Mar 4, 2013, 11:37 PM EST
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.
Dec 4, 2013, 10:53 PM EST
Kobe Bryant is back to practicing at full speed this week, and while many hoped that would mean a return to real game action as soon as Friday on the road against the Kings in Sacramento, Bryant himself said on Wednesday that wouldn’t be the case. Speaking to many reporters one-on-one at the unveiling of…
Dec 4, 2013, 9:27 PM EST
UPDATE 9:46 p.m.: The NBA later issued an official release detailing the postponement: “The National Basketball Association game scheduled for tonight between the San Antonio Spurs and the Minnesota Timberwolves has been postponed due to a generator malfunction which produced smoke inside Mexico City Arena. “The date for the rescheduled game, which will be played at…
Dec 4, 2013, 9:01 PM EST
Gerald Henderson of the Bobcats became the latest player to be warned for violating the league’s anti-flopping rule on Wednesday, and there’s little doubt that his dive against the Mavericks on Tuesday was worthy of its distinction. With his back to the defender, Henderson simply takes a leap toward the sideline with the ball in…
Dec 4, 2013, 6:35 PM EST
Is it too late to join the Eastern Conference? Asking for a friend.— Trail Blazers (@trailblazers) December 04, 2013 That is just classic. Sure, it’s been easy for fans and the media to pile on the Eastern Conference, where the 9-9 Wizards are the No. 3 seed and the 8-12 Celtics lead the Atlantic Division.…
Dec 4, 2013, 5:59 PM EST
Larry Sanders has been out since early November when he got involved in a bar fight and tore ligaments in his thumb so badly it required surgery to repair the hand. Sanders has since apologized to fans and the team for the incident. But it’s not over yet. Sanders has been cited twice for his…
Dec 4, 2013, 5:14 PM EST
The Washington Wizards have gone 7-3 in their last 10 and have moved into the No. 3 seed in the East (at 9-9, but still the three seed) all without having the No. 3 pick in the last draft Otto Porter, who was supposed to be the starting three on this team. But they could…
Dec 4, 2013, 3:58 PM EST
When TNT worked with the NBA to set up its Thursday showcase schedule, this Thursday seemed like a ratings spike — the defending Atlantic Division champion Knicks with Carmelo Anthony against the new Kidd on the block in the Brooklyn Nets. Then a showdown between Derrick Rose‘s Bulls and the two-time defending champion Heat. The…
Dec 4, 2013, 3:15 PM EST
It’s the most anticipated game on the NBA calendar, a battle of powerhouse franchises fighting for the heart of America’s biggest city… Or, it could be a big steaming pile of… that stuff you have to scrape off the bottom of your shoe sometimes. It’s the Thursday night showdown between the 3-13 Knicks vs. the…
Dec 4, 2013, 2:28 PM EST
Nate Robinson often gets plenty of run for the Nuggets in the fourth quarter of games. For one thing, he is the human proof of the hot hand theory and when he gets going can change a game (or he can be Mr. Snow Miser, everything he touches turns to snow in his clutch… he’s…
Dec 4, 2013, 2:04 PM EST
DeMarcus Cousins sat out the Kings loss to the Thunder Tuesday night with an ankle injury. When asked if he would be ready to go Friday, he decided to play comedian. Don’t tempt fate, DeMarcus. Derrick Rose may not think it’s funny but Cousins’ comments sounded like a lot of people on twitter who have…
Dec 4, 2013, 1:14 PM EST
Got to hand it to Turkish Airlines — they are willing to pay for two of the most expensive sports sponsors in the world, then they have put together some pretty clever ads for them. The latest has Kobe Bryant and Lionel Messi — apparently both having time on their hands as they try to recover…
Dec 4, 2013, 12:48 PM EST
We use the phrase here regularly: Kevin Durant is the second best basketball player walking the planet earth right now. Durant is sick of having that title. He has said it before and he said it again in an interview set to air on “60 Minutes Sports” which will air on Showtime tonight (10 ET).…
Dec 4, 2013, 12:04 PM EST
Omer Asik will be out for at least a week after suffering a right thigh contusion, reports Jason Friedman of Rockets.com. Asik will be re-evaluated at that time to assess whether or not he’s able to return. Asik’s injury could leave Houston pretty shorthanded for Wednesday night’s contest against the Suns. Jeremy Lin is out…
Dec 4, 2013, 11:42 AM EST
The Spurs will face the Timberwolves in Mexico City on Wednesday as part of the NBA’s 2013-14 Global Games schedule, which included eight preseason games played internationally and one more to be played in London on between the Hawks and the Nets on Jan. 16. San Antonio’s players celebrated the occasion by taking on some…
Dec 4, 2013, 11:01 AM EST
Imagine being in a management position at your job, and supervising one of your better employees for a somewhat extended period of time. Then flash forward years later, when for a variety of reasons, you accept a position working for your former employee, who now has your old job. And while your former employee knows…
Dec 4, 2013, 10:22 AM EST
When the Golden State Warriors start raining threes there is no show like them in the NBA. The Warriors were down 27 points in the third quarter night at home to the Raptors. The Raptors were ahead 18 entering the fourth quarter and every Toronto fan still awake and watching the game back home was…
Dec 4, 2013, 10:08 AM EST
We told you yesterday Mike Woodson’s seat is getting hot in New York — The Knicks are 3-13 and have lost nine in a row, owner James Dolan has a Nets obsession, the Knicks play the Nets on Thursday and if the Knicks streak reaches 10… let’s just say Dolan is unpredictable. The fact Woodson…
Dec 4, 2013, 8:43 AM EST
The night before Paul George did the same thing for the Pacers, this time it was Arron Afflalo — scoring 43 points in a losing effort. Afflalo was overshadowed by the two rookies notching triple-doubles (Michael Carter-Williams, Victor Oladipo) but this was a career high for the former UCLA star. He had 14 in the…
The Extra Pass: Chemistry clicking in Denver as Nuggets beat Nets to win seventh straight, and Tuesday’s recaps
Dec 4, 2013, 8:00 AM EST
NEW YORK – If it was a fight, they would have stopped it. To say the Nuggets beat the Nets on Tuesday to earn their seventh straight win wouldn’t at all be an accurate description of how Denver came out and destroyed Brooklyn in the third quarter, and then continued the assault against a depleted and…
- Arena evacuated after apparent fire, Spurs-Timberwolves game in Mexico City postponed 7
- Milwaukee police release video, cite Larry Sanders for bar fight 8
- PBT Extra: Focusing on “epic showdown” between Knicks, Nets 5
- Carmelo Anthony: “We are the laughingstock of the league right now” 24
- Joe Johnson says players noticed friction between Jason Kidd and Lawrence Frank 26
- LeBron says Wade is “getting that Kobe deal” in next contract. Should he? (63)
- Report: Dion Waiters accused Kyrie Irving, Tristan Thompson of playing “buddy ball.” (53)
- Michael Beasley finding a role, groove in Miami (41)
- The Extra Pass: Our awards at the quarter pole, plus Monday recaps (41)
- With game in balance, Jason Kidd tells player to “hit me,” spills drink, gets psuedo timeout to draw up play (40)