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Arena group proposing rapid construction timeline in Seattle

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SEATTLE (AP) — A proposal to remodel KeyArena now has an ambitious timeline that could have it ready to house a professional franchise within three years.

The timeline was laid out in a proposed memorandum of understanding between Seattle and Oak View Group. The MOU will be presented to the Seattle City Council on Tuesday but the final version of the agreement won’t be voted on until the first week of December at the earliest.

Still, the draft agreement is a significant step in the process of redeveloping the city-owned building through a privately financed project that officials believe will finally lure the NHL or NBA – or both – to Seattle. KeyArena housed the NBA’s SuperSonics until they relocated to Oklahoma City and became the Thunder. Oak View Group believes it can have the building ready by October 2020 if environmental approvals are obtained and demolition can start in October 2018.

“I think the most important part of this MOU is the fact it states very clearly to the leagues that this project is going to happen, we do have a deal with the city, they can make a deal. They are very focused ultimately not only on building a new arena here and giving us the partnership and certainty in order to do that,” OVG CEO Tim Leiweke said.

“But more importantly it sends a very strong message now to the NBA and to the NHL that everyone worried about, `Yeah will it ever get done with the city? Will they ever be able to get to the finish line? Will you ever possibly get this deal done within the politics of Seattle and the Seattle process as everyone likes to call it?”‘ Leiweke said. “Guess what? Game, set and match. We clearly send a message to everyone that this will get done, this will get built and we are ready now to go get one and hopefully soon, two teams.”

The timeframe is sure to attract attention, including from the NHL. OVG has not hidden its intentions to be aggressive in an attempt to obtain an NHL expansion franchise soon after the arena agreement is finalized. Likewise, the NHL has not hidden its interest in Seattle, the No. 14 media market in the country and the only market in the top 25 that does not have an NBA or NHL team.

OVG has lined up billionaire David Bonderman and filmmaker Jerry Bruckheimer as the lead owners for a potential NHL franchise.

“From our standpoint, this timeline is geared toward what we believe is the optimal timeline in order to begin to get a team or two for Seattle,” Leiweke said.

The project is expected to total about $600 million and Oak View is also on the hook for another $40 million to help improve transportation in the area around Seattle Center. They are also responsible for regular facility upgrades for the life of the 39-year lease agreement. Should those upgrade requirements be met, there are two eight-year lease extensions that will be activated, and carry the entire life of the lease agreement to 55 years.

In all, OVG is liable for about $168 million in capital investment upgrades on the facility during the life of the lease. The project will be financed through a mix of revenue streams. OVG also has financial backing from Madison Square Garden Entertainment.

Among the other details of the MOU:

– OVG will be required to pay yearly rent equal to what the city is making off KeyArena now, estimated to be $2.6 million at the start.

– OVG will pay for the displacement and relocation of existing tenants on the Seattle Center campus during the construction.

– OVG will assume the city’s current obligation to the Seattle Storm or arrange a new deal with the WNBA team.

“One of the principals that we had was the city would never go backward as far as its ability to maintain the revenues that were received through the operations of KeyArena going forward,” said Brian Surratt, the director of the Office of Economic Development for the city. “We would be partners in any deal moving forward.”

The negotiations between the city and OVG have come as a similar agreement between the city and investor Chris Hansen is in its final stages. Hansen and the city agreed to an arena plan in 2012 that was contingent on Hansen acquiring an NBA team and included some public investment in a project to be constructed near Safeco Field.

Hansen has since offered a completely privately financed project, but has continued to run into road blocks in getting final approvals to make his arena “shovel-ready” should an NBA team become available. Hansen’s agreement with the city expires Dec. 3, meaning OVG’s agreement with the city could be approved as early as the week of Dec. 4.

Report: Cavaliers signing Kendrick Perkins

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Kendrick Perkins spent fewer than four months with the Cavaliers, including the 2015 playoffs. But nearly a year later after Cleveland let Perkins walk in free agency, LeBron James was still bemoaning Perkins’ absence.

Are the Cavs righting a wrong?

Joe Vardon of Cleveland.com:

Kendrick Perkins joined the Cavaliers at LeBron James’ minicamp in Santa Barbara, Calif., and will come to training camp next week, sources told cleveland.com.

The Cavs now have 18 players with standard contracts, and 15 – the regular-season limit – have guaranteed salaries. I doubt Cleveland wants to waive the two without guaranteed salaries, Kay Felder and Edy Tavares, either.

In other words, Perkins is a longshot to stick into the regular season.

Perkins was washed up when with the Cavaliers two years ago. The 32-year-old who sat out last season hasn’t produced on the court in several years. He’s tough and well-liked in the locker room, which might give him a chance of sneaking onto the regular-season roster.

But the Cavs should focus on developing toughness and chemistry among their rotation players. Perkins is just a crutch, most likely one who’ll be yanked away by cut-down day a few weeks from now.

Report: Lakers sell jersey ad for $36M-$42M over three years

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The Lakers are a financial behemoth, though that’s tied to a local-TV deal signed when they were still good.

How do current conditions value their brand?

John Lombardo and Terry Lefton of SportsBusiness Daily

The Lakers have signed a jersey patch deal with S.F.-based e-commerce company Wish. The three-year agreement, according to a source, is between $12-14M annually

That’s the second-richest known jersey-ad deal – behind only the Warriors ($20 million annually) and ahead of the Cavaliers ($10 million annually).

It clearly pays to be Los Angeles, though don’t discount the role of the Lakers’ fantastic history and intriguing future.

Rumor: Carmelo Anthony to accept trade to Trail Blazers if Knicks and Rockets don’t strike deal

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Carmelo Anthony trade talks between the Knicks and Rockets appear to be going nowhere.

Yet, Anthony’s camp is reportedly cautiously optimistic he’ll get dealt by Monday.

This might explain why.

Jason McIntyre of Fox Sports:

Damian Lillard and C.J. McCollum have recruited Anthony to Portland. The Trail Blazers have plenty of expendable players who could be aggregated to matching Anthony’s salary – Evan Turner, Maurice Harkless, Meyers Leonard, Al-Farouq Aminu and Ed Davis – plus lower-paid players to give New York value. This certainly looks plausible.

It’d make sense for Anthony to hold out as long as possible for Houston, his ideal destination. He can use his no-trade clause to force the Knicks to deal with only the Rockets.

But what if that fails?

I’m skeptical New York, Portland and Anthony all agree to a deal. There are just too many sides to please.

The Knicks will need more than just bad contracts to move Anthony, and the Trail Blazers don’t need more scoring enough to relinquish significant assets. Anthony would also have to approve, and as miserable as the Knicks have been, the New York market still matters.

Again, this is plausible, but I’m doubtful. Either way, we should know soon with training camp around the corner.

LeBron James reportedly “invested” in helping Derrick Rose get next big contract

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Reality smacked Derrick Rose across the face last summer.

Last season, the former MVP made $21.3 million in the final year of a five-year rookie contract extension, and while injuries had slowed his game he was playing better. Combine that with seeing the drunken sailor spending spree the previous summer, and he was hoping for — if not a max contract — still a healthy eight digit one. Instead, he signed a one-year deal at the veteran minimum, $2.1 million, to play for the Cavaliers.

LeBron James wants to see his man Rose get paid again, Dave McMenamin of ESPN said on The Jump.

“I’ve heard that for the first couple of days, Derrick Rose has been ‘killing it.’ I’ve also heard that LeBron is invested in Derrick Rose’s career so that he can get that next contract.”

The first part of that, the “killing it” part, you can just throw out. Maybe Rose looks great at the mini-camp LeBron is hosting for the Cavs in Santa Barbara, I hope he is, but preseason everybody is “killing it” or “has lost/gained 15 pounds and is in the best shape of his life” or “has worked hard and now has an impressive jump shot.” Rose probably does look great in Cavaliers camp against Jose Calderon, let’s see how he looks once he has to go up against real NBA players.

Rose’s next contract will be interesting. Maybe LeBron can set him up to look better this season, but it’s going to be on Rose mostly. Once healthy (whenever that is), Isaiah Thomas will be the starting point guard in Cleveland, plus as always LeBron James will have the ball in his hands a lot. (Which he should, he’s the best player on the planet.) But that means Rose needs to learn to work off the ball with LeBron more, and when LeBron (and eventually Thomas) sit, Rose needs to take over and show he can get a team buckets for a 5-7 minute stretch. Do that and he has a role that will get him some money. I’m not sold Rose can do much more than that at this point in his career.

How much money Rose will get is another issue. It’s going to be a tight market next year where only a few teams have much money to spend, and Russell Westbrook, Chris Paul, Tony Parker, Cory Joseph, and maybe Rajon Rondo (depending on how he does in New Orleans) will be higher on team’s boards than Rose.

But if LeBron is “invested” that could help Rose make a little more green next season.