Lawsuits in Seattle give Sacramento head start in race to approve an arena

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The question of which city, Sacramento or Seattle, is ahead in the race to bring the NBA a brand new arena attached to a shiny new public subsidy is unclear at this time, but sources with intimate knowledge of the situation tell PBT that so long as Sacramento Mayor Kevin Johnson delivers on his promises that Sacramento will be ahead in that process.

A lot of that comes down where each city is legally within that process, and how that process is conducted in both Washington and California.

While some early media reports might have led folks to believe that Chris Hansen’s arena deal (and offer to buy the team) were a slam dunk, the documents laying out the framework of his arena proposal are under siege.

Specifically, the Memorandum of Understanding (MOU) and Interlocal Agreement (IA) he entered into with the city of Seattle and King County have been under intense scrutiny locally, as they are currently the target of two lawsuits.  The first of those lawsuits is potentially being decided today at 1:30 PT.

The first suit brought by the International Longshoreman’s Workers Union challenges the site selection process within Washington’s Environment Impact Review (EIR) process, saying that Hansen and the local government conducted a “sham” site review process that did not provide reasonable, actionable alternatives other than Hansen’s hand-picked site.

That site, located in Seattle’s SODO district, has been the battleground of competing arguments regarding traffic and how it might impact Port of Seattle’s operations, and otherwise cause gentrification, loss of business in the area, and impact a large number of family-wage jobs in exchange for temporary construction jobs and a smaller number of low-paying arena jobs.

Arena proponents point out that most of the events at the proposed SODO site would occur after the Port’s business hours. Arena opponents say that the cumulative impact of creating a third large-scale sports and entertainment facility within their maritime industrial area, with an L.A. Live-like experience of retail outlets and restaurants, will necessarily bring more traffic to the region regardless of hour and disrupt Port operations.

These kinds of lawsuits are standard fare in any large-scale development project nationally right now, but they can have impacts on developments. In this case, opponents of the current MOU and EIR process point out that it could take “hundreds of millions of dollars” to mitigate the traffic issues a new arena would face, according to head lawyer for the ILWU suit Peter Goldman.

Hansen has offered $40 million to address traffic mitigation concerns, but in reality the question of who pays what for additional mitigation has yet to be solved because the EIR has yet to address the issue. Should Hansen have to pay for additional mitigation, it could further strap him and his group as it relates to their overall offer for the Kings, but the fear for locals is that the money would have to come from the public coffers.

The ILWU’s suit alleges a number of concerns relating to the site selection process, and asks the court to force Hansen and the local government to declare the MOU and IA “null and void” because they are in violation of the State Environmental Policy Act (SEPA).

It is unclear whether or not this would impact Hansen and the local government’s warranties to the NBA about its current arena situation.

(UPDATE: The judge ruled in favor of Hansen, Seattle, and King county and dismissed the lawsuit.  Hansen and governmental officials argued they did not have an arena agreement in place and that they would look at other locations.)

Goldman said that this suit was “preliminary,” and cited the broad swath of industry that is opposing the arena proposal in its current form. He pointed out that there will be more times for lawsuits to be filed down the road, but that he and his client were concerned that the site selection process wasn’t being conducted according to current state laws.

The second lawsuit relates to Seattle’s in-force Initiative 91 and the contention by its co-author Mark Baerwaldt that the current MOU does not meet the law’s criteria.

Baerwaldt is careful to point out that the courts would decide the matter. His complaints focus on the financing mechanisms that Hansen and the local government are using to meet the statute’s definition of turning a profit on public subsidies for sports arenas. This lawsuit is awaiting response from Hansen, Seattle, and King County.

I-91’s other co-author, Chris Van Dyk, has also been at the center of this discussion, being cited by many Seattle media outlets as being supportive of Hansen and Seattle’s MOU. He addressed those reports exclusively with PBT, saying he “never said it was compliant” and that “if he’s the best cheerleader (Hansen and Seattle) can come up with then they’re in trouble.”

Van Dyk also offered that “he’s looking forward to hearing the expert testimony,” because he didn’t think “I-91 anticipated meeting the type of funding mechanism that Hansen has presented.”

Whether or not the Longshoreman’s suit goes in favor of the plaintiff or Hansen and Seattle, Goldman says to expect more legal resistance down the road.  If they win, Hansen and Seattle has to start over with their MOU and come to the table with alternative sites that they may not like.  Then the city would have to choose between the site that Hansen wants, and a potential site that presents better alternatives in terms of environmental concerns and traffic.

If they lose today, he says that there is a “significant appetite” not just by his clients but a broad swath of industry including the Port of Seattle to appeal the decision and fight the EIR process at every stage. All of the potential delays and injunctions were reflected when David Stern told Jonathan Feigen of the Houston Chronicle that the NBA had “no approved plan for an arena in Seattle.”

Therein lies the rub for the Seattle group. While they seek to convince the BOG that they have an actionable arena plan, they are arguing in court that their MOU and IA just lay out a process for reviewing and financing an arena proposal and do not constitute an ‘action’ under state EIR laws. Therefore, they contend that the Longshoreman’s suit is not “ripe” and are asking for it to be thrown out.

Sources with intimate knowledge of the situation tell PBT that this is a tightrope that the Seattle group can walk, and Scott Howard Cooper of NBA.com illustrated that point by saying the league isn’t overly concerned with legal issues in either Seattle or Sacramento, but the question goes back to points made by TNT’s David Aldridge about which city can get an arena deal done first.

Aldridge, who had previously reported Seattle had a “clear path” to obtaining the Kings, said on Saturday “there are questions about whether or not the Seattle deal is as airtight as they say it is.”

After Stern’s press conference on Saturday Aldridge elaborated, “We have very equal bids here. What it comes down to is the feel the owners have on ownership groups, and which arena can be built the fastest.”

The EIR process in Seattle is underway, but with two lawsuits pending and only the judges in both suits being capable of delivering an up-or-down answer to the litany of issues presented, the uncertainty over what type of delays Seattle could face and what type of mitigation will be needed to preserve other parties’ rights are huge question marks.

On the other side, it’s Johnson’s track record of delivering on promises to the NBA that has insiders optimistic about Sacramento’s chances of delivering that ‘fair and competitive’ offer that will include a significant public subsidy and downtown arena.

That effort has been underway for a while now, as the NBA negotiated the current arena deal that the Maloofs backed out of, a deal that Johnson and Sacramento have maintained is still on the table.

Additionally, proposed arena locations in Sacramento aren’t likely to have the same types of blowback being faced in Seattle, where their sizable maritime industrial economy feels threatened by Hansen’s proposal.

One source with intimate knowledge of the situation speaking to PBT under conditions of anonymity spoke about Sacramento’s pair of proposed locations:

“Both potential Sacramento sites are complimentary to the existing downtown commercial uses, and unlike the fight in Seattle the downtown proposals are being welcomed as a revitalization project. Both are efficient reuses of developed property, and both sites qualify under the expedited state AB 900 CEQA process, which limits the delay from any potential lawsuits. Having already approved a deal structure a year ago with no lawsuits filed, Sacramento has a big advantage to deliver a timely arena facility.”

That AB 900 CEQA process is an interesting wrinkle to Sacramento’s effort to keep their team, as the bill creating that process was recently signed into law and co-authored by Think Big Sacramento supporter and California Senate President pro Tem Dan Steinberg. According to law firm Stoel and Rives:

“The (bill provides) an incentive for applicants to move forward with their projects because any challenge to a leadership project Environmental Impact Report (“EIR”) under the California Environmental Quality Act (“CEQA”) will be venued immediately in the Court of Appeal. The court will then have a maximum of 175 days to issue its decision on the challenged EIR”

Incidentally, the bill was passed in part to help facilitate the potential Farmer’s Field deal to bring NFL football back to L.A. The company driving that proposal is AEG, who is supporting Sacramento’s bid and being pursued for purchase by Ron Burkle, who is one of the ‘whales’ that reportedly stands behind Sacramento’s offer.

“It’s time for big thinking and big projects that put Californians back to work,” said California Governor Brown. “Projects like Farmers Field can create thousands of jobs during a tough economic time, so it is imperative for the state to cut the red tape that could delay projects like this for years. These bills strike the right balance between protecting our environment and kick-starting jobs and investment in California.”

Sources say NBA owners will be weighing the totality of the arena timelines for both sides, and in Seattle’s case how many years a potential Sonics team will have to play at Key Arena, a facility deemed by the NBA to not meet its standards when the Sonics left for Oklahoma City in 2008.

Hansen’s current plan calls for a potential Sonics team to play in Key Arena (with modest improvements) for as little as two years, while arena opponents believe that timeframe could be extended to as many as four years if lawsuits hold up the process. While Sacramento could face similar lawsuits, they didn’t face any during the 2011 arena deal, and the expedited review process and potential for less environmental concerns at the city’s proposed sites have sources pointing at the issue as a point in favor of Kevin Johnson’s expected proposal.

While Seattle’s lawsuits aren’t likely to be the defining factor in this saga – Sacramento’s production of an actionable offer will be that factor –the fact that the Emerald City can’t say with certainly how long they’ll be locked up at Key Arena could be the starting point for their bid to take the Kings to unravel.

What worries Adam Silver? Positive tests inside NBA bubble

Adam Silver bubble
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Since testing started on June 23, 28 NBA players tested positive for the coronavirus, 8% of the players tested. That and the positive tests of team staff members (10 of them, 1.1% of the people tested) led to seven teams (at least at one point) shutting down their training facilities.

None of that greatly worried NBA Commissioner Adam Silver and league staff.

The company line is this: Positive tests were expected — this many or more — which is why testing began two weeks before teams flew to Florida for the restart. This gave time for players and staff who tested positive to recover and still go to Orlando for the restart if they wished. The league expects a few more positive tests as players arrive in Orlando this week.

So what does worry Adam Silver and league staff? Positive tests once the first round of testing is done in Orlando and the bubble is formed. Silver spoke (virtually) at the Fortune Brainstorm Health Tuesday and was asked what would happen if there was an outbreak among players in the bubble.

“It’s the right question, and I’m not sure yet.” He went on to say: “Certainly, if we had any sort of a significant spread at all within our campus, we would be shut down again.”

“It would be concerning if once [the players] sit through our quarantine period, and then were to test positive, we would know that, in essence, there’s a hole in our bubble,” Silver added. “That our campus is not working in some way.”

That is the nightmare scenario for the NBA: They set up the bubble — essentially trying to keep the rest of Florida and its spiking cases out of the NBA’s campus — and still the virus gets in and spreads. If that happens, even with all the NBA’s protocols and protections, it’s hard to imagine the NBA season finishing.

However, the NBA is confident the bubble will work, that players will follow the rules enough, that it will all come together and work. Plenty of people, players included, have their doubts. But everyone seems willing to give it a shot, and the NBA wants to push through this.

So long as Silver’s nightmare scenario doesn’t unfold.

Rudy Gobert on dynamic with Jazz teammate Donovan Mitchell: ‘I’m the a—hole’

Jazz stars Rudy Gobert and Donovan Mitchell
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Rudy Gobert is the Jazz’s best player.

Donovan Mitchell is the Jazz’s biggest star.

That situation naturally creates tension. Gobert and Mitchell testing positive for coronavirus exacerbated it.

Mitchell was upset with Gobert, whose reckless actions made him more likely to contract and spread coronavirus. Now, Mitchell sounds ready to move on.

But other issues remain.

Mitchell quickly became Utah’s go-to offensive player. He’s a sensational scorer with a magnetic personality and electrifying dunks. But he’s still developing as a playmaker, which can frustrate Gobert.

Most famously, Gobert cried when discussing his All-Star snub last year. Gobert plays a complementary style that can be underrated. He’s an elite defender who cleans up for his teammates. On offense, does all the little things – screening, finishing, rebounding. Yet, all that diligent screening isn’t always rewarded with passes when he gets open.

Should Mitchell pass more to Gobert? Yes. But Gobert has also let his effort slip this season when not getting touches, and that’s not the right solution, either.

Gobert, via Tim MacMahon of ESPN:

“I understand that I’m annoying. I can be very annoying,” said Gobert, adding that he knows Mitchell’s job is difficult as the focal point of defenses. “I think maybe because he was really good really early, I’ve been very demanding and maybe in not always a positive way. Sometimes you don’t realize it.

“Like with me, people can be hard on me and I can handle it, but for some guys, it can become very frustrating. I can understand that 100 percent. Donovan has gotten better every year since he’s gotten here. I think he’s going to keep getting a lot better. It’s pretty much, I’m the a–hole.”

“If I was 12 years old, I wouldn’t want to be watching f—ing Rudy Gobert. I’d want to watch Donovan Mitchell. I wouldn’t want to watch Rudy Gobert get dunks and alter shots. I’d want to watch Donovan Mitchell cross people up and do crazy layups, crazy dunks, of course.

“I totally understand how it works, and I’m fine with it.”

There’s an endearing amount of self-awareness in these quotes.

Gobert and Mitchell have a chance to form a highly successful partnership in Utah. Winning could bond them. On the other hand, losing could push them further apart. Another potential complication: Mitchell – with all his talent and about four years younger than Gobert – will probably soon surpass Gobert as a player. Then what? How will each handle that?

The future is unpredictable, but it’s worth understanding the current relationship between Gobert and Mitchell. To do that, I highly recommend reading MacMahon’s excellent article.

Nets’ Taurean Prince tests positive for coronavirus, will sit out restart

Taurean Prince Nets
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Kyrie Irving, Kevin Durant, and Nicholas Claxton all had pre-existing injuries and were never expected to play in the NBA’s restart in Orlando. Wilson Chandler opted out of the restart to spend time with his family.  DeAndre Jordan and Spencer Dinwiddie both tested positive for the coronavirus and did not join the team headed to Orlando on Tuesday. That’s six players from the Nets roster not playing in the restart.

Make that seven — forward Taurean Prince tested positive for coronavirus and will sit out restart as well. Adrian Wojnarowski of ESPN broke the news.

Prince started at the four for the Nets and averaged 12.1 points and six rebounds a game.

The Nets are free to sign a substitute player to fill in for Prince, however, that player must have fewer than three years of NBA experience. Whoever the Nets line up, it will be a drop off in quality from what Prince brought to the table.

Expect the Nets to look at big men for substitute players because they need size. Jarrett Allen is the only true center on the roster, and there are only two other players — Rodions Kurucs and Dzanan Musa — are taller than 6’9″. Amir Johnson is one Nets’ big man target, according to Marc Stein of the New York Times.

Brooklyn enters the restart as the seven seed in the East, but just half a game up on eight seed Orlando, a team that is largely healthy and bringing its full roster. It’s likely the Nets slide back to the eight seed, but likely make the playoffs (Washington, playing without Bradley Beal or Davis Bertans, would have to make up two games on the Nets during the eight seeding games, then beat Brooklyn in a two straight play-in series games, a tall order). The Nets reward for making the playoffs? Giannis Antetokounmpo and Milwaukee.

WNBA players call for ouster of Atlanta Dream co-owner Kelly Loeffler, a Georgia senator

U.S. Sen. Kelly Loeffler (R-GA)
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NBA players showed their power by getting Donald Sterling removed as Clippers owner.

WNBA players might be having a similar moment with Atlanta Dream co-owner Kelly Loeffler, a Republican U.S. Senator from Georgia.

Sterling committed incredibly harmful racist and sexist acts for years. Ironically, something far more benign – telling his girlfriend not to post pictures with black people or bring them to games – did him in. But he went too far in a time of growing sensitivity to speech.

Now, there’s even less tolerance for people saying the “wrong” thing. And Loeffler has said things lately that range from disagreeable to offensive.

The WNBA announced its plans for promoting social justice during its upcoming season:

The WNBA will begin its season in late July with a weekend of competition centered around the Black Lives Matter movement, during which teams will wear special uniforms to seek justice for the women and girls, including Sandra Bland, Breonna Taylor, Vanessa Guillen and many more who have been the forgotten victims of police brutality and racial violence. Throughout the season, players will wear NIKE-branded warm-up shirts that display “Black Lives Matter” on the front.   Additionally, “Say Her Name” will adorn the back of the shirts.  “Black Lives Matter” will also be prominently displayed on courts during games.

In response, Kelly Loeffler wrote a letter to WNBA commissioner Cathy Engelbert. A portion of that letter, via Greg Bluestein and Bria Felicien of The Atlanta Journal-Constitution:

All of us have a constitutional right to hold and to express our views. But to subscribe to a particular political agenda undermines the potential of the sport and sends a message of exclusion.

The truth is, we need less—not more politics in sports. In a time when polarizing politics is as divisive as ever, sports has the power to be a unifying antidote. And now more than ever, we should be united in our goal to remove politics from sports.

The lives of each and every African American matter, and there’s no debating the fact that there is no place for racism in our country. However, I adamantly oppose the Black Lives Matter political movement, which has advocated for the defunding of police, called for the removal of Jesus from churches and the disruption of the nuclear family structure, harbored anti-Semitic views, and promoted violence and destruction across the country. I believe it is totally misaligned with the values and goals of the WNBA and the Atlanta Dream, where we support tolerance and inclusion.

Amid the recent unrest in many American cities, this movement advocated the creation of lawless autonomous zones in places like Atlanta. I denounced these zones of violence—for which I have been criticized. However, this same group fell silent over the fourth of July weekend when an 8-year-old girl was murdered under the “mob rule” that I warned about days earlier. This is not a political movement that the league should be embracing, and I emphatically oppose it.

Though I was not consulted about—nor do I agree with the League’s decision in this matter, I am proposing a common-sense recommendation to ensure we reflect the values of freedom and equality for all. I believe we should put an American flag on every jersey. Include it in our licensed apparel for players, coaches and fans.

Women’s National Basketball Players Association:

WNBA:

WNBA Commissioner Cathy Engelbert released the following statement:

“The WNBA is based on the principle of equal and fair treatment of all people and we, along with the teams and players, will continue to use our platforms to vigorously advocate for social justice.  Sen. Kelly Loeffler has not served as a Governor of the Atlanta Dream since October 2019 and is no longer involved in the day-to-day business of the team.”

That is a strong statement from the union. Several players previously criticized Loeffler, especially in the wake of a recent interview.

She was asked, “It is not every day you see people carrying long guns in big cities in America. What is happening on the streets of Atlanta this morning?” While Fox News showed armed black men, Loeffler said, “This is totally unacceptable. We cannot allow mob rule. We’re a nation of the rule of law.”

If Loeffler – a self-avowed Second Amendment advocate – were specifically denouncing legal gun carrying because the carriers were black, that’s racist, hypocritical and completely unacceptable. But it’s unclear whether Loeffler could see the images and videos as she answered. It’s also unclear whether she was answering more generally about everything happening in Atlanta.

Regardless, backlash spread.

Renee Montgomery of the Atlanta Dream:

Sue Bird of the Seattle Storm:

Skylar Diggins-Smith of the Washington Mystics:

Natasha Cloud of the Phoenix Mercury:

Layshia Clarendon of the New York Liberty:

Sydney Colson of the Chicago Sky:

There is room for legitimate debate on the issues raised in the tweets and articles they link, including gun control, abortion and the best tactics for fighting racism. Loeffler shouldn’t be forced out simply because she disagrees with some vocal players. (I suspect, in a league as large and diverse as the WNBA, some players agree with her on some of these issues.)

But Loeffler’s letter to Engelbert is particularly off-putting.

Disagreeing with some elements of the Black Lives Matter organization would be one thing. But condemning the Black Lives Matter political movement is something else. Within that movement, there are disagreements on methods and goals. The unifying thread: Believing black lives matter. That’s why Black Lives Matter, despite some extreme views, holds such mass appeal.

It’s also gross for Loeffler to use a false claim about Secoriea Turner to fit her agenda. Protesters have decried the girl’s killing.

The players who are using their platforms to promote racial justice deserve praise. Their plan is good for the WNBA. It’s good for the United the States.

The truth is there has always been politics in sports. White people can more easily ignore it, but that’s their privilege. The many black players in the WNBA still live in a country with systematic racism. Their humanity doesn’t end when they show up to work, and they shouldn’t be told to be quiet and just wear an American flag on their jerseys.

It’s telling that Loeffler’s solution to politics in sports is to put a political symbol on jerseys.

She doesn’t want politics out of sports. She wants politics she disagrees with out of sports.

Now, the WNBA will determine whether it wants her out of its sport.