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.

Kevin Durant keeps building up superstar accolades with second All-Star MVP

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CHARLOTTE – When Kevin Durant won All-Star MVP in 2012, he was asked whether he considered himself a star, a label he had resisted.

“I wouldn’t say that just yet,” Durant said. “Hopefully. Hopefully soon I can say that.”

The notion was silly then. Durant had already made two All-NBA first teams and finished second for MVP.

But that All-Star MVP started to change how Durant presented himself. He made another All-NBA first team, again finished second for MVP and led the Thunder to the NBA Finals that season.

“In 2012, I started to feel like I started to hit that elite level,” Durant said. “All that stuff in one year was pretty exciting to me.”

The hits have kept rolling since.

Durant has added an MVP, two titles and two Finals MVPs. Tonight, he claimed another All-Star MVP. The Warriors star scored 31 points on 10-of-15 shooting to lead LeBron James‘ team to a 178-164 win.

“I just keep trying to rack them up, I guess,” Durant said.

That’s seven years between his All-Star MVPs. Few players sustain that elite level – starring among stars – so long. Only LeBron James (12 years), Michael Jordan (10 years), Kobe Bryant (nine years), Oscar Robertson (eight years) have gone so long between their first and last All-Star MVPs.

Durant, 30, appears to have plenty left in the tank.

Of course, the impending question: Where? Durant can become an unrestricted free agent this summer, and this weekend included plenty of speculation.

Tonight’s game gave Knicks fans reason to fanaticize. New York’s presumed targets with its double-max cap space, Durant and Kyrie Irving showed strong chemistry. Half Durant’s baskets were assisted by Irving, who sent five of his six assists to Durant (the other an alley-oop to former teammate LeBron).

Asked which of his All-Star teammates he best meshed with, Durant refused to name one.

“You don’t really have to do too much when you’re playing with so many great players,” Durant said. “You can do what you’re just best at.”

Team LeBron starts playing defense first, comes from 20 down to win All-Star Game

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CHARLOTTE, N.C. — Midway through the third quarter of Saturday’s All-Star Game, Team LeBron started to care.

Down 20 at one point early in the third, Team LeBron came out of a mid-quarter timeout with a different energy. The “bench” guys on the court started defending with the kind of relative intensity usually reserved for the final minutes of this exhibition (when it’s close), the players on the bench were standing and cheering like it was a playoff game, Kevin Durant and Bradley Beal started knocking down everything, and the game just shifted. It culminated when Damian Lillard tied the game up with a 35-foot three.

Team LeBron kept up the momentum, owned the fourth as Durant went 3-of-3 from beyond the arc in the quarter, and Team LeBron got the win 178-164.

“It was our second unit that came in — Dame, Klay, Brad Beal, LaMarcus, Ben Simmons, KAT,” LeBron said after the game about what turned the momentum. “They came in and just changed the whole complexion of the game. We got stops, and, obviously, Dame and Klay caught fire from beyond the arc, and that allowed us to get back in the game.”

Durant was named MVP, a clear choice with his second-half play in particular.

Giannis Antetokounmpo had 38 points and 11 rebounds, while Paul George showed anyone that hasn’t seen him this season how well he’s playing — MVP conversation level — on his way to 20.

This All-Star Game opened with the level of defensive intensity we have come to expect in All-Star Games. Which is to say none.

Well, except when Stephen Curry was guarding Klay Thompson.

The one guy who was intense from the start was Antetokounmpo, who scored the first six points for Team Giannis. He didn’t slow down on his way to 20 first-half points, plus he had one of the game’s great highlights on a bounce pass alley-oop from Curry.

Antetokounmpo wasn’t the only Buck hot to start, Khris Middleton entered the game midway through the first quarter and drained three shots from beyond the arc in a row. In the first nine minutes of the game, the Bucks were beating Team LeBron 28-27.

The favorite crowd moment of the first half was when future Hall of Famer Dirk Nowitzki walked on the court and splashed a couple of threes.

Dwyane Wade was the other Commissioner addition to the game, which means for one last time we got Wade throwing the alley-oop to LeBron.

Curry struggled late, going 3-of-11 in the fourth, but he still got to rub it in Thompson’s face a little.

“It was good to see Steph knock that shot down over Klay, because Klay is always talking trash to him,” Durant said after the game.

Team Giannis was in control most of the first half and was up 13 (95-82) at the half, not that 13 points is much of a deficit in the All-Star Game. Not when one team started to care.

Stephen Curry gets four-point play after Klay Thompson foul, Curry does some taunting

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CHARLOTTE, N.C. — Stephen Curry is enjoying going against Klay Thompson. Maybe a little too much.

In the first half, Curry was matched up on his Warriors’ backcourt mate and enjoyed that Thompson missed the shot.

Then in the fourth quarter, with the game tight, Curry drained the contested three and drew the and-1 on Thompson — and did a little taunting.

That’s some All-Star fun.

Stephen Curry bounces alley-oop way above rim, Giannis Antetokounmpo slams it down (video)

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CHARLOTTE – Stephen Curry bounced this so high!

I suppose it helps that Giannis Antetokounmpo has such ridiculous reach.