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

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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.

NBA coaches preach flexibility as first real practices about to begin

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ASSOCIATED PRESS — Practice facilities in the NBA have been open for a couple of months, with one major element missing from them.

No team has had an actual practice yet.

Most of the work that has gone on in those buildings during the NBA’s shutdown has been voluntary, and all of it has been of the individual variety – one player working at one basket with one ball. That changes starting Thursday, when the first handful of teams at the Disney complex will be permitted to have full-fledged practices again.

“Every day will be an adventure, a little bit of, `OK, here’s where we are today, this practice will reflect this, tomorrow’s practice might be totally different,”‘ Houston coach Mike D’Antoni said. “And that’s what makes it interesting. It makes it fun. But it’s a little bit like a training camp. Every year you know you lay out all these grand plans and about the third practice you go, `Ooop, they’re out.”‘

The teams that arrived at Disney on Tuesday, assuming quarantines are completed and other issues haven’t popped up, will likely be permitted to practice sometime Thursday. More teams arrive Wednesday and Thursday, so their first practice sessions, in theory, would be as early as Friday and Saturday respectively.

Teams will be assigned a three-hour window and be able to run practice on a pair of side-by-side courts, with training and weight rooms nearby. Disney staff will clean and disinfect everything after one team leaves, preparing it for the next team to arrive.

“Just like with probably everything the league is doing, I think it’d be wise to have a degree of flexibility sprinkled in with everything that you’re planning, a degree of being able to either back off or turn it up a little bit, either way,” Milwaukee coach Mike Budenholzer said. “But to be honest with you, that happens a lot even in the normal season. There’s a plan for the first practice and we’ll see how it goes.”

Players haven’t even been allowed to play 1-on-1 yet at team facilities, per the rules of the individual workouts. That all changes at Disney, where teams will be able to practice for about two weeks before a series of three scrimmages begin on July 22.

The season resumes on July 30. Players have said throughout the shutdown that having only three weeks of actual practice to get ready for game action may not be enough – but that’s what the league ultimately decided the schedule would allow.

Most NBA coaches – D’Antoni, Budenholzer, Dallas’ Rick Carlisle and more – are going into this believing that plans have to be flexible.

“It’s not going to be a typical training camp where you jump in on Day One and just go full-bore,” Carlisle said. “Our players have done a great job of working on their individual conditioning with individual workouts with the coaches on the floor on a 1-to-1 basis … so I feel really good about where we’re at. But this is a different situation, it’s a different time, it’s a different set of circumstances.”

Toronto, the reigning NBA champion, has been on the road for a couple of weeks already, getting their individual work in at a pre-camp of sorts in Fort Myers, Florida. The Raptors couldn’t get their pre-Disney work in at home because of travel restrictions that would have applied to players coming into Canada from the U.S.

Raptors coach Nick Nurse said his players haven’t dreaded the 1-on-0 work that they’ve been limited to so far, saying his team has approached these weeks with “great professionalism” and that his plans for Disney are fairly loose right now.

“I don’t really know where we’re at,” Nurse said. “I can see individually. I think we look really good. But, what will that translate to when we get back into, you know, calling plays and running defenses and doing some things? … I know that I’m sensing they really want to play basketball.”

The Los Angeles Lakers arrive at Disney on Thursday, and while coach Frank Vogel isn’t looking forward to weeks and potentially months away from his family, he believes the individual workouts have gotten the Western Conference leaders ready.

He said those solo sessions have been designed in large part to get players back into some sort of practice shape, with the hope of being able to hit the ground running when everyone can finally be together again at Disney.

“We just want it to be as high as possible to minimize risk of injury and just further the conditioning along as much as we can,” Vogel said. “So, guys have been able to work pretty diligently the last few days or so. And, you know, we’re looking forward to wrapping this up and getting on that plane.”

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.