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.

Here’s every 50-point dunk in NBA dunk contest history (VIDEO)

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Saturday night was yet another entertaining entry into All-Star Weekend lore, with both the 3-point contest and dunk contest coming through in expected fashion.

Oklahoma City’s Hamidou Diallo won the dunk contest thanks in part to an entertaining move where he dunked over Shaquille O’Neal while wearing a Superman outfit underneath his regular uniform.

There were several 50-point dunks on Saturday night, including Diallo’s Superman dunk and Dennis Smith Jr.‘s dunk with rapper J. Cole. Despite a limited field of contestants, the contest many feel is the highlight of NBA All-Star Weekend did not disappoint.

To that end, the NBA decided to put together a video of all the 50-point dunks in NBA history. Check them out in the video above, and see if you agree on their perfect scores.

Adam Silver on Dirk Nowitzki: ‘I saw him painfully running up and down the court, and I think it was clear that this was going to be his last season’

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CHARLOTTE – For the first time in NBA history, All-Star rosters each have 13 players.

Don’t expect that to be a permanent change.

Don’t expect it never to happen again, either.

In addition to the five starters chosen by fans, players and media and the seven reserves selected by coaches, NBA commissioner Adam Silver named Dwyane Wade and Dirk Nowitzki extra All-Stars.

“I didn’t think about it in terms of the next year or whether there will be other opportunities,” Silver said. “I think that, as a league, I like to think we have the flexibility, when there are special occasions.”

Except 1971-73, when they went a whopping 14 deep, All-Star rosters have had 10, 11 or 12 players. It’d been 12 the last 36 All-Star games.

Meanwhile, the league has grown larger than ever. There are now 30 teams.

The result: It’s harder than ever for players to become All-Stars.

The NBA should use adding Wade and Nowitzki as a springboard to keeping All-Star rosters at 13 players. Going forward, the extra spot should go to someone deserving based on their current play, not used as a lifetime achievement award. Two players snubbed annually now usually deserve All-Star status based on historical standards.

Plus, 13-player All-Star rosters would match regular-season active rosters, which expanded to 13 in 2011. Most current players have spent their entire career with 13-player active rosters. It has become strange to have just 12 in the All-Star game.

But Silver – who once said he supported expanding All-Star rosters – views this as a “special occasion.”

“I thought it was a very unique situation in which you had two NBA champions, two NBA players who had long, fantastic careers, both of whom had been All-Stars multiple times in their career,” Silver said, “and both of whom, in the case of Dwyane Wade, had already announced it was going to be his last season. In the case of Dirk Nowitzki, I saw him painfully running up and down the court, and I think it was clear that this was going to be his last season. And it just seemed like a wonderful opportunity to honor two greats.”

Whoa, that is harsh about Nowitzki. (Also accurate.)

This is a nice honor for Wade and Nowitzki. But it’s also an opportunity to normalize 13-player All-Star rosters.

Hopefully, the NBA isn’t slow to seize it.

Stephen Curry brings back jacket similar to one he wore at 1992 All-Star Weekend with dad Dell (photos)

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CHARLOTTE – Stephen Curry got legitimately fired up, pumping his fists and screaming, after making his last 10 shots – including his entire money-ball rack – in last night’s 3-point contest.

That contest doesn’t usually spark so much emotion, but this is a special time for Curry and his family. He’s back in North Carolina, where he grew up, for All-Star Weekend.

Curry honored the occasion with a sweet windbreaker reminiscent of the one he wore at 1992 All-Star Weekend. Back then, he was a 3-year-old accompanying his father, Dell Curry, a Charlotte Hornets guard competing in the 3-point contest.

Jasmine Watkins:

Adorable.

Kemba Walker feels love from Charlotte fans, returns it All-Star Weekend

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CHARLOTTE, N.C. — Stephen Curry was only a few podiums away. Giannis Antetokounmpo and Joel Embiid were elsewhere on the court and could be seen in flashes on the big screen above. Some of the biggest stars in the basketball universe were floating around. Then the chant broke out from the stands.

KEM-BA WALK-ER. KEM-BA WALK-ER

In Charlotte, Kemba Walker is as beloved as any of them. Maybe more.

Walker raised his arm and acknowledged the chanting fans with a smile. The love is mutual.

While All-Star weekend in Charlotte has been a triumphant homecoming for Stephen Curry and a celebration of the Curry family — who Commissioner Adam Silver called the “first family of Charlotte” — there also is love for the slightly undersized point guard who was drafted by Charlotte, adopted the town, and has become its biggest NBA star and ambassador.

“The fan support has been A1, which is how it is each and every day for me,” Walker said. “For the fans, I’m happy they have this opportunity, I’m happy we got this event here. I think we deserved it.”

Walker, a three-time All-Star, said he and the city have been taking in everything around All-Star weekend — the concerts, parties, pop-up stores and more — and savoring it. Walker competed in Saturday night’s Three-Point Contest (although it was not his best outing). He admitted to being tired because of the fast pace of everything in a city that usually moves a little bit slower, but that and a little more traffic were his only complaints. And minor ones at that.

“I’m just happy to be home, honestly,” Walker said. “Excited to welcome people into the city — I’ve been getting a lot of good feedback about the city. Like today, a lot of guys have been telling me it’s their first time in Charlotte, they didn’t know how cool it was, so I was really excited to hear that.”

Walker grew up in a very different world, the Bronx in New York. However, his story of not having a lot of money — spending his days after school at the Boys and Girls Club — and having to work hard has resonated with the city and its residents.

So has his loyalty. Walker has not tried to push his way out the door despite the franchise not putting players around him who can win consistently. (Walker is a free agent this summer and will have options, although the Hornets want to re-sign him and will break the bank to do so, and Walker has professed his love for the city and sounded like a guy who wants to re-sign.)

This season’s Charlotte team is a good example of what Walker faces. It feels like Walker against the world — the team is 6.2 points per 100 possessions worse when he sits, mostly because the offense falls apart. The team’s second best player is Jeremy Lamb. Or maybe Cody Zeller. Walker has pushed Charlotte to a 27-30 record this season, good enough for seventh in the East at the All-Star break, but just half a game ahead on nine-seed Miami and one up on surging Orlando. Charlotte also has the toughest remaining schedule in the East over its final 25 games, and fivethirtyeight.com gives them a 45 percent chance to make the playoffs.

“Hopefully my teammates are getting some rest now, because when this weekend is over we need to make a strong, strong push,” Walker said of the team’s playoff drive. “We have a pretty tough schedule.”

But that’s for next week.

For the remainder of this weekend, Walker — and his mother — are around and just trying to soak it all in. He admitted it’s been surreal to be named an All-Star starter the season the game is in Charlotte, and he wants to make sure those fans who love him and chant his name get a show.

“I’m going to enjoy it, but I’m definitely going to go out there and compete and try to get a win,” Walker said. “Put on a show for the fans.”