end up providing more money to the Maloofs than Seattle can.

With sources speaking to PBT on the condition of anonymity saying Sacramento has multiple buyers that meet both the city and NBA’s criteria for owning a franchise, the pertinent question has been whether or not David Stern and the other owners would allow Sacramento to present their offer.

We got that confirmation today at the State of Downtown Sacramento Breakfast when mayor Johnson announced that Stern had indeed approved Sacramento’s request to speak at the Board of Governors meeting in April.

This is an extremely significant development in this story. First, it displays the trust that has grown between Stern and Johnson, as well as between Stern and the city of Sacramento, who has met every deliverable that has been asked of them in the Maloof debacle.

Second, it shows that Stern and the other owners are willing to let this relocation issue play out at a more visible level. If they had no intention of giving Sacramento a chance, then it would be a curious decision to give the critical voices blasting the NBA for its relocation practices the oxygen to continue bashing them.

Indeed, the city of Sacramento has presented a “model offer of public funds” according to one league source, and for a complete rundown of what a decision to move the team from Sacramento would look like, you can check out previous write-ups about the NBA’s billion dollar subsidy industry and how that plays into the league’s decision-making here.

In short, the league has leveraged cities into providing $3 billion of public money since 1990 for the creation of state-of-the-art arenas – all predicated on the assumption that a long-term partnership would be honored so long as both parties are acting in reasonable good faith.

If Sacramento has done everything it can to keep their team, a fact that is not in dispute, then leaving them at the altar because the Maloof family ran their own finances into the ground is going to be a major problem the next time they go to ask a city for money.

Most importantly, with sources close to the situation confident that they will have an actionable offer that will reasonably meet or beat the amount of money that Hansen can put into the Maloofs’ pockets — assuming he and partner/Microsoft CEO Steve Ballmer don’t turn into the drunk guys at an auction — then Stern and the other owners are going to have to make an unprecedented decision to move the team out of Sacramento.

Not only would a Sacramento offer likely break the NBA record purchase price of a franchise, and include an actionable plan to build a brand new arena with a league vetted public-private partnership, but a decision to move the team would mark the first time a mid-market city had been poached for a larger market when the original city had everything the league could ever ask for in place at the time of the move.

Looking at the Maloof side of the equation, they are both driving this discussion but are also operating at an extremely weakened position in this debacle. Owing as much as $200 million by various reports and facing a financial crisis of their own (they just made a cash call to minority investors according to NBA.com’s David Aldridge), it would be a shocking move if they did not sell the team at this stage of the game.

Furthermore, both the family and the NBA could be in for a messy breakup should Sacramento not be given a fair chance to buy the team.

Any lawsuit filed by the city to stall the deal for what legal sources say could be any number of criteria relating to the improper moving of the franchise, including but not limited to union workers’ rights and the lack of a local bidding process, would necessarily put the Maloofs into a lame duck season in Sacramento.

When considering the Maloofs’ messy financial situation and considering the league’s likely desire not to get into a protracted battle over the Kings, all signs point to Sacramento getting a chance to present their offer with everybody at the table willing to vote their way should the deal points pan out as Sacramento sources say they will.

For all of the talk about the Maloofs not wanting to sell to a Sacramento buyer, and confirming Sam Amick’s must-read report about the situation, the talk of Ron Burkle appears to be overstated at this point.

There are sources in Sacramento that believe he could still be a party to these talks, but that the KJ camp is not relying on any one white knight at this time. It has been reported here and elsewhere that the Maloofs don’t want to sell to him because of their dislike for the billionaire, who they believe ruined their chances to move to Anaheim in March of 2011.

The reality here is that they are going to have to fall in line with what the NBA’s BOG decides or face the prospect of a lame duck season going heads up against both the NBA and Sacramento, and in their financial situation that is a non-starter according to most sources with knowledge of the situation.

These sources aren’t going to predict what the Maloofs will try to do, but most believe that the family will take a financially favorable offer in Sacramento and also that if the league decides to back Sacramento in a relatively close deal that they family will back down and take the offer.

With the decision to have Kevin Johnson out to the BOG meetings already made, the focus of this story shifts to the work at hand for Sacramento. They have to get their ownership group finalized and ready for presentation.

Those following the situation should not be surprised if a deal is announced in Seattle, but like the San Francisco Giants’ eventually blocked sale to Tampa Bay in August of 1992 this will be decided by the owners once Johnson’s deal is finalized should Hansen come to an agreement with the Maloofs.

And for those handicapping the action, Kevin Johnson is not going to make that presentation without having owners in place that meet the shared criteria of both his camp and the NBA office. He will come boasting a ravenous No. 20 television marketplace with some advantages and disadvantages compared to Seattle, but nobody will deny Sacramento’s appetite for NBA basketball.

In 24 hours since announcing their grassroots effort, Here We Buy has received pledges totaling nearly $10 million from local individuals and businesses toward season tickets under the new ownership group.

Johnson will come armed with the ability to force the Maloofs into a lame duck season if he has to, but mostly he will arrive at that meeting with yet another stirring example of his city stepping up with all odds against it.

The images of the Sign Lady, Carmichael Dave on a ladder telling crying Kings fans that ‘this is not over by a long shot,’ and the 600-1000 arena workers that are going to lose their jobs are not going to be lost on the proceedings, and for the owners without tear ducts in their eyes they will look at the financial risk of a decision against Sacramento side by side to the incremental benefit of a very qualified Seattle offer.

That decision to rip out Sacramento’s heart is all risk and marginal gain, assuming Kevin Johnson has one more career-defining slam dunk left in him.

And since he hasn’t missed a shot yet, it seems silly to bet that he’s going to fall apart in the fourth quarter.

Brooklyn Nets going gray with stylish newly redesigned court

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The Brooklyn Nets already had one of the sharpest court designs in the NBA.

However, they felt it was time for an upgrade — and they went gray.

It’s bold, not traditional, I’m curious how it looks on a broadcast, but the new look kind of works. It feels very Brooklyn.

Zach Lowe of ESPN had a story on how this all came together.

But [General Manager Sean] Marks wanted change, to put his artistic imprint on the franchise he has helped reinvent, and he had a radical idea: a gray floor meant to evoke blacktop courts, the streets of Brooklyn, and the borough’s “industrial vibe,” he says. Gray has been on the fringes of the team’s Brooklyn-era palette, including on the alternate Brooklyn Dodgers-themed uniforms they wore in past seasons.

Everything Marks and the Nets’ creative team toyed with from there centered around gray. It was a risk — an unknown. The NBA says it has never had an all-gray court, though a few teams — the New Orleans Pelicans, Denver Nuggets, Cleveland Cavaliers, Milwaukee Bucks, and others — have shaded enlarged logos and landscapes into sections of their floors…

There was no pushback. The league liked the idea right away, Marks says.

With Kyrie Irving trying to lead an intriguing young core — and Kevin Durant maybe coming back before the playoffs — the Nets are going to be a team to watch this season. We’re going to see a lot of that gray floor, we’ll see how it grows on us.

Nets reportedly not likely to sign Carmelo Anthony, who still waits for his shot

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NBA training camps open next week, and Carmelo Anthony will be… on a couch somewhere.

Actually, probably in a private gym in New York working out and staying ready for the day the phone rings. However, he will not be in an NBA gym with an NBA team.

One place he had been rumored to go was Brooklyn, where Kevin Durant and Kyrie Irving were reportedly pushing for him. That, however, is not happening, reports Shams Charania at The Athletic.

After losing Wilson Chandler to a 25-game suspension, Anthony and players such as Dante Cunningham, Lance Thomas and Luol Deng emerged as viable options to sign. There’s been a sense around the Nets that players are hopeful to bring in Anthony, but the trust belongs with the front office.

However, the Nets are very unlikely to sign Anthony as of now, league sources told The Athletic.

It appears more likely that the team will decide to sign players it has worked out over the past few weeks, such as Thomas and former Minnesota Timberwolves and Los Angeles Clippers forward CJ Williams, sources said. The Nets have two roster spots left.

Executives around the league think there is a place for Anthony in the NBA. As has been written here previously, people I’ve spoken to about him say something along the lines of “he absolutely could still play in the league, he’s just not a fit with us.” After how things ended in Oklahoma City, and then went last season in Houston, they question if he will accept and off-the-bench scoring role. Anthony has said he would, his people have pushed that he would, but people are not sold.

Anthony’s going to get his shot, and maybe still in Brooklyn. It will be somewhere. But like Dwight Howard with the Lakers this season, this is his last shot — play a role, play hard, get it right or nobody is taking a chance on him again.

 

Report: Andre Iguodala, Grizzlies reach agreement, he will not report to training camp

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Andre Iguodala was traded to Memphis in a cost-saving move during the Warriors’ wild offseason. The franchise was upfront about the possibility, Iguodala is a smart man who understands the business of the league, there are no hard feelings.

However, he doesn’t want to play for Memphis. The Grizzlies don’t just want to buy him out — unless he’s leaving a lot of money on the table, which he will not do — they want to trade him for picks or a young player coming back to help their rebuild.

That left the sides at an impasse, but they have reached an agreement that allows Iguodala to not report to training camp and instead keep working out on his own, reports Chris Herrington of the Daily Memphian.

Andre Iguodala will not attend Grizzlies’ Media Day on Monday nor report to the team’s training camp under an arrangement reached between the two sides, according to team and league sources.

Iguodala will remain on the Grizzlies roster, likely well into the season. However, the team agreed the veteran can continue private workouts at a location of his choosing while Memphis pursues trades involving the former Golden State Warrior and NBA Finals MVP.

This almost certainly drags out into December, and likely much closer to the Feb. 6 trade deadline. On Dec. 15 the players who signed contracts this summer can be traded, opening up the trade pool. By then, contending teams — or, teams that fancy themselves contenders — will have a better sense if they could use Iguodala off the bench to boost a playoff run. And if they have the players and picks to get a trade done.

Iguodala talked about his situation in Memphis with NBC Sports Bay Area’s Monte Poole over the weekend.

“We’re trying to figure out things on both sides. They’re trying to figure out some things, and I’m trying to figure out some things. As of today, we’re on the same page. Camp opens the next week. We’ll see. We’re on the same page, though.”

“At this point, the only buyout that makes sense — if I’m speaking on someone else’s behalf, thinking as an agent — is you don’t leave money on the table,” he says. “Especially in this league. Because you’ll never get it back, no matter what people say. Negotiations are a tactic, so you’ve got to be careful how you approach it, or how you verbalize what you would do going forward. But you can’t leave anything on the table.”

Iguodala is in the final year of his contract, worth $17.2 million this season, and he wants to get paid. The Grizzlies want to jumpstart their rebuild. The best option for both sides is just to wait it all out, which is what they have decided to do.

For now. Expect Iguodala rumors to start ramping up around Christmas.

Andre Iguodala tells the story of how he knew he would get traded this summer

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Andre Iguodala is a smart man, a veteran who gets the business side of basketball.

Which is why he knew he was likely getting traded this summer, especially if Kevin Durant left.

Iguodala told Monte Poole of NBC Sports Bay Area how he knew it would go down, and the inside joke he had with his wife that came true.

“But I have a sense that something is going down; Bob Myers and I are pretty cool. We have our conversations, so we’re on the same page. It was, ‘It might happen, but it might not. Most likely, it will. So, we’ll see.’

“So, I’m texting my wife, telling her I’ll probably get traded because I think it’s 100 percent sure, even though everyone else is saying, it’s only a chance. Then, once KD (Kevin Durant) left, I’m like, ‘Yeah, I’ll probably get traded. They’re probably going to do a sign-and-trade, so they can get something back, to at least get assets for him.’ No one was thinking that. But I was thinking they’ll want to get assets back because they can’t just let him go. And they’ll probably move me as well. So, she asked me where I thought I would go. I said, ‘I don’t know, I’ll probably end up in Memphis or some s–t.’

“She says, ‘For real?’ I was like, ‘Maybe. But probably not. I don’t know.’

“The next day, I got the message. It was Memphis. I fell out laughing.”

Iguodala remains a member of the Memphis Grizzlies, for now. Iguodala would like a buyout and to get to another contender, but he doesn’t want to leave a lot of money on the table because, as he told Poole, he would never get that money back. Memphis, on the other hand, would rather trade Iguodala in an effort to get a pick or player back that can help their rebuild. The Grizzlies are not going to be down with a buyout unless there are significant savings. Iguodala says that both sides are “on the same page.” We’ll see if the good vibes continue once training camps open next week.

Whatever happens, it’s going to be weird not seeing Iguodala in a Warriors uniform next season. He was the glue that helped hold the Warriors together and win three titles, seeing him in Grizzlies’ blue will just look strange and out of place.