NBA Team Owners Approve Sale Of Sonics To OKC’s Bennett
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(l-r) Adam Silver, Clay
Bennett And David Stern
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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).
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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).
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