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Ed O · 08-03-2006, 03:55 PM

Quote:

Originally Posted by Utherhimo

i thought the NFL didnt allow an owner to own an nba and nfl in the same city, since the nfl is the bigger money organization they have more pull. Glad Allen wont sell but get the RG deal done!

The NFL considers Portland and Seattle the same market, so he currently DOES own an NBA team and an NFL team in the same market.

Helen Jung wrote that in her blog the day of, or the day after, the Sonics were sold.

Ed O.

Ed O · 08-03-2006, 03:57 PM

Vulcan's statement (from Jung's blog):

Quote:

Vulcan and Portland Arena Management LLC (PAM) agreed to work together
on a process to examine ways to maximize value for their respective
operations. Unfortunately, we were not able to identify a mutually
agreeable solution through this process.

No single entity has invested more over the years than Vulcan has in the
Trail Blazers - and in that sense, no single entity has more at stake in
an outcome that enhances the future prospects of the Trail Blazers as a
franchise than we do.

We will continue to explore ways to address the broken economic model
under which the franchise now operates, while working to ensure the
viability of the Trail Blazers as a team and a business.

What is the single most (potentially) interesting word left out of that statement?

I've got an opinion on that, and the word starts with the letter "P".

Edit: it DOES make an appearance, but only as part of PAM's name...

Ed O.

Ed O · 08-03-2006, 04:03 PM

Just for fun, let's compare PAM's statement with the Vulcan one I quoted above:

Quote:

In June, Portland Arena Management LLC (“PAM”) and Paul Allen began a process to jointly market the Trail Blazers and the Rose Garden arena. An investment banking firm acting on behalf of Mr. Allen and PAM and in cooperation with the NBA identified potential buyers and solicited offers. As a result of the process, multiple bids were received, a number of which were in a range which PAM found acceptable, and PAM confirmed that it wanted the sale process to continue to pursue negotiations with certain of the bidders. However, Mr. Allen has advised PAM that he does not wish to pursue a sale of the team at this time, and the sale process has been terminated. PAM intends to continue to operate the Rose Garden for the benefit of the City of Portland and the fans of the Trail Blazers, the WinterHawks and the LumberJax and to bring more family shows, concerts and other entertainment opportunities for the Portland community.

The two statements don't seem to indicate Allen won't sell... just that he doesn't want to sell for the offers received, and more specifically not for the offers received with PAM as a package partner.

Hmm...

Ed O.

tlong · 08-03-2006, 04:35 PM

Quote:

Originally Posted by Ed O

I'm happy Allen's not selling. He's the one competitive advantage the Blazers have.

I'd feel better about the Blazers staying in Portland, though, if he had repurchased the Rose Garden. The Sonics' probable move still makes me a bit nervous on that front.

Ed O.

I agree with this. I think Allen will move the team to Seattle within the next 2 years.

**mgb** · 08-03-2006, 04:35 PM

Quote:

Originally Posted by Ed O

Just for fun, let's compare PAM's statement with the Vulcan one I quoted above:

The two statements don't seem to indicate Allen won't sell... just that he doesn't want to sell for the offers received, and more specifically not for the offers received with PAM as a package partner.

Hmm...

Ed O.

He could have just said those are not acceptable lets continue to check for buyers if the only reason was the price. Unless he does have someone that just wants to buy the team and could make more money that way. So yes that could be the case. But I think he plans on buying the RQ back now that they've agreed on what the market value is. Of course PAM may not agree but I think there will be another announcement soon to that affect.

SodaPopinski · 08-03-2006, 04:50 PM

Boy, we're a paranoid bunch, aren't we?

First of all, I've not heard a viable opinion that says the Blazers could easily get out of the 25-year lease they signed with the City of Portland.

Secondly, Paul would have the same, if not worse problems in Seattle that he has in Portland. Bad deal with the arena owners where the team doesn't collect much money from the suites or other luxury seats. Not to mention, he'd be playing in a much more antiquated arena than the Rose Garden. One that requires a significant investment to upgrade. Either that, or he'd have to build another arena. Not exactly a short-term development.

Third, the NBA has to agree to allow an owner to relocate a team. I don't think David Stern wants his league to appear to be a place where teams can shift markets on a moment's notice. That doesn't give much confidence to sponsors, fans, potential team-buyers, players, etc.

My guess is Paul might use this "scare tactic" to his advantage to entice the current Rose Garden owners to sell at a lower price. If he's able to convince them they could have their largest tenant out at a moment's notice, they'd be much more willing to cut their losses and sell the building.

But the hurdles he'd have to jump over to move this team are not going to be easy - or cheap. He'd have been much better off selling the Blazers and buying the Sonics (or another team that would be easier to move).

-Pop

Oil Can · 08-03-2006, 04:53 PM

For Paul to move the franchise it would take:

1.) Relocation fee of $50 million
2.) New arena which would cost either him, the taxpayers, or a combination of the 2 in access of $350 million
3.) damages paid via settlement to the City of Portland that could cost as much as $700/800 million dollars.

Or, he could buy the RG for about $150 milion and continue on...

Looks like easy math to me.

SodaPopinski · 08-03-2006, 05:01 PM

Quote:

Originally Posted by Oil Can

For Paul to move the franchise it would take:

1.) Relocation fee of $50 million
2.) New arena which would cost either him, the taxpayers, or a combination of the 2 in access of $350 million
3.) damages paid via settlement to the City of Portland that could cost as much as $700/800 million dollars.

Or, he could buy the RG for about $150 milion and continue on...

Looks like easy math to me.

Apparently the mass paranoia hasn't affected all of us. Well put, Oil Can.

-Pop

yakbladder · 08-03-2006, 05:08 PM

Quote:

Originally Posted by SodaPopinski

Boy, we're a paranoid bunch, aren't we?

First of all, I've not heard a viable opinion that says the Blazers could easily get out of the 25-year lease they signed with the City of Portland.

Secondly, Paul would have the same, if not worse problems in Seattle that he has in Portland. Bad deal with the arena owners where the team doesn't collect much money from the suites or other luxury seats. Not to mention, he'd be playing in a much more antiquated arena than the Rose Garden. One that requires a significant investment to upgrade. Either that, or he'd have to build another arena. Not exactly a short-term development.

Third, the NBA has to agree to allow an owner to relocate a team. I don't think David Stern wants his league to appear to be a place where teams can shift markets on a moment's notice. That doesn't give much confidence to sponsors, fans, potential team-buyers, players, etc.

My guess is Paul might use this "scare tactic" to his advantage to entice the current Rose Garden owners to sell at a lower price. If he's able to convince them they could have their largest tenant out at a moment's notice, they'd be much more willing to cut their losses and sell the building.

But the hurdles he'd have to jump over to move this team are not going to be easy - or cheap. He'd have been much better off selling the Blazers and buying the Sonics (or another team that would be easier to move).

-Pop

My understanding (it was put in posts a few months ago - I think by sa) is that the RG makes more money off of events other than Blazer games and that they do turn a profit anyways. So I don't think they are sweating a ton of bricks over PA's moves. That's why they haven't sold so far.

e_blazer1 · 08-03-2006, 05:13 PM

You'd have to think that the folks who spent time and money putting together offers to but the team and the Rose Garden have to be more than a little ticked to have Paul Allen essentially say, "Thanks, but I was just kidding. The team's not really for sale, but I appreciate you helping me set a price to negotiate with PAM."

Oil Can · 08-03-2006, 05:14 PM

Paying out close to a billion dollars to move the team 180 miles would not be the best start to fixing the infamous "Broken Economic Model".

Fork · 08-03-2006, 05:28 PM

Quote:

Originally Posted by Ed O

The NFL considers Portland and Seattle the same market, so he currently DOES own an NBA team and an NFL team in the same market.

Helen Jung wrote that in her blog the day of, or the day after, the Sonics were sold.

Ed O.

I'm not so sure they consider Portland the 'same market.' Portland is in Seattle's territory, but that doesn't mean they're the same market.

Similarly, since they have no NFL team, Los Angeles would be in Oakland or San Francisco's territory...but certainly not the same market.

RedHot&Rolling · 08-03-2006, 05:41 PM

I've doubted PA's resolve to sell the team for a while now. Glad it finally came out.

I also don't think he'll move the team. His gain through this is that PTB and PAM have understanding of a basic price for the arena. Now the ball is in PA/PTB court. He'll probably buy it back very soon.

The only advantage he has is in waiting for gaining a release from the lease to play at the RG. Then he could move freely. I don't expect it to happen.

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