E-mails reveal Sonics owners intended to bolt from Seattle

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Jan 10, 2008
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#81
Shcultz didnt give a shit who he sold the team to. He was pissed at the politicians for them not building a new arena. So he might have done it out of spite and didnt care about sonics fans at all. I grew up watching the Sonics. I would go to
4-5 games every year and all the home playoff games starting at age 10. So Bennett might as well take the space needle and every other seattle landmark to oklahoma. He can call it Seaoklhoma. I still cant believe this is happening were the 13 biggest market in the country. This would never be aloud if it were the Lakers or celtics but who knows now. This is so frustrating every day there is more bad news regarding the sonics. This is robbery and the commissioner is backing these filthy losers. It isnt Seattle's Fault that Oklahoma aint shit. So bennett, Schultz and Stern do us all a favor and blow your noodles out one by one. rant over
 
May 9, 2002
37,066
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#82
http://seattlepi.nwsource.com/basketball/360032_arena22.html

Slade Gorton: Goal now is finding a replacement for Sonics
By GREG JOHNS
P-I REPORTER

Former U.S. Sen. Slade Gorton, the man accused by NBA commissioner David Stern of enforcing a "scorched-earth policy" toward the NBA's future in Seattle, said Monday he'll be happy to negotiate with Clay Bennett if settlement talks include guarantee of a replacement franchise.

Gorton, whose K&L Gates law firm is heading the city's legal fight to enforce the KeyArena lease, believes Seattle still must come up with an arena funding solution to present the NBA commissioner in order to focus on getting a new team to replace the Sonics.

"While I'd still love to see the Sonics stay, I think that is highly unlikely," Gorton said in the wake of the 28-2 vote by NBA owners Friday to approve relocation of the franchise to Oklahoma City. "What we're trying to accomplish now, in my view, is to get another team in their place.

"That will, however, require the governor and Legislature to come up with a way for Seattle to pay its share of the KeyArena remodel."

The timing of the Sonics' move to Oklahoma is contingent on the team being legally cleared of its KeyArena lease issue, which is headed to U.S. District Court in mid-June to settle a lawsuit between the city and Bennett's ownership group.

Stern accused Gorton of wanting to "exact whatever pound of flesh is possible" on Friday, but the 80-year-old lawyer sounded willing to work with the league Monday after returning from a weekend business trip in Charlottesville, Va.

Though he declined to say when or if the city would reach out to Bennett on a settlement agreement, Gorton acknowledged such talks are possible. Pursuing a legal battle for the sole purpose of binding the team to two final money-losing years in KeyArena isn't part of his motivation.

"If a replacement team is part of the package, of course we'd talk," Gorton said. "My goal from the very beginning has been to have a team. Revenge, I'm not interested in as such. The city has a financial stake in all this. The mayor and I are in complete accord that what we want is a team."

Many Sonics fans simply want to force Bennett's group to play at KeyArena through its lease, even if the result would be losing the franchise at that point while the city still owed $25 million on the building's debt. But while Gorton isn't about to abandon the litigation, he sees it more as a carrot than a stick.

"It isn't over until the fat lady sings, and at this point, there is the trial date and the city's lawsuit to enforce the terms of the KeyArena lease," Gorton said. "I think the goal of the entire community, and certainly my goal, is to see whether some time between now and then there's a way to come up with a situation in which the controversy over the Sonics is settled in some fashion that Seattle can look forward to another NBA franchise.

"I think it's a possible goal. But I don't think it's likely to happen unless we have a tangible and complete plan for the remodeling of KeyArena. If we'd had that in hand last week, in my view we'd either have kept the Sonics or gotten assurance of another team."

Gorton believes Gov. Chris Gregoire needs to call a special session before the start of the June 16 trial and give the Legislature a chance to pass a measure that would provide the city an avenue to its final $75 million in funding toward the proposed $300 million KeyArena makeover.

"If we have a remodeled KeyArena or the promise of one that meets their requirements, and I'm convinced this remodel does, then I think we have a chance for another team," he said. "But the chances diminish rapidly after the trial is over. This present lease gives us leverage, so we need to get it done promptly. We have to focus on getting a solution out of Olympia."

Gorton said any settlement would have to include guarantee of a replacement franchise. He's not inclined to let the current team depart merely on the hope the NBA will then work with Seattle.

"I'm not willing to make that assumption, given their attitude toward us," Gorton said. "We need to have something they want. And what they want is to get the Sonics out of here by next season. It's clearly possible for the league to give us a guarantee. How difficult or how badly they want to, I don't know."

Despite the rhetoric from both sides in recent months, Gorton feels all that can be set aside easily if the two parties meet on the common ground of finding a permanent solution to Seattle's NBA future.

"All the league has to do to lead to an amicable settlement is see to it that we're assured of a new team," Gorton said. "Whatever David Stern said about me, my principle unhappiness is not directed at David Stern. At this point, we have not given him a plan with an arena adequate for the NBA in the 21st century. If we do and he doesn't respond, my attitude will be different. But at this point, we haven't given him that chance."

Amid all Stern's teeth-clenched anger toward Gorton and Seattle Mayor Greg Nickels on Friday, he did leave the door ajar for the NBA returning at some point.

"In the future, if there is a building, or the prospect of a building, I think there will be circumstances under which we would love to engage Seattle or King County in a dialogue," Stern said.

While Stern has said KeyArena isn't an option, parroting Bennett's stance that only a new facility would keep him in Seattle, the commissioner previously lobbied for Howard Schultz's remodel proposal and has only indicated the arena "in its current state" is not capable of supporting a franchise.

If a new ownership group wanted to play in KeyArena, it's unlikely the NBA would object, particularly given a $300 million remodel that would double the facility's footprint to a more typical 750,000 square feet.

"Whatever happens with Key, now or in the future, is not going to happen with respect to the team currently located there," Stern said Friday. "That team has now been approved by the Board of Governors to move to Oklahoma City."

Getting a guarantee of a new team figures to be a tough proposition. The league isn't discussing expansion at the moment. And while there are several franchises dealing with financial difficulties in their current situations, Stern can't force another owner to commit to a different market. Additionally, all of those teams have varying lease commitments of their own, as well as options such as Las Vegas and a new 18,500-seat arena in Kansas City, Mo., that could be equally attractive.

"I'm not telling you this will be easy," Gorton said. "And it's not as easy now as it would have been if we'd had something in place before last Friday. But it is still possible."

King County Councilman Pete von Reichbauer, who helped broker the deal between Ken Behring and Paul Allen that kept the Seahawks in Seattle, said it's important for the region to not feel its size guarantees NBA interest once the Sonics depart. He points to the decision by the NFL to move the Los Angeles Rams to St. Louis in 1995 as proof positive.

"We really need to understand that if we want an NBA team, we can't hold out hope that just because we're a better advertising market that somehow we'll be granted one," von Reichbauer said. "If the board of governors of the NFL can decide it doesn't need to be in Los Angeles, the NBA can make that decision about Seattle. It's important to figure out how to work with them, not against them. It's not about somebody's re-election. If you care about having a team, it's time to start working toward a solution."

Gorton downplayed news that the NBA's relocation commitment stands for only one year and Bennett's group will need to reapply for a move to Oklahoma if it doesn't make the shift by next season. He said even if the city holds the team to Seattle for another two years, the owners would likely just repeat the same vote when the lease expires.

That stance was confirmed by Joel Litvin, the NBA's president of basketball operations.

"The constitution only allows the board to approve a relocation that would begin the subsequent season," Litvin said. "However, the committee stated in its report that if the team does not relocate for next season and reapplies for 2009-10 or 2010-11, the board should approve the renewed application."
 
Apr 25, 2002
3,970
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#84
http://seattlepi.nwsource.com/basketball/360032_arena22.html

Slade Gorton: Goal now is finding a replacement for Sonics
By GREG JOHNS
P-I REPORTER

Former U.S. Sen. Slade Gorton, the man accused by NBA commissioner David Stern of enforcing a "scorched-earth policy" toward the NBA's future in Seattle, said Monday he'll be happy to negotiate with Clay Bennett if settlement talks include guarantee of a replacement franchise.

Gorton, whose K&L Gates law firm is heading the city's legal fight to enforce the KeyArena lease, believes Seattle still must come up with an arena funding solution to present the NBA commissioner in order to focus on getting a new team to replace the Sonics.

"While I'd still love to see the Sonics stay, I think that is highly unlikely," Gorton said in the wake of the 28-2 vote by NBA owners Friday to approve relocation of the franchise to Oklahoma City. "What we're trying to accomplish now, in my view, is to get another team in their place.

"That will, however, require the governor and Legislature to come up with a way for Seattle to pay its share of the KeyArena remodel."

The timing of the Sonics' move to Oklahoma is contingent on the team being legally cleared of its KeyArena lease issue, which is headed to U.S. District Court in mid-June to settle a lawsuit between the city and Bennett's ownership group.

Stern accused Gorton of wanting to "exact whatever pound of flesh is possible" on Friday, but the 80-year-old lawyer sounded willing to work with the league Monday after returning from a weekend business trip in Charlottesville, Va.

Though he declined to say when or if the city would reach out to Bennett on a settlement agreement, Gorton acknowledged such talks are possible. Pursuing a legal battle for the sole purpose of binding the team to two final money-losing years in KeyArena isn't part of his motivation.

"If a replacement team is part of the package, of course we'd talk," Gorton said. "My goal from the very beginning has been to have a team. Revenge, I'm not interested in as such. The city has a financial stake in all this. The mayor and I are in complete accord that what we want is a team."

Many Sonics fans simply want to force Bennett's group to play at KeyArena through its lease, even if the result would be losing the franchise at that point while the city still owed $25 million on the building's debt. But while Gorton isn't about to abandon the litigation, he sees it more as a carrot than a stick.

"It isn't over until the fat lady sings, and at this point, there is the trial date and the city's lawsuit to enforce the terms of the KeyArena lease," Gorton said. "I think the goal of the entire community, and certainly my goal, is to see whether some time between now and then there's a way to come up with a situation in which the controversy over the Sonics is settled in some fashion that Seattle can look forward to another NBA franchise.

"I think it's a possible goal. But I don't think it's likely to happen unless we have a tangible and complete plan for the remodeling of KeyArena. If we'd had that in hand last week, in my view we'd either have kept the Sonics or gotten assurance of another team."

Gorton believes Gov. Chris Gregoire needs to call a special session before the start of the June 16 trial and give the Legislature a chance to pass a measure that would provide the city an avenue to its final $75 million in funding toward the proposed $300 million KeyArena makeover.

"If we have a remodeled KeyArena or the promise of one that meets their requirements, and I'm convinced this remodel does, then I think we have a chance for another team," he said. "But the chances diminish rapidly after the trial is over. This present lease gives us leverage, so we need to get it done promptly. We have to focus on getting a solution out of Olympia."

Gorton said any settlement would have to include guarantee of a replacement franchise. He's not inclined to let the current team depart merely on the hope the NBA will then work with Seattle.

"I'm not willing to make that assumption, given their attitude toward us," Gorton said. "We need to have something they want. And what they want is to get the Sonics out of here by next season. It's clearly possible for the league to give us a guarantee. How difficult or how badly they want to, I don't know."

Despite the rhetoric from both sides in recent months, Gorton feels all that can be set aside easily if the two parties meet on the common ground of finding a permanent solution to Seattle's NBA future.

"All the league has to do to lead to an amicable settlement is see to it that we're assured of a new team," Gorton said. "Whatever David Stern said about me, my principle unhappiness is not directed at David Stern. At this point, we have not given him a plan with an arena adequate for the NBA in the 21st century. If we do and he doesn't respond, my attitude will be different. But at this point, we haven't given him that chance."

Amid all Stern's teeth-clenched anger toward Gorton and Seattle Mayor Greg Nickels on Friday, he did leave the door ajar for the NBA returning at some point.

"In the future, if there is a building, or the prospect of a building, I think there will be circumstances under which we would love to engage Seattle or King County in a dialogue," Stern said.

While Stern has said KeyArena isn't an option, parroting Bennett's stance that only a new facility would keep him in Seattle, the commissioner previously lobbied for Howard Schultz's remodel proposal and has only indicated the arena "in its current state" is not capable of supporting a franchise.

If a new ownership group wanted to play in KeyArena, it's unlikely the NBA would object, particularly given a $300 million remodel that would double the facility's footprint to a more typical 750,000 square feet.

"Whatever happens with Key, now or in the future, is not going to happen with respect to the team currently located there," Stern said Friday. "That team has now been approved by the Board of Governors to move to Oklahoma City."

Getting a guarantee of a new team figures to be a tough proposition. The league isn't discussing expansion at the moment. And while there are several franchises dealing with financial difficulties in their current situations, Stern can't force another owner to commit to a different market. Additionally, all of those teams have varying lease commitments of their own, as well as options such as Las Vegas and a new 18,500-seat arena in Kansas City, Mo., that could be equally attractive.

"I'm not telling you this will be easy," Gorton said. "And it's not as easy now as it would have been if we'd had something in place before last Friday. But it is still possible."

King County Councilman Pete von Reichbauer, who helped broker the deal between Ken Behring and Paul Allen that kept the Seahawks in Seattle, said it's important for the region to not feel its size guarantees NBA interest once the Sonics depart. He points to the decision by the NFL to move the Los Angeles Rams to St. Louis in 1995 as proof positive.

"We really need to understand that if we want an NBA team, we can't hold out hope that just because we're a better advertising market that somehow we'll be granted one," von Reichbauer said. "If the board of governors of the NFL can decide it doesn't need to be in Los Angeles, the NBA can make that decision about Seattle. It's important to figure out how to work with them, not against them. It's not about somebody's re-election. If you care about having a team, it's time to start working toward a solution."

Gorton downplayed news that the NBA's relocation commitment stands for only one year and Bennett's group will need to reapply for a move to Oklahoma if it doesn't make the shift by next season. He said even if the city holds the team to Seattle for another two years, the owners would likely just repeat the same vote when the lease expires.

That stance was confirmed by Joel Litvin, the NBA's president of basketball operations.

"The constitution only allows the board to approve a relocation that would begin the subsequent season," Litvin said. "However, the committee stated in its report that if the team does not relocate for next season and reapplies for 2009-10 or 2010-11, the board should approve the renewed application."
Slade's a stud, he's one of the reasons the Mariners are still in Seattle and not the Tampa Bay Rays.

His outlook is the same as mine. Make them play for the final 2 years unless they are willing to promise a new team. The new team is the next best thing to never losing them in the 1st place, and the only way we're getting a new team is if something's in writing b/c that lease is the only bargaining chip we have.

Slade knows all of this, I'm glad he's the one handling this.
 
May 9, 2002
37,066
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#85
Bennett knew he could flip team
Schultz complaint offers new e-mail evidence
By GREG JOHNS
P-I REPORTER

New e-mail evidence indicating that Clay Bennett wasn't interested in owning the Sonics if they remained in Seattle even before his group's purchase of the NBA franchise is included in a lawsuit filed by former owner Howard Schultz on Tuesday seeking to rescind the sale.

The suit, filed by the Starbucks chairman in U.S. District Court, charges that Bennett's group committed fraud in misleading Schultz and his Seattle-based partnership by promising they'd make good-faith efforts to keep the team in Seattle.

The 12-page complaint states that Bennett's Oklahoma-based group told Schultz's Basketball Club of Seattle at the time of the July 18, 2006, purchase, "It is our desire to have the Sonics and the Storm continue their existence in the Greater Seattle Area and it is not our intention to move or relocate the team."

According to the suit, "that statement was false from the moment it was made."

The complaint, written by Seattle attorney Richard Yarmuth, details a new e-mail from Bennett to his partners two days before the sale in which he said he was comfortable with the Purchase Agreement's good-faith provision because if Seattle did negotiate a new arena deal, the Oklahoma City group could sell the team in a "sweet flip" in order to obtain a different team for Oklahoma City.

The complaint further says, "These Oklahoma City businessmen wanted a team that would play in Oklahoma City -- not in Seattle. They were willing to lie, and did lie, to complete the deal. Under these circumstances, principles of law and equity do not permit defendant to continue to own the property it fraudulently obtained."

The suit seeks to void the sale and impose a "constructive trust from which the defendant can be ordered to convey the Sonics to an honest buyer who desires to keep the Sonics in Seattle."

Much of the information in the suit has already been made public, including later e-mails between Bennett and fellow investors Aubrey McClendon and Tom Ward in which he talks about "being a man possessed" in getting the team out of Seattle, as well as McClendon's quotes in an Oklahoma City publication saying the group didn't buy the team to keep it in Seattle.

But the claim also points out a July 13, 2006, teleconference between the two groups five days before the sale's announcement during which Bennett and G. Edward Evans, an initial co-investor who later dropped out of the Oklahoma contingent, both told the Sonics board of directors that it was their desire to keep the franchise in the Puget Sound area.

"Messrs. Bennett and Evans knew or should have known when they made those statements that the Board would rely on their statements in making its decision whether to approve the sale of the Sonics," the suit states.

A source previously told the Seattle P-I that Schultz's ownership board approved the vote 5-4 after considerable debate.

The suit says Schultz, as chairman of the team's Board of Directors, insisted Bennett write a side letter confirming the Oklahoma City group's statements. Bennett then wrote to Schultz, "It is our desire to have the Sonics and the Storm continue their existence in the Greater Seattle Area" and said the group had no "intention to move or relocate" if a new lease arrangement could be negotiated in Seattle.

That commitment was also written into the Purchase Agreement, which states, "For a period of 1 to 12 months after the Closing Date, Buyer shall use good faith best efforts to negotiate an arena lease, purchase, use or similar arrangement in (the Greater Seattle area)."

The suit is filed on behalf of the Basketball Club of Seattle by Canarsie Holdings LLC, a limited liability company owned by Schultz, and "seeks to deprive the Oklahoma City group of the fruits of its deception."

Schultz, the chairman of a group of 58 investors who owned the Sonics and Storm from 2001-06, filed the suit on behalf of the entire BCOS. The suit notes that the Seattle ownership group has not been in operating mode since the sale was approved on Aug. 21, 2006, and is not in position to regroup in a timely manner or "currently have the financial resources to finance this litigation."

In addition to asking that the ownership be turned back to a trust that would sell to Seattle buyers, the suit requests that Bennett's group provide a full accounting of the financial condition of the team so potential buyers could accurately assess its worth.

It also asks for a preliminary injunction to prohibit the Oklahoma owners from "taking any action that would compromise the value of the Sonics" or otherwise interfere with a fair resolution, as well as covering all attorney fees and providing "whatever additional relief the Court may determine to be just and equitable."

http://seattlepi.nwsource.com/basketball/360176_schultz23.html
 
May 9, 2002
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#86
E-mails key in Schultz's suit to reverse Sonics sale
By Lester Munson
ESPN.com


Updated: April 22, 2008, 11:54 PM ET

Former SuperSonics owner Howard Schultz filed a lawsuit in federal court in Seattle on Tuesday, seeking to undo his sale of the franchise to a group of Oklahoma City businessmen. Schultz sold the team, he says in the suit, only after the Oklahoma group promised to keep the team in Seattle. Now, according to the suit, it is clear the Oklahoma group's statements about staying in the Northwest were "false from the moment they were made."



Legal Filing

Howard Schultz filed a lawsuit on Tuesday to undo the sale of the SuperSonics. Check out the legal documents: PDF

Schultz and his attorney, Richard Yarmuth, assert "principles of law and equity do not permit [the Oklahoma group] to continue to own the property it fraudulently obtained."

The unusual suit raises significant legal questions. Here are some of the questions and their answers:

Q: Schultz sold the team in 2006 and collected $350 million. How can he now say the sale must be unwound? Does he have any chance of success?

A: Yes, he does have some chance of success. The lawsuit relies on damning e-mails written by Clay Bennett and others in the Oklahoma group which indicate they never intended to stay in Seattle. Schultz and Yarmuth are relying on legal principles that might work. The key legal terms in the suit are "fraud," "voidable" and "constructive trust." The e-mails indicate Bennett's group was misrepresenting its intentions and could easily qualify as proof of "fraud." Two days before the sale, in a highly damaging e-mail, Bennett told one of his partners if an arena deal was eventually sealed in Seattle, they could do a "sweet flip" and just sell the team and leave Seattle.

A fraudulent sale can be "voidable," although the legal requirements are stiff. And the "constructive trust" sought by Schultz and Yarmuth is a brilliant idea that will give the judge a mechanism to take the team from Bennett and permit its sale to a Seattle-area buyer. When Bennett and his lawyers read the lawsuit, they will realize they face serious difficulty answering what Schultz and Yarmuth have put together.

Q: Schultz has been reviled in Seattle since he sold the team. Isn't this just a public relations stunt to allow Schultz to improve his public image?

A: The lawsuit is more than a public relations stunt. The allegations against Bennett and his group are serious and seem to indicate a fraud at the time of the sale. The chronology of the e-mails is compelling evidence that will allow Schultz to push Bennett and his group into a bad corner. If it were a PR stunt, both Schultz and Yarmuth would be holding press conferences and making dramatic statements. Neither would comment to ESPN.com beyond what is said in the lawsuit. The language of the suit is lean and spare. If anything, it understates the case. Their conduct and their lawsuit are clear indications they are serious about their allegations and their attempt to undo the sale.

Q: How will Bennett and his group respond?

A: They will demand a quick dismissal, hoping to bring it to an end before it becomes an obstacle to their relocation to Oklahoma City, which was approved Friday by the NBA. In motions to dismiss, they will claim American law does not permit a court to void a sale. And Bennett likely will argue his e-mails are innocent and have been misconstrued. He will also list all the efforts he made to build a new arena for the Sonics in the Seattle area. He hired an architect, he hired lobbyists and he put together a scheme for an area in suburban Renton, Wash.

His lawyers will also argue too much time has elapsed since the sale, and it is now impossible for a judge and a receiver to take control of the team and sell it to someone else. But it is unlikely Bennett will succeed in obtaining a quick dismissal. He will then argue that if the sale is indeed voided, he would deserve a significant return on his investment in the team. He will claim that it is worth much more than the $350 million that he paid for the Sonics and the WNBA's Storm in 2006. (Bennett has since sold the Storm to a group of Seattle investors for $10 million.)

Q: When will we know who wins?

A: The critical point in the lawsuit will come when Schultz asks the court for a preliminary injunction. Injunctions are the most drastic thing a civil court can do, and the requirements for an injunction are demanding. In his court papers, Schultz demands an injunction that will prevent Bennett and his group from "taking any action ... that would interfere with the court's ability" to void the sale. The judge will face a difficult decision at this point in the litigation process. If Schultz persuades the judge to grant the injunction, he will be on his way to a remarkable victory, a triumph that is without precedent in the sports industry.

Q: What's in this for Schultz? Does he want to take another stab at running an NBA team?

A: Schultz insists he is not interested in money and is interested only in keeping the Sonics in Seattle. He is not asking the court to return the team to him. He wants the court to take a series of actions that will deliver the team to "an honest buyer who desires to keep the Sonics in Seattle." It is a highly unusual request for a judge. If Schultz succeeds in proving the fraudulent intentions of Bennett and his partners, the judge will be presiding over a sale, maybe even an auction, of the Sonics. It will be a complicated situation, highly unusual for a federal judge, who must evaluate possible offers and work for approval of the sale by the NBA and commissioner David Stern.


Q: How does Schultz's suit relate to the city of Seattle's lawsuit to bind Bennett to the KeyArena lease, which is scheduled to go to trial June 16?


A: Both lawsuits are in the same courthouse and could easily end up before the same judge. The lease litigation led to the discovery of the damning e-mails that are the basis for Schultz's case. The cases, added together, present Bennett with serious problems. Both jeopardize his bid to move the team to Oklahoma City. If he loses the lease case, he can still try to buy his way out of the lease by increasing his offer beyond the $26 million bid that the city rejected. If he offered $50 million or a bit more, the city would likely be obligated to give it serious consideration. Even if the city were to reach a buyout agreement with Bennett before the six-day trial begins in June, the Sonics owner will still need to deal with Schultz's suit. If Bennett loses the Schultz case, he loses the franchise.

If either suit is successful in postponing the Sonics' move beyond the start of the 2008-09 season, according to the NBA Constitution, Bennett's group will need to reapply for relocation before the NBA Board of Governors.


Lester Munson, a Chicago lawyer and journalist who reports on investigative and legal issues in the sports industry, is a senior writer for ESPN.com.

http://sports.espn.go.com/nba/columns/story?id=3362659
 
Jun 13, 2002
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#91
Thursday, April 24, 2008
Newly revealed e-mails could cause headaches for Sonics owner
http://sports.espn.go.com/nba/news/story?id=3365972

--------------------------------------------------------------------------------
Associated Press

SEATTLE -- More e-mails involving SuperSonics owner Clay Bennett have been revealed that could slow or even stop the team's move from Seattle to Oklahoma City, a move the NBA overwhelmingly approved last week.

A filing by the city of Seattle this week in federal court in New York includes e-mails to and from Bennett that show the NBA was concerned last summer that Sonics owners may be breaching their contractual promise of good-faith efforts to find a new arena in Seattle.

In court documents provided Thursday by attorneys representing the city, Bennett stated in an e-mail to Sonics co-owner Aubrey McClendon last Aug. 13 that the NBA was looking into issues "relative to certain documents that we signed at closing that may have been breached."

Bennett wrote that president of league and basketball operations Joel Litvin was looking into the possible breach.

Earlier that day, Bennett had written an e-mail to McClendon referring to the fallout from McClendon's comments to an Oklahoma business publication that "we didn't buy the team to keep it in Seattle, we hoped to come here."

"Yes sir we get killed on this one," Bennett wrote to McClendon. "I don't mind the PR ugliness [pretty used to it], but I am concerned from a legal standpoint that your statement could perhaps undermine our basic premise of 'good faith best efforts.'"

NBA commissioner David Stern fined McClendon $250,000 for his comment. The city is citing it as evidence Sonics owners lied to Seattle when asserting they weren't trying to move the team.

The e-mails are part of the city's recent filings in the U.S. District Court for the Southern District of New York, where Seattle is attempting to compel the NBA to provide financial records for all of its teams. The city is also trying to force Stern to testify as part of Seattle's dispute with the Professional Basketball Club, the Sonics' ownership entity, over the KeyArena lease.

A week before NBA owners voted 28-2 to approve the team's move to Oklahoma, the city released e-mails that appeared to show Bennett and his Sonics co-owners were eagerly anticipating moving the team from Seattle to Oklahoma City almost as soon as they bought the team in July 2006 for $300 million from a Seattle-area group led by Starbucks chairman Howard Schultz.

In one from April 2007, Bennett stated, "I am a man possessed! Will do everything we can," in response to co-owner Tom Ward asking if they were in for another "lame duck season" in Seattle.

Last week, immediately after the NBA approved the move, Bennett said he was referring to how possessed he was to find a home for the team in Seattle.

After the e-mails became public, Schultz filed suit against Bennett for allegedly violating the good-faith agreement.

The Sonics provided the e-mails to comply with a ruling by federal judge Marsha Pechman in Seattle. She ruled such messages between the co-owners were pertinent for the discovery phase of the June trial between the city and the Sonics over the KeyArena lease.

Bennett argues he is contractually allowed to write a check to buy out the lease and thus move his team to Oklahoma City for next season.

The city asserts the lease requires the team to play in KeyArena through the 2009-10 season. Seattle wants to keep the Sonics in town for those two years to buy time for a group led by Microsoft CEO Steve Ballmer or some other local buyer to find an arena solution and keep the team in the region for the long term.

The trial is scheduled to begin June 16 in federal court in Seattle.

In a motion Bennett filed last week in Seattle, the owner claimed the trial "has nothing to do with the last two years of the lease. Instead, the city is trying to exploit its landlord status to force the PBC to sell the team ... to drive up costs for the PBC ... to try to force PBC to sell."

The city has already rejected Bennett's offer of $26 million to settle. Last week, Seattle Mayor Greg Nickels repeatedly refused to answer if there was a price at which the city would consider settling with Bennett. The mayor instead reiterated the city intends for the Sonics to remain in Seattle for the long term.

Last April, Bennett told a meeting of the Seattle Convention and Visitors Board that Las Vegas was a possible relocation alternative. In an e-mail to Stern dated April 28, 2007, Bennett regretted "my clumsy volley" but wrote that the "threat of Las Vegas has moved the needle" on what he saw as Seattle's indifference toward the Sonics' situation.

"Leadership in the market has never valued the threat of moving to Oklahoma City," Bennett wrote to Stern. "They don't even know where it is."
 
May 9, 2002
37,066
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#92
YOu beat me to it. I literally JUST saw this. This may cuase ALOT of headaches for Stern and the NBA. I love it.

Here is the PI story:

Did NBA officials suspect that Bennett violated "good faith" promise?
By Jim Brunner
Seattle Times staff reporter


NBA officials last year worried that Sonics owners may have violated their "good faith" promise to work toward an arena deal in Seattle, according to new e-mails disclosed as part of the city of Seattle's lawsuit against the team.

In an e-mail last August, Sonics owner Clay Bennett told fellow owner Aubrey McClendon that NBA executive Joel Litvin was "looking into certain documents we signed at closing that may have been breached."

That was right after McClendon's now-famous comment to an Oklahoma newspaper that "we didn't buy the team to keep it in Seattle, we hoped to come here." McClendon was fined $250,000 by the NBA for that remark, but league officials ultimately ruled that Bennett's group had met its good-faith requirement. Last week, the league approved the relocation of the Sonics to Oklahoma City.

The August e-mail was among several newly disclosed by lawyers for Seattle today in a New York federal court filing seeking to depose NBA Commissioner David Stern and force the league to turn over financial records and other documents.

The city's latest filing argues that lawyers for Seattle should be able to question Stern personally because of his "private conversations" with Bennett about relocation and his support for the Oklahoma City relocation.

League attorneys have sought to block Stern's deposition.

"There can be no doubt that the sole purpose of the deposition is to harass the NBA and its commissioner," NBA attorneys wrote in a motion asking a judge to quash the city's request. NBA spokesman Tim Frank said today the league would have no comment on the latest court filings.

A hearing on the dispute is set for Monday in New York City.

Seattle's latest court filing also reveals several other internal Sonics e-mails in which Bennett pushes Oklahoma City as a new home for the Sonics as early as last April and complains about local politicians and media.

• Bennett also worried that McClendon's comments could land the owners in legal trouble. In an Aug. 13, 2007, e-mail to McClendon, Bennett wrote: "Yes sir, we get killed on this one. I don't mind the PR ugliness (pretty used to it), but I am concerned from a legal standpoint that your statement could perhaps undermine our basic premise of 'good faith best efforts'... "

That's a reference to the language in the contract Bennett's group signed with former owner Howard Schultz promising to make "good faith best efforts" through Oct. 31, 2007, on a Seattle-area arena deal. Indeed, McClendon's comments, along with other e-mails among team owners, have been used against the team in Seattle's lawsuit. And Schultz last week filed his own lawsuit, accusing Bennett's group of fraud and seeking to void the 2006 sale of the Sonics.

• Sonics owners began trying to persuade NBA executives to approve an Oklahoma City relocation as early as last April, when it became clear the Washington Legislature would not approve a $500 million Renton arena. Bennett e-mailed Litvin on April 23, 2007, saying the decision to leave Seattle was "not made in haste but in the context of now years of failing economics" and no prospects for a new arena. While Oklahoma City "is certainly a much smaller media market, this ownership group provides a unique relationship" with the city's business and political leaders and "can deliver a viable business operation and commitment to competitive teams," Bennett told Litvin, president of the NBA's league and basketball operations.

• Bennett displayed frustration with local politicians. In an e-mail last April to Stern and Litvin, Bennett groused that he "wouldn't trust [Seattle Deputy Mayor Tim Ceis] as far as I could throw him." He added that the political leadership in Washington state "has never valued the threat of moving to Oklahoma City. They don't even know where it is." Bennett noted that local politicians only reacted after he briefly raised the prospect of moving the team to Las Vegas. "They view Las Vegas as a true competitor," Bennett wrote, "and if Las Vegas values the NBA then perhaps they should more thoughtfully consider the risk of losing the Sonics."

• Bennett vented in other e-mails about the Seattle media. In an e-mail to McClendon and other co-owners last July, Bennett reacted to a column by Seattle Times columnist Steve Kelley: "All of these guys are against us. Seattle has the most inept and difficult sports media of any major market. That was the view of the league before we arrived and I now completely agree."

http://seattletimes.nwsource.com/html/localnews/2004371389_websonics24m.html
 
Nov 24, 2003
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TONY206 said:
Last week, immediately after the NBA approved the move, Bennett said he was referring to how possessed he was to find a home for the team in Seattle.
LMFAO!!! Wtf? This guy must think people are stupid.

Stern is such a bitch. After all this BS only a retard would actually believe Bennet's intentions were to keep the team in Seattle and Stern STILL says he believes Bennet acted in good faith to do so.
 
May 9, 2002
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#94
Clay Bennett is such a slime ball that even Oklahomans are now changing their view on him, and some are actually saying they WANT Seattle to stay after what has happened in this fiasco. That is pretty bad considering that Olkahoma newspapers have been painting a Mona Lisa of Clay and his cronies over the last year...turns out they are nothing but a maccaroni picture glued to construction paper made by a 5 year old.
 
Jun 13, 2002
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#97
NBA: Seattle 'Harassing' Stern

The NBA is complaining Seattle is "harassing" NBA Commissioner David Stern, court records show. The NBA wants a judge to block Seattle attorneys from questioning Stern.
"There can be no doubt that the sole purpose of the deposition is to harass the NBA and its commissioner," NBA attorneys argued to a federal judge in New York City. The NBA's president of league and basketball operations, Joel Litvin, has agreed to be questioned, but the NBA wants limits on what Litvin can be asked. -- The Oklahoman
 
Jun 13, 2002
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#98
Friday, April 25, 2008
Stern acknowledges Sonics' relocation would be hard to reverse
Associated Press
http://sports.espn.go.com/nba/news/story?id=3368294&campaign=rss&source=NBAHeadlines

PHILADELPHIA -- NBA commissioner David Stern knows a court order can only keep the SuperSonics in Seattle for the short term.

The Sonics are moving to Oklahoma City -- either next season or in 2010 -- and not even the desperate pleas of the dejected Seattle fans can save their favorite team from leaving this summer or in three years.

"Subject to all lawful orders of the court, the Sonics are moving to Oklahoma City, whether it's the end of this season, next season or the season after that," Stern said Friday. "Could I imagine circumstances, without precedent, where some court does something? It would be hard to imagine there would be any circumstances legally that would preclude the Sonics from moving at the end of their lease."

Last week, NBA owners overwhelmingly approved the SuperSonics' move to Oklahoma City for the 2008-09 season -- provided the team can settle the lawsuit with its hometown for the last 41 years.

The move could be delayed when the U.S. District Court begins hearing the trial June 16 in Seattle over the team's lease dispute. The court could rule for the city and say the Sonics must play in KeyArena for the final two years of the lease.

Stern, who spoke before the Detroit Pistons-Philadelphia 76ers playoff game, said the league is prepared for the Sonics to play two more seasons in Seattle, if that's what the court orders. Last week, Stern said the Sonics would likely lose at $30 million per season in such a situation.

"It wouldn't be optimum for either the NBA, the team or the city, but if that's what it's going to be, that's what it's going to be," Stern said.

There could be more headaches for the Sonics. Damaging e-mails involving Sonics owner Clay Bennett have been revealed that could slow or even stop the team's move.

A filing by the city of Seattle this week in federal court in New York, where the city is seeking the NBA's financial records and a deposition of Stern, includes e-mails to and from Bennett that show the NBA was concerned last summer that Sonics owners may be breaching their contractual promise of good-faith efforts to find a new arena in Seattle.

"I think, ultimately, despite the novel and face-saving attempts to construct cause of action, that the Sonics are moving to Oklahoma," Stern said.
 
May 9, 2002
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I seriously wanna punch Stern in the balls. Looks like he is getting REAL desperate.

The relocation vote only lasts ONE YEAR. If this ALL unfolds in a real ugly manner, they would have to RE-VOTE every year for relocation. What happens if the owners badically fuck Stern and vote NO next year or the year after?
 
May 5, 2006
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Damn, it looks like the trial will begin June 16 in a federal court in Seattle.

Sterns a little bitch tho, doesn't it feel like he and the NBA are picking Bennetts side?