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.

Watch Victor Oladipo drive the pace car at the Indianapolis 500 (VIDEO)

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Victor Oladipo is Indiana’s favorite son after the Indiana Pacers guard blasted through the competition during the 2017-18 NBA season.

Oladipo averaged 23.1 points, 5.2 rebounds, 4.3 assists, and led the league with 2.4 steals per game. Oladipo’s 3-point shooting improved year-over-year, and his VORP skyrocketed in his new leadership role. Many feel the Pacers won the Paul George trade with the Oklahoma City Thunder thanks to Oladipo.

Thanks in part to his stellar play, Oladipo was invited to drive the pace car at the start of the 2018 Indianapolis 500. Turns out he was pretty good at it.

Via Twitter:

Oladipo is apparently going to be honored with the steering wheel from the pace car he drove. No doubt taking part in a classic local sporting event like the Indy 500 will help ingrain Oladipo into the sports fabric in Indianapolis even further.

Steve Kerr on Chris Paul: ‘More than anything, I feel bad for Chris’

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Houston Rockets guard Chris Paul didn’t play in Game 6 on Saturday night. The Rockets failed to eliminate the Golden State Warriors, who forced a Game 7 with a 115-86 win in Oakland.

Paul’s status for Game 7 is still unclear, although things aren’t looking good. Paul’s hamstring injury will be hard to heal in such a short amount of time, even with round the clock treatment and the power of will the veteran point guard brings to the table.

The Point God has a tendency to get hurt at just the wrong time. Paul famously broke his hand in April of 2016, and along with Blake Griffin‘s quad injury, allowed the Portland Trail Blazers to get the better of the Los Angeles Clippers in the playoffs that year. Paul also missed two games against the Rockets in the playoffs with a sore hamstring in 2015, a series the Clippers and Paul lost in seven games.

The NBA is not blind to Paul’s bad luck, either. Opposing head coach Steve Kerr commented on it to reporters, outlining not only what he thought they might do rotationally but his feelings about Paul’s injury history.

Via ESPN:

“More than anything, I feel bad for Chris,” Kerr said before the Warriors’ 115-86 rout of the Rockets at Oracle Arena. “The guy’s a phenomenal player and competitor and pretty much willed his team the last two games. He’s just been haunted by these types of injuries in his career, and it’s a shame. I hate when anybody gets hurt.”

Kerr mentioned that he knew the reality of the situation is that by the end of the season, not everyone is going to be healthy. No doubt it’s a good thing for Kerr and the Warriors that Paul will likely miss Game 7. It’s unfortunate for a veteran like Paul, whose stellar career is dogged by unfair narratives of playoff failures.

Maybe Houston can try again next year when they have LeBron James?

Rockets doctors to evaluate Chris Paul Sunday then make Game 7 call

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Officially, Chris Paul is questionable for Monday’s Game 7 against Golden State.

Mike D’Antoni said the call on whether he can play will be made by team doctors on Sunday.

“The team doctors will check him out tomorrow morning and see how far he’s got (in his rehab) and what the possibilities are,” the Rockets’ coach said, adding that the doctors will make the call, not him.

Sources suggest there is pessimism about if Paul can play around the team, but with his competitive nature nobody wants to rule it out. Nobody is quite sure where things stand.

“I don’t think he’s tested it at all, so he’s just getting treatment and trying to make sure it calms down and everything,” D’Antoni said. “And I would think our doctors and trainers are working on him 24 hours a day almost, and they will tomorrow morning re-evaluate it again.

“If I get a nod from Chris and the doctors he’s good to go. Probably if any of those disagree he’s probably not going. I think it’s a game-time decision.”

The Rockets got off to a fast start without Paul in Game 6, led by Eric Gordon raining threes. However, the Rockets missed Paul’s defense and steadying influence when he has the ball as things started to go sideways in the second half — the tempo got up, the Rockets missed shots and turned the ball over, and Stephen Curry and Klay Thompson got hot. Paul may well have not been able to stop this run, but the Rockets would have had a better chance with him.

Without him, even with the Rockets at home, Vegas opened the Warriors as five-point favorites.

 

Friends raise more than $20,000 for LGBTQ youth to honor memory of Bo Churney

via @byjanehammond on Twitter
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The name Bo Churney might sound familiar to you if you’re a member of NBA Twitter. A leading online voice around the Atlanta Hawks and a former writer for various outlets — including ESPN, Turner Sports, and Hardwood Paroxysm — Churney sadly took his own life last week.

The outpouring around Churney’s untimely passing has been significant. After his death, friends of Churney quickly decided to organize a fundraiser in his name, and in less than a week had $20,000 in donations from the online community.

The fundraiser will donate the money to Lost N Found Youth, an organization that helps at-risk LGBTQ youth in the Atlanta area. Churney had come out of the closet a few years before his death.

Via EverydayHero:

A lot of people have reached out asking if there’s anything they can do or help with after the death of our dear friend Bo Churney. We wanted to do something in memory of Bo in the Atlanta community that he loved and helped make a better, more fun place. Lost N Found Youth is an organization that provides outreach, crisis support, services, clothes, food, and safe shelter for homeless and at-risk LGBTQ youth between 13-25 in the Atlanta area. Anything you can give would be tremendous or even sharing and spreading the word. Thank you.

As of writing there have been 473 donations in Churney’s memory, with people leaving messages and sums large and small. Churney’s impact was vast, and the fundraiser has been mentioned everywhere around NBA media including TV, newsletters, and articles like this one.

You can click the links above to donate to the Bo Churney Memorial Fund or directly to Lost N Found Youth.

If you need to speak to someone, contact the Suicide Prevention Lifeline here.