Jan 13, 2013, 10:02 AM EST
It has been a whirlwind of a week for Kings fans and the Sacramento Kings relocation story in general.
We reported first in this saga that ‘Kings to Seattle’ was not a done deal, as sources close to negotiations told us there were many hurdles for the deal to clear, and that Sacramento had multiple, qualified buyers that could either meet or beat Chris Hansen’s offer.
This has played out over the last 24 hours as multiple buyer groups have stepped up in Sacramento to buy the Kings, including a group that is connected to Ron Burkle.
In terms of the math and money, as we reported in September the reason Sacramento has a shot against top-tier owner prospects such as Seattle’s Hansen and billionaire deluxe Steve Ballmer is that they don’t have to pay as much for the team.
Anybody moving the team will have to account for at least $100 million in unpaid loans to Sacramento (~$75 million) and relocation fees (~$30 million), and this is a very low estimate. That number increases as you account for moving costs, and the fact that the relocation fee could be more than $30 million. We’re reporting that this number could go as high as $300 million if the league really wants to flex its muscles in getting what it wants.
Our report Thursday estimated a $425-450 million price tag for Sacramento to hit in order to start outperforming Seattle’s offer. Sam Amick of USA Today was able to confirm with Sacramento mayor Kevin Johnson at his charity event that this was indeed the city’s initial target, and also that the mayor would be approaching David Stern to speak at the NBA’s Board of Governors meeting.
LeBron isn’t going to have to reach far because Sacramento buyers have been making themselves known over the past 24 hours. Mark Mastrov, former CEO of 24 Hour Fitness and San Francisco investment firm JMA Ventures have thrown their hats in the ring.
JMA Ventures is proposing to buy the team and build a $400 million downtown arena where a downtown mall they recently purchased currently sits. CBS 13’s Steve Large reports that group includes Darius Anderson, who is the same man that connected mayor Johnson to Ron Burkle.
According to sources there are more interested buyers being filtered through the process, too. The Sacramento market is all-but rubber stamped with $200 million or more of public investment toward a new arena and has an extreme level of fan support. Being the No. 20 television market doesn’t hurt, but having no other sports teams to compete with is what puts it in the same category as a larger market like Seattle, which has the Seahawks, Mariners, and Sounders to steal entertainment dollars.
In Sacramento, all they have is the Kings.
Assuming Hansen and his group don’t want to start acting like the drunk guy at an auction, then the NBA is going to be choosing between two similar offers. The owners in Sacramento might not be Ballmer-rich, but Burkle was good enough to drop David Stern’s jaw and Mastrov finished second to Joe Lacob’s group in Golden State, ahead of Larry Ellison.
The NBA isn’t picking between steak and chopped liver, here.
But if for some reason they don’t let California’s capitol city have a shot here, and they allow the team to be moved to Seattle, then the NBA will be the ones left holding the Sacramento’s beating heart after the Maloofs rip it out of their convulsing chest.
“I’ve always like the Maloof brothers, but they’ve screwed this thing up royally. All these teams try to screw these cities, that’s what the deal is. I don’t think it’s right for all poor people to build these cities all these major stadiums year after year after year. Every ‘x’ amount of years, they screw the fans and the taxpayers and make them build them bigger stadiums and bigger stadiums and bigger stadiums. I think these owners are worth so much money … does a city benefit? Of course a city benefits. But this thing in all sports been screwing these fans for the last 30 years, moving from city to city. Because those people in Sacramento, those were some of the best fans in the world. They screwed Seattle because they wouldn’t give them a new arena, and those fans in Seattle were amazing. But this is all about the owners just being greedy and screwing these fans.”
We’ve reported the NBA’s billion dollar subsidy issue here for nearly two years now, as the league and its players have received over $3 billion in public funds for arenas since 1990.
This happens because the league and its owners pit cities against one another with threats of relocation if a city doesn’t pay up for an arena, but in the case of Sacramento they did everything they could and then some according to multiple league sources.
One league source with intimate knowledge of the situation called it “a model offer of public funds.”
The league is walking dangerously close to the line in which people get fed up and they start to lose those subsidies they love dearly. In Seattle, yes their own politicians screwed up and were culpable in the matter, but the league’s underhandedness and heartlessness was brought to life in the documentary Sonicsgate. It’s not pretty.
But unlike that story that was told after the fact, the saga in Sacramento is playing out in real-time. The NBA media is getting constant updates on their Twitter feed about the incompetent, despicable Maloof family and how they’re leaving the house in worse condition than they found it.
This twisted tale is filtering all the way down to the fans, and when Charles Barkley talks about the deplorable business tactics of the NBA on TNT the cat is out of the bag.
This isn’t just league insider talk anymore, it’s coffee talk.
If the Kings leave Sacramento, it will transcend sport. The story of Sacramento Kings fans, arena workers, and the like will make the morning talk show rounds, ultimately culminating in a national discussion about the role of public money in professional sports.
Seattle — a victim of the system – is excited that their Sonics might be coming home, but the mere exercise of having to replace the team that was stolen from them is a trying experience.
And even if they can secure an NBA team, some Sonics fans are having trouble with their own moral relativism.
For years they’ve railed on the NBA for stealing their team and now they’re trying to steal Sacramento’s team. They’re slowly understanding what it means to have that blood on their hands, and many Seattleites are already speaking out saying the juice isn’t worth the squeeze – especially when they know they stand a very good chance of getting a team down the road under more moral circumstances.
Unlike the Oklahoma City fans that can point at Seattle’s politicians and argue that they slept on the job – Seattle fans have no such target. Kevin Johnson has moved mountains to keep this team while the Maloof family can’t get out of their own way.
Besides wanting to move the team since they purchased it and ruining every arena deal the city tried to create in good faith, the Maloofs sold profitable businesses to build a pipe dream casino a mile off the strip in Vegas and it led to their downfall.
Rather than atoning for their financial mistakes, the Maloofs have dragged the league through embarrassment after embarrassment through the years, all because they cannot afford to own an NBA team.
Every subsequent episode is their worst one and the shenanigans come with increasing frequency, as just Friday night a report surfaced that their Palms Casino was getting popped with a $1 million fine for a prostitution and cocaine ring (no word if the price of the Kings just went up).
This isn’t a case of Sacramento not deserving the team, or not having the wherewithal to keep the team, but rather a case of a Maloof family that makes Antoine Walker look like Warren Buffett.
Sacramento has been paying for this Maloofery for years, and nobody is comfortable with an indecent proposal leaving Kevin Johnson at the altar. Not Stern, not Seattle, and probably not Gavin and Joe Maloof — whose love of Sacramento has been trumped by brotherly grudges and family needs.
It’s against this twisted backdrop that sources close to the situation believe Sacramento has a chance, and some sources believe they are actually favored to keep their team. I happen to share that belief.
Once again it all comes back to the NBA. They can tell the Maloofs what to do here. If the offers between the cities are close, they can decline the move to Seattle and force the Maloofs to take them to court in an antitrust case if they don’t like it. There, the league can show a laundry list of claims that show the Maloofs are putting the league’s subsidy industry at tremendous risk by selling to Hansen.
After all, what city or politician can sell their constituents on making a long-term investment in the NBA when Sacramento did everything a city could to protect their investment and got told to kick rocks.
Also in the NBA’s arsenal would be the aforementioned increased relocation fee up to $300 million, and if push comes to shove David Stern can remove the family from the league using the ‘best interest of the league’ clause.
Regardless of what some of their intermediaries might like you to think, the Maloofs aren’t going to wade too far into those waters.
With the family’s debt to the league upwards of $127 million and as high as $217 million by some reports, and their financial situation a total mess, they’re bringing a whoopee cushion to a gun fight if they want to go to court. And if they do, they won’t have the law on their side unless Hansen can drastically overpay for the franchise, giving the Maloofs the argument that the league is costing them significant money by forcing them to sell to Sacramento.
Even then, the cash-strapped and beleaguered Maloofs would still have to win that battle in court.
Looking outside the courtroom and toward the league office, there has been a lot of talk about the wrongs that David Stern wants to ‘right’ in Seattle, and how he wants to remove that inscription from his tombstone.
You can’t cross out Seattle’s name and simply write in Sacramento’s and change your legacy. We all learned in kindergarten that two wrongs don’t make a right.
But that’s not what’s really at stake here.
As usual it comes down to the money, and with all things equal in this case the threat of killing the public subsidy goose will be the tiebreaker.
With Kevin Johnson’s legitimate, comparable offer from more-than-reputable buyers in hand, the NBA will have to both look a gift horse in the mouth and sanction Sacramento’s open-heart surgery if they move the team to Seattle.
And if they do, it’s going to leave a mark. A $3 billion mark.
And unless you’re the Golden State Warriors that’s not good for business.
Dec 7, 2013, 6:30 PM EST
So, I had this whole thing written and ready about how Sixers coach Brett Brown doesn’t believe that Michael Carter-Williams is injury-prone, despite the fact that after sitting out Saturday, the rookie will have missed six of his team’s first 21 games. But then the news broke that Carter-Williams had been hospitalized with a bacterial…
Dec 7, 2013, 5:00 PM EST
Kobe Bryant will take the court on Sunday against the Raptors, seeing his first action of the season since suffering a torn Achilles injury this past April. The buzz surrounding Bryant’s long-awaited debut continued at the Lakers practice facility on Saturday, when Mike D’Antoni answered questions about how much Bryant will play, at what level,…
Dec 7, 2013, 3:31 PM EST
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Dec 7, 2013, 2:00 PM EST
Kyrie Irving has been far from the dominating, game-changing point guard he showed capable of last season, and people around the league are beginning to take notice. He’s had games where he’s put up some decent numbers, but has done so inefficiently in recent weeks. After an 0-9 performance in Cleveland’s blowout loss to the…
Dec 7, 2013, 12:30 PM EST
If you’ve only been paying cursory attention to the NBA in its early stages this season, you may not have noticed the rise of the Portland Trail Blazers. But following Friday night’s 130-98 pasting of the Utah Jazz, Portland now has a record of 17-3 — the best in a very deep Western Conference. Guys…
Dec 7, 2013, 11:00 AM EST
The Knicks have won two straight in blowout fashion, looking a little like last year’s club with the hot three-point shooting and briefly returning some sense of sanity to the team and its fan base. The media has yet to catch up, however, as the reports and rumors continue to fly about Carmelo Anthony‘s future…
Dec 7, 2013, 9:30 AM EST
The Knicks rolled the Magic 121-83 on Friday to earn a much-needed second straight victory, but Orlando rookie Victor Oladipo came up with at least one play that was worthy of the highlight reel. As Carmelo Anthony drives the lane for what looks to be a certain slam, Oladipo rises up and rejects him at…
Dec 7, 2013, 8:00 AM EST
Kobe Bryant‘s return — and the Lakers’ decision to announce it with a video on Facebook of Kobe’s jersey — is the focus of the latest edition of NBC’s ProBasketballTalk Podcast with myself and Eyton Shander of NBC Sports Radio. We talk about what this means for the Lakers, both in the short-term this season…
Dec 6, 2013, 11:47 PM EST
Russell Westbrook wasn’t the only one showcasing his range under pressure on Friday. Paul Millsap of the Hawks heaved a shot from well beyond half court to beat the first quarter buzzer against the Cavaliers, and it found nothing but the bottom of the net. We’d like to tell you that this particular heave mattered…
Dec 6, 2013, 10:31 PM EST
Anytime a player on either team hits a shot from a distance that borders on the absurd, the announcers on the telecast seemingly can’t wait to break out the local references in describing just how far away the attempt actually was. In this case, we had Russell Westbrook hitting a shot from near halfcourt to…
Dec 6, 2013, 9:23 PM EST
Ray Allen couldn’t do it. Neither could Reggie Miller or Stephen Curry or any of the other three-point marksman you can name. Kyle Korver has now made a three in 90 consecutive games, breaking the record Dana Barros set in 1996. He did it midway through the first quarter from above the break on the…
Dec 6, 2013, 6:52 PM EST
Otto Porter, the No. 3 pick of the Washington Wizards and the guy seen as their small forward of the future, could make his NBA debut Friday night. Porter, who strained his hip flexor in September and missed all of training camp and the start of the season, is active for the Wizards Friday night…
Dec 6, 2013, 6:04 PM EST
Kobe Bryant decided to stay home from Sacramento, but he will be in the Lakers lineup Sunday night against Toronto. Steve Nash went with the Lakers up to Sacramento after a week of limited practices but nobody has any idea when we will see him. Or even if we ever will. Nash spoke with reporters…
Dec 6, 2013, 5:23 PM EST
Kobe Bryant’s jersey has faced snow, rain and wind. Yet, it’s endured. That’s the lesson I took from the above video, which Kobe posted to Facebook today. Oh, and that Kobe will return Sunday against the Raptors. I guess he’s been through a lot, too. Sunday will mark just 240 days since he tore his…
Dec 6, 2013, 3:59 PM EST
Kevin Love will not suit up Saturday night when the Timberwolves host the Miami Heat for the one time this season. Love’s grandmother has passed away and he is not with the team right now. Timberwolves assistant coach Terry Porter said Friday Love will not play Saturday, tweets the St. Paul Pioneer Press. The Timberwolves…
Dec 6, 2013, 3:22 PM EST
UPDATE 5:37 pm: Kobe Bryant will make his return on Sunday night — he made the announcement in a Facebook video. Apparently he owns some FB stock. 3:22 pm: The Lakers are in Sacramento tonight. Kobe Bryant will be at his home in Newport Beach, trying to get his daughters to turn off the “Muppets…
Dec 6, 2013, 3:02 PM EST
Dana Barros, a little point guard out of Massachusetts who got to play for the Celtics as part of a 14-year NBA career, and while there he set a record: Eighty-nine consecutive games with a made three. If Kyle Korver knocks down a three Friday night when the Hawks host the Cleveland Cavaliers Korver will…
Dec 6, 2013, 2:19 PM EST
I would say the fact Houston has put Omer Asik on the trade block is the worst kept secret in the NBA, except it’s not a secret. Everybody knows it. The only questions are when he gets moved and where he lands. Talks have not progressed all that quickly because while other teams come in…
Dec 6, 2013, 1:54 PM EST
“They hate me, they hate me. I don’t know why, but it is what it is. I already know I’ve got the target on my back, but I’ll play through it; I don’t care. I really don’t. It doesn’t bother me none. If I get a call, I get a call. If I don’t, I…
Dec 6, 2013, 1:45 PM EST
The USA Today has a fantastic feature speaking to Rajon Rondo’s high school coach, Steve Smith (not the player Steve Smith, different guy). It’s well done, you can learn about Rondo as a young player. Then came this interesting tidbit when Smith was asked if he thought Rondo could bounce all the way back from…
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