HUGE NEWS! Clay Bennett & Co. buy Supersonics!

[metro]

Sonics owner disappointed with season

By The Associated Press


Seattle SuperSonics owner Clay Bennett said Wednesday that despite being "disappointed" with the team's performance, he will not make any decisions about changes until after the season.
"It's the beginning of the process," the Oklahoma City businessman said before the Sonics played the Hornets. "One thing that we committed to do is take the year and really attempt to understand the business and get familiar with the vision that this general manager and head coach have for this team, and understand that fully and evaluate that fully.

"I think we've made a lot of progress in that regard. I certainly have confidence in the decision-making team we're putting together and how we'll approach this decision."

Seattle coach Bob Hill's contract ends in June, and general manager Rick Sund has one year remaining on his deal. The Sonics were 30-44 entering Wednesday night's game.

"I think that we're all the coaching staff and players included disappointed in the season," Bennett said. "We had high expectations, we came out of camp with high expectations. Clearly injuries have played a big role in our season, but all that notwithstanding, all teams in the league have injuries and challenges, and we were not able to perform at the level we had hoped to perform."

Bennett introduced the other members of his ownership to players, coaches and senior administrative staff during a brunch at the team hotel. Hill said the owners stuck around for a team meeting, a ballroom walkthrough and a scouting film session.

"It really was nice. They were great," Hill said. "They didn't ask a lot of questions, but I think it was informative for them to see how you get ready for a game."

Bennett said his focus has been on his proposed $500 million facility to replace KeyArena, the Sonics' current home, but he's now also taking time to look at the basketball side.

"My approach to this, my approach to the other businesses that I'm in, is let's bring in the best talent we can, let's understand everything we can about the decisions we're making and use our best judgment with that input," he said.

Bennett said he was pleased to have former coach Lenny Wilkens, the Sonics' vice chairman, involved in the process, but said "ownership will be highly involved in the ultimate decision-making."

"We're working on things, there's lots of ideas. Of course, where we end up in the draft is important and other moving parts of this," Bennett said. "We have some good ideas, I think a good process in place and we're going to continue to meet and work on this on a daily basis."

With less than three weeks left for the Washington Legislature to take up a bill on the arena, Bennett said he thought his appeals for support were slowly making headway.

"There seems to be an awareness of our process and an awareness of what this facility is all about and a response," Bennett said. "I think it's taken a long time. It's taken longer than I would have hoped, but we've been at this hard since day one, and I think we're getting some traction."

[HOT ROD]

Malibu, you're exactly right.

I doubt it will pass the Senate either. But for sure, the House probably may not even consider it further..

$320M+ in public funding for an arena in low class suburban Renton, I don't think Seattle needs to stoop so low. ... Neither do many other Washingtonians.

[BG918]

Build a new arena on the river once I-40 is moved...but this time build a facility that will blow everyone away. A large mix of steal, brick and glass...with plenty of water features on and around the building. Also make it large enough to where hosting an NCAA regional or even a Final Four down the road would be possible - not that it would happen. Also move to get the AFL back in town to replace the A2 team here.

I agree with making the Cox Center a full fledge convention area. The Ford Center would then get some upgrades and then home to WNBA, Blazers, and other events.

A new arena would be a great anchor to help get development moving on the north banks of the river.

I like this idea if OKC were to land the team. Have them play in the Ford Center for a few years while plans are created to build a new, awesome arena just south the blvd. that will replace I-40. Have it anchor a huge mixed-use district that includes expanding Bricktown (and the canal) further south to the river and redeveloping the existing industrial and rundown areas south of I-40. Instead of building a new convention center in this area turn the Cox into solely convention space with the Ford Center used as well, along with WNBA, Blazer, YardDawgs, etc. Most bigtime concerts would be at the new arena, along with big events like the NCAA tournament, but having the Ford Center would give downtown just yet another venue, which is a good thing!

[Pete]

Think about how great the timing of this could be...

Just as the Sonics hit town and set up shop for 2-3 years in the Ford Center, the I-40 relocation project should be winding down. A brand new arena could actually be constructed in concurrence with that project, ready to open about the same time.

With the new arena and Sonics as tenants, that would jump-start a whole other round of development south of the present I-40 footprint.

Personally, I'd like to see a new arena developed just south of the Ford Center because keeping the two facilities in close proximity yields many benefits. And of course, if the Cox Center is to be redeveloped in a full-fledged conference facility, you wouldn't want the new arena too far removed from that either.

Perhaps just south of the new area there could be a large gateway to the river which would host the huge water feature we have been discussing. And in turn, the whole thing would tie back into Bricktown as that continues to expand south.


Now is the time for dreaming big! We are really lucky to have so much un- and under-developed land in such a prime area.

[okclee]

Don't forget how succesful that the men's and women's Big 12 games were, with the close proximity of the two arenas and to Bricktown.

[Pete]

Bennett group agrees on land in Seattle area: Legislative help still needed for new arena
by Jerry Shottenkirk
The Journal Record
4/10/2007

OKLAHOMA CITY – The Professional Basketball Club, the locally based ownership group led by Clay Bennett, has agreed in principle to purchase 21.2 acres of land in Renton, Wash., as a site for an arena that would house the NBA’s Seattle SuperSonics and the WNBA’s Seattle Storm professional basketball teams.

The Professional Basketball Club announced Monday it entered into a joint venture between Transwestern Investment Co. and Harvest Partners for the land, which is currently owned by Boeing. Harvest Partners is developing The Landing, which will be a residential, retail and entertainment area. Harvest has first right of refusal to buy the land but the Sonics and the developer agreed that PBC would acquire the rights.

PBC is hoping for a new $500 million arena that would replace KeyArena in Seattle. Bennett’s group has requested about $300 million in tax help, and the issue is currently being discussed in the Washington Legislature.

“We (PBC and Harvest) both see excellent potential for The Landing and the new events center and believe that together they would provide even greater economic, cultural and other benefits to the city of Renton, the region and the state,” said Clay Bennett, PBC chairman.

Bennett said the new events center would host business, entertainment and other activities, in addition to the pro basketball teams. The group is hoping to have a new arena by the 2010-11 season.

PBC paid $350 million for the Sonics and Storm in a deal that became final in late October. The group consists of Bennett, who is chairman of Dorchester Capital; Aubrey McClendon, chairman and chief executive officer of Chesapeake Energy; G. Jeffrey Records, chairman and CEO, MidFirst Bank; Tom Ward, chairman and CEO, SandRidge Energy; Williams Cameron, chairman, president and CEO of American Fidelity Assurance Co.; Bob Howard, president of Mercedes Benz of OKC; Everett Dobson, executive chairman of Dobson Communications Corp.; and Jay Scaramucci, president of Balon Corp.

[metro]

Is 21.2 acres even enough land to build an NBA arena with any parking?

[Saberman]

As you can see from this article, all they have done is buy the right of first refusal on the property.


Seattle Post-IntelligencerSonics close in on rights to Renton property
Agreement opens door for purchase of 21.2-acre plot owned by Boeing
By GREG JOHNS
P-I REPORTER

Clay Bennett's plan to build a new basketball arena in Renton still faces many challenges, but one piece of the puzzle snuggled closer into place Monday with an announced agreement that gives the new Sonics owner right of first refusal on the desired land for his project.

Bennett's ownership group, the Professional Basketball Club LLC, says it has reached an agreement in principal with Harvest Partners, the group developing The Landing complex on the south end of Lake Washington, which opens the door for purchase of a 21.2-acre parcel to house the multipurpose arena.

Boeing owns the land, but Harvest Partners -- a Dallas-based development group -- has right of first refusal on purchase of the 68-acre piece of property, and one company partner indicated less than two weeks ago that the entire parcel was still earmarked for retail use.

With Bennett's group pushing hard this week to make inroads on a proposed funding package with the state Legislature, the Sonics felt it important to let people know they have a place to put the arena.

"This should help put some of that to rest," Bennett spokesman Jim Kneeland said.

Kneeland said negotiations between the two parties are "in the final stages" and he's hopeful for a signed resolution in the next seven to 10 days.

Bob Baker of Harvest Partners told the P-I on March 28 that "the train has already left the station" in terms of designating The Landing development strictly for retail use. But Harvest Partners managing partner Eliot Barnett confirmed the ongoing negotiations in Monday's news release issued by Pacific Public Affair, the public relations company representing the Sonics' new ownership group.

"We have been involved in extensive recent discussions and expect to have a signed definitive agreement soon," Barnett said in the statement.

Reached at his Dallas office, Barnett declined comment.

From their end, the Sonics are happy to talk. The Sonics face a critical juncture in Olympia as lawmakers zero in on the proposed funding measure before the end of the current session later this month.

"We're hopeful we'll get something moving there this week," Kneeland said. "What this announcement does is remove one of the concerns people have raised and demonstrates we're serious about getting this property under control. We're working to get that done."

Ultimately, it remains up to Boeing whether it wants to sell the property, but under this agreement, the Sonics would be first in line when that time comes. Kneeland said the agreement is not contingent on obtaining arena funding.

If the Sonics ultimately have no reason to buy the land?

"Then we just paid money for rights we don't use," Kneeland said.

The press release said Harvest Partners remains on track to open its first retail stores at the site in October, with further businesses debuting in May 2008. A residential phase of the project would open the following year.

The Sonics say they would like to have a new arena ready for the 2010-11 season. The team's KeyArena lease expires in 2010.

[Nixon7]

Hot Rod: What's going on up there? Is it going to make it through the Senate? How do you feel about it now?

[okclee]

This does not sound good for Oklahoma City. I have never really thought that the Sonics would move out of Wash., I would say maybe a 10% chance.

[metro]

okclee, don't worry, I'd say the chances are much higher. This is a classic PR stategy. They have to "look" as if they're trying to do everything in their power. As HOT ROD has said, the people of Washington know it will die even though a little momentum has been made recently.

[y_h]

It could also be part of a prop-up ploy to land an expansion franchise for OKC. Bennett and co. keep the Sonics franchise viable in Seattle while the arena situation gets ironed out and a new ownership group is secured and in return they are awarded a new team for OKC. A situation not entirely unlike this happened in the NHL in 1990. The owners of the Minnesota North Stars, citing flagging attendance and an inconvenient, antiquated facility, announced they were going to move their team to the Bay Area. The NHL intervened, convinced the owners to keep the team in Minnesota until a new owner could be found and awarded them an expansion team in San Jose. Of course, in that instance, the prop-up eventually failed and the new owner wound up moving the franchise to Dallas three years later. For OKC's sake, what happens to the Sonics after Bennett and co. turn it over to a new owner is irrelevant so long as you get your franchise. I hope that's what goes on. I'd like to see Oklahoma City build a team from scratch that is entirely theirs from day one.

[mranderson]

This does not sound good for Oklahoma City. I have never really thought that the Sonics would move out of Wash., I would say maybe a 10% chance.

Major investors buy land all the time. Bennett can sell the property at a large profit after he moves the Sonics. No need to worry. I bet Oklahoma City lands the team soon.

[okclee]

[QUOTE=y_h;92964]It could also be part of a prop-up ploy to land an expansion franchise for OKC. Bennett and co. keep the Sonics franchise viable in Seattle while the arena situation gets ironed out and a new ownership group is secured and in return they are awarded a new team for OKC. QUOTE]


That has been my thought all along. I think that Bennett has to get the deal done in Seattle in order for Okc to get a team in the future.

Why does Bennett want to move the team from Seattle to Okc? I am not a multi-millionaire business man but, to move a team from Seattle to Okc is not a good finacial move.

[Kerry]

[QUOTE=okclee;92969]

Why does Bennett want to move the team from Seattle to Okc? I am not a multi-millionaire business man but, to move a team from Seattle to Okc is not a good finacial move.

You are right about one thing - your not a multi-millionaire. The Sonics are losing $47 million a year in Seattle and the Hornets are making $40 million a year in OKC.

[dcsooner]

What's your basis for saying the Hornets are making $40M in Oklahoma City? are you privy to the Hornets financial statements?

[HOT ROD]

Hot Rod: What's going on up there? Is it going to make it through the Senate? How do you feel about it now?

Its just due-diligence. Bennett said he wants a $500M+ arena to be built in Renton, WA, so I'd expect him to try to secure the rights to the land. Its a good move. Just like others have said, it shows due diligence 1) to the state of WA that he really would like to keep the team in Seattle area and make a killing AND 2) to the NBA that Bennett did his due diligence in trying to keep the team in a probable viable market.

Let me expand.

1) time is running out on the SONICS. 12 calendar days left until the end-of-session. Bennett did say he would like the team to stay here and that it would IF an arena is built. He said Renton was the spot, so wouldn't he try to secure the land??? I dont think this is anything big other than, to show any doubters in the WA legislature of his seriousness about plan A, stay in the Seattle market.

2) this is actually what I think the move is really doing - its making him look like a viable owner to the NBA; he came into a failing, non-viable market trying to rescue one of the NBA's most high profile teams. He did his best, including following-through with all attempts at a new arena in the region. The NBA board will look on this with positives that Bennett is someone who means business. Im sure this will aide Bennett should he decide to move the team for the 2007 season.

Most people here aren't really that concerned about his "agreement in principle" to first rights of refusal for the Boeing owned land. In fact, Boeing hasn't even agreed to sell the land - and the condition of the agreement in principle is that the legislature and city of Renton approve the $400M+ funding package. So you see, it all still sits on the legislature for the $300M+ piece of the pie.

I predict, the bill MIGHT make it through the Senate - given a few high profile supporters there. The Senate tends to be wealthier and have the support of the wealthy, even here in WA. So it MIGHT pass with a slim margin - but it would have to be announced by the first of next week, otherwise - no chance of getting to the floor for a vote.

BUT, it WILL NOT UNDER ANY CIRCUMSTANCE - IT WILL NOT PASS THE HOUSE. Chopp is a HUGE leader in Washington and he has his eyes on fixing the infrastructure and reorganizing the education system. It won't even make the floor of the House.

I think if it were to go through both houses, the gov would sign it (since she can say - hey it passed the legislature, so ....) But it wont make it out of the legislature - esp the House. The Senate is probably 50/50 (with support from Seattle area Senators and lack of support from the rest of the state).

As for special session (which could happen), no chance. They will NOT extend the session JUST for the SONICS.

Keep in mind, all of the steps involved here - this will assure you all that OKC will be the home of the SONICS soon.

1) WA state must extend the funding set up for the Seattle stadiums to the SONICS.
a) there is support in the Senate, mostly Seattle area senators who want conventions to come here, might make the floor; only a slim victory if it does.
b) no support in the House, wont even make the floor.
c) Gov would sign it if it makes it to her desk for signature - since she can say it passed the legislature

2) King County would then have to assess the tax
a) which would require a public vote of King County residents; which would NOT pass.

3) The City of Renton would have to come up with $100M+ for the arena and surrounding infrastructure.
a) Renton is like Midwest City, 42,000 residents vs. 60,000 residents in MWC, but both are pretty industrial suburbs with a large contingent going to the major city (Seattle/OKC) for employment/entertainment. Now, if you think MWC could come up with $100M to contribute to something then so could Renton. VERY HIGHLY DOUBTFUL.

4) SONICS acquire the land from Boeing. Boeing wont sell unless all of the funding has been met, but they can have "agreements in principle", which they ALREADY gave to a group who wants(ed) to put in a regional retail center. The SONICS met with that group and got an "agreement in principle" from them to have first rights of refusal on a portion of the land. But this is contingent on the funding above, otherwise the group would move ahead with its town center, which has already been approved by Boeing.

The steps must be completed in that order by the way. Keep this in-mind when you see stories in the paper (esp from Seattle). Serious up-hill battle for Seattle to keep the SONICS.

I predict, the funding won't even make it to the floor of either house by the end-of-session (as to avoid voters knowing who voted FOR or AGAINST), the bills would die on April 22 close-of-business (if there is such a thing). On April 23, Bennett is in NYC meeting with the board discussing the future of the SONICS. He asks for an emergency exemption to move the team. They already know about OKC and allow him to move the team in 2007 to avoid losing its brand (by having so many struggling teams - NOLA, Memphis, Charlotte?, Sacramento?, Portland?, .....Seattle Key Arena.) The board views Bennetts actions as appropriate and diligent and are sure he will make OKC a success. Sometime after the playoffs, it is announced that the SONICS will move to OKC for the 2007 season. All ticketholders in Seattle are offered refunds and/or rights to Ford Center (some might take it actually). All deals in the Seattle area would be null-and-void. Oct 2007 - the SONICS debut in their new permanent home, Oklahoma City Ford Center (which gets spruced up a little during the summer but is in store for a major upgrade next year). Hopefully, preseason games will be played in regional cities to ensure/drum up support.

Think this won't happen? Well answer me this then, WHY ISN'T STERN IN WA LOBBYING FOR THE SONICS? WHY ISN'T BENNETT HERE IN SEATTLE, LOBBYING FOR HIS PACKAGE?

It isn't too difficult to see the message here, if Seattle were such a viable option for the NBA - they would be here lobbying for this arena during this "crunch time". If Seattle were viable, we wouldn't even be discussing Oklahoma City as the new home or even OKC owners of the SONICS. Definitely proof in the pudding when you consider the big picture!!!

Go Clay Bennett and the NBA Oklahoma City SONICS.!

[dcsooner]

My caution to Oklahoma Citians is to take with a large grain of salt the supposed finality of this stadium effort. As much as I appreciate Hot Rods insight, I for one am not falling for his apparently obvious conclusion(Sonics fail in stadium bid). Hot Rod may certainly be right in his assessments, but maybe I'm just cautious and realistic enough to wait until the fat lady sings.

[Easy180]

dc...If you want to look at all the info hot rod has supplied and discount it or be cautious that's fine, but I've read several articles that back him up...The senate doesn't even want to vote on it because they know there is zero chance it will pass the house...The reps are looking at polls which show heavy support against taxpayer's funding an arena...They have been burned b4 and are tired of it

I'm definitely not going to act as if it's a done deal for OKC, but it does appear to be a done deal for Seattle

[okclee]

I know I am in the minority, but it doesn't make sense to move from a top ten city to a up and coming city ranked somewhere near 30th. I am guessing at the city market rankings for population and media numbers. I would think that a NBA franchise in Seattle would be worth more than a NBA franchise in Okc.

I have had season tickets to the Hornets both years, so I would love for Okc to have it's own franchise.

[mranderson]

I know I am in the minority, but it doesn't make sense to move from a top ten city to a up and coming city ranked somewhere near 30th. I am guessing at the city market rankings for population and media numbers. I would think that a NBA franchise in Seattle would be worth more than a NBA franchise in Okc.

I have had season tickets to the Hornets both years, so I would love for Okc to have it's own franchise.

If you have been following the Hornets, you will see why it makes perfect sense to move an NBA team here. That plus a marketable area of close to, if not more than five million people. (the area to which I refer has been discussed multiple times)

[okclee]

^^ I agree that Okc should have it's own team, without a doubt, we have a proven market and the city that would embrace a NBA franchise. I am just not convinced that a businessman would move out to Seattle to move to Okc. Believe me I will be first in line, just as I was with the Hornets, to get season tickets if and when Okc gets it's own team.

[Kerry]

For all of you people who think the Sonics are staying in Seattle just look at who owns the team. Here is the owners from the posting above.

"PBC paid $350 million for the Sonics and Storm in a deal that became final in late October. The group consists of Bennett, who is chairman of Dorchester Capital; Aubrey McClendon, chairman and chief executive officer of Chesapeake Energy; G. Jeffrey Records, chairman and CEO, MidFirst Bank; Tom Ward, chairman and CEO, SandRidge Energy; Williams Cameron, chairman, president and CEO of American Fidelity Assurance Co.; Bob Howard, president of Mercedes Benz of OKC; Everett Dobson, executive chairman of Dobson Communications Corp.; and Jay Scaramucci, president of Balon Corp."

This is a who's who list of OKC millionaires. 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.

[okclee]

For all of you people who think the Sonics are staying in Seattle just look at who owns the team. Here is the owners from the posting above.

"PBC paid $350 million for the Sonics and Storm in a deal that became final in late October. The group consists of Bennett, who is chairman of Dorchester Capital; Aubrey McClendon, chairman and chief executive officer of Chesapeake Energy; G. Jeffrey Records, chairman and CEO, MidFirst Bank; Tom Ward, chairman and CEO, SandRidge Energy; Williams Cameron, chairman, president and CEO of American Fidelity Assurance Co.; Bob Howard, president of Mercedes Benz of OKC; Everett Dobson, executive chairman of Dobson Communications Corp.; and Jay Scaramucci, president of Balon Corp."

This is a who's who list of OKC millionaires. 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.

So you are saying that Bennett and Co, bought the Sonics as a gift for Okc?

I hope that it all comes true for Okc, but I won't hold my breath. The one thing that people with mega bucks like to have is more.

[Kerry]

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?