HUGE NEWS! Clay Bennett & Co. buy Supersonics!

[okcpulse]

On Dorchester? Dang, that's in the general area where my with and I want to buy a home when that day gets closer.

[windowphobe]

According to the Master Schedule, construction at Monroe won't begin until early 2009 and won't be done until perhaps 2011. I can wait. This is already one of the better schools in the district.

[windowphobe]

Didn't Edward L. Gaylord live around 1506 Dorchester?

[Kerry]

So much for not posting on this subject again.

All of a sudden Las Vegas doesn't seem like such a good idea. 1 out of 30 homes in Clark County in foreclosure. Can't afford your house - can't afford Sonics tickets.

My Way News - Flippers Flop As Housing Market Cools

[BDP]

Well, it's actually the flippers that are getting burned. It doesn't really say much about what the people who actually live in those houses can and can not afford. Vegas is/was a big speculative market. It could hurt actual residents if the spec and subprime market drastically hurts their property values, but only in terms of their equity worth. The cash flow for most would be unchanged.

[Pete]

Mon May 7, 2007
Bennett, Sonics could find way out of Key Arena lease

By Darnell Mayberry
The Oklahoman

The wording is identical in each case.

Ironclad. Binding. Unbreakable.

But when it comes to stadium and arena leases between cities and pro sports franchises, history proves there is always a way out.


Rarely have cities been successful in keeping a team from relocating by holding the owners to a lease when years remain on the contract.

The Seattle SuperSonics, with a potential move to Oklahoma City looming, could become the latest franchise to get out of its lease early to relocate.

The Sonics' lease at Key Arena runs through 2010. Although owner Clay Bennett has committed to playing next season in Seattle, he has placed an Oct. 31 deadline on city officials to agree to a new arena that would replace the team's current outdated home.

If no deal is reached and the Sonics try to relocate after next season, they would have two years remaining on their lease. But getting out of those final two years might prove to be the easiest hurdle to clear.

Bennett likely would have to pay off the lease, which is believed to be about $1 million in rent, plus any damages imposed on Seattle for lost revenue.

Seattle could agree to negotiate with the Sonics and allow them to leave or try and force them to stay through litigation.

"In any kind of these situations there has to be a price at which somebody can buy out of something,” said Allen Sanderson, an economist at the University of Chicago who has testified at the Washington State Capitol saying that the absence of the Sonics makes little difference to the city of Seattle in terms of lost revenues.

"Whatever the law may say, there's still a lot of settlement possibilities. There are certainly leases in which somebody can get out of legally. In the end, there'll be some price that each side is willing to pay.”

Only two NBA franchises have relocated in the past 20 years.

The Charlotte Hornets, who moved to New Orleans in 2002, had an expiring lease.

The Vancouver Grizzlies, who moved to Memphis in 2001, had four years remaining on their lease with Orca Bay and GM Place with a price tag of $2 million per year. It's unclear what arrangements Grizzlies owner Michael Heisley made with Orca Bay to free himself of the lease. Calls to GM Place officials were unsuccessful.

Before the NFL's Houston Oilers relocated to Tennessee in 1997 they had one year remaining on their lease at the Astrodome. But city officials let the Oilers out of the final year of the contract after reaching an agreement with the franchise in which the Oilers would pay Harris County $3.5 million over four years.

When Cleveland Browns owner Art Modell moved his franchise to Baltimore in 1996, he had three years remaining on a 25-year lease. Cleveland city officials filed a lawsuit against Modell in an attempt to force him to honor the lease. But three days before the suit went to trial, NFL owners approved the move and

[Bobby H]

Well, it's actually the flippers that are getting burned. It doesn't really say much about what the people who actually live in those houses can and can not afford.

I'm certainly won't cry any tears for greedy speculators who are the primary ones to blame for hyper inflation of housing prices in certain markets. Greed is one of those seven deadlies.

However, lots of regular people are indeed being hurt by the situation as well. Many of those home buyers were not rich and got suckered in by misleading variations of sub-prime loans -which many now call "liar loans." The buyer thinks he's getting a mortage with a fixed rate. The broker tells him he's getting a fixed rate. But the sneaky fine print buried in reams worth of paper hides the truth.

It's granted that some of those buyers knew they were taking a heck of a risk. Countless millions of Americans love over-extending themselves to chase after life styles they cannot afford. With all these foreclosures happening, I'd look for a spike in the divorce rate.

Still, those sub-prime brokers know the immoral garbage they're pulling. They're in the seedy camp with people who run legalized loan-shark operations -er, I mean "pay day loans" operations.

"In any kind of these situations there has to be a price at which somebody can buy out of something,” said Allen Sanderson, an economist at the University of Chicago who has testified at the Washington State Capitol saying that the absence of the Sonics makes little difference to the city of Seattle in terms of lost revenues.

Actually, one figure I read suggested Key Arena was actually losing money by keeping the SuperSonics basketball team there. Attendance has been terrible. The arena could probably do better booking lots of concerts and other events.

[Kerry]

Bobby,

My impression from the City of Seattle is that the Soncis were actually costing the city money. If that is the case then Seattle should have to pay the Sonics to leave. According to the paper the city was only making $1,000,000 a year in rent. I am sure they were spending more than that relating to game day activities.

[HOT ROD]

Yeah, I think this is just Bennett doing his homework - obviously the NBA is making him do this.

But truth is - while vegas is growing and approaching 2M residents - look at the median income there. .. Im sure it is no where near OKC or near as "STABLE" as OKC. Besides that, with them DEPENDING on transient ticket sales - who in their right mind would want to sell season tix in Vegas - when no one (or few) who lives there would buy it?

Vegas would have a 4 year window to get an arena up and running - that puts them at least 2012 - the Sonics will be in OKC LONG BEFORE THEN!!!

Don't get too worried about the latest "news" about Vegas. I bet it is an attempt to get Seattle doing something - but hey, its Mid May almost and absolutely NOTHING is happening here.

Like I said, I bet an announcement will take place after the finals - and it will most likely be that OKC will get the team. I also predict it will be 2007, but 2008 is not bad - a slap in Seattle's face and a tar in the NBA's brand but it would give OKC time to upgrade the Ford Center. Im sure Bennett would rather be in OKC (vs the current situation in Seattle) for 2007 regardless of Ford's upgrade but it might be the best thing to wait.

I hate waiting!! I wish Okies had the b*lls to JUST DO IT!! when it comes to these things. You dont see anyone else dragging their feet or apologizing about business decisions/relocations whatever or selling out their home city/state, except Oklahomans!!

OKC built Dallas, OKC built Nashville, and OKC built much of Houston not to mention a portion of Los Angeles!. All of those cities would be half as big if it weren't for investment/businesses or population or both coming from Oklahoma City. Its time OKC demands the reinvestment from its people!!


I thought we were past that crap, I hope (and believe) we are - and that OKC will be the home to the SONICS, be it 2007 or 2008.
IF NOT, ILL JOIN THE "CLAY BENNETT TAR FESTIVAL" at Will Rogers International Airport!!!

[HOT ROD]

There is some news concerning the Oklahoma City, er uh, Seattle SuperSonics. Bennett, who has been at home in OKC for the past few weeks no doubt after getting hushed by Stern for talking about Las Vegas when we all know he is moving the team to OKC, showed up in Seattle on Saturday for the WNBA. While here, of course, the media interviewed him.

There is word that a local interest, by the name of David Sabey, owns a very large building due south of Boeing field airport (S. Seattle). Currently, the building is used as a grocery warehouse but Sabey has said that he might desire to turn it into a convention center with an arena that could be used for the Sonics. Sabey has said that his idea of a convention center will not cator ONLY to the Sonics but would instead be a palace of sorts for local businesses. He said that an arena could be added for the Sonics but that they would not get priority.

Sabey also said he'd like to be a minority owner but definitely does not want to own the Sonics or any other NBA team. Furthermore, even his convention center "idea" is contingent on local corporate support, he mentions Boeing and Microsoft specifically.

I think -

this is too little too late. Previous owner, billionaire and Starbucks CEO Howard Schultz, asked the local community for a buyer last year but nobody stepped up. In comes Bennett, who paid $350M for the teams - a premium price. Nobody is going to step forward and buy the team for that price in order to make it worth Bennett's while. And I hardly doubt The Boeing Company, now headquartered in Chicago - a real big city with big city convention centers, sports, and entertainment among other things, cares about Seattle and its convention situation. I also dont think Microsoft cares either, since Seattle already has the Washington State Convention center in downtown, and there are at least 3 other major convention centers in the region - with Tacoma's downtown center as the next largest, followed by Bellevue's on the Eastside.

Why does Puget Sound need another convention center? and away from a city center/hotel district? Sounds like another pie-in-the-sky pitch that will be met with the same fate as the Renton proposal.

but nonetheless, it got people on the forums talking a little bit. The fans are trying to make something of this, saying that perhaps this events might MAKE the NBA force Bennett to sell the teams to David Sabey, and that the NBA would grant Bennett an expansion in OKC.

In a way, the last sentence is refreshing since Seattle fans used to be hard pressed at OKC even having a team. It appears that OKC folks joining in on the Seattle forums have informed Seattle fans of OKC's viability and support of the Hornets, so at least they now regard OKC as viable but still not worthy of 'their' Sonics.

Nevertheless, this is all that I have heard. It looks to me like there will be an announcement this summer, I have heard on tv that lots of SuperSonics officials (besides the top of course) think the announcement will be the Sonics will move to OKC this summer. Don't quote me on that per say, but that is why there was a bbq event or something today to "save our sonics."

Detlaf Shrempf was quoted by Channel 13 news as saying [paraphrased by memory "we think that there is a huge possibility that the team could be moving this summer - we want to have this fundraiser to show our support and to save our sonics."

I think the ONLY chance the Sonics might stay put is if

1) somebody announces they will build an arena up here * needs to be announced before Oct 31 OR
2) somebody buys the team at above $350M from Bennett (which he has sort of hinted that he might sell) OR
3) the Sonics were to get the #1 or #2 draft pick which might renew local interest and Bennett might be able to make some cash in what otherwise would be a lame duck 2007 year. during the season, perhaps something could be worked out before Mar 2008 "i wanna move" deadline.

That's it.

I think the BEST shot is 3), since the Sonics are the 5th worst team - they have a shot at the top pick. The oddsmakers have given Sonics the most probable pick of #6, but there is a very slim chance that the Sonics could get #1 or #2. We'd have to wait for Tuesday to see. No doubt, Bennett has already made his mind and is giving the draft lotto as the last and final straw otherwise, "hasta la vista"

If the Sonics dont get #1 or #2 in the draft, mark my words - there WILL be an announcement after the NBA finals that the Sonics will move to OKC this summer!!!

OKC pulled it off before with the Hornets - with only 6 weeks to sell those season tix. If Bennett were to announce by say, Jul 1 - that would give OKC 3 good months. Season tickets here is very lackluster at best, there's no hype for it at ALL.

I'll be glad, this waiting is ridiculous!

Ill keep you all posted!

[Pete]

Thanks for the update Hot Rod!

I think this is how it's going to go for quite some time... Lots of behind-the-scenes talk and speculation without a lot of public information.

One thing we do know: there won't be any public assistance offered Bennett before his self-imposed deadline of Oct. 31. The legislature won't be in session before then, so no way anything can get passed.

So while there may be all types of ideas that pop up, I can't imagine that Bennett would be too interested as he was asking for $500M before and it's hard to believe he'd get that type of money from the private section. That's well more than he paid for the team.

In fact, all this is likely to continue through next season unless they try and make a play to move them before that, which is looking less likely.

[Saberman]

Daily Oklahoman 5-22-2007

NBA re-location
KC a contender for Sonics, owner says

Sprint Center could be team’s future home

From Staff Reports

Seattle SuperSonics owner Clay Bennett said Monday that Kansas City’s new Sprint Center could be the future home of his NBA franchise, the Kansas City Star reported.
Bennett, an Oklahoma City businessman, made the comment during a luncheon sponsored by the International Economic Development Council in Kansas City. Bennett is looking to relocate the Sonics after the Washington state legislature did not act on extending existing taxes that would help build a new $500 million arena.
“Right now, we have no option other than explore relocation,” Bennett said.
The Ford Center in Oklahoma City has been mentioned as a possible re-location site. The Hornets spent two years in Oklahoma City after Hurricane Katrina devastated New Orleans. The support Oklahoma City gave the team overwhelmed NBA officials
“One dynamic is to look at the experience the Hornets had, and the notion that it’s the only pro sports franchise in the state vs. the third in Kansas City,” said Bennett, who bought the Sonics for $350 million in 2006. “We’re going to work in very close contact with the league, and their strategy about where these franchises are and where they’re going to go and how we fit in.
“Clearly, they’re going to send us where they want us, and there will be building analysis, and market analysis. We’re still committed to Seattle until Oct. 31, and we’re going to do everything we can to get another public vote in August, and that’s if we receive authorization from the state. They’re out of session, and unless they come back for a special session, I’m not sure where we go.”
There had been speculation that Bennett might consider moving the Sonics, who have been in Seattle for 39 years, to Las Vegas.
But Bennett said: “That was misinterpreted. The point of mentioning Las Vegas was to suggest there are other available markets for relocation.”


Looks like Clay is working the deals, may be trying to improve his dealings with OKC.

[jbrown84]

So now it's not Las Vegas, but KC that he's leveraging against us.

[HOT ROD]

I dont think KC will "offer" Bennett what OKC can.

Sure, KC has a $200 something million arena but somehow they got to pay for that. OKC's arena is paid for, and if memory serves me correct - the city has the funds to update Ford Center already; all they need is a committment. KC would NEVER offer Bennett free rent and/or top concession at their arena (in fact, no body else can) but this is something OKC can.

Clay may be dragging his feat because of the NBA finals - which nobody seems to be interested in. Im sure the league told him, no movement until after the finals. But it would be nice if he could keep his mouth shut.

KCStar either failed to write all of the facts or ??? because their article paints a little different picture on Bennett's comments than does the Oklahoman. Particularly, they left out most of the Hornet's support statement the Oklahoman had which was before Clay's quote "at the experience the Hornets had, and the notion that it’s the only pro sports franchise in the state vs. the third in Kansas City." KC's TWIST on the facts lead one to believe that OKC had only marginal success with its first major league franchise vs. KC having 3. Yet when you read the Daily OK, you see the OKC slant on his statement, because of the success of the Hornets + "at the experience the Hornets had, and the notion its the first .. bla bla" it looks much better for OKC. I think it was very very convenient for KC to leave out the Hornet's success part of that - presupposing to drum up support in KC??? Interesting to see if that works or not, I doubt it!

Im certain OKC will be announced as the winner, my question is - relocate this summer or next?

[HOT ROD]

The other thing that makes me very upset is,

Bennett sure is attending a lot of events around the nation. No problem there, but it seems as if the local press are always there and always are asking him if their X city is viable or more viable than his hometown OKC.

That to me is upsetting because Bennett can't just go and see what he can find, but he opens his mouth and the press twist and run with it. From the KC Star, it appears as tho KC is now the frontrunner for relocation. However, that is not what Bennett said, yet the paper only briefly hinted on Bennett's OKC roots and Hornet's success - which otherwise would lead one to believe OKC is the sure locale for relocation. I just wish Bennett would speak in complete sentences but I suppose he has to leave a hole or two for local speculation.

And, it's too bad the KC Star didn't also mention that Bennett would have to compete with two other established teams in KC vs NO team in OKC. KC ONLY has 1.8M residents with 2 teams (KC Chiefs, Royals) while the Puget Sound has 3.2M with 3 currently (Sonics, Seahawks, Mariners); Seattle doesn't support the Sonics, what makes KC think they can support 3 teams with 1.4M less people (and certainly much less corporate support potential than Seattle area). I think these facts should have been in KC's paper, along with their realization that OKC is up and coming and should have been praised for the support of the Hornets.

Another thing htat upsets me is that the press report Bennett's moves in city A and B and each one asks about their viability vs. OKC, YET there is NO PRESS about what he's doing in OKC.

What about OKC's viability? What about X dinner or event in OKC where the media is there asking about OKC?

Maybe this is because OKC is presupposed to be the relocation OR maybe because OKC has already been chosen behind the scenes (so there doesn't need to be any hype drummed up here unlike the KC, Vegas' of the world).

Nevertheless, I just hate reading some city every other day trying to trump themselves up over OKC when Bennett comes to their town. Face it, Bennett is from OKC and if the Sonics move - OKC is where their going.

OKC is the ONLY LARGE CITY with a ready arena that could offer Bennett an assured profit line. Im just not so sure why on one hand Bennett can't make any announcement about OKC but yet can go to EVERY other available market and mildly say their city is viable. ...

Next thing you know, he's going to attend a luncheon in Louisville KY or Birmingham AL, those cities will ask him and Bennett will conclude that they also are viable should they build arenas???????? Maybe he'll next visit Omaha NE and they can conclude their Qwest Center arena is also viable. ......... Whose next after that????

KC is OKC's only true competition right now, but I don't think KC is even interested yet alone could offer Bennett what his hometown in OKC can.

[jbrown84]

You can't really blame them. We would do the same thing.

[HOT ROD]

Im not so sure about that jbrown.

Like I said, it wouldn't be an issue if Bennett were from KC or Vegas, the Sonics would have been long gone and KC or Vegas would have told Seattle - good rittens.

But noooo, Bennett is from OKC so he has to play-kate around and try to "please everyone in Seattle" so he dont look like a crook/carpetbagger - stealing their team. ....

It seems like, if there is an OKC tie or something - then all of sudden morality and decorum always become the determinant. Yet other cities, who cares - they want a team and got it - ala New Orleans (did anyone complain that Charlotte lost their team???? ditto that for Vancouver - a MUCH bigger market than Memphis). Those owners simply applied for and moved those teams, no play-kating or caring about what other people think.

Given this, I dont think the Daily OK would forget to mention KC's successes should the foot have been on the other side. I think in some ways, OK is a very image complex society (although it is changing slowly) - which is what I hope will continue to change!!!!

Bennett should have just bought the Sonics and said from the get-go, I want to move the teams to OKC, tough luck Seattle - see ya; he should have applied for relocation in March and opened Season Tix sales to OKC residents come Apr 19 (end of 2006 NBA season).

That's what other owners do, why does "someone from OKC" have to be so different!

[Nixon7]

Bennett has turned into Shinn. I thought it would be sweet to have local ownership, but local ownership sounds just like the 'masterful' media man Shinn.

[jbrown84]

What I mean is that you can't really blame these other cities for their wishful thinking. We've done it before.

[brianinok]

I think everyone is blowing the Vegas and KC comments out of proportion. Bennett has to look like he is seriously considering other venues than OKC for due diligence sakes, the NBA, Seattle, and media. This is his way of doing it.

[Saberman]

I agree with Hot Rod, Bennett should have just come out at the begining and said he was taking them to OKC.

I also understand they had a full season yet to go there, and you don't want to burn any bridges. But if he lets this drag out much past the play-offs it could get ugly...

[Kerry]

Your right Brian. Eventually Clay is going to have to go to NBA committe and make his presentation for relocation. He has to be able to say he looked at multiple alternatives. I still contend that 5 OKC businessmen didn't form a corporation with a mission statement to bring a team to OKC to then buy a team and move it somewhere else.

[metro]

I agree with Brian and Kerry, everyone is blowing this whole thing way out of proportion and being a typical Oklahoman. It's this type of journalism overhype that is the Daily Disappointment (Oklahoman). I'm confident Bennett and Stern knew what is/has been taking place far before we could even speculate or hear anything about it. Stern is a master orchestrator, don't judge the book that is OKC on it's NBA quest until the final chapter. When all is said and done, it may make OKC look even better than OKCTalker's could have predicted.

[okclee]

This is just like an epic thriller movie, let's be patient and let it all play out. In the end I am confident that Okc will get the girl and Bennett will save the day.

Don't forget that Bennett was not the high bidder to purchase the Sonics. It was a group from San Jose that was going to move the Soncis immediately upon the purchase. Stern said the the previous owners could not sell to the San Jose buyer and that he would only allow Bennett to purchase the Sonics with the promise of at least one more year in Seattle.

Bennett must say and do all the right things for apperance just as was stated by Brian, Kerry, and Metro.

Just sit back with your large bucket of popcorn and your juju bees and enjoy the show, it will be a nail biter.

[Watson410]

Looks like the Supersonics will have Oden or Durant playing for them next year. They ended up with the number 2 pick in the 2007 Draft. Everyone cross your fingers now, in hoping that they come to OKC this summer.