HUGE NEWS! Clay Bennett & Co. buy Supersonics!

[writerranger]

I wouldn't say it was gift, but I don't think all of these owners want to fly to Seattle just to see their team play. If I was invested in this group I would want to have the team in OKC. All of these owners have a vested interest in seeing OKC grow. They also manage companies that would benefit greatly from the exposure an NBA team would bring. Somehow seeing a banner for MidFirst Bank at the arena in Seattle doesn't seem right. The team is losing money in Seattle - why do you think they were sold in the first place?

Good one. I agree completely, Kerry.

------------

[John]

Now when Bennett was assembling this team he first had to sell them on the idea. I seriously doubted his sales pitch included keeping the team in Seattle. I mean come one - the stated goal of this group is to bring an NBA team to OKC.

Forget the OKC angle for a minute... A professional sports franchise is two things for an owner; an investment and a tax write-off. The Sonics remaining in Seattle (with a new stadium) is a much better investment for the ownership group just due to the size of the market.

Ponder this: Bennett and company keep the Sonics in Seattle with a new arena, make a healthy profit, end up selling the franchise back to Shultz or Gates, etc. Taking their money and buying the Hornets for a much larger price than their market value and moving them to OKC. OKC gets their Hornets, Shinn gets rid of his debt, and Stern/NBA get rid of the headache of Shinn.

...and they all lived happily ever after!

[okclee]

Forget the OKC angle for a minute... A professional sports franchise is two things for an owner; an investment and a tax write-off. The Sonics remaining in Seattle (with a new stadium) is a much better investment for the ownership group just due to the size of the market.

That is what I have been saying all along. Seattle is the better city for an investment, if Bennett moves to Okc the franchise will be worth less than if it were to stay in Seattle.

[Easy180]

okclee...Of course Seattle has the potential to make them more bucks, but owning sports teams is a unique investment... Bennett is trying to get it done there...We are just saying it's not going to get done..Doesn't matter at all what Bennett wants to do if the arena funding doesn't get passed in the next two weeks

Not all about the bucks...Prime example...Steinbrenner bought the Yanks for $10 Mil back in the 80's(?) and it's now worth close to a billion....Figure he would have cashed in long ago if you are just looking at it investment wise

Imagine the prestige and legacy these already multi-millionaires get out of bringing an NBA team to their hometown....That trumps making a few more mil

[metro]

I have to agree with Easy180 OKClee, even though we're talking hypothetical situations, we have to be realistic. Yes, the owners want to maximize their profits, however Seattle residents have said and proven with attendance that they just don't care about the Sonics (oversaturated market). They're losing bigtime money with them. They can come to OKC (an underserved market) and make some decent cashflow. As someone stated, it benefits the companies of the OKC Basketball Group more if they move the team here. As Easy180 said, Seattle has the potential to make more bucks but it isn't and won't. They have too many other professional franchises they support better. Bennett's group sees OKC as a cashcow with no Major League franchise but has proven it will support one.

[okclee]

^^ I hope that you guys are right. Like I said before, I will be first in line to get my season tickets, if and when Okc gets it's own team. It will be even better than the Hornets if the Okc is locally owned and operated. Go OKC!!

[Saberman]

I thnk a lot of professional team owners today, who invested everything they have into their team, because they wanted to own a team and to make money.

At one time owners of professional teams did not expect to make money, but did it for the love of the sport or just to say they owned a sports team.

I think that Clay Bennett falls in the middle. He is doing this because he loves Oklahoma and Oklahoma City, and wants to see his city grow and develop. As do a lot of us in this forum. I'm sure he doesn't want to lose money, but see's OKC as a profitable market.

[Nixon7]

I'll believe all this when I see it happen. 12-16 months ago everyone was SURE the hornets would be staying....

[Easy180]

Gotta disagree with that...My feeling was the vast majority always knew it was a temporary thing...Don't think many were under the assumption the Hornets wouldn't go back at some point...Only thing that was in question was the actual year

[jbrown84]

Forget the OKC angle for a minute... A professional sports franchise is two things for an owner; an investment and a tax write-off. The Sonics remaining in Seattle (with a new stadium) is a much better investment for the ownership group just due to the size of the market.

That's too much of a generalization. As metro said, Seattle has proven that they don't care about this team anymore and I don't think a new arena in the suburbs would change that. If they did get the funding, Bennett's group would still have to drop the other $200 million for the arena, which is a huge risk--or they can bring the team to OKC where they KNOW they will make money.

[metro]

I'll believe all this when I see it happen. 12-16 months ago everyone was SURE the hornets would be staying....

Yes, but the purchase of the Sonics changed the dynamics of everything. Not to mention it looks more "politically correct".

[Easy180]

Looks like Stern will come to the last game...Doesn't say much else aside from saying thanks and the Hornets are gone for sure

User Registration

[Easy180]

Looks like Bennett is still trying at least

New Sonics proposal made
Arena-funding change is bid to salvage bill

Wednesday, April 11, 2007

By CHRIS MCGANN
P-I CAPITOL CORRESPONDENT

OLYMPIA -- The Seattle Sonics scrambled Tuesday to modify their legislative request for tax money for a new arena in Renton -- less than two weeks before lawmakers are scheduled to leave town for the year.

Sen. Margarita Prentice, D-Renton, said she has scheduled a hearing Friday to discuss a new proposal that she says is scaled back from the original plan to ask the state to authorize $300 million in tax financing for the Renton arena.

"They are trying to meet (House Speaker) Frank Chopp's objections," Prentice said. "We'll see if he even reads the bill."

Chopp, D-Seattle, has objected to using tax money to pay for a new home for the NBA franchise. The team's new Oklahoma City-based ownership has said that the current Seattle location, KeyArena, is inadequate and that it may move the Sonics out of state if taxpayers don't help build a new facility.

According to the new plan, no state sales tax would be used to finance the new arena. Currently, King County keeps part of the state sales tax to help pay for pro baseball and football stadiums.

The revision means the Sonics are now seeking only the local taxes that are currently earmarked for Qwest Field and Safeco Field in Seattle. After the bonds for those stadiums are paid off, those local taxes would shift to the Sonics arena. They include a one-half of 1 percent sales tax on restaurant tabs and rental cars, and a hotel-motel tax, all in King County.

Sonics spokesman Jim Kneeland said the team's owners will go along with a public vote on the local taxes if King County wants to require it. Most lawmakers have said they'd only support the Sonics legislation if voters get the final say.

Asked Tuesday if the fact that she'd scheduled a hearing could be considered progress for the Sonics' proposal, Prentice said she "wouldn't go that far."

Prentice, the main proponent in Olympia of building a new Sonics arena, said she is frustrated -- "That's probably the mildest word I can think of.

"It's so close, because there is no logical reason not to do this."

She said the hearing Friday could be canceled if the House leadership doesn't bend; there is no indication that Chopp intends to bring the Sonics bill up for a vote in his chamber.

"This whole thing has been like chasing ghosts ... we aren't dealing with today's reality at all," Prentice said.

In February, the Sonics unveiled plans for a $500 million, multipurpose arena to be built in Renton on Boeing Co. property at the south end of Lake Washington. The proposed 20,000-seat facility would be about 730,000 square feet; KeyArena covers 400,000.

Critics have said extending taxes on restaurant meals, rental cars and hotel rooms to help pay for the arena is a waste of public money.

[mranderson]

I thnk a lot of professional team owners today, who invested everything they have into their team, because they wanted to own a team and to make money.

At one time owners of professional teams did not expect to make money, but did it for the love of the sport or just to say they owned a sports team.

I think that Clay Bennett falls in the middle. He is doing this because he loves Oklahoma and Oklahoma City, and wants to see his city grow and develop. As do a lot of us in this forum. I'm sure he doesn't want to lose money, but see's OKC as a profitable market.

Bennett might "love" Oklahoma and Oklahoma City, however, he is a business investor. His only goal is to make money and he knows he can with a franchise in Oklahoma City. "Love" has nothing to do with it.

[Karried]

His only goal is to make money

And you know about Bennet's goals because......????

[mranderson]

And you know about Bennet's goals because......????

He is a business person. Just like I said in the post.

[PUGalicious]

He is a business person. Just like I said in the post.

Not all business people think the same way or have the same goals. So like Karrie asked, you know about Bennet's goals because......????

[Easy180]

Bennett might "love" Oklahoma and Oklahoma City, however, he is a business investor. His only goal is to make money and he knows he can with a franchise in Oklahoma City. "Love" has nothing to do with it.

Mra.....You have no idea what all the factors are in his decision....Multi millionaires do not buy sports teams just to make a profit....They buy stocks, bonds and real estate solely to profit not sports teams...If they did they would all sell immediately after a Super Bowl or World Series win....You almost never see that

Lot more involved than the business aspect and everyone knows that...Aside from you I guess

[Pete]

Wednesday, April 11, 2007

Sonics arena proposal tweaked as clock ticks down in Olympia
By Jim Brunner and David Postman
Seattle Times staff reporters


Backers of a proposed $500 million Sonics arena in Renton are retooling their public-financing proposal in an effort to build support among skeptical state lawmakers.

But the maneuvering may not be enough to budge the proposal, which remains stalled as the Legislature approaches its scheduled April 22 adjournment.

In an attempt to force the issue, the Sonics' most powerful legislative ally, Senate Ways and Means Committee Chairwoman Margarita Prentice, has scheduled a possible Friday committee vote on the Sonics plan.

Sonics spokesman Jim Kneeland and Renton-area lawmakers confirmed Tuesday the arena legislation is being tweaked so that state sales taxes collected in King County would not be used to pay for arena construction. Instead, the plan would rely on hotel, restaurant and car-rental taxes in King County.

That would cut the amount of state-authorized taxes sought for the arena to about $280 million, down from the original $300 million, Kneeland said.

The sliver of sales-tax money that had been proposed for the arena would remain in the legislation and be spent on King County arts groups and possible future repairs at Safeco Field. That portion of sales taxes totaled about $15 million last year.

Legislative leaders were skeptical that such changes will be enough to kick-start serious negotiations on the proposal.

A week after Gov. Christine Gregoire asked legislative leaders to gauge the level of support in the Democratic and Republican caucuses, she has no plans to convene a summit to negotiate a Sonics financing deal.

"No one has asked her," said Holly Armstrong, a Gregoire spokeswoman.

Although Prentice requested such a meeting, Armstrong said Gregoire is waiting to hear from Senate Majority Leader Lisa Brown or House Speaker Frank Chopp.

There also has been no request from the minority Republicans.

Prentice said she's frustrated that serious talks have not occurred.

"I've been bewildered by the required protocols," she said. "I don't know why this is being handled any different from any other issue."

But Brown, D-Spokane, said Senate Democrats remain deeply divided.

"The spectrum runs from 'hell yes' to 'hell no,' " she said. "I'm not sure if the new proposal changes the dynamic in the caucus."

Chopp, D-Seattle, could not be reached for comment. However, he has been a vocal critic of the Sonics proposal, and some legislative leaders said they do not believe that has changed.

"It's my understanding that the House will not be bringing it to a vote," Brown said.

Prentice said she had been told the same thing. Chopp has sent the message that the bill will not move, "no way, no how. Even if it's fixed," she said.

Renton Mayor Kathy Keolker, in a written statement, said she spoke with Chopp, Gregoire and other legislative leaders on Friday.

"It was apparent in those conversations that the proposal would receive more support from the Legislature if the state sales-tax credit was not used to finance this facility," she said.

But Kneeland said the team has received no assurances that such a move would sway Chopp.

Chris Van Dyk, organizer for the anti-stadium group Citizens for More Important Things, said the reported changes in the Sonics legislation won't change his position that public money should not be used to subsidize professional sports.

"A tax is a tax is a tax," he said.

Exact details of the changes to the Sonics proposal were not provided Tuesday.

The Sonics proposal would extend taxes, collected only in King County, that currently are paying off the debts for Safeco Field, Qwest Field and the demolished Kingdome.

In addition to the state-authorized taxes, Sonics owner Clay Bennett also is seeking an unspecified contribution from Renton.

Kneeland said Bennett has no plans to announce how much money owners would contribute before the end of the legislative session. Such details would have to be worked out later with the Metropolitan King County Council, whose approval of the financing plan would be required.

A majority of the council members have said they want a public vote on any arena plan.

[Nixon7]

when would a public vote take place, if it did?

[mranderson]

Mra.....You have no idea what all the factors are in his decision....Multi millionaires do not buy sports teams just to make a profit....They buy stocks, bonds and real estate solely to profit not sports teams...If they did they would all sell immediately after a Super Bowl or World Series win....You almost never see that

Lot more involved than the business aspect and everyone knows that...Aside from you I guess

I was raised by a buisness leader who influenced people that, had it not been for my dad, we would not be having this discussion, so, you, sir, are quite wrong. I have every idea what a business persons motive is.

And everyone? You mean to say every one of the seven billion people on this planet knows what business people think? Humm. You must really contact a lot of people.

[PUGalicious]

I was raised by a buisness leader who influenced people that, had it not been for my dad, we would not be having this discussion, so, you, sir, are quite wrong.

Your extreme degree of self-importance impresses very few on this forum. You always make these grandiose statements, yet provide very little information, evidence or hard facts to back them up. Psychiatrists typically refer to that as delusions of grandeur.

I have every idea what a business persons motive is.

So every business person thinks identical to the business leader who raised you? As a business owner myself, I would say that you, sir, are very wrong.

And everyone? You mean to say every one of the seven billion people on this planet knows what business people think? Humm. You must really contact a lot of people.

You're off by nearly 500 million, Mister-I-Know-Everything. U.S. Census Bureau's World Population Clock: 6,588,497,237 as of the time of this post.

[Easy180]

I was raised by a buisness leader who influenced people that, had it not been for my dad, we would not be having this discussion, so, you, sir, are quite wrong. I have every idea what a business persons motive is.

And everyone? You mean to say every one of the seven billion people on this planet knows what business people think? Humm. You must really contact a lot of people.

I've been on here almost a year mra....We are all fully aware of your dad's prestige and far reaching influence by now....I think it's also safe to say your dad has had and will have no influence whatsoever on Bennett's decision regarding the Sonics

I'm not one to talk up myself (unlike certain others that throw it in EVERY post), but I guess my MBA puts me in no position to talk bidness since my father only owned a print shop and wasn't involved with city leaders...I guess I wasted a lot of money for nothing

[Easy180]

Looks like the Senate panel approved the Sonics proposal this afternoon...Said they expect it to pass the Senate so we will soon see how tough the House leader really is

[Pete]

Sonics arena proposal advances in Legislature, but hurdles remain

By Jim Brunner
Seattle Times staff reporter

OLYMPIA — A proposed $500 million Sonics arena cleared its first legislative hurdle this morning, passing the Senate Ways and Means Committee.

Sen. Margarita Prentice, D-Renton, chairwoman of the panel, pushed the bill through the committee in the hopes of keeping it moving in the final weeks of the legislative session.

The bill now goes to the Senate Rules Committee, which will decide whether to clear it for a vote on the Senate floor. It was not clear when a full Senate vote might happen.

"I believe we could get it out of here," said Prentice, who has been the arena's most vocal ally in Olympia.

But the plan faces skepticism from many lawmakers, particularly in the House, where Speaker Frank Chopp, D-Seattle, has said the state has more important priorities.

Sen. Rodney Tom, D-Medina, blasted the plan as a giveaway for wealthy professional sports players and owners and said tax money shouldn't be spent on stadiums while state schools are using 2,000 portable classrooms.

"Sports stadiums are a poor investment for the public. They are a great investment for the owners," Tom said.

The arena bill would allow King County to provide up to $300 million in tax money for the proposed Renton arena. The proposal would tap taxes on car rentals, hotels and restaurants in the county for the arena. Those taxes would raise an estimated $280 million over 25 years.

Additionally, the bill would allow a slice of the state sales tax collected in King County to be spent on future maintenance and upgrades at Safeco and Qwest fields and for county arts organizations. That portion of sales tax would amount to an estimated $227 million over 25 years.

Some of the money also could be spent on upgrades to KeyArena, where the Sonics and Storm currently play.
advertising

None of the taxes in the plan are new. They are all currently devoted to paying construction debt from Safeco and Qwest fields and for the demolished Kingdome.

The bill does not require a public vote and does not spell out how much Sonics owners will contribute. A majority of the King County Council has said they would insist on a public vote on any arena plan.

Sonics and Storm owners have said they also want the city of Renton to contribute as much as $100 million to the arena, but city officials say they can't commit to that much money.