Bucks owner Herb Kohl seeking new investors to keep the team in Milwaukee

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Bucks fans will spend the next 2-3 years looking over their shoulders at Seattle, and that’s because they’re in jeopardy of losing their basketball team should owner Herb Kohl fail at securing a new NBA-approved arena.

For small and mid-markets, having a state-of-the-art arena to maximize revenues is a requirement and any city that isn’t willing to make that type of commitment to the NBA will be threatened by 5-10 other cities that are dying to get into the game. It’s simple supply and demand.

Kohl, the former Democratic senator who is 78, is reportedly looking for other investors to join him in his attempt to keep the team in Milwaukee.

With a net worth that’s better described with an ‘M’ for millions rather than a ‘B’ for the billionaire owners that the NBA is attracting these days, it’s understandable why Kohl needs to deepen the pockets and broaden the influence of his group.

First and foremost he needs to deliver on an arena, and having more investors will help that along in many ways. But just as important to Milwaukee will be the overall value proposition this ownership group will have to the NBA, whether Kohl wants to continue as owner of the Bucks or not. That’s because if there ever comes a time when their arena plans are in doubt, it will be this group that gets measured against Seattle and any other city that wants to get into the game.

The NBA, whether being led by Adam Silver or David Stern, does not like to relocate franchises. In this day and age of information, the damage that relocation can do their brand is much greater than it was when Seattle’s elected officials told the NBA to go kick rocks and thus Sonicsgate was born.

At the same time, the NBA has found a sweet spot in its public subsidy pitch, which has been the target of many economists’ ire over the last 30 years when suburban arenas were all the rage. Economists have maintained that arenas don’t increase local spending because of things like the substitution effect, which simply stated means that people spend money at the game but stop spending their limited funds everywhere else. In essence, they contend, there is no overall gain.

However, economists have recently found themselves at an impasse on the issue with even the most ardent oppositionists still researching newer findings, in an area of study that isn’t exactly brimming with ongoing research.

The new revelations highlight the difference between suburban arenas and what city planners call ‘high density civic attractions,’ which are more likely to be sought after in the small-to-mid market cities that are most susceptible to relocation.  Instead of driving to a suburban arena, watching the game, and then leaving – a downtown arena can attract people for longer visits, attract all-important out-of-town dollars, and encourage use of mass transit.

In terms of increasing land value, a properly developed downtown arena district can increase surrounding land value by “hundreds of millions of dollars” according to a recent study by lead opposition subsidy voice Brad Humphreys. Arguments move into the both the micro- and mundane-levels from there, but an increase in land value around these downtown arenas stands on its face – it’s valuable for a reason.

The NBA has the cachet as an anchor tenant to bring in the private investment needed to make these downtown revitalization projects pencil out, particularly as public redevelopment dollars have dried up around the country.

With the NBA being the winner of over $3 billion in public funds since 1990, they have a massive financial stake in making sure they both polish that pitch and protect their reputation on that front.

For starters they have to maintain that they can be a loyal partner to any city engaging in good faith efforts to maintain a state-of-the-art arena.  Long-term, by building a portfolio of downtown success stories like L.A. Live, downtown Indianapolis and the soon-to-be built arena in downtown Sacramento — the league can keep the public funding narrative from collapsing under a wave of antipathy toward millionaires and billionaires bouncing a leather ball for amusement.

So look for the NBA to work with Kohl and Milwaukee to find the political will (i.e. public dollars) to get an arena deal done. As expected, the league released a statement from David Stern moments ago expressing support for that process. “Senator Kohl bought the Bucks in 1985 in order to ensure the team would remain in Milwaukee. During his extraordinary stewardship his goal remained the same — to bring the fans of Wisconsin high-quality basketball from a team they would be proud to call their ‘home’ team. With this announcement, Senator Kohl continues his mission: to assure continuity of ownership by broadening its ownership base, and assuring that the fans of Wisconsin will enjoy NBA basketball and other events in a new state-of-the-art facility,” said Stern.

And while everything is going to sound fine for Bucks fans until it doesn’t, they’re not going to know that they are indeed keeping their team until much more has been revealed in this slow-moving story.

Marc Gasol opting in with Raptors for $25,595,700

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He joined the Raptors this season, helped them win a championship and will stay.

No, not him.

Marc Gasol, who had a $25,595,700 player option for next season.

Raptors PR:

Marc Gasol has exercised his player option with the Raptors for the 2019-20 season.

If Kawhi Leonard re-signs, Toronto will be happy to have a solid starting center like Gasol for a title defense. This leaves Leonard and Danny Greenwho’ll also be an unrestricted free agent – as the only core Raptors not locked up for next season.

But if Leonard leaves, Gasol will be an overpaid cog on a middling playoff team. There just isn’t that much of a market for merely solid centers, especially a 34-year-old.

Of course, Toronto knew Gasol’s salary situation when acquiring him just before the trade deadline. The Raptors got the best immediate outcome with a championship. Paying him $25,595,700 next season is a perfectly acceptable cost.

Report: Sixers ‘expressing confidence’ they will re-sign Jimmy Butler; Rockets still seek sign-and-trade

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If the Philadelphia 76ers put a five-year max contract of $189.7 million in front of Jimmy Butler, the smart bet is he signs it. Fast. Butler will be 30 next season and has a growing history of injuries, plus the Sixers are going to be contenders with him. That’s a lot of money and a good situation to walk away from.

The Rockets are still hoping to lure him away to Houston, forcing a sign-and-trade on Philadelphia, but the Sixers are confident they will keep him, reports Adrian Wojnarowski and Zach Lowe of ESPN.

As noted in the ESPN story, there is no indication that the Sixers or Butler are down with this trade idea.

The only way this sign-and-trade happens is if Butler goes to the Sixers and says he’s leaving anyway and wants a sign-and-trade to Houston. Then Philadelphia would play along only because they could get something back for Butler, rather than losing him outright.

However, I have heard from league sources that if Butler leaves Philly the Lakers are the team at the top of his list, paring with LeBron James and Anthony Davis. Whether that is true or not, he has options including the Knicks. Maybe for Butler the chance to chase a ring with James Harden and Chris Paul is a bigger draw, however, to make that happen the Rockets will be stripped of a lot of depth. If the Lakers add Butler at the max, they will have three stars, Kyle Kuzma, and the rest of the roster will be minimum contract guys (plus somebody for the $4.8 million room exception).

If Butler leaves Philadelphia, the most he can sign for with any team is a four-year, $140 million contract. That includes in a sign-and-trade with the Rockets, under the new CBA a player cannot sign the larger five-year max as part of a sign-and-trade, it can only be for the $140 million the Rockets could sign him with outright.

While this is a fun rumor and report that gets a lot of ink, it seems highly unlikely to come together. Never say never in the NBA, but this seems a longshot.

That said, a Rockets locker room with Jimmy Butler, James Harden, Chris Paul, and a lame duck coach would be good for those of us who love NBA drama.

Rumor: Several teams want to pair Kawhi Leonard, Jimmy Butler

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Kawhi Leonard is choosing between staying in Toronto with the Raptors or coming to Southern California and being a Clipper, according to sources and multiple reports.

Jimmy Butler probably signs a five-year max contract to stay in Philadelphia if the Sixers put it in front of him (as their management has said it would do), but if not the Lakers are considered to be the frontrunners according to the buzz around the league.

However, there are teams dreaming of pairing Butler and Leonard this summer, reports Ian Begley of SNY.tv.

Multiple teams have expressed interest in pairing Kawhi Leonard and Jimmy Butler together in free agency this summer, per league sources familiar with the matter.

Those teams, obviously, would need to create the cap space required to sign both players. The teams interested in Butler and Leonard believe they would have interest in playing on the same team, per league sources.

This doesn’t suggest that Leonard is seeking to team up with any other player; that doesn’t fit his persona. But teams interested in pairing Leonard and Butler believe they would have interest in playing together.

There is a whole lot of supposition in that report (and from teams).

First, and Begley touches on it, this assumes that Leonard wants to team up with Butler, or anyone for that matter. Superteams are not his style. Butler can bring drama with him, and that is also not Leonard’s style. On the flip side, does Butler want to partner up with Leonard?

Second, there are not a lot of teams that can clear two max salary slots. Brooklyn, the Clippers (if they trade Danilo Gallinari, something certainly possible), the Knicks and maybe a couple others with some cap gymnastics. Just a note here: the writer Begley is based in New York and covered the Knicks for ESPN for many years. Draw whatever conclusions you want from that.

Third, this is most likely not the path for either of them. Never say never, because NBA free agency can flip on a dime, but pairing those two is not the most likely outcome.

But it’s the silly season, so rumors are everywhere.

NBA reportedly clears Omer Asik’s $3 million salary off Bulls books

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Omer Asik came to Chicago as part of the Nicola Mirotic trade, but last season he never set foot on the court for the Bulls. Back in training camp, Asik was ruled out indefinitely with inflammatory arthritis, the latest flare-up in a condition that has been an issue for years. Asik had played in just 49 games combined the two seasons before sitting out this last one.

During training camp, the Bulls waived Asik. He was paid his full $11.3 million for this season and had a $3 million guarantee for next season.

After applying to the league to have it removed (because Asik hadn’t played in a year due to injury and was not expected to in the future), that $3 million is coming off the Bulls’ books in time for free agency, reports Shams Charania of The Athletic.

That $23 million is not a max player slot, but it is a little more money for the Bulls to spend as they chase a point guard and look to add depth and shooting to their young roster.

Asik still gets paid the $3 million, it just doesn’t count against the Bulls salary cap.