Multiple reports: NBA relocation committee votes unanimously to keep Kings in Sacramento

This literally just in, three minutes ago:

A source told the Bee today the NBA relocation committee has voted unanimously against the Kings proposed move to Seattle.

And:

If true, clearly this means the Kings are staying put, the Seattle group is SOL for the moment at least, and Kevin Johnson’s gamble on cobbling together an ownership group and arena plan good enough for the NBA to say “Fine, at least it won’t be our problem if it falls apart” was a success.

Discuss now, more tomorrow morning.

Kings fate: No news, look at a picture book while you wait

With no news at all about where the Sacramento Kings are likely to end up, and no real way to research it since the only people who might know are the 30 NBA owners and they ain’t talking, what’s there left to write about?

  • How NBA commissioner David Stern is “anguishing” over the decision of where to place the team, though he doesn’t actually have a vote. And that Kings officials have been told to prepare marketing and season ticket plans for next season and otherwise “sit tight,” which doesn’t actually tell us anything.
  • Pretty pictures of what a new Sacramento arena might look like. Apparently it comes with its own blimp!

The NBA relocation committee is likely meeting today or tomorrow, after which we probably still won’t know anything. Sit tight, people.

Pollster says he’s gotten threats over poll backing Kings referendum

With everything else going on, I didn’t bother to mention Monday’s poll results showing that 78% of Sacramentans would like to have a referendum on a Kings arena plan, mostly because 1) I’m starting to feel like you can find a pollster willing to show anything you want these days (Chris Daniels of Seattle’s KING-TV notes that the poll was only of 300 people, and had a nearly 6% margin of error), and 2) who isn’t going to say they’re in favor of getting to vote on something, whether they’re agin it or fer it? (Those polled were just about evenly split on how they’d vote in a hypothetical referendum.)

That, though, was before pollster Tab Berg said he’s been getting death threats as a result:

“You hate Sacramento, and you’re an evil person… And make threats to my livelihood, and even a couple that have recently come through to my family. It’s extraordinarily disappointing.”

The threats are presumably from people who want to keep the Kings, though Berg himself says he supports a new arena, and thinks there would be more support for it if people had a say. (I’m not endorsing his logic here, just describing it.) It also led Sacramento’s Fox40 to reach this stunning conclusion:

Still, both sides agree that a debate shouldn’t escalate to violence.

It’s really all about finding common ground, isn’t it?

As far as actual Kings news goes, the NBA relocation committee is set to meet again late this week, at which point it will presumably make a recommendation, starting the 7-day clock at which point the full NBA owners’ group can vote on the Kings’ fate. Which means:

Unless it doesn’t. But with the Seattle and Sacramento groups no longer throwing more money on the table, it’s looking more likely that the NBA may be ready to declare the bidding war over, and decide on a winner. Or a loser, depending on how you look at it.

[UPDATE: Berg now says he never got death threats, and Fox40 misinterpreted his quotes. Which is disappointing. Or reassuring, depending on how you look at it.]

Kings relocation committee meets, says decision at least two weeks off

After the NBA sent out its announcement on Tuesday that a vote on whether the Sacramento Kings will be moved to Seattle would be delayed beyond this week’s NBA owners’ meetings, there was some speculation that this was because league bylaws require a 7-day waiting period between a committee recommendation and a full league vote. And the relocation committee couldn’t mean last week, I guess, because they couldn’t get dinner reservations?

Anyway, the relocation committee met yesterday, and afterwards league officials were more blunt than usual: Don’t count on a decision anytime soon.

Emerging from a four-hour meeting of NBA team owners charged with examining the Sacramento Kings’ proposed sale and move to Seattle, NBA Commissioner David Stern said today a final decision on the issue could still be at least two weeks away.

Stern said the owners on the joint relocation/finance advisory committee had not decided on a recommendation on the franchise’s future, but that the group has scheduled another meeting on the subject – their third – set for late next week. If a recommendation is made then, the full Board of Governors, made up of the league’s 30 team owners, cannot vote on the matter until seven days later, Stern said.

“The committee still has additional questions as they go through this in great detail,” Stern said. He said those questions still concern potential lawsuits facing arena plans in both Sacramento and Seattle, as well as financial issues with those plans.

If that wasn’t clear enough, San Antonio Spurs owner Peter Holt said following the meeting that the committee is “not even close” to a decision. Holt also said — I think in response to a question about league expansion, though the Sacramento Bee article that reported this was unclear — that “The world is growing. We’re focused on China and India and those kind of places.” Which if you’re in a Sacramento kind of mood could be a positive sign for prospective local owner Vivek Ranadive, who has declared that he’s committed to “making [basketball] the No. 2 sport in India” behind cricket.

Anyway, it appears that the NBA is just as confused as the rest of us where the Kings will end up, and isn’t going to make a decision until it’s good and ready. At some point this could mean endangering the possibility of relocating the team for the 2013-14 season, but for now, everybody is content to stay in “tell me more” mode. As they probably should be, when the “more” has at times meant more cash.

NBA on Kings move: Reply hazy, ask again later

Let’s set the Wayback Machine for March 26, when Sacramento had just approved a preliminary term sheet for a new Kings arena:

That was a total guess, but it’s looking pretty good after yesterday’s announcement that the NBA is postponing its vote on whether to allow the Kings to move to Seattle. The league didn’t give a reason why, or indicate how long the delay will last. Instead, two committees made up of “a select group of about a dozen team owners,” according to the Sacramento Bee, are meeting today at an undisclosed location in New York to review the Sacramento and Seattle proposals, and will make recommendations to the full league.

This could just be a procedural move designed to keep every owner in the league from having to read all the financial documents involved, or it could be a stalling measure so that the NBA can see what else the two sides come up with for upping the ante. Guess we’ll find out more after today. Or, more likely, after what happens today leaks out a week from now.

Hansen throws more money at Kings, Sacramento group calls him “desperate”

You know, when I first referred to the custody battle for the Sacramento Kings as a bidding war a few weeks ago, I meant it metaphorically: Sacramento would present a fancy piece of paper swearing that its arena plan wasn’t held together by spit and chewing gum, Seattle would counteroffer with a promise that so long as the NBA plays there all league officials will receive a lifetime supply of fresh sockeye salmon, like that. But lo and behold, what erupted over the weekend looks like an honest-to-god bidding war with cold, hard cash:

  • On Thursday, with a looming deadline set by the Maloof brothers — the current owners of the Kings who had been all but forgotten in this back and forth between the proposed new owners in Seattle and Sacramento — for Sacramento bidders to match the Seattle offer for the team, USA Today reported that the Sacramento crew was ready to raise its bid by $30 million, to cover the nonrefundable deposit that Chris Hansen had committed to in offering to buy the team from the Maloofs back in January.
  • On Friday, Seattle’s Chris Hansen countered by abruptly raising his bid by $25 million, “as a sign of our commitment to bring basketball back” to Seattle. Hansen would only be paying a pro-rated price for the Maloofs’ shares, so it’s not actually $25 million more in real dollars, but the total team value in the sale offer would rise from $525 million to $550 million.
  • The Sacramento group called Hansen’s increased offer a “move of desperation” (in the Sacramento Bee’s paraphrase), and predicted it wouldn’t be enough to sway the NBA’s decision one way or the other.
  • Meanwhile, Sports Illustrated ran an article outlining all the things that are dodgy about Sacramento’s arena plan, and the website Sactown Royalty ran a long rebuttal saying that Sacramento is really really trying here, so get off their case okay?
  • Oh yeah, and while this was all going on, a Seattle judge dismissed a lawsuit against Hansen’s proposed arena, though only because all the financing details aren’t finalized, so there’s every likelihood the suit will be refiled in a few months.

Phew. So all this certainly sounds like stuff that, on balance, would at least marginally increase Seattle’s odds of landing the Kings — except that, as I hope I’ve made clear by now, whatever process the NBA uses to determine where the team plays next year isn’t going to be nearly so straightforward as weighing two purchase offers, or even two arena deal offers, and seeing which one pencils out to be more lucrative. Both the Seattle and the Sacramento groups have come up with plans that will get them in the conversation; what happens from here really is going to come down to internecine NBA owner politics. So I expect the Sacramento Bee’s source is right about one thing: Whatever harebrained rationale the NBA ends up using to decide the fate of the Kings, a pro-rated $25 million in cash probably isn’t going to be it.

Stern, NBA at loggerheads over Kings move?

I don’t usually post here late at night, first because there’s hardly anyone around to read it, and second because I’d rather be asleep myself. But I won’t be around in the morning, and there’s way too much news — or at least reporting of sources claiming to have news — in the Sacramento Kings situation to wait on.

First came a report today by Sacramento TV station KCRA that a “source close to the [Kings] negotiations” was reporting that the Maloof brothers, owners of the Kings, had set a 5 p.m. Friday deadline for would-be Sacramento buyers to offer a bid equal to that of the Seattle group led by Chris Hansen. If such a bid was not forthcoming by then, according to a similarly sourced story in the Sacramento Bee, “the Maloofs have said any talks are off with the Sacramento group.”

That’s pretty crazy, and paints a picture of the Maloofs as either desperate to get the Sacramento “whales” to up their ante lest they get stuck with a lower bid if the NBA rules against the Seattle purchase (both sites cited the source as saying the Sacramento bid was “not even close”), or hoping to scare the league into approving the sale to the Seattle group for fear of being stuck with the Maloofs indefinitely. It’s a strange way of going about it, but then, the Maloofs are known for that sort of thing.

And as if that weren’t enough, this evening we got the long-awaited (if also anonymously sourced) leak of what went on in last week’s NBA meetings on the Kings issue, courtesy of indefatigable Seattle KING5 reporter Chris Daniels. And man, was it a doozy:

  • According to multiple sources, reports Daniels, “the second half of the Sacramento presentation [to the NBA] was ‘poor’ — based more on “vision than fact.’”
  • Hansen has estimated that a cable deal in Seattle could generate more than $40 million a year, nearly double what has been estimated for a similar deal in Sacramento.
  • Accordingly, “several NBA team owners last week indicated their willingness to move the franchise to Seattle.” Yet NBA commissioner David Stern, according to the same sources, “has been quietly maneuvering behind the scenes to propel a Sacramento counter bid,” even working to recruit new members for the Sacramento ownership group.

If true — and it’s always possible that unnamed sources are just trying to spin things toward their own ends, though somewhat less so when a story is sourced to multiple anonymous individuals — then it sounds like we’re getting every lick of the in-fighting that we could have hoped for from an NBA owners’ meeting. Daniels said that “multiple people with knowledge of the negotiations said Wednesday it is still unclear whether a vote will be taken,” which makes sense if there are two competing factions in the room. (A three-quarters supermajority is required to approve the sale.)

It certainly sounds like the NBA owners have recognized that the Sacramento bid is a tad shaky, whereas Stern, at least, is recognizing the value of rewarding cities that come up with arena deals (shaky or no) in response to move threat blackmail. All that means, though, is that NBA owners can read Twitter like the rest of us. As to how they’ll actually vote, I wouldn’t try to predict that at this point if you paid me.

Could both Seattle and Sacramento end up with NBA teams?

This is apparently pecked-to-death-by-ducks week for the Sacramento Kings arena proponents: After a series of minor setbacks over the previous few days, yesterday it was learned that one of the prospective purchasers of the team, Pittsburgh Penguins co-owner Ron Burkle, will have to back out because his film studio owns a player agency that represents several NBA players, which represents an unacceptable conflict of interest according to league rules.

Sacramento Mayor Kevin Johnson was quick to say, “We’re comfortable where we are” in terms of remaining prospective investors in the team, and as Burkle’s exit was apparently in response to questions raised at last week’s NBA meeting, you could interpret this as a positive move for Sacramento, clearing an obstacle to the city’s plan, albeit one that nobody was aware of. (Though anybody with Wikipedia should have been aware of it.) As with the previous news, it depends on what the mood of the room is around the Kings sale talks: If NBA owners are looking for an excuse to let the team go to Seattle, this can be pointed to as evidence of a shaky and ever-changing Sacramento plan; if they’re looking for an excuse to reject the move, this can be seen as a willingness on Sacramento’s part to do whatever it takes to win league approval.

At this point, the NBA is sitting pretty, with no bad answer to its problem of two cities battling over one team. Unless, of course, the losing city decides to sue, as Stanford economist Roger Noll says they’d have grounds to do:

“Whichever city is going to lose has an antitrust case against the NBA for not having a team in that city,” Noll said.

Noll says either city would have a case to make because both cities are viable locations for the team and either one could argue the league is illegally restricting the number of teams. He says it’s kind of like the railroad cartels more than a century ago.

“The crucial issue is whether the purpose and effect of the restriction is simply to enhance the monopoly power of the existing set of teams,” Noll said.

It would be a risky move on the one hand, as threatening to sue the people who you’re hoping will grant you a franchise isn’t usually the best way to get them on your side. On the other hand, it worked for Florida when the San Francisco Giants were denied the chance to move to Tampa Bay in the early 1990s — incidentally, do you think the team’s current owners are thrilled now that that never happened? — and the mere hint of an antitrust suit was enough to get MLB to create the expansion Devil Rays as compensation.

Noll, who knows a little something about antitrust law, says he expects expansion to be the ultimate result here as well, and he has a pretty good case: While MLB is more defensive of antitrust suits thanks to wanting to protect its special antitrust exemption, the NBA is going to want to have this resolved out of court as well. Which means that in the long run, we could be going through all this sturm und drang around the fate of the Kings for nothing. Well, nothing except getting both sides to up the ante as far as possible before the NBA decides who gets an existing crappy team and who gets a new one.

Sacramento’s arena plans lack county approval, face billboard opposition, may not get fast-track benefit

More news continues to trickle out about the Sacramento Kings arena term-sheet-but-not-yet-actually-an-official-financing-plan that was approved two weeks ago, and a few more holes have turned up:

  • Sacramento County is supposed to kick in $600,000 a year for arena construction (enough to pay off maybe $10 million in bonds), but according to the Sacramento Bee, “county officials say they have not had any detailed discussions with the city this year about a county contribution – and Supervisors Don Nottoli and Phil Serna expressed surprise at a recent city staff report that says ‘the county has agreed to contribute’ funds.”
  • The city’s plans to give the Kings owners the rights to erect six electronic billboards along local highways — potential value, $3 million a year — is being challenged by Clear Channel, which says it won the exclusive right to erect electronic billboards in a 2009 RFP.
  • The law passed in 2011 to fast-track large California development projects had its section allowing projects to skip over trial courts and go straight to appellate courts ruled unconstitutional by a state judge a week ago Friday, which diminishes any benefit that was expected to provide for Sacramento as far as being able to get an arena open sooner than Seattle.

Now, none of these are the kiss of death: The county money will probably be approved eventually, and in any case isn’t that much; Clear Channel doesn’t seem likely to sue over the billboard thing, though it may demand other inducements (more billboards?) to go away quietly; and the fast-track thing isn’t considered to be a major issue either way. Still, right now perception counts, as the NBA gets set to render its verdict (one of these weeks or months, anyway), and it’s Sacramento that’s been getting the negative headlines about its arena plans the last few days. Still, there’s an awful lot of ballgame left to be played.

Stern after NBA meeting: No Kings verdict until we hear more about arena plans

There was a ton of stadium news over the last 48 hours, but let’s get right to what I know you all want to hear about: What happened at the NBA meeting yesterday to determine whether the Sacramento Kings will move to Seattle or stay put?

Mayor Johnson and State Senator Steinberg arrived at the St. Regis hotel Wednesday morning to meet with the NBA and present their deal to keep the Kings.

Right, okay, the Sacramento contingent showed up, that’s nice. But then?

It may come down to who made the best presentation, but I doubt it. If it does, the Sacramento contingent led by Mayor Kevin Johnson was downright giddy following their meeting with the league’s joint relocation and finance committee.

At one point in their press conference, Johnson leaned over and hugged California Senator Darrell Steinberg. Again, I’m not sure what this all means.

So… anything on what happened inside the meetings? Anyone?

David Stern and Adam Silver held their own press conference afterwards and said that both sides gave great presentations, although no real details were released.

In other words: The NBA met (at the St. Regis Hotel for some reason, because apparently either NBA headquarters doesn’t have meeting rooms or, more likely, doesn’t have room service), both sides gave their presentations, and we’re not going to drop any hints on who the front-runner is, so back off, people.

Stern did provide a few hints at what the criteria for the decision will be, however, indicating, in the words of NBA.com’s David Aldridge, that the main questions “centered on the arena plans for each city — specifically, how soon they could go up, potential legal obstacles to the buildings in each city and the capital commitments that will be required from each group.” Stern called the existing arenas in Seattle and Sacramento “suboptimal” and noted that “there is no finality to the construction schedules in either city,” saying that the relocation committee has instructed the league to gather more information. In fact, the process could go beyond the April 17-18 league meetings, meaning a decision might not be made until an undetermined time in the future, though Stern said that “I wouldn’t expect it, if it does, to slide by a lot.”

Keeping in mind that Stern isn’t just reporting the facts of the meeting, he’s also sending a message to the two cities involved, that message seems to be: Nice arena plans, guys, but when can we actually see shovels hitting the ground? There’s been some speculation of late that Sacramento may actually have a leg up in that regard — though its arena finance plan hasn’t been officially approved by the city council and there are already threats of lawsuits and referendums, they have the advantage of the California law that was passed for AEG’s now-dead Los Angeles NFL stadium, which fast-tracks all development projects costing more than $100 million. In Seattle, development deals still need to take the slow track, with all that fussy “oversight” and “making sure it won’t be an environmental disaster” and stuff, meaning that even with its late start, Sacramento stands a better chance of opening a new arena by 2016 than Seattle does.

Would the NBA really make its decision based on one year’s difference in an arena opening schedule? Probably not, but still, Stern is sending a pretty clear message here: Talk to us till you’re blue in the face about how nice your cities are all you want, but we want to see ducks in a row on arena construction, and we want it now, and we’re not going to make a decision until we see it. (Not to say I told you so, but…) This is more and more looking like a bidding war now, not for the franchise but for the NBA’s blessing, and the currency is an arena plan that’s set in stone. It’s not at all clear how much elected officials in either city can do to make that happen in the next few weeks — or how long the NBA is prepared to wait to make a decision if they don’t — but if there are any fires to be lit under people, Stern just set them ablaze.