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June 17, 2008
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Sonics Attorney Grills Nickels In Sonics-Seattle Trial Day One

Sonics Fans Show Their Support At
Courthouse As Trial Begins In Seattle
Seattle Mayor Greg Nickels yesterday during the opening day of the Sonics-Seattle trial over the team's KeyArena lease "stumbled under tough questioning" from Sonics lead attorney Brad Keller, with Nickels' attempts to "deny or evade questions at times contradicted by his earlier videotaped testimony," according to Jim Brunner of the SEATTLE TIMES. Keller in his opening statement "focused extensively on KeyArena's inadequacies," while Seattle lead attorney Paul Lawrence in his statement said that Sonics Owner Clay Bennett and his partners are "'sophisticated businessmen' who agreed to abide by the KeyArena lease when they bought the team two years ago" (SEATTLE TIMES, 6/17). In Seattle, Greg Johns reports Keller presented "strong arguments concerning how the city and Sonics have a 'broken relationship' and shouldn't be forced to stay together under terms of an outmoded agreement in an inadequate facility that isn't working for either party." Keller "pounced on [Nickels] with an aggressive line of questioning on the city's apparent efforts to undermine Bennett's efforts to build a Renton project that would have made KeyArena obsolete." Seattle "seemed to do better" with former Seattle Center Dir Virginia Anderson on the stand, as she said that she "believes the [Sonics] could easily bounce back again in Seattle with future success" (SEATTLE POST-INTELLIGENCER, 6/17). Keller "quoted from Nickels' deposition in an effort to contradict some of the mayor's statements." Keller "coaxed Nickels to admit that successive efforts to raise public money to fund an arena for the team had failed in Olympia; that revenue sharing currently involved in the team's lease has put a financial strain on the Sonics and the city; and that KeyArena is one of the worst facilities in the NBA." Anderson confirmed that the Sonics "made money until 2000, when an economic downturn, along with more competition for high-end luxury box seats" from Safeco Field and Qwest Field, "cut into revenue production" (Tacoma NEWS TRIBUNE, 6/17). In Seattle, Allen & Brunner, who filed dispatches from the trial throughout the day, report Keller tried to get Nickels to "admit that a 2006 city task force determined that the Sonics were suffering from an economic hardship because of KeyArena," and after "several exchanges, Nickels grudgingly admitted the point." Nickels acknowledged that the long-term lease was "not beneficial to Sonics ownership" (SEATTLETIMES.com, 6/16).

Sonics Attorney Says Walker Tried To
Hamper Efforts Of Current Ownership
OPENING STATEMENTS: Keller in his opening statement said the relationship between Seattle and the Sonics "broke down. And it failed as the years went by and just got worse and worse." Keller said that while Sonics owners were "lobbying for a new venue in Renton, the city of Seattle was thwarting that effort." Keller also said Seattle attorney Slade Gorton conspired with former Sonics President Wally Walker and Microsoft CEO Steve Ballmer to "force bleeding of about $20[M] per year to get [Sonics owners] to sell." Keller added that Gorton, Walker and Ballmer "engaged in a 'bleed them until they sell' strategy that began months before the city filed its lawsuit" in November '07 (SEATTLETIMES.com, 6/16). Lawrence "pounded on the fact that [Bennett's ownership group] knew exactly what it was getting into when it assumed the KeyArena lease" upon purchasing the Sonics in '06. The lease agreement "contains 'specific performance' language the city believes binds the club to play its home games" at KeyArena through 2010. Bennett sat at the Sonics' table throughout the first day of testimony, but "wasn't called to the witness stand as expected because of lengthy cross-examinations" of earlier witnesses (SEATTLE POST-INTELLIGENCER, 6/17).

NEW EVIDENCE: Sonics attorneys yesterday also submitted into evidence a July 24, 2007, e-mail from Walker to Western Wireless Founder John Stanton, a member of the investment group led by Ballmer that in March "offered to buy the team and help the city fund a $300[M] KeyArena remodel." Walker in the e-mail "outlined his plan for sidetracking any move of the team." Walker: "I met with the city today and felt better about my message of fighting Clay's attempt to leave. Make it too expensive and too litigious for him. I get the impression that they were in total agreement and that they (administration) understand the value of buying more time." Nickels denied "knowing anything about Walker's plans, but acknowledged under Keller's questioning that the city did proceed shortly thereafter to allocate $1[M] to Slade Gorton's K&L Gates law firm to fight the Sonics owners." Sonics attorneys are "attempting to undercut the city's claim of specific performance," arguing that the lease agreement should "be nullified by the city's 'unclean hands' at the time the suit was filed" (SEATTLE POST-INTELLIGENCER, 6/17). 

REAX: In Tacoma, Dave Boling writes Nickels and Seattle's attorneys yesterday were "dominated and ineffectual," and the trial felt "one-sided to an almost embarrassing degree." If there were "points given for sound arguments," Bennett and his partners "would be far ahead." Boling: "How bad was Nickels? He seemed to serve as a better witness for the defense than for the city." Keller got Nickels to admit that he has "attended only two Sonics games in the last 'six or seven' years" (Tacoma NEWS TRIBUNE, 6/17). But in Seattle, Art Thiel writes under the header, "Owners Sent Sonics Down Crooked Path." While Nickels "wandered through four hours of passionless, sometimes contradictory testimony," Anderson offered a "spirited account of the value of pro hoops and a decent history lesson in how the franchise's fate has come to hang by a litigious thread in federal court." Anderson said in her testimony, "One of the lessons [former Sonics Owner] Barry Ackerley taught me was you have to anticipate (cycles). One of the reasons he wanted a smaller arena is that he anticipated down cycles. They can head down quick and head up quickly." Thiel notes Anderson "didn't get to an important point yet to be discussed: the role successive Sonics ownerships and managements have had in putting hands around the franchise's throat" (SEATTLE POST-INTELLIGENCER, 6/17).

SAVE WHOSE SONICS? In Seattle, Dan Raley reports an "estimated 3,000 people attended a 'Save Our Sonics' rally" yesterday outside the courthouse (SEATTLE POST-INTELLIGENCER, 6/17). But the SEATTLE TIMES' Allen in a separate piece reports police "estimated the crowd at somewhere between 800 and 2,000" (SEATTLE TIMES, 6/17). And the NEWS TRIBUNE's Williams reports "more than 1,000 fans gathered for a rally on the steps" of the courthouse (Tacoma NEWS TRIBUNE, 6/17).

Former Sonics Player Xavier McDaniel Participates In Fan Rally At Courthouse

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