Well, I can think of worse ideas.
In LB's favor--
He's got experience and a reputation for defensive play, neither of which is true of the other candidates remaining.
After his much publicized New York fiasco, there's going to be A LOT of attention paid to his next coaching job. That means free publicity, and lots of it. Even if it turns into another fiasco, you'd have a lot of people watching the Kings next year who wouldn't be otherwise. That's good for business.
He's been handsomly paid already so he'd be in it for redemption this time rather than the paycheck. At least for his first year.
He's expressed interest in the job, the players, and confidence in the GM. Any hall of fame coach expressing interest in Sacramento, regardless of the circumstances, is at least worth a look. Can you think of even one hall of famer (player/coach/whatever) expressing interest in Sacramento?
On the other hand--
His performance last year in New York has got to be one of the biggest coaching screwups of all time. He was a distraction the year before in Detroit as well so that's two bad years in a row (along with a failed Olympic stint) tainting his legacy. Is he already washed up?
He's got a reputation for picking fights with his players. I can think of at least one Kings player you don't want to be picking fights with. Uh oh.
Does anyone think he'll be happy in Sacramento any more than a year? He's a temporary fill in, not the longterm solution we're looking for.
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Looking at our current options, I'd say do it. Nobody else is available right now, he might actually get this team to play defense, and he'd bring a lot of attention to the team which would benefit the Maloofs and David Stern. Clearly there is no one that Petrie or the Maloofs are dying to hire right now, so this would buy us a year so we can start the coaching search over with a new round of possible coaches next year. If everything implodes, we'll get another high draft pick with a lot of good centers and point guards expected next year. If Larry Brown returns to hall of fame form, we've got the big name defensive coach with championship credentials we've been hoping for. Sounds like a win-win to me.