	products recent interviews FastScripts archive about ASAP Sports

Our Clients:

Browse by Sport

Find us on

Subscribe to RSS

Click to go to
Asaptext.com

View our
e-Brochure

NATIONAL BASKETBALL ASSOCIATION MEDIA CONFERENCE

May 2, 2011

David Stern

TIM FRANK: Thanks for joining us today. Obviously a bunch of you had requests for the Commissioner's time, and so we decided to do one conference call to facilitate that. With the Commissioner is also our president of league operations, Joel Litvin. And the Commissioner will make a few quick remarks to start and then we'll be glad to take any questions you have.
COMMISSIONER STERN: Thanks, Tim. The Maloof family advised me this morning that they would not be filing for relocation to Anaheim and that they would be joining Mayor Johnson and his staff in Sacramento in a vigorous effort to increase their sponsorship base; to increase their tickets, and to fully engage the Greater Sacramento area in a campaign, again, for a new building.
I must tell you that Mayor Johnson had made a very good presentation of what he believed would be the capacity for increased sponsorships, for increased tickets, and finally for a viable plan. The committee did hear a great presentation with respect to Anaheim and what it offers to an NBA franchise.
But, at bottom, the committee did suggest to the Maloofs that if they would try, in light of the outpouring of support, another year in Sacramento, that the committee would be supportive of a move in a year if a plan didn't come to fruition.
I can't say enough about actually how good the presentation was from Anaheim, how impressed the committee was with the presentation by Mayor Johnson; but in particular, how impressed all were, including the Maloofs, of the outpouring of support that caused them to believe that it was really, really worth a final promised Herculean effort to get this arena proposal on track and to have a successful year in Sacramento.
And in light of that, in addition to the staff that was there from the NBA to assist the Kings last week, by tomorrow we will have nine people on the ground from the NBA office led really by Chris Granger, our executive vice president and chief marketing and business operations, and I have asked my senior advisor for communications, Brian McIntyre, to be on the ground, as well, starting tomorrow so that we can assist the Maloofs, who have asked us for all the support possible to demonstrate their commitment to the City of Sacramento for this effort.
Thank you very much and I'm happy to take any questions.

Q. What does Sacramento need to present to the Maloofs or the NBA by this March 1 deadline? Is there a specific plan in place that kind of in your words, back from the New York meeting, reduces the certainty; what Sacramento needs to present?
COMMISSIONER STERN: I don't want to get involved in a word game. We need a pretty good timetable that we haven't sat down and set precisely. But there are always elements having to do with designs, concept, funding and time line.
And we will be meeting with the Mayor on that, and he has at least at this point made a very impressive case for the idea of a collaborative effort for a Greater Sacramento effort to have an entertainment and sport complex, because given what the area is and presents itself as, it would be unusual to say the least for it to be the only one in the top 20 markets not to have such a facility.

Q. And if I have you for just a moment here, we have been following this narrative closely, the last 72 hours has been a lot of speculation. Can you take us through the last three days or so leading up to this decision today as to whether or not the Maloofs had been in touch with you and the back and forth; fill in the blanks for us, if you could.
COMMISSIONER STERN: I don't think I'm going to fill in any blanks for you. All conversations on the owner/commissioner privilege are not ones that I give up. But suffice it to say, it was their choice to make, and they independently on their own made the decision not to file. Thank you.

Q. Commissioner, we sense from talking to the Maloofs today that they are still very skeptical; that they believe in their deal in Anaheim; that they had struck a good deal down there. Could you give a sense of just how much arm twisting went on to get to this point?
COMMISSIONER STERN: No, there was no arm twisting. I would expect given the number of failed arena opportunities that exist here or that have occurred, I think it would be fair for many of the people on this call to be skeptical about whether or not there will finally be a successful path and a critical one to an arena. But this may be that special moment where -- force the story (ph) together for this opportunity, realized what the needs are for a sports and entertainment complex in Greater Sacramento.
So you know I think that that's not what they expressed to me in terms of skepticism at all. They actually, I know they spoke with the mayor, and they were anxious to call season ticketholders to thank them. They were calling all of their sponsors.
So I don't see that skepticism at all with respect to the market itself. With respect to the issue of an arena, I think anyone who has watched this over the last decade or so has a right to say, we'll see, that's all.

Q. I was wondering if you could shed some light on the tone of when the Maloofs put the release out and they mentioned that the league and the committee a year from now at the arena isn't coming together, would be more supportive. Can you explain the parameters there? Obviously I can't imagine you guys will be green-lighting any and all moves they put forward. What's the nature of that component here?
COMMISSIONER STERN: Well, the nature of that component is that we've decided, together with the Maloofs, because that's what they decided, that we are going to put all of our efforts in Sacramento and make it happen and make it succeed.
But if it can't, if this becomes yet the fifth or sixth or seventh, it will be the last, as far as we are concerned, effort with respect to an arena.
You know, I advised them on behalf of the committee that I knew the committee would be, and I pledged the support for a move to another market. And more than that, I can't say. But they understood that undertaking pretty well.

Q. Following up on that question, if the arena doesn't materialize, are the Maloofs free to go to a market of their choice, even if it includes Anaheim?
COMMISSIONER STERN: I don't think it's fair to say "even if it includes Anaheim." Anaheim is not in any way in my views stigmatized by the decision of the Maloofs to give Sacramento another year.
But I wouldn't presume to take away the mandate or authority of the Relocation Committee, but I would tell you that the Maloofs will have a lot of support for wherever they choose to go.

Q. I wanted to ask you, one of the key points of the Sacramento deals is going to be the financing and George Maloof, talking to him today, doesn't seem to be eager to use family money for the deal. Who will finance the arena as far as you understand it?
COMMISSIONER STERN: I don't have an understanding right now. We have to see what the parameters are, and we have to see, you know, what the plans are for the building.
And it is not uncommon for teams to make contributions to a public private partnership. And usually the team's contribution is measured in their long-term commitment to pay a rent of a certain amount; that in principality (ph) represents usually a very substantial commitment.
So I'm not sure that the ultimate plan would be saying, okay, give us this much money, but I think, you know, depending upon the parameters of the deal there will be a contribution by all of our teams that ultimately engage in a public/private partnership.
And actually I'm not disagreeing with George. I'm disagreeing with the notion -- I'm separating that from saying that they should make a contribution out of the family coffers on the one hand, as opposed to the team will be signing the lease if there's a building plan on another, which would be substantial support for the building.

Q. The last deal that was on the table before the NBA stepped in in late 2006, early 2007, a lot of people in Sacramento thought that that was a fair deal but the motives pulled away support at the last minute before it went to the ballot. What assurance can you give to Sacramento that the Maloofs will be -- inaudible -- when the proposal comes up, will the NBA be reviewing that proposal to ensure that if the Maloofs don't like the proposal --
COMMISSIONER STERN: First of all, I've been assured by the Maloofs that they will be dealing in good faith and the NBA will be deeply involved with them and on their behalf.

Q. Wonder if you can characterize on Mayor Johnson's ability to locate corporate support that heretofore was there the not there before. How would you feel about his ability to characterize how to do that?
COMMISSIONER STERN: Actually I suggested to him that now that he's done that, perhaps he can come and negotiate a bargaining agreement with us, because I was extraordinarily impressed with his ability to do that in such a short time.
It goes to, initially, I think, his own personality and his own understanding of the issues, and in the most positive way, it goes to his certainty that the Greater Sacramento community really has a need for a new building, and this was an opportunity for Sacramento to get a year to demonstrate that it could do it, and he did it with a passion that is very impressive to us.
I must say, I can't say enough about the Mayor, his open dealings with us, his open dealings with the Maloofs, and his ability to deal with, you know, local governmental authorities and indeed the California legislature.
We are going to be depending upon the Mayor, on Senator Steinberg and other political leaders together with regional leaders to help make this into a reality.

Q. Have you seen enough evidence that the family can be good sports team owners other than the contention that they say they have enough money to be good sports team owners?
COMMISSIONER STERN: Yes, we have, and they have been. I think some of the coverage on this has been tying together gossip with innuendo in the passing of news. They are owners in good standing; they always have been, and I'm certain they will continue to be.

Q. Has either ICON or anyone from ICON or anyone from the Mayor's office including the Mayor expressed to you or the relocation committee how they see the financing going down, whether it will be the public, private partnership of some kind, or whether it will be one way or the other?
COMMISSIONER STERN: I'd say that they expressed their view that in the broadest of possible terms, about what would be necessary here. But honestly, I don't want to -- I don't want to set the bulls-eye yet for everyone to start shooting at.
They made a very good presentation. Tim Romani was in from the ICON Group. You know, we had a follow-up meeting with Clay Bennett, chairman of the Relocation Committee.
We understand what's on the table. But we are not -- you know, we know that there's work being done that will be finished up later this month. And before that, I'm not -- I don't want to rush out to make any suggestions.

Q. How would you sum up your belief or maybe disbelief that an arena is coming to Sacramento?
COMMISSIONER STERN: I would say that given what the Mayor did in so short a time with the sponsorship dollars, given Clay Bennett's visit to the Sacramento area and his meetings with both the business community and certain leaders there, we came away with a strong sense that this was worth the additional year, because it seemed to us to be so important that the leaders of Sacramento, that they would not allow the opportunity to pass without getting it done.
You know, if it's proven that we are wrong, we are wrong. But given my own interactions with the Mayor, my own interaction with Senator Steinberg, the leader of the State Senate, and Clay's interaction with the business leaders and others, we are feeling pretty good about the prospects here.

Q. Just wanted to ask you, how important is it for you for the Kings to remain in Sacramento and small markets for the NBA in general?
COMMISSIONER STERN: I have been at the helm during what seems to be consecutive failures in small markets, each measured according to their own facts. But I consider it always to be a failure when we lose a market, especially one that has been so historically supportive, as has Sacramento.
And I think that one of the things we are doing with the Collective Bargaining Agreement and the revenue sharing arrangements that we are working on so intently, is to ensure a league where every market has the opportunity to compete, whatever its size.
And on the other side, that players, that only the most deserving players do so well, and all players will do well, but you try to move to paying the talent the most. And for us, Sacramento would be a grave failure, given its size and given the past history.
Given its leadership and given its demonstrated need for a building that can house concerts and family shows and NCAA regionals to be part of a downtown -- new word that I learned -- intermodal center, I think this one has all of the ingredients for success.

Q. Following up on the group you're sending to Sacramento, eight or nine people including Brian McIntyre, are these people working mostly with marketing and sponsorship? Can you enlighten us on that? Is anybody from the league going to be intimately involved with the arena itself, i.e., John Melb (ph) was here.
COMMISSIONER STERN: The answer to that is that the people that are going to be on the ground are going to be involved in all aspects of the team's operation, including its relationship with the media, its relationship with the sponsors, its relationship with season ticketholders.
And I believe without saying too much now, we are waiting for the ICON/Taylor report to be completed and then we will have a -- sort of somebody designated by us to assist in evaluating and keeping us in the loop together with the Maloofs on such progress that's being made on a viable arena plan.
So we will be much involved in that. It will be somebody or some combination of people with the financing/legal/governmental/business skills necessary to make sure that if this vision, this shared vision can be brought to reality; and if not, then it will be our shared failure.

Q. You're talking about the Anaheim presentation; what is your sense among the other owners in the league as to what their feelings are about having a possible third team in this market, and what do you think Anaheim's future is if Sacramento stays in Sacramento?
COMMISSIONER STERN: Well, I think that Anaheim made a great pitch for itself as a stand-alone market. You know, the committee whose deliberations were completed had commissioned studied to determine its viability, and if I had to hazard a guess, I would say that that would come up in a positive way for Anaheim. That's my personal view. I anticipate that that would be the case.
I think that Anaheim is in the future of the NBA, and that this process only moved it along, rather than in any way detracted from it.

Q. Can you tell me how this differs from the Seattle situation in which there wasn't a firm commitment for on arena, either, and we're seeing a team stay, as opposed to seeing a team leave the last time.
COMMISSIONER STERN: Do you have half an hour? I guess what I would say is in Seattle, there was a hostility by the Mayor who has interested in doing nothing, as opposed to what Mayor Johnson has -- the way Mayor Johnson has put himself out on this it for the people of Sacramento.
The Speaker of the House was hostile to the NBA and its players and was not the least bit interested in moving any legislation, even that just authorized the county, King County, to do that which it might have done to help support an arena. Whereas here, we have Senator Steinberg calling to say, you know, 'Any way in which I can be helpful.'
You know, to call it night and day, it's absolutely an incredible difference. And it is night and day. It's 180 degrees difference.

Q. I'm just curious, wonder whether a large part of this decision was based on the outpouring of 11th hour support; were any signals sent along the way here inasmuch as it did come to the Board of Governors and you did send folks out there; was any signal sent that, look, don't apply, this is not something we want to do at this time; you need to give it a year.
COMMISSIONER STERN: As I said earlier in the call, the committee told them that given the outpouring, certainly one approach is to go back for a year, and if you do, we would be very supportive of you a year from now. So that's a messaging of a type.
And it wasn't -- but it wasn't about the timing of it. It was more about the outpouring and sort of the belief that seemed to be coming together that this might be the time when it does happen; that given the way the Mayor has presented it and the way the senator has presented it and the way the business leaders have presented it, this is, in fact, an option by the community to say, yes, we can get it done, otherwise we are going to be without any building.
And so that's a pretty strong sort of generalized message that we all were giving to each other in a way about why this would be different from the other ones.

Q. You had talked about the group coming to Sacramento to help out with marketing and ticket sales. How involved is the NBA going to be involved with the day-to-day operations of the Kings, or are they going to be involved with the day-to-day operations of the Kings?
COMMISSIONER STERN: We are going to assist the Kings in recommendations with respect to hiring. In the interim we are going to provide whatever support we can where they may feel there are shortages in certain departments, and then, through our team, we will provide any additional support by way of boots on the ground, consultancy, or other expertise. We are thoroughly committed to this year in Sacramento.

Q. In the bigger picture of the state of the NBA, what has happened with the television ratings you've gotten so far in the playoffs say about the health of the game in general?
COMMISSIONER STERN: Boy, thanks for asking we actually couldn't be more pleased. And actually a little surprised, but pleasantly, about the ratings for the NBA. Of course, as everyone knows, we were up across all three of our networks in double digits, and yesterday a doubleheader on ABC. The overnight rating was up over 50 percent year-to-date.
I don't know exactly -- you know, I know it isn't league management that's responsible for it, but I'm pretty sure that it's the compelling stories that our players have been delivering on the court. To see Oklahoma City having all it can handle from a Denver deem; to see Memphis knock off San Antonio; to watch in the East where I think, I mean, Philly and Indiana gave the Heat and the Bulls a little bit more in certain games or in certain quarters than they expected. This is about as good as it gets.
We are having a great season. We are having a great playoffs. The state of the league is very good.
TIM FRANK: Thanks to all of you for calling in.

FastScripts Transcript by ASAP Sports

ASAP Sports, Inc. | T: 1.212 385 0297