NBA Team Owners Approve Sale Of Sonics To OKC’s Bennett

(l-r) Adam Silver, Clay Bennett And David Stern

NBA team owners have unanimously approved Oklahoma City-based business exec Clay Bennett’s bid to purchase the Sonics and WNBA Storm (THE DAILY). NBA Commissioner David Stern said, “Although Clay and his ownership are based in Oklahoma City, almost from the first day that Clay started looking at Seattle as an investment and as a purchase, he stressed to me the vibrancy of the Seattle market and the revenue streams that could be available there and its jumping-off status to Asia. ... [But] the larger investment that they’re making is going to be dependent on a new building.” Bennett acknowledged, “I was concerned about all of the owners having an understanding of our objectives and just accepting us. Clearly the circumstances are unique.” Bennett “declined to address arena issues and personnel matters until the $350[M] sale becomes final on Oct. 31, when all funds have been transferred” between his Professional Basketball Club (PBC) ownership group and The Basketball Club of Seattle. The PBC assumed $81M in debt from the former owners and “will settle the remainder of the $350[M] balance with a cash payment of $250[M] and $19[M] borrowed from the NBA.” In Seattle, Percy Allen writes, “Not only is Bennett the face of the ownership group, he also has executive decision-making power for basketball and non-basketball issues and serves as chairman for an initial five-year term” (SEATTLE TIMES, 10/25).

OWNERSHIP STRUCTURE: Bennett, who serves as Chair and Controlling Owner of the PBC, joins Aubrey McClendon, Tom Ward and Jeffrey Records, who represents the family-controlled Huntington Group, as the four investors with the “largest ownership stakes.” Each paid $50M for a 20% share. The minority ownership includes William Cameron and Lynda Cameron, who paid $20M for an 8% share. Everett Dobson and Bob Howard, as well as Domer and Janis Scaramucci, invested $10M each for 4%. An NBA source said that the league “had deep concerns about the financial stability of the new ownership group when Edward Evans, a controlling member with a 20[%] stake, withdrew from it” (SEATTLE TIMES, 10/25).

DOWN TO BUSINESS: In Seattle, Gary Washburn writes Bennett’s “first order of business is likely to assess the team’s management structure.” Sonics President & CEO Wally Walker, GM Rick Sund and other execs “could learn soon whether they will be retained.” While many observers “expect Bennett to make major changes and bring in his own group of front-office officials, he said that is not necessarily a certainty.” Bennett: “We want to fully evaluate that.” Washburn notes Bennett is “expected to be a frequent visitor at KeyArena this season but said he won’t be a hands-on type of owner” like the Mavericks’ Mark Cuban or the Kings’ Maloof brothers (SEATTLE POST-INTELLIGENCER, 10/25).

Shinn Offers Support To Bennett’s Ownership Group

OKC CONNECTION: Bennett, who tried unsuccessfully to purchase the Hornets after they relocated to Oklahoma City following Hurricane Katrina, said Hornets Owner George Shinn “had some flattering things to say about us in the board meeting, and I want everyone to know we truly appreciate that.” Shinn: “I told them that after the storm in New Orleans, it worked so well in Oklahoma City because of three things. One was our organization, our employees. Two was the assistance from the NBA. And three was the Oklahoma City community, which in part was led by Clay Bennett. ... So I told the league, ... ‘I’m convinced you’ll be glad to have them as NBA partners” (DAILY OKLAHOMAN, 10/25). ESPN.com’s Chris Sheridan wrote, “Know why those other 29 owners were cheering? They’re probably as convinced as I am that Bennett plans to move the team to Oklahoma City, and in order to do so he’ll have to pay a hefty relocation fee to the other owners.” But Bennett responded, “Our absolute focus right now is to getting a building built in Seattle. If that gets off track, we’ll have to evaluate our options” (ESPN.com, 10/24).