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.

DeMar DeRozan expresses anger at trade to Spurs on Instagram

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DeMar DeRozan has been loyal to Toronto.

He embraced the city when former stars abandoned it and pushed their way out of town. In 2016, as a free agent, he didn’t even meet with another team, he had no intention of leaving. He said he wanted to go down as the greatest Raptor ever. A Los Angeles kid himself — born and raised in Compton — he never pushed to go home, instead becoming incredibly active in the community off the court as well as being a four-time All-Star, two-time All-NBA player on it. He has led the greatest run of Raptors basketball in franchise history.

The Raptors were not loyal to DeRozan — they are shipping him to Texas in a trade for Kawhi Leonard that is being finalized.

DeRozan reportedly hates the move and put this up as an Instagram story.

“Be told one thing & the outcome another. Can’t trust em. Ain’t no loyalty in this game. Sell you out quick for a little bit of nothing… Soon you’ll understand… Don’t disturb…”

Leonard reportedly also is unhappy with the trade — he wanted to go home to Los Angeles. However, Lakers would not the players the Spurs wanted into a trade (Brandon Ingram, Kyle Kuzma and more), and the Clippers do not have the assets to interest the Spurs in a trade. San Antonio was holding out for other bidders, biding their time, and in came Raptors’ GM Masai Ujiri with an aggressive move.

Leonard’s inexperienced management team, which did not handle this situation well, wanted him in a major market that would boost Leonard’s marketing opportunities. While Toronto is a big market — sixth largest in the NBA, bigger than Philadelphia — and is the team of a nation with fans across Canada, this is not what Leonard’s people wanted. He is a free agent next summer in 2019.

DeRozan has every right to feel betrayed — next time you think of complaining about how players are not loyal to cities/teams/fans, remember this. Loyalty is a luxury in the NBA and one rarely rewarded.

DeRozan also will come around and embrace San Antonio, the Spurs culture, and Gregg Popovich. He will help them win a lot.

Whether the Raptors can win over Leonard becomes one of the NBA’s biggest storylines of 2018-19.

Raptors reportedly agree to trade to acquire Kawhi Leonard from Spurs

Associated Press
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Raptors’ GM Masai Ujiri wanted to shake things up in Toronto this offseason, to change the culture, to make a push for a ring with LeBron James having gone West. The status quo was no longer good enough.

He has done that in the most dramatic way possible.

In maybe the biggest move of the summer, the Raptors are about to acquire Kawhi Leonard from the San Antonio Spurs. From Adrian Wojnarowski and Chris Haynes of ESPN:

The Toronto Raptors are finalizing a deal to acquire San Antonio Spurs star Kawhi Leonard in a trade package that includes All-Star DeMar DeRozan, league sources told ESPN.

An agreement in principle could be reached as soon as Wednesday, league sources said.

Leonard and DeRozan are both aware that an agreement could be imminent, and neither is expressing enthusiasm for the deal, league sources said.

DeRozan seems to confirm the trade — and his displeasure with it, he wanted to go down as the greatest Raptor ever and embraced that city when others stars had bolted it — in an Instagram story.

Leonard and DeRozan cannot be traded for each other straight up (DeRozan makes $7 million more than Leonard), the deal would need to have other players and picks involved. Something such as Leonard and Danny Green for DeRozan, OG Anunoby and picks works, but the deal is likely more complex than this.

The Spurs did not want to send Leonard to the West and the Lakers, and they wanted a star player who would keep them relevant and in the playoffs as part of the deal. DeRozan does that (while the Lakers and Sixers would not throw in key pieces such as Brandon Ingram or Markelle Fultz). Paired with LaMarcus Aldridge, Dejounte Murray, and whoever else doesn’t get traded they are in the playoff mix in the middle of a brutal West. DeRozan has two seasons guaranteed at $27.7 million, with a player option for a third season after that.

Leonard is a free agent in the summer of 2019 and can then sign anywhere he wants. That has reportedly been Los Angeles, although in Las Vegas I heard rumors from sources that both the Lakers and Clippers are in play to get him.

The Raptors will have this season to win him over and get him to re-sign — just as Oklahoma City did with Paul George. Toronto is a fantastic city, it has a passionate fan base, and the team is poised to win a lot. Toronto also has more money: with the trade Toronto can offer Leonard a five-year, $190 million contract next summer, the most any other team can put on the table is a four-year, $141 million offer. Leonard, it should be noted, walked away from a $221 million offer should he have worked things out with the Spurs.

If Leonard is fully healthy — something nobody really knows for sure — the Raptors would be contenders in the East, a team that is a threat to favorite Boston as well as Philadelphia.

Blazers win 2018 NBA Las Vegas Summer League Championship vs. Lakers

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The Portland Trail Blazers are your 2018 NBA Las Vegas Summer League Champions. I want Multnomah County just to drink that in for a minute.

Tuesday night’s Final was not a close one, with the Trail Blazers in control of the game for most of the time. Portland jumped out to an early 31-19 lead, and were led by KJ McDaniels, who eventually took home the championship game’s MVP honors.

On the other side of the floor, it was Summer League MVP Josh Hart who had been ejected in the fourth quarter. Portland’s largest lead was 24 points, and it was surely a frustrating night for the young Lakers Squad.

Via Twitter:

McDaniels led the way for Portland, finishing with 17 points, seven rebounds, and one assist on 57 percent shooting from the field. The Blazers had six players in double figures, and helped shut down LA from 3-point range, forcing them to shoot just 3-of-21 from deep.

Hart scored 12 points for the Lakers, and Los Angeles had just three players in double figures. As a team, LA shot 39 percent from the field during the 18-point loss.

This Summer League playoff win doesn’t quite make up for the 2000 Western Conference Finals between these two rivals, But Blazers fans have to be happy that their team at least got a sniff of a deep playoff run.

No doubt they will be partying on SE Division tonight.

Lakers’ Josh Hart get ejected during Summer League Final (VIDEO)

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Josh Hart was the Las Vegas Summer League MVP for the Los Angeles Lakers. He scored a whopping 37 points during Monday night’s 2OT win against the Cleveland Cavaliers, but apparently it was just too much of him to finish Tuesday’s Final against the Portland Trail Blazers.

Hart didn’t agree with an official’s decision — presumably on a no-call — late in the fourth quarter, and he had some choice words for the referee as the floor changed possession. The Lakers guard already had one technical foul from earlier in the game, so his second earned him an ejection. It was his second of Summer League.

That’s not necessarily a good look for Hart, although it’s not as though Summer League has a real impact on a player’s career in the long run.

Should Hart have been upset that he did not get a foul? Probably not, seeing as how he led with his elbow. No doubt Lakers brass will be more concerned by the fact that he was ejected from not one but two Summer League games during his MVP run.

Hart will have to get his emotions under control as we head into the regular season for Los Angeles.

The Trail Blazers beat the Lakers in the Final, 91-73, with KJ McDaniels taking home the championship game MVP honors.