Lakers’ Price of Poker Reaches $121 Million

The Shaquille O’Neal sweepstakes took a dramatic turn in the Lakers’ favor Wednesday when they delivered a higher final offer to the free-agent center than the Orlando Magic, a seven-year package worth approximately $120 million as the process appeared to head into its final hours.

O’Neal and his advisors huddled into early Thursday morning in Atlanta, after O’Neal had arrived with the Dream Team for the Olympics. A final decision was expected to come out of that meeting, though nothing is definite.

Negotiations that had the Magic feeling confident and the Lakers offering a concession speech a day earlier changed course in stunning fashion after a whirlwind day in Atlanta that included separate meetings by both teams with agent Leonard Armato. This came about 24 hours after the Lakers set the stage by clearing additional salary-cap room by trading Anthony Peeler and George Lynch to the Vancouver Grizzlies, and after Orlando officials had failed to offer more than $110 million for the seven seasons.

It was at these conferences, well-placed sources said, that the Magic increased the bid to $115 million, by all indications its final proposal because ownership did not want to go higher for fear of not being able to run the franchise at a profit. Team President Bob Vander Weide and John Gabriel, the vice president of basketball operations, then returned to Florida.

Meanwhile, Laker Executive Vice President Jerry West stayed in Atlanta, although people close to the situation caution against reading too much into that. He is also a board member with USA Basketball, the group that oversees the Dream Team.

Armato would not comment on specifics of the negotiations. But asked about West coming in with a new offer after it had appeared the $95.5-million package extended late last week was the best that would be coming out of Los Angeles, Armato said:

“Obviously, the Lakers have made a bold move to secure [O’Neal], and he has quite a bit to think about.

“Orlando had the first bite of the apple and they had the last bite. It’s certainly a tough decision. I can tell you it won’t be based on money because both sides were relatively close.”

Orlando owner Rich DeVos seems tired of the bidding war.

“If they [O’Neal and Armato] are trying to squeeze another million or two out of this, then the Lakers can pay it,” DeVos told the Orlando Sentinel from his summer home in Holland, Mich. “If that’s the kind of game it is, then we’d be getting only his body and not his heart.”

O’Neal had been telling people privately last week that he expected to re-sign with the Magic, the only home he has known as a pro since coming out of Louisiana State as the No. 1 pick in 1992, so the Lakers could still have been facing a tough battle even after outbidding a team that had the luxury of negotiating without regard to the salary cap. His mood seemed to change, though, when the Dream Team went to Orlando for workouts as the final stop before Atlanta and he acknowledged that the Magic offer was not the $115 million being reported.

At that time, the Magic was still at $110 million for the seven years, which would only have made O’Neal the second-highest-paid center in the state, behind the $112 million that Alonzo Mourning reportedly agreed to with the Miami Heat. Feeling new pressure after the Lakers’ trade created more spending power, Orlando upped that to $115 million.

O’Neal likes Orlando, however, and whatever difference he finds in the financial proposals can be overcome. One obvious lure is that the Magic will front-load the deal to deliver more than $20 million for 1996-97 alone, possibly twice as high as the Lakers can go for this season depending on the final pitch from Orlando. The other potentially serious consideration is that, unlike California, Florida has no state income tax, which would save O’Neal millions over the length of the contract.

If the Lakers lose out on O’Neal, they would probably make an immediate offer to Brian Williams. They have been in contact with his agent, Fred Slaughter, for several days and could make a move before the weekend.

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MAGIC MOMENT

Shaquille O’Neal hasn’t signed, but teammate Horace Grant re-signed with Orlando for a reported $50 million over five years. C7