Mar 4, 2013, 11:37 PM EDT
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.
May 25, 2013, 1:49 AM EDT
Coming into this series, the Miami Heat gave the proper lip service to respecting the Indiana Pacers, but did they really respect them? The Heat had gone 45-3 since Feb. 3, you had to wonder if the Pacers really had their attention They do now. The question going into this series wasn’t if the Pacers…
May 25, 2013, 12:45 AM EDT
After the way Game 1 between the Heat and the Pacers went down, Game 2 could have gone one of two ways. Either Miami could have received the wake-up call delivered by Indiana and then come out with a dominant and inspired performance, or the Pacers could continue to make life difficult for the defending…
May 25, 2013, 12:06 AM EDT
As the final seconds of the third quarter wound down, Paul George dribbled at the top and sized up LeBron James, arguably the NBA’s best wing defender. Without the benefit of LeBron overplaying him or the absence of a rim protector, George drove left past LeBron and ferociously dunked over Chris Andersen as a foul…
May 24, 2013, 11:11 PM EDT
This series is so much fun. Paul George just absolutely crushed the Birdman Chris Andersen with a dunk. Just crushed him. LeBron James comes back down and drains a three. Then a little hand slap at midcourt. Respect. These are two teams standing toe-to-two trading blows, and most teams wither when they do that with…
May 24, 2013, 9:45 PM EDT
There is no way that should have been a technical. It’s the playoffs, we want emotion, we want a little feisty play… and frankly that wasn’t that feisty. There are Tuesday night games in Minnesota in January that were more emotional than that play. But Scott Foster has the fastest trigger in the NBA for…
May 24, 2013, 6:39 PM EDT
First Jim Boeheim has Carmelo Anthony’s back, now it’s time for another coach to get a former star’s back. Kentucky coach John Calipari was on the Adam “the Bull” & Dustin Fox show on 92.3 The Fan in Cleveland, and when asked about Derrick Rose and his injury — and the heat he took in…
May 24, 2013, 4:56 PM EDT
In Hollywood, they call that chewing up the scenery. Memphis guard Tony Allen has been fined $5,000 by the league for his overacting — technically violating the league’s anti-flopping policy — on that play. Make no mistake, Manu Ginobili fouled Allen hard on this crucial late-game play — the Grizzlies were down four with :26…
May 24, 2013, 3:29 PM EDT
Early in the fourth quarter of the Heat’s Game 1 win over the Pacers, Ian Mahinmi grabbed LeBron James by the arm as he went up for the shot, causing James to fall a bit awkwardly as he crashed to the floor. It was ruled as a common foul at the time, but has since…
May 24, 2013, 2:42 PM EDT
The Clippers’ head coaching job is undoubtedly the most intriguing out of all of the ones that are currently open for next season. Assuming Chris Paul re-signs with the team in free agency, L.A. will return the core of a team that was talented enough to win 56 regular season games and two in the…
May 24, 2013, 2:34 PM EDT
To answer your first question, that is Todd MacCulloch getting dunked on. He played for the Nets in 2002. That was one of those years when the real NBA finals was the Lakers vs. Kings in the Western Conference Finals — whichever team got through that war was going to steamroll New Jersey. Which is…
May 24, 2013, 1:45 PM EDT
George Hill had a rough Game 1 for the Pacers — 2-of-9 shooting for five points with three turnovers. Plus, he sprained his big toe. I’m serious, he’s getting treatment and everything. The news comes from the twitter account of Mark Montieth of Pacers.com. George Hill has sprained left big toe, from Game 1. Had…
May 24, 2013, 1:22 PM EDT
When a player averages less than one point and three rebounds per game over the course of a season, while possessing the option to come back for another year with the same team at a salary of $9 million, it doesn’t take a degree in advanced economics to figure out what the chosen course of…
May 24, 2013, 1:19 PM EDT
Hibbert on if Battier does it again, "I have no problem putting my nuts in line of fire. …They pay me all this money, I got to be there."— Stefan Bondy (@NYDNInterNets) May 24, 2013 Sometimes, we forget how much playing in the NBA is like any regular job. You show up. You get kneed…
May 24, 2013, 1:12 PM EDT
In their Thursday press availabilities, the tones between the Heat and Pacers were different. Indiana may have lost Game 1 but there was an optimistic “we can beat these guys” vibe around the team. Miami may be up 1-0 but there was more of a “that was not us, we can play a lot better”…
May 24, 2013, 12:51 PM EDT
The Raptors’ pursuit of Nuggets general manager Masai Ujiri is kicking into high gear. Toronto received permission to speak with Ujiri, according to Adrian Wojnarowski of Yahoo! Sports: Maple Leaf Sports and Entertainment CEO Tim Leiweke is aggressively pursuing Ujiri to become the Raptors’ general manager and plans to present an offer that will pay…
May 24, 2013, 11:28 AM EDT
If I’d had a vote, Greivis Vasquez would have gotten mine for Most Improved Player award — the third-year guard averaged 13.9 points and 9 assists per game for the then Hornets (now Pelicans) this past season, playing smart basketball along the way for a team that was grooming Anthony Davis and waiting for Eric…
May 24, 2013, 11:00 AM EDT
The Mavericks top off-season goal is to try and sign Dwight Howard. Have fun with that, knowing what we do about Howard it should be a quick and decisive process. But they need more than just a big man. It was evident this season the Mavs need better point guard play, and somebody who can…
May 24, 2013, 10:18 AM EDT
Roy Hibbert made life difficult in the paint for the Knicks in the second round — we’ve all seen Hibbert block Carmelo Anthony’s shot at the rim but that is just the tip of the iceberg. He altered and blocked all kinds of shots inside and owned the paint. The Miami heat scored 60 points…
May 24, 2013, 8:50 AM EDT
It’s a little tough to predict where the Clippers’ coaching search might lead because hiring a coach is a task owner Donald Sterling takes on personally. He has for a long time. He was the guy charmed by Vinny Del Negro and hired him when the basketball operations people wanted to go another direction (and…
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