As last reported here, two cities were on the verge of losing major sports franchises: Phoenix with its NHL Coyotes and Sacramento with its NBA Kings. Distinctions in the two cases were noted, including the fact that Phoenix is a top ten major market and Sacramento is a small market.
In the past week, there have been two major developments. The Coyotes' drama has occurred on the playing field, or ice to be more precise. They pulled an el foldo against the once-powerful Red Wings in the first round of the NHL playoffs, wimpering away in a 4-0 series. It would have been nice for them to show up. How does losing in such humiliating fashion affect the odds of a move to Winnipeg? It makes the franchise less attractive and endearing for the declining local fan base in Phoenix.
The Kings' drama has occurred off the field, or court as the case may be, since they did not make the NBA playoffs. The NBA board of governors (aka the owners) had meetings in New York City last week, where Kings owners the Maloofs and Sacramento mayor Kevin Johnson (with representatives of potential new owner Ron Burkle) both made presentations for and against a franchise move to Anaheim. Reportedly, some of the owners even stayed awake throughout the presentations.
NBA commissioner David Stern held a press conference last Friday, April 15, wherein he discussed the status of the Sacramento Kings. For NBA fans in Sacramento and Orange County, the news was mixed. Anaheim did not have a slam dunk as previously believed: there were complications. The press conference was more than window dressing and paying lip service to the city of Sacramento. However, the odds of the team remaining in the capital are slim.
For Anaheim, Stern expressed skepticism on Sacramento's ability to finance and build a new, more profitable arena: "The issue first and foremost in Sacramento is whether there's the will or the ability to build a new arena for the team and other events."
The commissioner also indicated that the Kings are "not forced to stay in Sacramento at all." Other darts thrown against River City? Stern stated that the Southern California market could support another team (much to the consternation of Lakers owner Jerry Buss and Clippers owner Donald Sterling). He also set aside the surprise involvement of billionaire Ron Burkle, saying offers to buy the Kings or move another ailing team to Sacramento "are not high agenda items for the NBA now."
Indeed, Mr. Burkle, who is known for saving the NHL Penguins in Pittsburgh and building them a new arena, let it be known through representatives that he is interested in preserving an NBA presence in Sacramento. The Maloof brothers let it be known they are not interested in selling.
In perhaps the most ominous move he could have made for Sacramento fans, Stern appointed Oklahoma City Thunder owner Clay Bennett to lead a fact-finding committee to Sacramento to see how credible and tangible the Mayor Johnson plan is for building a new arena and building more fiscal incentives for the Maloofs to stay in town. Mr. Bennett was the owner who relocated the Seattle Supersonics to Oklahoma when Seattle would not kow-tow to his demands for a new arena and other fiscal incentives. Sound familiar?
The league has never failed to approve of franchise relocation requests. There is no precedent for what Sacramento is asking for now.
Still, a few questions were raised, comments made, and actions taken by the owners to create at least some doubt in the pending move. First, they gave Sacramento a two-week extension to May 2 to present a viable new arena plan and incentive package. They similarly gave the Maloofs the same deadline to get their financial ducks in order before formally asking the league for permission to move the team to Anaheim.
In short, the owners want more information on the deal which would bring the Kings to Anaheim. Additionally, they want more information on the Maloofs' overall financial health. Perhaps spurred on by Dr. Buss and Mr. Sterling (who may not welcome another NBA neighbor to split up the huge SoCal revenue pie), there are enough owners who wish to scrutinize the Maloofs further. The Maloofs may shirk off the investigation as a mere formality, but they must be aware of the drama which just occurred up the road at Dodger Stadium.
In Chavez Ravine, Major League Baseball unilaterally assumed control of the Dodgers on April 20, wresting the team away from its incompetent high-roller owner Frank McCourt, who needed an emergency loan to meet the April 15 payroll. The Maloofs sport a similarly ostentatious lifestyle and mounting debts. Of course, there is a difference. Bud Selig and MLB wish to preserve the value of one of their marquee names in a top three market. David Stern and the NBA wish to increase the value of one of its ailing names in a small market or larger market.
Since the Maloofs have not missed a payroll, nor threatened to, Stern & Co. are loyal to them. The NBA sees the injection of capital into the team from Anaheim ($75 million) and Honda Center owner Henry Samueli ($50 million) as welcome progress. However, they probably want some assurance from the Maloofs that the money will be used for the Kings/Royals, not for other expenses such as luxury purchases. The NBA has enough embarrassments to worry about as it is; it doesn't need its own McCourt scenario.
The other glimmer of hope for Sacramento fans concerns the team's television deal if it moves to Anaheim. One popular assumption was that the Kings would gracefully slide into the calendar dates left open by the Lakers leaving Fox Sports this summer. Apparently, that is not a given. On the same issue, the Lakers will probably press the league for reimbursement of its 10% penalty on its new $3 billion, 20-year television deal if a third team enters the SoCal market.
What exactly has Mayor Johnson been doing to strengthen Sacramento's case? He has been gathering financial commitments from local business leaders, including Native American gaming casino owners. The publicly announced totals so far? Just under $10 million. How that total will sway the Maloofs or the NBA to stay in Sacramento, when the Anaheim incentive package is at $125 million and counting, is beyond me. Then again, most things are.
At least Mr. Stern admitted Mr. Burkle has a "good reputation in our industry." At this time, there is no need to focus on the public pension fund scandal or Democrat lobbying business which Burkle is heavily involved with. Why? Perhaps better political connections are exactly what Sacramento needs at this time.
Meanwhile, Mr. Stern said 22 of 30 NBA teams lost a combined $300 million last year. Further, he indicated that the NBA will submit a revised proposal for a new collective bargaining agreement to the players' union within a month or two. If only the owners would change to an NFL model of full-parity revenue sharing.
Off the ice, the NHL Phoenix Coyotes could move back to Winnipeg in the summer, with a mid-July deadline looming overhead. The Canadian city must show a three-year commitment from its season ticketholder base. Winnipeg already sports a good if not huge arena and solvent ownership with the wealthiest man in Canada. Would the third party ombudsman Goldwater Institute just get out of the way? Sometimes war hero Senator John McCain is right.
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