HUGE NEWS! Clay Bennett & Co. buy Supersonics!

[Easy180]

I wonder if KC and Vegas offered up similar concessions in their discussions/packages to Bennett

All those hypothetical things might just be common enticements for all we know

Seems Bennett and co. are up to something....First Aubrey speaks out and now they have a closed door meeting w/ employees 2 months b4 the deadline knowing good and well word would get out since they all live in Seattle

[okclee]

Okc was discussing packages with Shinn to relocate the Hornets to Okc. So I am sure that Bennett knows the package that the Hornets were to receive, and can safely assume that his Sonics would receive a similar incentive package to relocate.

[Easy180]

Okc was discussing packages with Shinn to relocate the Hornets to Okc. So I am sure that Bennett knows the package that the Hornets were to receive, and can safely assume that his Sonics would receive a similar incentive package to relocate.

Good call...Makes complete sense...Never thought of it that way

[Midtowner]

I liked the article and basically agree with it. I think that the case will probably end up in Washington state court since there's a lack of complete diversity here (federal courts can't preside over cases where any of the plaintiffs are from the same state as any of the defendants) unless there's some sort of question of federal law here (which I'm not sure about, but I don't see how there could be such a question which would share a factual nexus with this contract/lease agreement).

As a matter of law, however, I don't see how the Washington court can order the "specific performance" it seeks. I've looked through case law and any time where it's possible to award monetary damages, that has to be the remedy.

In this case, I'd have to look at the terms of the lease, but one thing's for sure -- the damages sought may not be speculative. The city of Seattle is going to have to make an iron clad case to prove its damages.

I think the article's right -- the legal processes here can take months, sometimes years to work out. Suing on the lease could very well prove to be an effective delay tactic for Seattle unless the Sonics group can keep the court from issuing an injunction keeping them in Seattle (which I think an injunction probably will issue here). If an injunction issues, we're probably looking 1 or 2 years out at best.

I think this issue is great politically for the folks back in Washington. Fighting this thing, dragging it out in dramatic fashion is a great way for politicians to impress their constituents. I don't think there's really any incentive for these guys to work with OKC.

The real wild card here is the NBA. If the league intercedes with a directive that the Sonics are to play their next season in OKC, things could get very interesting. I think the chances of that are 50/50. From what I've read, it is possible to imply that Bennett really thinks the Sonics are about to relocate (not to mention the words out of McClendon's mouth). These guys wouldn't be acting in such a manner unless they were confident as to how this was going to play out.

That's pure speculation on my part, but typically, businessmen do not behave as if they've won until they have.

[betts]

I agree that the wild card here is the NBA. What does David Stern really want? There have been occasions when he's taken the side of the owner over a city, such as Vancouver. But in the case of Sacramento, the city voted down funding for a new arena and he's trying to get private funds to get it built. There's no news about the Maloofs getting to take their team to Vegas, which is probably what they'd really like. Paul Allen ended up stuck in Portland, at least partly because of his long term agreement with the city to keep the Blazers there.

Stern's between a rock and a hard place because if he forces Bennett et al to stay in Seattle without a new arena, he's just given all cities permission to stand fast against the threat to move a team. If he lets the team move, he's ignoring 40 years of tradition in Seattle. Not a good position to be in. He's gone there personally and not made any progress. My gut feeling is that he will allow the team to move if no arena deal is forthcoming, simply to show other cities what it takes to keep a team. But I'm not 100% sure I'm right. I'm not so sure he'll allow a court battle, though. If Bennett cannot buy his way out, it may be a three year wait.

[Pete]

Stern and the NBA owe OKC & Bennett a huge debt because we provided a great situation for the Hornets, supported them very well, then politely let them go back to NOLA without a fuss.

Not long after, Bennett et al buys the Sonics with the express intention of cashing in that good will.

They just need to keep their mouths shut and let the NBA pay them back this favor without these stories turning up in the press, making their support more difficult.


And I don't believe there was ever a negotiation with the Hornets to stay longer than those two years, so I doubt very seriously that the terms outlined by Bennett were from that situation. Remember, Clay and his partners were rejected when they approached Shin and never did own part of that team. They just help to temporarily host them.

And the whole time, the NBA kept saying the team had to go back to New Orleans. I don't think they ever got that far with OKC in terms of discussing a specific deal.

[HOT ROD]

Yeah Malibu, but you must remember that Clay is from OKC and surely he and Cornett discussed the aformentioned - which Im sure Clay presented to Shinn in his bid to become a part owner. Surely, permanent relocation to OKC was discussed and the terms Bennett outlined sounds exactly like what would have been offered by the city (since the city did much of that anyways during the 2 year stay).

I think Clay may have had a few conversations off the record with Cornett basically to say "Mick, do you think we'd have those same terms?", Cornett, "Yes", end of conversation. I dont think there's anything too wrong with that, as that is how business works and usually OKC is at the butt end of the stick but this time OKC is on the front!!

And, like others have mentioned - it appears that Bennett PROBABLY (not possibly) already has the majority vote from the NBA and he may be already ready for the court battle.

Im not soo sure the case would HAVE to go to a WA court (vs. a Federal) because NONE of the ownership group (the Plaintiff) like in Washington. The Professional Basketball Club LLC is based in OKC, and they are the plaintiffs. Furthermore, Seattle is a municipality based in WA, so wouldn't there be some 'conflict of interest?' if it went to a Washington court - just like someone would also claim if it went to an Oklahoma court. I think it has to go to Federal, and most probably - New York City - since that ist where the NBA is based. After all, we are talking about an NBA business and ultimately NYC is where the NBA is headquartered.

I loved the Tacoma newspaper article.. For ONCE, we have an article that is not biased - is level headed and JUST reported the facts..... If ONLY the Daily Oklahoman, Journal Record, Seattle Times, and Seattle PI could learn from the Tacoma News Tribune. Isn't it funny, the Tacoma paper is the smallest of the aformentioned news agencies, yet it reports facts and not inuendo. But I digress.

One more thing you guys need to know is, back when Clay bought the team - he put together a proposal where he wanted to show the economic benefit (value added) that the Sonics had on the city of Seattle. I think the figure was $60M annually, based on the lease and side businesses and spin-offs. YET, the city of Seattle came back with an even BETTER presentation where they said the Sonics contributed NO economic value to the city. .......

Now, this was when Bennett wanted to stay in Seattle - and NOW that Bennett wants to leave, it looks like the city wants to FORGET that presentation and ALL OF SUDDEN, Ooooh - Yea uuuh, the Sonics owe us this and that.

Not gonna happen. Bennett dropped his proposal (of course) and the city "won" that "battle", an agreement of such that implies - the city of Seattle must be correct, the Sonics add no economic value to Seattle..

Im positive this will come up again, and this time - Bennett will use the city's own words against them (and should prevail as such). Of course, the city will NOW find someone who will NOW say, Oh, the sonics add this and that; but since the battle was already decided in the city's "favor..." last year, there is NO WAY NOW THAT SOMEONE COULD CLAIM OTHERWISE.....

So, I guess.. Bennett will need to pay $8-10M for 2008-2009 and 2009-2010 plus the NBA relocation fees. That's it!

Goes to show you how dumb Seattle really is yet they think they are so all of that. I can say this because I am a resident here and this place always acts so elitist on their high horse because Bill Gates (et al) are local residents. Big Deal!! Bill didn't buy the Sonics for the sake of "Seattle Pride" and aint either. Yet a few people here want to act like Seattle is untouchable because it is so green.

Well, that green aint money, and surely OKC is going to teach Seattle a BIG lesson that you NEVER sit complacent on what you have when there are others who desire to be like you. ...

New York and Chicago know this, yet it hasn't sunk in to little ole Seattle yet. ..

[HOT ROD]

I agree about the aformentioned sentiments coming from New Orleans. You would think that they'd support OKC's Sonics position since it takes out the #1 competition they have for the Hornets (since the market already exists in OKC for the Hornets). Surely, if put head to head - OKC would beat NOLA by a very wide margin (esp since OKC even beats Seattle by a significant margin as well).

You'd think that decorum (sp?) would set in the Cresent City and they'd be rooting for the "hicks" in the Renaissance City of OKC to get the Sonics. Yet, they are apparently either too stupid or otherwise mis-informed about the impact that OKC's pursuit and success of landing the Sonics would mean to them. IE, New Orleans would not have to worry any more about their MOST SERIOUS COMPETITOR.

KC or Vegas or (dare I say) Louisville or Seattle, all would be starting from the ground UP to try to get the Hornets, with KC most probable now being the #1 competitor given the Sprint Center. I think New Orleans should be concentrating on 1) supporting the Hornets THIS TIME while they are there and 2) be worrying about KC first, and Vegas esp if that arena that was proposed there gets built (which would surely launch Vegas ahead of KC).

Yet you can't teach a horse how to drink, you can only lead him to the water. And in this case, New Orleans aint drinkin' - instead, they are just trying to cause trouble for OKC or doing everyting anti-OKC just for a vendetta.

Dont they know that it was OKC that saved their team???? And rebuilt a significant portion of their city!!!?

[Easy180]

Looks like the Seattle sportswriters are finally waking up...Getting close to the deadline so they are trying to rally the troops...Reeks a little of desperation though...Hope Bennett and crew know what they are doing by throwing out all of the recent fighting words...Sure isn't winning us any fans on the national stage

Time for Sonics' fans, leaders to fight exit strategy

By Steve Kelley
Seattle Times staff columnist

Call it "The Montreal Expos Exit Strategy."

Because that's what this August offensive from the wanderlusting Sonics ownership feels like.

The strategy seems something like this:

Let inflammatory comments slip from purposely loose lips, creating an adversarial relationship. Operate the team on a shoestring. Alienate the politicians and the fans.

Declare war and then backpedal. Declare war and then backpedal. Talk tough and then "aw shucks" some lame, clarifying statement.

Lose a lot of games. Finally throw your hands up in the air. Explain to the powers that be how misunderstood you feel. Tell them you've tried everything in this town and nothing works. Show them the dwindling attendance figures, then declare, "It's time for us to go."

On second thought, the strategy of the new Sonics ownership seems eerily like the plot line from the movie, "Major League," with Sonics chairman Clay Bennett reprising Margaret Whitton's role in the film.

Minority owner Aubrey "The Oil Man" McClendon fired the first shot, telling an Oklahoma City business journal it was the ownership's intention all along to move the Sonics to OKC.

Back in New York, commissioner David Stern has enough problems, dealing with a cheat of an official, Tim Donaghy, who appears to be ready to blow his whistle on several colleagues.

Stern also is trying to get an arena deal finished in Sacramento. He already has serious problem-franchises in medium-sized cities like Memphis, Charlotte and New Orleans. And his great game is suffering from perception problems and stagnant television ratings.

He wants, you could almost say needs, a team in Seattle. He wants the renewed buzz Portland's Greg Oden and Seattle's Kevin Durant could generate in the Northwest, one of the league's best rivalries.

Stern already is up to the knot in his tie in troubles. And the last thing he wanted in this summer of discontent was some newbie, some calculating, shoot-from-lip yay-hoo, complicating his life.

His $250,000 fine of McClendon was significant, not so much for its size. (That's walking-around money for Oil Man Aubrey.) It was significant because it was a very public reprimand and something you know Stern didn't want to do.

Now comes news, broken by the Tacoma News Tribune, that in meetings in Seattle with Sonics staff on Friday, Bennett outlined a plan that is in place to move the team out of Seattle.

According to the Tacoma paper, Bennett told the staff that Oklahoma City was willing to pay legal fees if Seattle fought to force the Sonics to honor their lease. He said that city would pay the lease's buyout and whatever relocation fees that would be assessed by the league.

That's how much loyalty Bennett has engendered among his staff. It seems as if at least one staff member ratted him out.

If all Bennett says is true,
Oklahoma City seems prepared to sink almost $700 million into the quest to bring the Sonics to the Southwest.

Bennett called the plan "a hypothetical." But it sounds as hypothetical as Newton's Law.

These robber barons want to move the team, period.

And this detailed relocation plan is a sobering call to arms for Seattle's mayor and city council, for the governor and the state Legislature. And a call for help from this city to Stern.

This situation has gotten so ugly and so contentious, Stern almost has to get involved.

And, I believe, if this area can finalize a viable arena deal that already is in discussion, he will find a way to keep the team in Greater Seattle.

The problem with "The Montreal Expos/'Major League' Exit Strategy," is that Seattle isn't Montreal. And the only way the league is going to allow Bennett to move is if the city or the state does nothing.

There are very wealthy people in this area who also are passionate about the NBA and the Sonics. And it is absolutely essential that they get together with Mayor Greg Nickels and Gov. Christine Gregoire and put together a plan that keeps the team here.

Accidentally, but effectively, Bennett and McClendon have strengthened the resolve of this area to get an arena deal done. They've awakened the slumbering politicians and angered the wealthy hoop fans.

Bennett told the Tacoma paper he believed Sonics fans were directing their anger at the wrong person. He said they should be upset at the previous ownership group, led by Howard Schultz, for being so naive as to sell the team to outside ownership.

It was as if Bennett were saying, "Look, I know I'm a snake, but I didn't sell this team to myself."

Nobody will argue that Schultz sold out Seattle. He's as much a villain in this story as the OKC Chorale.

But Howard Schultz is old news.

It's time to turn our attention away from the evil doers from Oklahoma and to the matter at hand — finalizing a plan that impresses Stern and keeps the Sonics in Seattle.

The fight is on.

Steve Kelley: 206-464-2176 or skelley@seattletimes.com. More columns at Columnists | Seattle Times Newspaper

Copyright © 2007 The Seattle Times Company

[bombermwc]

Well we're counting the days...I still don't see anything changing their minds in that close of a countdown. Seattle politicians would have to completely change direction to pull that rabbit out of their bums.

I am surprised OKC is willing to put out that much cash for Bennet though. I'm wondering what sort of deal they would be making with him for that money...a locked in unbreakable time due here in OKC, or maybe some larger portion of profits?

[betts]

I don't know what we're offering Piper in terms of concessions if the business moves here, but Albuquerque is offering around 80 million. I suppose you could look at this as something similar. Again, think of what you would pay for a minute of advertising on ESPN every night from October through April every year. And, as we have discussed, retention of college graduates would have to be improved with a professional team, not to mention some businesses being more likely to relocate. I don't think you can really prove that a professional team provides a huge economic boost to a city from real dollars, as a lot of it is from entertainment money that would be spent somewhere in the city anyway. But I think the other advantages are clear, and I have no problem with Bennett being given financial help to relocate, if he applies for relocation.

[metro]

Well we're counting the days...I still don't see anything changing their minds in that close of a countdown. Seattle politicians would have to completely change direction to pull that rabbit out of their bums.

I am surprised OKC is willing to put out that much cash for Bennet though. I'm wondering what sort of deal they would be making with him for that money...a locked in unbreakable time due here in OKC, or maybe some larger portion of profits?

bomber, I think you and others have missed the fact that Bennett officially said he has not officially met with Cornett or the city of OKC, as well as Cornett has also said the same. There has been no "official offer" from the city of OKC but you know we'll be willing to put up a good hand. The city already has money put aside for Ford upgrades, etc. I'm all for it. It won't be as much money as the Seattle folks are thinking.

[Karried]

Oklahoma City seems prepared to sink almost $700 million into the quest to bring the Sonics to the Southwest

wow... I can see in some ways why some in Seattle are fed up with paying this kind of money out - ie salaries to the players, owner's profits etc etc .. when I actually think of how many people could use that money for health care and basic necessities, it does seem a little excessive for a sports team.

[Easy180]

I agree w/ Metro...I think that figure was thrown out there to make the Seattle based article more effective...Doubt very seriously the city has discussed paying out anywhere near that amount

I am still left wondering what Aubrey and Clay are up to....Why wouldn't this closed door meeting take place after Nov 1st?....I could sort of accept Aubrey's as just a slip (still suspicious), but now with this I think they are up to something and I just can't figure out what it is

Are they just losing it?....I don't see how any of this helps in any way whatsoever

[Saberman]

The Seattle fans don't seem to be doing anything to keep their team. There are people trying to organize things , but all they get is a hand full of people show up.

The the forums are any indicator. They are relying on a 40 year history and a bolt of lighting striking the BOG, to keep their team.

Everytime one of the reporters sounds off, there is a ripple ing the water for a few days. Then it's back to the same winers in the forums.

[Midtowner]

I agree w/ Metro...I think that figure was thrown out there to make the Seattle based article more effective...Doubt very seriously the city has discussed paying out anywhere near that amount

I agree. I'm no economist, but I seriously doubt these sports writers consulted such an oracle. How much OKC is willing to spend depends upon a lot of unresolved variables. It's sad that the Seattle media has resorted to making up facts in order to make their point. Not even the staff of the Oklahoman pulls such numbers out of thin air.

[dalelakin]

Only way I can see the figure hitting 700 million is if they are including a new arena down the road.

Now the question is...Is Clay willing to wait out the 3 years if need be or will they sell off and look for another franchise?

[betts]

If the Sonics can't leave Seattle ever, and there's no new arena, Bennett et al would be better off with the Grizzlies, because they have a new arena, and they make money when they're doing well. But I don't see any other franchise that might be for sale that can move right now. The Hornets are potentially moveable, but Shinn will not sell. If Stern decided he really wants to keep the Sonics in Seattle, the right thing to do would be to offer Bennett an expansion franchise. Of course, he'd also have to find a buyer for the Sonics who would be willing to over pay for the team.

That's probably the best argument for the Sonics' moving. Without a new arena, if the team is unable to move, no one is going to want to buy them. It's a really bad deal from an ownership standpoint, and ultimately, Stern works for the owners and the league, not the cities. If cities can hold teams hostage, and refuse to build arenas and yet the commissioner won't let them move, it's going to be difficult to find people interested in buying a team, ultimately.

[bombermwc]

I know it's not an official statement metro, that's why I was just voicing an interest in what all is involved in the supposed "deal".

[HOT ROD]

Guys, definitely it appears that people here are now convinced that the Sonics are gone. The forums often have those hot-heads who need to use the forums to vent, but the sentiment here is - let them go.

Now, as for the 700M, I think Seattle media came up with that based on the costs HERE, not in OKC. Im sure they came up with 500M for a new arena, 100M for Ford renovations, and 100M to relocate.

I think the true costs will be:

$30M to the NBA, relocation fee to the owners (to get their yes vote)
$20M to the city of Seattle, (10M per year, which is way above the lease but would be more than enough to convince a judge to rule in favor of Bennett should he need to go to court).
$10M to actually move
$20M contingency
$30M in marketing, you need to hype up the team and the probability of a new name

I bet the city of Oklahoma City would foot half of that, plus:

$50M in Ford Center renovations (money they already have, so this is sunk cost)
$200M for a new arena (prices would still be cheaper in OKC for a state-of-the-art arena, this number is assuming the final cost of Ford to be roughly 150M, 200M doesn't see that far off)
$20M for a state-of-the-art practice facility (which i hope is built at OCU, to put the team in the community AND split the cost with OCU; total cost would be $40M)
$50M in contingency (which if not used, could go to extending the downtown light rail trolley to the new arena)
Total new capital cost to OKC = $270M (the $50M for Ford already exists)

Grand Total new cost to OKC = $320M (assuming OKC would pay $50M for: 30M NBA relo fee, 10M moving expenses, 15M which is half of the marketing, 5M which is a quarter of the pymt to Seattle)

So, I come up with half of the 700M the Seattle media published, 320M is very generous and seems reasonable for OKC to pay. Bennett would still need to pay $60M, which for them is a drop in the bucket. I also think Bennett and Co. might add some money to the new arena on top of the 200M from the city, possibly 50M to have all of the bells and whistles; so their total cost could be 110M. This is not far at all from what they offered Seattle for the Renton arena, yet in OKC they not only get the best arena in the NBA but also a move to OKC and a new market.

And, the members of the Pro BBall LLC having the franchise in OKC gives them so much incentive to offer executives and new recruits to their businesses!!! And, the notoriety that the franchise gives to OKC, and the fact that OKC would have pro sports year round (NBA and WNBA), and would finally be in the Tier II club, ..

I think this all is too good NOT to invest in OKC. Bennett and the guys are from OKC, so why not? It's about time somebody believed in OKC and really did something that really makes the quality of life better, IN OKLAHOMA CITY!!!!

Not Nashville, or Dallas, or wherever else our OKC big shots always seem to want to invest. Finally, somebody invests in OKC!! and this will ONLY ensure that OKC continues to grow (but at a much faster pace).

I like it!!! I can't wait!!!

[BDP]

It's so funny how much of this boils down to ego. OKC wants it to elevate its image to a major league tier. Seattle doesn't really want the team, per se, but many of their egos can't take losing it to another city, especially a smaller market city like OKC. Of course, at the end of the day, I don't think that Seattle losing the Sonics will hurt that city nearly as much (if at all) as it would help the OKC market.

I'll admit, though, that 320 million (HOT ROD's estimate) of capital from the city seems a bit ridiculous given some of our other real community needs (infrastructure, health care, education, etc.). I don't nessessarily think that it's a bad investment or that the city would not get some real tangible economic beneifit from it in the end. I just wish that we could get the same kind of support for projects that would directly impact all of the community. That's probably more of a statewide concern as MAPS, MAPS II, and MAPS for Kids have shown that the city is willing to spend money on its community and tax itself to pay for it, but I think we have a harder time getting the state to do the same.

[HOT ROD]

BDP, my estimate ($320M) is not all right away tho. It's spread out over probably 10 years or more,... ?

OKC would probably only need to foot $60M or so within the next few years to get the Sonics, I dont think that is bad at all. And $200M or so for a new arena is also a bargain (considering in Seattle it would cost $500M+ for comparable).

Im also guessing at best, perhaps Bennett and company would fund more of the arena, maybe a 50/50 split?? I dont know. Im just assuming that the city would pick-up most if not all of the cost. And judging Ford Center's expected final cost, I think my estimate is probably pretty close (yet still half of the Seattle media estimates).

I definitely agree with you, that the loss of the NBA to Seattle means very little in the short or long run, especially compared to the gain that OKC will get with having the NBA.

Heck, the proof of this is just look at OKC now, after hosting the Hornets for 2 years - OKC is actually not only a contender for events but the city actually hosts them now (instead of JUST being a pawn like in the past).

And certainly, having a permanent franchise will only elevate the city to permanent major league status! The city should have NO TROUBLE getting events and businesses with that type of quality of life, attractions.

[Kerry]

With the Ford Center and Myriad already being multi-purpose arenas, a new NBA specific arena would be less than half the cost of a multi-purpose arena planned for Seattle. I think at some point the state will get involved in helping pay some of the costs related to hosting the Sonics, or whatever they end up being called. I could even see the Storm playing in Tulsa's new arena and being called the Oklahoma Storm to intice the state to put some money up.

[TStheThird]

It would be awesome if they built a basketball specific arena for the Sonics if they were to come. Crowd right on top of the court... best home court in the NBA.

[OU Adonis]

I have a question for the masses. What would everyone’s requirement be for a new basketball arena?

Here are some things I would want.

- 21,000 seating capacity
- 100 Suites
- I would want the seats to be close to the court and it built acoustically so the damn thing would be loud.
- State of the art scoreboard and sound system
- Signature exterior design with stucco. (I kid) But seriously something that looks urban.
- Lots of tree’s and water around the outside of the building.