Recent Blog Posts

Sonics Owners Fumble Midwest Move

By JOHN HOLLINGER | August 15, 2007

It's amazing how people who brilliantly operate their businesses can turn into buffoons as soon as they purchase a pro basketball team.

We're familiar, of course, with the lunacy of James Dolan's stewardship of the Knicks. His tenure essentially consists of throwing good money at bad players and rewarding Isiah Thomas with a contract extension because — well, why'd he do that again?

We've also recently come face to face with incompetence with the Minnesota Timberwolves, where Glen Taylor's "strategy" consisted of hiring the most famous basketball player from the state, Kevin McHale, to run the team — and then leaving him in charge for a decade, even after he proved beyond any reasonable doubt that he was in over his head and not motivated. That resulted in wasting the prime years of one of the league's greatest talents, Kevin Garnett, until he was traded to Boston this summer.

Those aren't the only bad ones. We've got confirmed cheapskates running the show for Charlotte, New Orleans, and the Clippers; a reclusive, bizarre regime calling the shots for Golden State; and who-knows-what going on in Orlando.

But the latest team that could use a copy of "NBA Ownership For Dummies" is the Seattle Sonics. The Oklahoma City-based group that purchased the team last season has always been viewed with suspicion by folks in the Emerald City, who feel that the owners aren't sincere about keeping the team in Seattle and just want to move it to Oklahoma as soon as they can.

Their suspicions have now been confirmed, because one of the owners, Aubrey McClendon, was apparently unaware that a newfangled technology called the Internet allows people to read out-of-town newspapers.

He gave an interview to an Oklahoma City-based business newspaper called the Journal Record: The piece included such self-incriminating gems as, "We didn't buy the team to keep it in Seattle, we hoped to come here"; and, "We know it's a little more difficult financially here in Oklahoma City, but we think it's great for the community and if we could break even we'd be thrilled."

Both quotes are hugely damaging, for different reasons. The former is hurtful because the terms of the Sonics sale to the current group from Starbucks founder Howard Schultz require the new owners to make a good-faith effort to keep the team in Seattle before moving it. By McClendon essentially admitting that the new owners never intended to keep the team in town, he opens the ownership group to legal challenges to an attempted move that could drag on for years.

The second, however, is the one that really stings. McClendon is saying the team will make less money in Oklahoma City but he'd like to move it there anyway? How do you suppose that one will go over in the commissioner's office?

Remember, this is a league that shares most of its revenues, so a team moving into a less profitable situation is an issue for the league's other 29 owners — the same people who have to approve the Sonics' application to relocate. Maybe this just means it will take a bigger buy-off to get approval, but that's still a cost.

Then there's the players association. The league's salary cap is set as a percentage of basketball-related income. This means that the amount of money the Sonics make (or don't make) directly impacts how much money every single player in the league will make as well. The players association is sure to find it interesting if a team isn't working to maximize its income by playing in the most profitable city, as McClendon seems to be admitting.

In a way, what he did was great for Sonics fans: McClendon couldn't have done more to keep the team in Seattle. The potential legal challenges, and those from their fellow owners, could provide the impetus for the Sonics to stay put and get a deal done on a new building to replace the outdated KeyArena.

But it also could make things really, really ugly. Keep in mind that the Sonics have a lease at KeyArena until 2010, and that the city of Seattle has indicated they will not allow the team to buy its way out of it early. In fact, a ballot referendum this fall may remove that option from the table entirely.

Clay Bennett, the lead owner in the Sonics' group, has said he'll petition the league to move the team to Oklahoma City in 2008–09 if he doesn't have a stadium deal by the end of October. But if he's contractually required to stay in Seattle through 2010, then what happens? The Sonics might be faced with three seasons of playing in a virtually empty arena while waiting to move the team to Oklahoma — all so they could make less money.

If that were the case, it undoubtedly would affect the team as well. Think any money would be spent on free agents over the next three years if they were tied down in Seattle? How about on coaches, scouts, and all the other elements of running a team?

Alas, this is not Bennett's first misstep since his group took over. There was his weird dalliance with Lenny Wilkens, the sloppy firing of Bob Hill, and his needless tweaking of Seattle mayor Greg Nickels in the press (that should help get an arena deal done, eh?). The damage control on Monday was similarly awkward — Bennett and McClendon each issued their own press releases, both of which fell somewhere short of a full denial.

Now the owners has an enraged fan base to deal with if he stays, and a perplexed league to do some explaining to if he tries to leave. The irony is that Bennett has tried to build the Sonics on the model of the San Antonio Spurs, going so far as to hire away Sam Presti and P.J. Carlesimo from the Spurs to be his coach and general manager.

The Spurs, of course, are the league's model franchise, and one of the keys to their success has been the simple but mundane task of keeping from doing things that are tragically stupid. If Bennett's group wants to end up more like them and less like the Taylors and Dolans of the world, the first step is finding a way to contain this latest outbreak of foot-in-mouth disease.

jhollinger@nysun.com


Reader comments on this article

Read all comments

Comment By Date

As a Sonics fan living in WA state, it was refreshing to see a different perspective of this hellish issue... [MORE]

Megan 

Aug 15, 2007 13:48

Thank you for the excellent article! The very day when we were told that this team was sold to an... [MORE]

irene 

Aug 15, 2007 14:16

Yeah, that's good business Stern. (shakes head) What's next? Is he going to allow some rich billionaire to buy the Indiana... [MORE]

Mark 

Aug 15, 2007 14:24

If the NBA lets these Okies take the team with them, I don't know how any fan could stay emotionally... [MORE]

Jared 

Aug 15, 2007 16:05

Since day one, the new ownership group of muppets has done nothing to rally public support. Zero public relations other than... [MORE]

Night Owl 

Aug 16, 2007 02:41

Give it 2 years OKC fan. Clay and his red necks will be asking you to fund a new arena.... [MORE]

chewy 

Aug 16, 2007 19:40

Another kudos from Seattle. This has been going on for an entire year with these Oklahoma billionaires. They've been doing... [MORE]

Jaren 

Aug 15, 2007 14:19

You state that KeyArena is obsolete. That, after a short twelve years and $100 million dollars. $50 million of the... [MORE]

Chris Van Dyk 

Aug 15, 2007 15:25

Chris Van Dyke is a very controversial political activist in the Seattle area. He has personally fought against the Sonics,... [MORE]

EJ 

Aug 15, 2007 15:43

The money could be spent on better things!!!! The tax stream that would used for any public financing is already in... [MORE]

Scott 

Aug 15, 2007 16:42

"New York or Oklahoma City may not need new schools..." Actually, OKC is now completing a five year program to... [MORE]

Bascom 

Aug 16, 2007 10:24

Having seen firsthand what Seattle and the great Northwest can do, I have no doubt that this situation will be... [MORE]

Don 

Aug 15, 2007 16:41

Since day one of this terrible ordeal anyone without their head in the clouds saw this coming. Since the transfer... [MORE]

michael ryan 

Aug 15, 2007 16:57

During the few times I have driven across country, and happened to pass through Bennett and McClendon's home state, I... [MORE]

steven 

Aug 15, 2007 17:38

Mr. Hollinger, Thanks so much for this article. This matter has needed national exposure for quite some time now. Hopefully more... [MORE]

Reuben in Iraq 

Aug 16, 2007 06:55

Does this name not conjure up an image of a tire kicking, tobacco spitting, Gay bashing, Bush worshipping, "Hoss" from... [MORE]

Roger 

Aug 16, 2007 17:57

Do you realize that the City of Seattle voted on and passed a resolution to disallow building a new arena... [MORE]

Mike 

Aug 20, 2007 13:20

"Do you realize that the City of Seattle voted on and passed a resolution to disallow building a new arena... [MORE]

MarkS 

Aug 26, 2007 14:56

come on now...i have lived in the pacific northwest (yes, amazing) and now reside in ok city...it's not that bad... [MORE]

bethany 

Aug 28, 2007 00:03

Okay, Seattle has had an NBA team for 40 years. They obviously can handle an NBA team, they just need... [MORE]

Cullain 

Aug 15, 2007 17:43

I felt from the beginning that Clay's efforts to get an arena deal done were a complete ruse. I remember... [MORE]

Thad 

Aug 16, 2007 10:45

Bennett bought the Sonics because he wanted to own a basketball team. I don't think he minds staying in Seattle... [MORE]

MR 

Aug 17, 2007 12:13

A wise man once said. " a fool and his money are soon parted" [MORE]

anne 

Aug 17, 2007 13:00

If the OKC group would put a winning team on the floor of Key Arena for a couple of years... [MORE]

Connie 

Aug 18, 2007 20:18

Only thing I'll say, John, the author, is absolutely dead-on with this viewpoint. I have nothing else to say, other... [MORE]

Ryan 

Aug 21, 2007 20:57