Future of NBA arena subsidies, market comparisons to decide Kings’ fate

29 Comments

As Sacramento Mayor Kevin Johnson has been advertising for the past month, we did indeed get confirmation of the identity of his ‘whales’ at his State of the City address on Thursday.

Reiterating parts of his four-part plan that included bringing together a local ownership group, finding big equity investors (whales), putting together a downtown arena deal, and demonstrating the value of the Sacramento marketplace – Johnson would announce that 24 Hour Fitness founder Mark Mastrov and billionaire Ron Burkle would put in a bid to keep the Kings in Sacramento.

“With all due respect to Seattle, I do hope they get a team someday, but let me be perfectly crystal clear, it is not going to be this team,” said Johnson.

Johnson also announced that former Kings great Mitch Richmond would join the local ownership group and that the city’s proposal would include an option to return WNBA basketball to Sacramento.

Sources close to the situation told PBT that the framework of the offer delivered to the NBA on Friday was very close to Seattle’s $341 million offer for a controlling 65 percent interest in the club. NBA spokesman Tim Frank confirmed delivery of the offer on Friday, the day of the deadline.

Over the next month Sacramento will continue to iron out the details on a public subsidy and arena deal locally with the Sacramento City Council, which will ultimately vote on a term sheet to be delivered to the Board of Governors in time for their April 18-19 meeting.

Sources tell PBT that the Sacramento offer will be conveyed by the group to the NBA’s joint committees in charge of reviewing the situation on or around April 1. It is expected that Seattle’s group will also meet with that committee around that time, though no meeting has been publicly acknowledged.

According to sources, the two issues that will drive the conversation is the league’s strategy for securing arena subsidies in the future, and the impact each market will have on team revenues and the league’s financial model as a whole. Also under consideration are timelines to deliver an arena, ownership groups, and the precedent the league could set by blocking an owner from selling to a group of their choosing.

The league blocked a sale of the Minnesota Timberwolves to a group headed by boxing promoter Bob Arum in 1994, but a well-placed source told PBT that the league views this transaction as “unprecedented,” citing that never before has the league relocated from a city that has supported its team both at the gate and with public subsidy dollars.

The Maloof ownership group reportedly has “little to no leverage” in NBA’s decision-making process. They also reportedly owe the NBA in excess of $100 million on a line of credit they’ve used throughout their ownership. If called in, the family’s financial woes could give the league an opening to use the ‘Best Interests of the League’ clause, similar to the way Major League Baseball removed Dodgers owner Frank McCourt.

Sources do not expect the Maloof family to push back on the league’s decision to back either Sacramento or Seattle, citing the prohibitive costs of an antitrust lawsuit, and the potential for the family to lose a chance to cash out in Sacramento or Seattle.

The issue of market comparisons between Sacramento and Seattle is cloudy, but sources expect Sacramento to be competitive in that area because it has one major sports team in their No. 20 TV market, while Seattle could have six major sports teams in its No. 12 TV market. We will cover this in a bit more detail later in the next few weeks.

While details about Sacramento’s ownership group are a bit hazy at this time, it has been expected that Mastrov would be the front man. The more private Burkle reportedly would focus on the development of the Downtown Plaza location. Sources indicate the duo will share in the ownership of a potential deal, though it’s unclear what those percentages will be. Both owners have been vetted by the NBA, and Mastrov finished second in the Golden State Warriors bid that recently went to the Joe Lacob group.

While Seattle’s Chris Hansen-Steve Ballmer group has enormous wealth, another well-placed source speaking to PBT under condition of anonymity said the league is happy with both ownership groups and not to expect a deal to hinge on any comparison between them.

If a showdown comes to the owners’ deciding vote, some sources hinted at a scenario in which the league tells the Hansen group that they’re going to choose Sacramento – allowing the Hansen group to bow out gracefully and avoid a divisive ownership vote.

Should the league favor Sacramento, sources say the work the city has done to fight for its team and the narrative it will give the league to sell to future cities in arena negotiations will have played a critical role in the NBA’s decision-making process.

Seattle’s deal contains a greater percentage of private funds due to local initiative-91 requiring public funds to return a guaranteed profit, which is a trend the league wants to avoid.  On the other hand, Sacramento’s deal fits the public-private model the league is selling to cities, with a larger public subsidy going toward a new state-of-the-art building in a downtown revitalization effort.

We will cover that issue in greater detail in the coming weeks.

In order to keep their team, Sacramento will need eight votes out of 29 other owners to block the transfer of ownership to Seattle’s Hansen/Ballmer group.

Watch Portland’s Jusuf Nurkic dunk all over Bol Bol

Leave a comment

Bol Bol had some impressive blocked shots during exhibition games at the NBA’s restart, but he hadn’t gotten one in his 16 limited minutes since the seeding games started. He wanted one.

So Bol tried to get in front of Jusuf Nurkic of Denver on Thursday and… that did not go well.

Bol did later get a blocked shot on Hassan Whiteside.

Nurkic, however, ended the night with 22 points, seven rebounds, and the Trail Blazers got a 125-115 win that has Portland comfortably as the ninth seed, just half-a-game back of eight-seed Memphis. Portland is setting itself up with a better-than-average chance make the playoffs

Kawhi Leonard’s 29 leads Clippers past Mavericks in potential first-round preview

Leave a comment

LAKE BUENA VISTA, Fla. — Kawhi Leonard scored 29 points to help the Los Angeles Clippers beat the Dallas Mavericks 126-111 on Thursday night in a possible playoff preview.

Paul George scored 24 points and Ivica Zubac added 21 points on 10-for-10 shooting and 15 rebounds for the Clippers, who strengthened their hold on the No. 2 spot in the Western Conference standings.

The Clippers entered the night a just half game ahead of Denver, but they shot 54% against the Mavericks to improve to 2-2 in the restart.

Kristaps Porzingis scored 30 points and Luka Doncic added 29 for Dallas, which fell to 1-3 in the restart.

Dallas likely will finish as the No. 7 seed, making a first-round matchup with the Clippers a strong possibility.

“That’s obviously going to be a tough matchup,” Porzingis said. “They’re one of the favorites to win it all. They have multiple guys that have been there already. But we’re looking forward to the challenge and getting experience in that.”

Doncic was coming off a monster game — 34 points, 20 rebounds and 12 assists against the Sacramento Kings on Tuesday. He made 10 of 21 shots against the Clippers, including 6 of 13 3-pointers.

“Luka’s just a handful,” Clippers coach Doc Rivers said. “It takes a whole team to guard him. I thought our guys did a pretty good job overall. We lost him a couple times, which you can never do. So there’s a lot of room for improvement.”

The Clippers led Dallas by 12 in the third quarter before the Mavericks rallied and tied the game at 101 midway through the fourth. Los Angeles responded with a 9-0 run to regain control. The Clippers shot 62% in the fourth quarter to pull away.

“I just liked how we played overall,” Rivers said. “We played like a team tonight, on both ends.”

Though the Mavericks fell to 1-3 in the restart, Doncic remained confident.

“We’re a great team,” he said. “We’ve always got chances, no matter what. I think some people count us out, but we’re not out. We’ll give our max.”

Devin Booker says after latest Suns’ win ‘Kobe’s with me every day’

Devin Booker Kobe
Kevin C. Cox/Getty Images
Leave a comment

Devin Booker grew up a huge Kobe Bryant fan. When Booker made the league in 2016 he got to play against his idol and threw up 28 points on the night. Kobe was impressed. The two talked after the game and Kobe gave him an autographed pair of shoes with an inspirational message:

“Be Legendary.”

Booker took that to heart. He got the phrase as a tattoo. He’s been writing “Be Legendary” on his Nike’s before every game in the bubble. And after he scored 20 against the Pacers Thursday, helping the Suns remain undefeated for the restart, he said Kobe is still inspiring him every day.

“Kobe’s with me every day. You guys see what I put on my shoes with the ‘Be Legendary.’ It’s a reminder.”

Whatever he’s doing, it is working. Booker hit a Kobe-like turnaround game-winner to beat the Clippers. He’s averaging 28 points and 6.5 assists a game for the restart, and shooting 40% from three. Defenses are keying on him, but with a healthy Deandre Ayton and other players stepping up — Cameron Johnson has been a surprise standout in Orlando — the Suns look sharp and keep on winning.

Kobe would be proud.

Giannis Antetokounmpo drops 33 on Heat, Bucks secure No. 1 seed

Leave a comment

LAKE BUENA VISTA, Fla. — Giannis Antetokounmpo and Khris Middleton scored 33 points each, and the Milwaukee Bucks overcame a huge early deficit to get a 130-116 win over the Miami Heat on Thursday to clinch the top seed in the Eastern Conference.

The Heat led by as many as 23 points in a first half where the team piled up 73 points despite playing without Jimmy Butler and Goran Dragic. Miami cooled off after the break and the Bucks took the lead in the third quarter but were down by 6 to start the fourth.

Antetokounmpo, the favorite to win his second MVP award, sat out about five minutes of the fourth quarter after collecting his fifth foul with 11 minutes to go. Milwaukee trailed by 1 with about five minutes remaining before using a 20-0 run, with three dunks from Antetokounmpo, to make it 130-111 with less than a minute to go and cruise to the victory.

Antetokounmpo and Middleton played 30 and 34 minutes respectively after the stars both sat out the entire second half of their last game on Tuesday.

Duncan Robinson had 21 points for the Heat, who lost to Milwaukee for the first time this season after winning the first two meetings.

The Heat led by 6 with about 11 minutes left in the fourth quarter when Antetokounmpo picked up his fifth foul on a charge and headed to the bench. Andre Iguodala made a 3 for Miami before the Bucks scored the next 13 points, capped by a 3 from Bledsoe, to take a 107-103 lead with about seven minutes remaining.

Robinson made a 3-pointer to end a scoring drought of almost four minutes for Miami with about 6 ½ minutes to go and Antetokounmpo re-entered the game soon after that.

The Heat led by 12 with about 10 minutes left in third quarter before Milwaukee used a 16-3 run to take an 82-81 lead with five minutes left in the quarter. Antetokounmpo and Wesley Matthews each had five points each in that span to help close the gap.

The Bucks cut the lead to 3 with a dunk by Antetokounmpo late in the third. But the Heat wrapped up the quarter with a 5-2 spurt to take a 98-92 lead into the fourth.