HUGE NEWS! Clay Bennett & Co. buy Supersonics!

[HOT ROD]

well, the city factors in the expense side into the Rent. Which is one of the most expensive esp for such a small arena.

The city isnt worried about that, but the city also wants and is screaming for the marginal revenue that would be created if the SONICS were to stay in Seattle through the 2009 season. They want restaurant receipts, lux box sales, parking, t-shirt, concessions, events, appearances, so forth; that you cant predict. You could only say, with the SONICS here, it is likely there would be some marginal revenue from those venues. But, you could not say there WOULD BE marginal revenue from those streams - since it is not guaranteed that people would buy luxury suites, t-shirts, parking, or eat at those restaurants.

The city would also want a portion of the media receipts, but once again - whose to say what that might look like with a lame-duck year. I'd venture, not that high.

But the expense side of Key Arena is covered by the rent the Sonics are required to pay thru the 2009 season no matter what. Its just, the city is claiming to be entitled to more. And I dont think so.

[okclee]

This story is all over the place.......ESPN, CNN, Fox Sports

They are all saying the same thing, "the Sonics will be leaving Seattle, after next season"

ESPN.com - NBA - Sonics owner: lease won't keep team from moving

FOX Sports - NBA - Bennett: Arena lease won't be deciding factor

http://sportsillustrated.cnn.com/200....ap/index.html

[okclee]

Here is another link to the USA today, it has even better quotes from Bennett and a few from Mayor Mick.

Owner: Sonics likely leaving Seattle after 2007-08 season - USATODAY.com

[john60]

I think that OKC needs to seriously consider this free lease of the Ford Center idea in order to get the Sonics here ASAP.

I have no idea how much it would cost to fire up the Ford Center 40 extra times next year, pay for the extra cops, etc...but I think that the city would end up making money, even without lease payments from a tenant.

The city has to make a boatload on parking downtown, plus the economic impact in Bricktown on those nights, as we all know from the past two seasons, would be huge.

Maybe I'm getting overzealous and getting a little depressed about a bleak winter next year, but come on. Surely the city would come out in the black, even if they had to foot the bill for the Sonics for a year. I really don't want to take the year off next year...

[HOT ROD]

That is an interesting point John, one that I also mentioned more or less earlier.

In order to secure the SONICS immediately (as in next week), Oklahoma City can offer Bennett free lease at the Ford Center until 1) the luxury amenities/suites that both parties agree to are built into the Ford Center and/or 2) a permanent practice facility is constructed for the team.

Oklahoma City already has funding in place to upgrade the Ford Center. That was a provision of the MAPS I extension. Im not sure if the funding is in place for the practice facility but Im sure it wouldn't take much to get that one going either.

So, if the city were to act say - by Monday next week when the WA legislative session is over, to put its best foot forward; free lease for the first x years until the 2 conditions above are met in return the SONICS would sign a 20 year lease en leiu with the rent to be assessed starting year such and such; I think that Bennett's meetings in New York this week should provide the votes of the board to let him out of Seattle for 2007.

The city might not make as much for the first year or two BUT that would be offset by the positive exposure Oklahoma City would get from the media attention as well as if the SONICS go get good players (which is what Bennett is going to do anyways!!! Awesome). The city would get what it got during the Hornets, as a baseline. And surely there would be more since this is a permanent relocation (not temporary due to a national disaster). I think it is a move OKC should do and initiate, something that will benefit for decades, pridewise and financially.

The question is, how much would it cost to break the lease at Key arena. I'll be honest, I dont know how much rent they pay - but I do know that is the ONLY thing the SONICS are obligated to pay for. All of the other stuff the city of Seattle said they wanted (luxury suites, parking, restaurant visits, concessions, t-shirts/trinkets, media) that stuff is all relative and not guaranteed.

It is possible the SONICS in 2007 in Seattle wouldn't have ANY of those marginal revenue items - albeit unlikely but still how could you guarantee X dollars from any of that? And what baseline would you chose? A healthy SONICS who win most of their games (like in the 1990's) or the current SONICS who are the 5th worse team in the league? I bet the figures are different for the two - so whose to say the SONICS would owe Seattle any of that marginal revenue that would be possible?

But there would be some cost to break the lease at Key Arena and it would be wonderful if OKC were to come through next week and say - we want you here, we will help offset any losses by waiving our rent provided you give us a long term lease.

Im sure Mick is all over this, as is Stern (which we already know), Bennett, and surely the other NBA governers. Hopefully, more good news will come forward next week for Oklahoma City.

A little sad to see the SONICS leave Seattle, sure I am; but I am even more happy that they are going to my hometown - where they are wanted, deserved, "and needed!"

[BDP]

Interesting angles, HOT ROD. It would be nice to see some real numbers. I also wonder how much a lame duck season would actually help in reducing buy out expenses? It would obviously work one year off of that lease, but it would also produce less tangential revenue as less people would be going to the games, paying for dinners, buying luxury boxes, staying in hotels etc. The city of Seattle would obviously claim mitigating circumstances, but it would be part of an established downward turn. The momentum would be with the owners in terms of declining performance. Even if a judge sympathized with the mitigating circumstances, he/she certainly couldn't speculate that they would have been higher in the last two years of the lease.

Of course, that's a risk. You have to have the right mediator and the right results. There is little uncertainty, however, that the Sonics will not be profitable operating at Key Arena under that lease. So, it would all be weighed against how much you will loose in another year of operation versus how much leverage a lame duck season would actually create towards buy out negotiations.

In the end, it seems to me that Seattle isn't interested in keeping the Sonics. They just want their check and are happy to wave goodbye. Maybe I missed it, but I would think that if they wanted the Sonics in Seattle they would at least make some stronger counter offers to either improve Key (if possible) or rewrite the lease to make it more favorable for the owners. I could be wrong, but I don't think the city needs the state legislature to do some things that could help the Sonics stop bleeding cash. Then again, they have been at this for 3 years and 2 owners. I really just think they feel they have done enough for the sports community and are looking to cash in on the Sonics... maybe even to help pay for their previous sports investments... If so, it's really not a bad move on their part, imo.

[SoonerDave]

You know, there's a startling parallel in the Washington state governments actions here and the Dallas City Council's actions regarding improvements to or rebuilding the Cotton Bowl. If you let leaders like Laura Miller in at the city level, eventually they make it all the way to the state, and you end up flushing valuable assets like marquee sports franchises or events down the drain in a misplaced sense of propriety....

-SoonerDave

[BDP]

To be fair, it does sound like the state of Washington has some serious concerns with its infrastructure. Instead of viewing losing the Sonics as flushing valuable assets, some see it as an opportunity to refocus on obtaining toilets that actually flush at some of its schools. Whether its posturing or a real attempt to improve the state remains to be seen, but I wouldn't call paying for public infrastructure improvements over subsidizing sports ventures a misplaced sense of propriety, but an attempt at making public well being a priority.

[jbrown84]

BDP's right. I think if I were in Seattle I would probably be pleased with the decision.

[Pete]

There can't possibly be that much public support for the Sonics in Seattle otherwise the legislators would be more inclined to support the arena plan.

Nobody wants to jeordardize their political career by alienating a big chunk of voters over something like this. But clearly, that doesn't see to present much of a risk to the law makers which tells me the general population is pretty ambivalent as well.

So, time for everyone to move on.

[metro]

yeah move on to OKC that is......................

[metro]

Two things of note. I just found this poll on the Seattle Times website from today.SURVEY


Will the Sonics stay?
Do you think the Sonics will remain in Seattle beyond the 2007-2008 season?

Yes - 19%

No - 53%

I don't care - 28%

Total votes: 1,449

And here is a newly posted article this afternoon on the Oklahoman's website:

Bennett, Sonics will look around

By John Rohde
Staff Writer

With his NBA franchise "hemorrhaging drastically,” Seattle SuperSonics owner Clay Bennett said he will begin exploring options that could soon move the team to Oklahoma City.
"We're going to evaluate our options. We have to do that,” Bennett said Tuesday, one day after his proposal for a new $500 million tax-subsidized arena was tabled when the Washington legislature determined there was not enough support to vote on the plan.

A group of Oklahoma City businessmen chaired by Bennett purchased the Sonics and WNBA Storm last July for $350 million and have since been working on building a facility to replace KeyArena, which is the NBA's smallest and oldest facility.

With that proposal stagnant, Bennett said he must press forward to save a business that is now on the verge of becoming a lame-duck franchise.

"This business is hemorrhaging drastically as we speak,” Bennett said. "And I expect it to only get worse.

"I don't think having a franchise that's leaving town is good for anyone. Not for the players, not for the fans. It's kind of a disjointed situation.”

Bennett spoke with reporters from NBA headquarters, where he will attend the Board of Governors meetings on Thursday night and Friday.

Bennett admitted he was frustrated and said: "I remain puzzled as to why this didn't make sense to the broad public. I also feel that I'm not sure how we (can) get this done. It's going to be very difficult to find an answer (in Seattle). For whatever reason, this is not a priority. So I'm concerned and I think we're in a very difficult period. The franchise is clearly at risk in the marketplace.”

Bennett said he would still adhere to his self-imposed Oct. 31 deadline for making a "good faith, best effort to build a successor venue.”

But is it possible to keep his deadline while simultaneously exploring options for relocation?

"Sure,” Bennett said. "We're going to work hard and be open and available to any ideas that come forward (concerning the proposed arena). But we have to, at the same time, begin the (relocation) process. We need to address it.”

Oklahoma City successfully hosted the New Orleans Hornets the past two seasons after the team was displaced by Hurricane Katrina in the summer of 2005.

Bennett attended the Hornets' final home game Friday night inside the Ford Center.

"As I've said many times, Oklahoma City deserves a team and should get a team,” Bennett reiterated. "(An NBA team) would be an incredibly valuable asset for any market. I know Oklahoma City would do anything they could to get the team.”

The Sonics have a lease with KeyArena and the city of Seattle through 2010.

"I'm not sure it makes sense to play there if relocation (is imminent),” Bennett said.

If the Sonics wanted to leave before the lease expired, they would have to negotiate a payout, which Seattle officials said they would demand.

"I assume that becomes a legal exercise,” Bennett said.

NBA commissioner David Stern previously categorized the lease as the worst in the league and also criticized Seattle's opposition to a new arena.

"They're not interested in having the NBA there,” Stern said last year.

In a Tuesday on-line chat on ESPN.com, Stern was asked where he would like to see Bennett's team, Seattle or Oklahoma City?

"From a league perspective, we are hoping for a miracle that gets a vote accomplished,” Stern said. "If not, things don't look very good.”

[jbrown84]

"I'm not sure it makes sense to play there if relocation (is imminent),” Bennett said.

A clue? Doesn't sound like he wants even one season there.

[BDP]

No doubt he doesn't want to stay any longer than he has to. I think Trammel was right in that Bennett's first choice is to have a new arena built and make 100 million dollars in equity with the increase in value the arena would generate for the team. But, since it looks like he will have to operate out of Key, which has a recent history of being unprofitable, he's going to want to minimize how long he has to operate there to minimize losses.

Then it just becomes a question of negotiating a buy out and measure that against projected losses of operating in Seattle, In other words, will it take longer to recoup a buy out or recoup the losses sustained by operating in Seattle for X (1 to 3) number of years? Now it's hard to say until anyone knows what a buy out will cost, but you gotta think that getting out of Seattle as soon as possible is going to be the favored course of action. It is theoretically possible to finance the buy out and still achieve positive cash flows in a new market, a result that is currently, as far as I understand it, impossible in Seattle, all other variables being constant.

[HOT ROD]

No news is good news from up here.

I can say, the 4pm news KOMO announced the "move" again and also promoted tonite's game as "the SONICS last game." They didn't really correct themselves to say "of this season" or anything -

perhaps that is an inside 'slip' of sorts indicating a major announcement will likely take place next week - just as I predict. Good times indeed for OKC.

[Pete]

If they are going to negotiate a lease buyout, there is really little difference if they wait a year. Except, of course, they'll have a terrible season of attendence right before having to come up with a payoff.

The only real issue is the NBA approval. Even though the deadline has passed, Stern could certainly arrange for a special vote given the circumstances. And considering the support he's shown Bennett and OKC, I would expect him to be very accomodating.

[metro]

The SONICS game didn't seem to be too full, not to mention they're getting hammered at halftime. We'll have to see what the official attendance was for tonights game. Some group staged a rally before tonight's game to save the team but it didn't look like too big of a crowd.

[HOT ROD]

cost of land is 5-6 times what it costs in Oklahoma City, that's mostly why.

And we (Seattle) do not support the SONICS anymore, that's why their headed to Oklahoma City. Believe it Homer!

[PUGalicious]

It would be extremely stupid for the Sonics to leave Seattle after the length of time they've been in that city. I don't think Bennett is being fair asking them to build an arena 5-6 times what the Ford Center cost.

Not only is the land more expensive, but the arena and building complex they were proposing is substantially bigger with significantly more amenities than the Ford Center has, so it's not an apples-to-apples comparison when it comes to the cost. If we do in fact get an NBA team, the Ford Center is just not going to cut it for very long and we'll be looking at a much more expensive arena complex.

[metro]

From today's Seattle Times.

Sonics' finale has a feeling of "goodbye"
By Percy Allen
Seattle Times staff reporter

The only thing missing were moving vans revving in the parking lot ready to carry the Sonics away after the final buzzer.

Conceivably, they'll return next season for what could be their final year in Seattle, but judging from the multitude of cryptic messages surrounding the game, you might have gotten the impression that when the Sonics walked off the court following Wednesday's 106-75 defeat to Dallas, they were heading out of town for good.

"You know what the crazy thing is? This year was supposed to be a celebration," guard Earl Watson said. "Remember the 40th anniversary and all of that?

"The last game, you want to thank your fans for hanging with you, but this feels more like a goodbye because of everything that's happened."

Several fans wore green-and-gold "Save Our Sonics" T-shirts and carried placards urging owner Clay Bennett to remain patient with state lawmakers who killed the $300 million public financing package on a $500 million multi-purpose facility in Renton that was going to be the Sonics' new home.

During a pep rally outside of KeyArena before the game, Renton Mayor Kathy Keolker encouraged a few hundred supporters to continue the fight for the new arena. She spoke of an 11th-hour miracle before the session ends Sunday, but declined to reveal the reasons for her optimism.

"There's still a possibility we can make this work," she said. "I'm not going to give up. It could very well be [a miracle]. It's coming down that way. There are still people in Olympia who are working on this issue and trying to make this happen.

"That's all I'm going to say right now. I haven't given up, they haven't either and we're all doing our part to try and make this happen."

Many shared her sentiment, but there was also a contingent of fans who fear the worst. They hope that Bennett won't make good on threats to break the final two years of a lease with the city and move the Sonics and Storm to Oklahoma City after the 2007-08 season.

Sonics center Nick Collison, who took the microphone at center court for a pregrame address, hinted the team could move sooner than later. He thanked the fans for their support, but ended a short speech saying: "Hopefully, we'll see you next season."

The gaffe wasn't lost on many in the announced crowd of 16,117 who appeared stunned, or an angry Sonics executive, who stormed down the KeyArena corridor cursing and yelling: "Hopefully? Who in the hell writes this stuff!"

There are so many unknown factors involving the Sonics, who ended their worst season in more than two decades with a five-game losing streak and dropped nine of their last 10 games to finish 31-51.

The arena issue, however, is just the tip of the iceberg.

First and foremost, Bennett, who is in New York attending the NBA Board of Governors meeting, is expected to immediately announce the fates of coach Bob Hill and general manager Rick Sund. Many in the organization believe Hill, who leaves for his home in San Antonio on Saturday, will not be retained, while Sund, who has a year remaining on his contract, could return.

"Expect the unexpected, from players, to coaching, to whatever," Watson said. "What's going to happen with me, I don't know. Nobody in this organization really knows what's going to happen to them except Mr. Bennett."

Include Lenny Wilkens in that exclusive group.

The Sonics legend had been an FSN color analyst before adding the title of vice chairman this season. It's widely believed that he'll have the pick of any job he chooses, from president, to general manager, to coach. What Wilkens decides will determine what happens to Hill and Sund.

Wilkens, who was unavailable Wednesday, has repeatedly said he has no desire to resume a Hall of Fame coaching career that ended in January 2006 after a turbulent year in New York.

Still, rumors continue to swirl about his imminent return to the sideline.

"I talked to Lenny a few times, but we never get into the coaching situation or anything like that because I really don't want to know," forward Chris Wilcox said. "I know this much, this team needs some good news. We haven't had any good news in a long time around here."


Copyright © 2007 The Seattle Times Company

[Easy180]

The Sonics are clearly playing third fiddle in Seattle....Why not come to a proven city and be the clear cut toast of the town?

Hornets found out how nice that was and now they are headed back to being second best well behind the Saints

We will absolutely need to pony up and build a new stadium in 5 yrs or so...Shouldn't be a problem at all with all the name recognition the NBA will bring to our up and coming city...It will make a huge difference in the next decade at least

[okclee]

The Sonics are clearly playing third fiddle in Seattle....Why not come to a proven city and be the clear cut toast of the town?

Hornets found out how nice that was and now they are headed back to being second best well behind the Saints

We will absolutely need to pony up and build a new stadium in 5 yrs or so...Shouldn't be a problem at all with all the name recognition the NBA will bring to our up and coming city...It will make a huge difference in the next decade at least

Well said Easy.........

Bennett has the plans already drawn for the new arena, and it would looks 100 times better in downtown Okc then it would in Seattle.

[okclee]

Here is the street level view that would be seen as you drive along the soon to be new downtown boulevard.

[okclee]

Does anyone have the link or the quote to Bennett when he referred to building a new arena in Okc?

He was asked about building this same arena in Okc and where he would build it if he were to move. He mentioned the relocation of I-40 and using land in the new area to build this same arena.

[metro]

I'm all for it in a MAPSIII proposal IF we need the extra amentities that the proposed arena to replace Key Arena in Seattle. Otherwise, we may need to tweak the design a little to accommodate OUR city's needs. I believe they were adding extra amenities for a multi-purpose facility and some convention space. If a new arena were to be build, we hopefully will built a new larger pure convention space and convert the Cox to pure convention space as well for smaller conventions.