Posts Tagged ‘Chris Hansen’

Silver: NBA Won’t Hold Hansen’s Sacramento Acts Against Seattle

Deputy commissioner Adam Silver says Chris Hansen's recent tactics won't haunt him.

Deputy commissioner Adam Silver says Chris Hansen’s recent tactics won’t haunt him.

Sure it seems a little sleazy, writing a fat check under cover of darkness in an attempt to sabotage your competition. Billionaire Chris Hansen’s secret contribution to a group trying to thwart the construction of a new Sacramento arena – even after Hansen had lost his bid to buy and move the Kings to Seattle – smacked of gutter tactics, like Alex Rodriguez allegedly throwing other PED users under the MLB bus or the old Committee to Re-Elect The President [CREEP] of Watergate and Woodward-Bernstein fame.

But just because something isn’t sporting, old chaps, doesn’t mean that it’s going to get in the way of smart business.

A proper sense of perspective figures to prevail if and when Hansen, on behalf of Seattle, attempts again to return the NBA to that city. That perspective looks something like this:

  • $80,000 < $509 billion.

Every day of the week and twice on Sunday, as a matter of fact.

Adam Silver, NBA deputy commissioner and the man who will slide over one spot when David Stern retires Feb. 1 after 30 years in the job, assured Seattle reporters that Hansen’s bit of chicanery likely would not be a deal breaker if he were to make another bid for an NBA team, via either relocation or expansion.

Hansen and two political consultants agreed Monday to pay a $50,000 fine for failing to disclose the donation for a petition effort on behalf of arena opponents. Its goal: Force a citywide vote on Sacramento’s $258 million in public subsidy to the project. Hansen’s bid of $625 million was rejected by the NBA Board of Governors, who chose as Kings buyers a group led by Vivek Ranadive for $535 million.

The anti-arena donation, which violated California campaign-disclosure laws, raised some eyebrows over Hansen’s tactics but probably won’t place hurdles in front of a renewed Seattle effort, should Hansen still be involved, reported Percy Allen of the Seattle Times:

“I would say it won’t affect Seattle’s chances,” Silver said Sunday in Springfield, Mass., before the Naismith Memorial Basketball Hall of Fame ceremony. “I haven’t talked to Chris since those allegations came out. I think as he said, he got caught up in the moment.”

Silver also said:

“We have a lot of competitive owners in the league,” he said “I’m sure all of that will be put behind us.”

To put it another way: NBA owners didn’t get to be multi-millionaires and billionaires by letting little ethical hiccups get in the way of megadeals. Hansen’s ploy was bad form, embarrassing and worthy of some tsk-tsking in the mahogany-paneled inner sanctum. But a hastily stroked, pull-no-punches check for $80,000 isn’t about to scuttle a deal that could deliver a half billion dollar (or more) windfall as an expansion fee to be divvied up among the current 30 teams (that is the Forbes 2013 average franchise value, which was how Charlotte was valued when it entered in 2004). Or an even bigger payday for one of the league’s poorer sisters, moving the revenue-sharing NBA back into the USA’s No. 12 TV market.

The NBA, through Stern and the Governors, has been known to drive home political, financial and even ethical points before. It took a stand, some would say, choosing the lower bid so the Kings could stay in Sacramento. (And it did not, Seattle fans might allege, in allowing Oklahoma City businessman Clay Bennett to abscond with SuperSonics in the first place.)

But if Hansen remains the most viable option as a deep-pocketed Seattle owner, and the best candidate to land the $200 million subsidies for a new $490 million arena, there’s no way the NBA and its owners snub him. A Sonics redux would be good for business, with a lot more zeroes involved than the regrettable check Hansen cut.

Chris Hansen Hurt More Than Himself

Chris Hansen apparently wasn't ready to let things be in the Sacramento saga.

Chris Hansen apparently wasn’t ready to let things be in the Sacramento saga.

 

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HANG TIME WEST – Businessman-investor-covert-ops man Chris Hansen made sure to be sorry Friday. The man who led the charge to bring basketball back to Seattle was revealed as the anonymous donor behind the Hail Mary bid to stop plans to build an arena to keep the Kings in Sacramento.

A state commission said he broke laws about the lack of disclosure while trying to re-route the team to Seattle, so he apologized. After being caught.

This level of, umm, opposition research is hardly shocking where tycoons of Hansen’s level play every day in deals measured on the Richter scale. And just maybe there are one or two NBA owners who built their money stacks by indiscreet means. But within the NBA itself, the actions are potentially huge.

The Sacramento aspect may actually be the least of the problem. It is certainly the focus of the moment as Hansen searches hard for new lows in league skullduggery, and a particular contrast to what he had displayed in the effort to buy the Kings and then in being gracious in defeat once the Board of Governors kept the team in the California capital. The attempt to stop the arena was a long shot at best amid continued strong signs the plan would move forward (although this is the ultimate never-say-never drama).

If there is an apology to be made, it should be to Seattle for the way Hansen has injured his hometown’s efforts to get the NBA back. That is the true lasting impact of news Hansen secretly contributed $100,000 to help fund the petition drive to derail arena plans in Sacramento.

Ruin hopes in Seattle? Not even close. This doesn’t change the other facts: It is a great sports market with a proven level of support for the NBA and a corporate infrastructure few cities can match. If Hansen is not involved in whatever future bids may develop, there are plenty of other locals who are conversant in big business. And if Hansen is involved, perhaps enough owners shrug away the revelation as a simple misdemeanor of overreaching in the attempt to cover all the bases to close a deal potentially worth billions.

But this is unquestionably a setback in a time when Seattle cannot afford any, given the microscopic difference between winning and losing this kind of game. Look at the layers that went into play in the Sacramento saga, then add one more. Not a positive layer, either.

Hansen’s statement on Friday, via the Sacramento Bee, began with “I made a mistake I regret.” He emphasized he never had direct contact with the group trying to halt the Sacramento arena, apparently keeping his influence to merely helping the group stay afloat and having other people saying what he wanted.

Hansen continued:

”I have not agreed to provide any further political contributions and do not intend to make any further contributions.

I would also just point out that the contribution was made in my personal capacity and not on behalf of our ownership group or my partners. In fact, I have never discussed the contribution with them to date.

While I’m sure everyone can appreciate how easy it is to get caught up the heat of battle, with the benefit of hindsight, this is clearly a decision I regret. I wish the city of Sacramento and Kings fans the best in their efforts and they have my commitment not to have any involvement in their arena efforts in the future.”

He’s going to let the people of Sacramento handle the business of Sacramento. How magnanimous.

Hansen was gracious in defeat when the Board of Governors turned down the attempted purchase and relocation, what appeared to be the final official word from the Seattle side that had done and said so many things right. That group did not lose the bid so much as Sacramento won it because the league believed the future in Northern California could be as bright as the past. It’s just that the apology is really owed to Seattle.

Here’s David Stern explaining the much-talked-about Kings non-move in May:

Board Of Governors Vote To Keep Kings In Sacramento

From staff and wire reports

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The Sacramento Kings aren’t going anywhere anytime soon.

The saga of the Kings’ future began back in January with an agreement between the Maloof family and Seattle-based investors Chris Hansen and Microsoft CEO Steve Ballmer that would have sold the team to them. They would then have brought the Seattle SuperSonics back to the NBA after they were relocated to Oklahoma City after the 2007-08 season.

But the Hansen/Ballmer group is coming away empty-handed in its attempt to bring the NBA back to the Emerald City, as the NBA’s Board of Governors voted 22-8 to deny relocation of the franchise, keeping it Sacramento for now.

The NBA’s relocation committee voted 7-0 on April 29 to recommend rejecting the relocation of the team to Seattle, but Hansen’s group tried to sweeten the pot by increasing the franchise’s valuation and offering a record relocation fee as well.

Sacramento’s efforts have been led by software magnate Vivek Ranadive as well as Sacramento Mayor Kevin Johnson, who have worked tirelessly to local and regional businesses and leaders to establish the framework for a new arena for the Kings.

The Ranadive group has a competing deal on the table based on the original franchise valuation of $525 million that Hansen and the Maloofs reached in January.

The Ranadive group has agreed to match the 65 percent price of $341 million for the Kings in that deal, and has put at least 50 percent of that $341 million into escrow. NBA Commissioner David Stern said last month that while the Sacramento bid to keep the Kings at the time was slightly lower than the Seattle bid, the league considered the Sacramento bid binding.

Although there has been substantial buzz in Seattle that there are potential antitrust issues that could be the basis for a lawsuit against the NBA if and when Hansen’s bid is rejected, Hansen’s group apparently remains uninterested in legal remedies upon rejection, according to the source.

Hansen believes that this may be the last time in the foreseeable future that political and business interests in Seattle will be aligned to give support for an NBA bid. The city of Seattle has committed up to $200 million toward construction of a $490 million arena in the city’s SoDo area, next to Safeco Field, where baseball’s Mariners play. Hansen, who has already purchased the land on which he wants to build the arena, would pay the rest.

Sacramento has committed $250 million toward construction of a $447 million arena that would be the centerpiece of a development plan at the current Downtown Plaza mall site.

Ranadive’s group, which includes 24-Hour Fitness founder Mark Mastrov and the Jacobs Family, billionaire owners and managers of the Qualcomm company, has pledged to the NBA that it will not be a revenue sharing recipient if the Kings remain in Sacramento, citing the expected increased revenues the team will be able to get from a new building.

The Sacramento Bee reported this week that the NBA has encouraged the Ranadive group to put the remaining half of the $341 million into escrow as well to alleviate concerns of the Maloofs that the group has the financial wherewithal to complete the transaction.

Information from TNT analyst David Aldridge was used in this report.

‘Final’ Vote On Kings Comes Today



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HANG TIME HEADQUARTERS – The long wait is almost over … well, we think it might be over.

We could know before nightfall where the Kings will play in the future: Sacramento or Seattle.

The NBA’s Board of Governors meet today in Dallas with an expected final vote by all 30 owners on the Maloof family’s relocation proposal that would move the Kings from Sacramento to Seattle, where a group led by hedge fund manager Chris Hansen and Microsoft executive Steve Ballmer is set to purchase the franchise for a record price.

The formal recommendation two weeks ago from the committee of owners formed to study the relocation plan was a resounding vote for the Kings remaining in Sacramento. But the Maloofs have made it clear that their desire is to go with the Seattle group’s generous reported offer of $406.25 million and flee California’s capital city.

It’s not as simple as that, of course, what with the lawyers involved and the league waist-deep in a back and forth between two cities that are both desperate to keep a team, in Sacramento’s case, and regain a team, in Seattle’s case.

That’s the short version. The long version, in complete detail courtesy my main man, TNT’s David Aldridge, who is going to be on the scene in Dallas today, is much more complicated.

The Seattle group has covered all of its bases in trying to complete this deal. They’ve reached an agreement on that secondary deal, which they want enacted in the case that the Board of Governors reject the relocation proposal today.

That deal would include the Maloofs selling 20 percent of the Kings to the Hansen-led group for $120 million, and that’s based on a franchise valuation of $600 million. The Kings would stay in Sacramento for the 2013-14 season with the Maloofs as the owners. The Hansen group is also willing (and able) to pay an unprecedented $115 million relocation fee, a payout of approximately $4 million for every owner, if the owners allow them to purchase the Kings and move them to Seattle next season, raising the stakes yet again in this hundred million dollar exhibit in the business of basketball.

Sacramento Mayor and former NBA star Kevin Johnson is using the Kings’ history in Sacramento and the NBA’s loyalty to a fan base and city that has supported the Kings fervently, through good times and bad, as his trump card in this saga. The Sacramento group does not seem at all interested in some bidding war for the franchise that’s made it’s home there for last three decades.

Sort through the minutiae as best you can, but the bottom line is one set of fans will wake up tomorrow relieved that they finally have some answers about their team while another group of fans will wake up to the nightmare that their team is either leaving or not coming to town.

Again, the long wait is almost over … we think!

No, No, No! Rejection Of Seattle Bid Fuels Theories

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Given that this still is the first round of the NBA playoffs and that one of the league’s most famous first-round series – and video euphoria – is the footage of Denver’s Dikembe Mutombo on his back, clutching the basketball in joy after the Nuggets’ 1994 upset of the Seattle SuperSonics, it’s appropriate to bring the big fellow into the conversation.

Seattle just got Mutombo-ed again. Only this time, it was the league’s power structure — from the Relocation Committee up to commissioner David Stern himself — who wagged a long finger at the politicians, the money men and the fans of the Emerald City.

“No, no, no,” the committee’s 7-0 vote to deny relocation of the Sacramento Kings to Seattle seemed to say. “Not in my house.”

Or at least, not on Stern’s watch. Our man David Aldridge did a great job of covering both the big picture and the nuances of the surprising decision to recommend to the Board of Governors that the Kings stay put, short-term and possibly long-term.

Various Seattle media outlets did their own great jobs of providing perspective, with a little venting, for that disheartened and in some cases bitter audience. For example, columnist Jerry Brewer of the Seattle Times suggests the NBA “changed the rules” for procuring and moving franchises:

[Seattle bidder Chris] Hansen tried to win the right way. He tried to do it with transparency; no buying the Kings and pretending to want to stay in Sacramento. He tried to do it with record-setting money and a polished business plan.

But the NBA is a liar’s game, full of hypocrites, improper alliances, a lack of financial creativity and a commissioner who is more powerful than the owners he represents. Stern revises the rules according to his whims. It seems Seattle was destined to lose in this ever-changing game. We’re back in a familiar place with that spirit-crushing league.

Abandoned.

Again.

Brewer wrote that Seattle only will get a shot at re-admittance to the NBA — by buying and moving some other city’s team or through expansion — after Stern’s retirement on Feb. 1, 2014. Longtime columnist Art Thiel, writing for SportspressNW.com, also saw the vote as an extension of Stern’s will:

Delighted by the rising value of his franchises — Job One for any sports commissioner — but looking at another potential ugly relocation, Commissioner David Stern gave every chance for Sacramento to match the record Hansen bid. For one reason: He didn’t want to make the same mistake twice.

Rather than screw over a second city with relocation, he has screwed over, at least temporarily, the same city twice.

At worst, he figures he can live the rest of his days with never getting a drink brought for him in Seattle.

It’s possible that moving the Kings from Sacramento to Seattle would just shift the problem and hack off a whole new bunch of people. It also is possible, as Thiel suggests, that keeping Seattle open as a viable market gives the NBA leverage over shaky franchises or headstrong municipalities not unlike the NFL has with Los Angeles in waiting for someone’s team.

Another possibility, intentionally or not, is that the NBA is teaching a lesson to the decision-makers in its many markets: Love us now, not after we’ve gone.

Seattle did not play nice with the NBA prior to 2008, fighting Clay Bennett (who is the head of the relocation committee, by the way) and not budging on financing for a new arena. Sacramento, on the other hand, has rolled up its sleeves and been busy finding ways to keep its only major league caliber team in town.

That’s the sort of commitment — before things get broken, not after it’s too late — that Stern and the other owners (who love $550 million franchise valuations and the freedom to sell or move when they want) treasure most.

In the meantime, Stern was right as this Kings/Sonics decision approached. One city or the other was going to be unhappy. Now there’s no more guessing.

Front Office Phil (Jackson) Headed North?



HANG TIME HEADQUARTERS – You need a passport for this week’s stop on the Phil Jackson rumor train.

Cleveland is history, Mike Brown‘s the new (old) coach there. The Seattle situation, complete with Chris Hansen and his affinity for Jackson, took a serious hit Monday when Sacramento prevailed in its bid to keep the Kings in California. The Los Angeles Lakers’ situation is still in flux as no one knows what is going to happen with Dwight Howard (free agency looms), Kobe Bryant (rehabilitation from Achilles surgery is underway) and coach Mike D’Antoni (good for next season as coach), but they will all certainly be in the crosshairs this summer.

So the attention to Jackson has shifted north, to Toronto, where reports have the Raptors exploring the possibilities of trying to woo Jackson to be a part of their front office structure. Since he’s made it clear that he has no interest in returning to the league as a coach, the ideal situation for the Zen Master is to return as Front Office Phil.

Jackson’s relationship with new Maple Leaf Sports and Entertainment boss, Tim Leiweke, presents the Raptors with an opportunity to pursue Jackson in ways that didn’t seem possible before, as Marc Stein and Ramona Shelburne of ESPN.com detail here:

One source said that Leiweke’s “vision and energy” and history of shared success at Staples Center with the 11-time championship coach ensures that Jackson will give the pitch strong consideration despite skepticism around the league about his willingness to relocate to Canada.

Amid its pursuit of Jackson in the wake of Leiweke’s arrival, Raptors president Bryan Colangelo is scheduled to meet with the MLSE board next week in hopes of convincing his bosses to pick up the option year on his contract. The 2013-14 option in coach Dwane Casey‘s contract was picked up by Colangelo before this season, but Leiweke’s arrival has thrown both of their futures into some immediate doubt.

In an interview last week with the San Francisco Chronicle, Jackson said “three or four teams” have already expressed interest and that “none of it involves coaching.”

“There are some interesting situations that are presenting themselves, but I really haven’t made up my mind yet what I’m going to do,” Jackson told the Chronicle.

Jackson also confirmed to the newspaper he’s interested in a developing team “where you’d have the influence in [selecting the] coaching staff and the kind of culture that goes along with it.”

It makes sense, until you remember that Jackson’s ties to the Lakers remain extremely strong. And until the Lakers make some concrete decisions about their future, there always be those who hold out hope that Jackson (alongside his fiancée Jeanie Buss) will return to the Lakers and help fix all that’s gone wrong since he departed two years ago.

That reconciliation seems impossible as long as Jim Buss and Mitch Kupchak remain at the controls for the Lakers. Quite frankly, they have more pressing matters to tend to, namely what Howard will do in free agency. Having him in the fold with Pau Gasol makes the Lakers’ recovery from their ragged 2012-13 season one of the most crucial stretches in recent franchise history, considering they’ll have to do it without a healthy Bryant to shoulder the bulk of the responsibility.

There remains another potential option in Jackson’s preferred Southern California, one that Lakers faithful fear above all others, and that’s Jackson working down the hall at the Staples Center in the Los Angeles Clippers’ locker room. What better way for the Clippers to cement their takeover as the city’s top basketball outfit than to lure Jackson over to their side in his return to the NBA?

A team with a nucleus of Chris Paul, Blake Griffin and DeAndre Jordan with Jackson working behind the scenes (or as coach/executive, if things don’t go Vinny Del Negro‘s way during this postseason) has all sorts of possibilities. Same goes for the Brooklyn Nets, who could have a coaching vacancy this summer, barring a surprise championship run during these playoffs.

So much of this is speculation at this point, with everyone believing that they have the perfect situation for Jackson to walk into and craft to his liking, it’s hard to know what’s a legitimate possibility and what’s just hot air.

But as long as Jackson is reportedly interested in making a comeback, in whatever capacity, there will be suitors lined up to pitch him and plenty of fans anxious to see if he bites.

Sacramento Or Seattle? Committees Offer Up Recommendation On Monday

The NBA’s relocation and finance committees will have a conference call on Monday, April 29, and make a recommendation on whether to approve the sale of the Sacramento Kings to a Seattle-based group that would move the team there next season or to reject the sale and keep the team in Sacramento.

After the recommendation is officially delivered to the NBA, the league’s owners will have seven business days to contemplate what to do and to conduct a final vote. That would mean the league could have a final vote as early as Wednesday, May 8, though it does not mean they would vote that day.

The NBA’s Board of Governors did not take a vote on whether to allow the sale from the Maloof Family to a group led by hedge fund manager Chris Hansen and Microsoft CEO Steve Ballmer at its annual meeting earlier this month. The city of Sacramento, led by Mayor Kevin Johnson, has put together an ownership group led by software magnate Vivek Ranadive and 24-Hour Fitness founder Mark Mastrov that has put in a bid to buy the team from the Maloofs and keep them in Sacramento.

Both cities have received local approval for building new arenas that would take some public funding as part of the construction costs. Owners on the committees wanted more information concerning the schedules each city has for constructing the building, as well as potential environmental and legal issues each city faces before construction can begin.

The Hansen group reached agreement with the Maloofs in January to purchase 65 percent of the team, on a franchise valuation of $525 million, equaling $341 million for the 65 percent, and gave a $30 million non-refundable deposit to the Maloofs. Earlier this month, after the Ranadive group made it clear to owners it would match the Hansen offer, Hansen announced his group would “voluntarily” raise its franchise valuation of the Kings to $550 million, meaning an additional $16.5 million would go to the Maloofs, for $357.5 million for 65 percent of the team.

The Ranadive group has matched the $525 million valuation, but has not yet opted to match the $550 million valuation. According to a letter released by the Maloofs earlier this month, the Ranadive group has pledged a $15 million non-refundable deposit.

The Maloofs have consistently told the league that they want to take the deal with the Hansen group. But Commissioner David Stern has been adamant that while the NBA generally allows owners to sell to whomever they like, the league will make the determination whether the Kings will be allowed to move.

A vote to approve a sale requires three-quarters of the league’s owners, or 23 of the 30. A vote to approve a franchise move requires a simple majority, or 16 of the league’s 30 owners.

Report: Cavaliers Pursuing Phil Jackson?



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MIAMI – Phil Jackson in Cleveland?

Go ahead and let that sink in for a minute …

If the Cleveland Cavaliers have their way, that won’t just be a question … it’ll be a reality. The Cavaliers’ coaching search shifted from reuniting with former coach Mike Brown to focusing on another, much more accomplished former Los Angeles Lakers coach.

The Cavs have entered the Zen Master’s zone, per a report from ESPN.com, as they reached out to the “retired” Jackson to gauge his interest in coming aboard to help revive the franchise. It’s not the first time the Cavs have approached Jackson:

Jackson interviewed with Cavs owner Dan Gilbert in 2005, when Gilbert was looking for a coach. That year, Gilbert ended up hiring Mike Brown.

Brown and the Cavs have mutual interest in a reunion. Gilbert and Brown met over dinner Sunday night, a league source confirmed.

Jackson is considering other coaching options, sources said. The Brooklyn Nets and possibly the Sacramento Kings — if they relocate to Seattle — are two teams likely to appeal to Jackson more than the Cavaliers, according to sources close to the situation.

The Nets reached out to Jackson before even firing coach Avery Johnson last fall and are expected to check his interest again following the season. The Seattle-based group attempting to purchase and relocate the Kings, led by investor Chris Hansen, is interested in bringing Jackson on board in an executive role if it wins approval for the deal, sources said.

Jackson is believed to be looking for a similar situation as Pat Riley has with the Miami Heat– oversee personnel moves and mentor a head coach. To land and keep Riley, the Heat gave him a deal that included an ownership stake in the franchise.

Jackson entertaining an offer to get back into coaching is one thing. To dive into a situation in need of as much rebuilding work as the Cavs require, however, seems like a longshot. All-Star Kyrie Irving is a promising young talent and the Cavaliers will have financial flexibility this summer, but they just don’t fit Jackson’s usual profile.

With a number of potential coaching vacancies this summer, and Jackson high on the wish list in each and every instance, it makes sense for the Cavaliers to be proactive in their pursuit of arguably the best coach in NBA history.

Whether or not that pursuit produces anything other than interesting headlines and lots of chatter remains to be seen.


Seattle-Sacramento Tug O’War Gets 3 More Weeks Of Rope

 

NEW YORK – Calling it a “wrenching” decision, NBA commissioner David Stern told reporters Friday that the thorny issue of the Sacramento Kings’ proposed sale and relocation would be resolved within the next three weeks.

Which way it goes – the Kings staying and playing right where they are or shifting north as the second coming of the Seattle SuperSonics – remains unclear. And, as Stern told it after the latest NBA Board of Governors meeting, it even has him guessing.

“It’s the only time in the last 37 – 47 years – that I haven’t known the answer,” Stern said, playful with his own timeline in response to a reporter’s question, then turning serious about the process. “No, but this is one that’s just been quite difficult and confusing for the owners as well. And we’ve been working very hard to give it a structure at their direction.”

Whether you believe that assessment might hinge on your view of Stern. Did the most powerful (and some would say controversial) commissioner in sports get that way by behaving like Lady Justice, blindfolded and scales all even-steven? Or is he still the delicatessen owner’s son from Teaneck, N.J., adept at resting a thumb ever-so-slightly on the scale?

Advocates on both sides of the Maloof family‘s possible sale and transfer of the franchise to Seattle interests headed by investors Chris Hansen and Steve Ballmer are skeptical that Stern isn’t shading or influencing the process in some way. If both sides are worried that it’s tilting against them, that at least is worth something.

The bottom line out of the BOG sessions held Thursday and Friday, after diligent work by the relocation and finance committees, was that any tilting would matter after the week of May 6-10. That’s when a FINAL final vote will be taken and the Kings’ fate decided.

Why the wait? Those committees will meet again next week to sort through remaining questions about arena construction and financing and about the particulars of each group’s offer. The report they issue will be sent to the entire Board of Governors, which must have at least seven business days to review it. Also, Sacramento mayor Kevin Johnson told NBA.com Friday that he thought his group would be permitted to make a final pitch on that city’s behalf.

All of that pushes the BOG vote out three weeks. A league spokesman said it could be held face-to-face again or via conference call. Any meeting might be back in New York or could be held in one of the active playoff cities. Then and only then would folks watching the NBA Draft Lottery know whether the team card in the big envelope said Sacramento or Seattle.

Said Stern: “What makes this particularly difficult … is the Seattle group has done a lot of work. It’s well funded. It’s got spectacular businessmen who support the community behind it, and the Sacramento group has a very strong base of economic support as well.”

The Hansen-Ballmer group recently upped its offer to $357.5 million for a 65 percent controlling interest in the Kings, which pushed the team’s valuation to $550 million. The Sacramento group led by Johnson and investors Vivek Ranadive and Mark Mastrov also have made a bid that, Stern said Friday, is being treated as a signed agreement. Both offers are “in the ballpark,” Stern said when asked about significant differences.

Both have the same negative, too: Neither the Kings’ current home or an NBA return to Seattle’s KeyArena offers the long-term solution.

“We’ve got two temporary facilities that we’re going to be playing in,” Stern said, “whichever way the board goes, and the quality of those facilities and there’s so many other issues and the critical path based upon environmental reviews, potential lawsuits and the like.”

It’s a hot mess, an either/or dilemma that is likely to leave one of the markets – the capital of California or the former Pacific Northwest home of one of the league’s showcase teams – on the outside looking in.

When asked about expansion to Seattle as a compromise solution, Stern said: “I haven’t heard that in any shape or form, particularly when we don’t know at this time what the next television network contract would be.” Remember, beyond dilution of talent and scheduling and alignment concerns, divvying up the hundreds of millions of dollars a 31st NBA franchise would pay for entry would mean cutting another slice from the broadcast revenues in the future.

Then there is Stern’s legacy, which will be sealed next Feb. 1 when he resigns after 30 years. Deputy commissioner Adam Silver has been tabbed as his successor.

Said Stern: “We have expended not only enormous man‑hours but enormous sums of money for outside consultants. This will be by far our most extensive review of anything like this in the league’s history.”

Among other items on the BOG agenda Thursday and Friday:

– Reports on revenue-sharing and the impact of the collective bargaining agreement were heard. “Very upbeat in terms of improving team operations and the competitiveness of the league,” Sterm said.

Jeannie Buss was approved as controlling governor of the Los Angeles Lakers, as the family continues its succession of late owner Jerry Buss. Also, Cleveland owner Dan Gilbert and partners purchased additional interest in the Cavaliers franchise.

– The governors “had fun” with a report on officiating, while formally welcoming former NBA player and league exec Mike Bantom as the new head of officiating.

– A report from the competition committee was educational for the owners in highlighting the trends of increased 3-point reliance – from no teams that averaged 20 or more attempts from the arc in 2001 to a dozen that did so this season, Stern said. That, in turn, has opened up the game to the bosses’ satisfaction.

– Security matters also were discussed, especially in the wake of the events this week in Boston. The bombings at the Boston Marathon led to the cancellation of Tuesday’s Pacers-Celtics game in that city. The NBA will be making a “significant contribution,” the commissioner said, to the One Fund established to aid victims of that terrorist attack.

– Stern said he remains optimistic that human-growth hormones will be added to the NBA’s anti-drug testing program but that addition involves cooperation of the National Basketball Players Association, which is busy finding a replacement for executive director Billy Hunter.

 

The Business Of Buying An NBA Team

HANG TIME WEST – Now the group trying to buy the Kings and move them to Seattle has increased its offer in what is either the latest smart strategy move to put disorganized Sacramento on the clock with another problem (the Seattle viewpoint), or the desperate act of an operation that knows a big lead is about turn into defeat and is resorting to Hail Mary passes (the Sacramento viewpoint).

The $25-million bump by the always-proactive enterprise from Washington state would push the sale price for the Maloof family’s 65 percent of the team to $357.5 million – and put the total valuation of the Kings at $550 million. The Sacramento Kings. The Sacramento Kings annually residing in the lottery. The Sacramento Kings rated by Forbes in 2012 as the 23rd-most valuable franchise in the league, with an estimated worth of $300 million.

Those Sacramento Kings.

Except, in what has become the factor too often overlooked, no one is trying to buy a basketball team. That goes for both sides, the Chris Hansen-Steve Ballmer group aiming for the reincarnation of the SuperSonics and the Sacramento counter-strike led by mayor Kevin Johnson and Vivek Ranadive and Mark Mastrov as majority investors trying to keep a civic institution in town. Neither party is paying a record amount for an NBA franchise, the prorated equivalent of $100 million more than what the Warriors sold for in 2010, for the chance to decide what to do about DeMarcus Cousins.

They are trying to buy a piece. As much as they are sports fans with the chance for the ultimate toy, the Kings are the catalyst for a much larger plan. The Washington Generals would be worth $550 million.

Both cities have arena plans. Seattle’s projected building is close to the stadiums of the Mariners and Seahawks. In Sacramento, though, the bigger picture is the revitalization of an entire downtown area. No NBA team, no arena. No arena, no economic injection from construction. (Or at least no arena of this scale – Johnson has said his city will need a new entertainment complex with or without professional sports as an anchor tenant.)

Also, Ron Burkle, once part of the Sacramento bid for the arena and team before a conflict of interest forced him to drop out, has committed to being part of development around the arena. Burkle invested in your city is a very good thing.

In financial terms alone, apart from the emotional value of the only major-league team in town, losing the Kings would have a dramatic effect. The team is a marketing tool that helps Sacramento stay on the national map, and some local leaders through the years have expressed worry that convention business would suffer without the loud presence of the NBA.

How much is having the league back in Seattle worth to Hansen-Ballmer? According to Chris Daniels of King 5, the NBC affiliate there, the group has alreaady spent $100 million just to put itself in position for the honor of setting the value of a 28-53 team at a record level. This is, of course, about much more than the 28-53 team that could be playing its final game in Sacramento when the Kings face the Clippers on Wednesday night at Sleep Train Arena. The Seattle group envisions $40 million a year from local television alone, Daniels reports.

The original plan was to have Sacramento-Seattle resolved when the Board of Governors meets Thursday and Friday in New York. When both cities made presentations to a group of owners and league officials April 3, commissioner David Stern raised the possibility of the answer not coming within days of the end of the regular season. Tuesday, it became official: no vote this week, and no new date set.