Seattle, WA (Best E Casino) - The Seattle SuperSonics and the City of Seattle reached a settlement in their tempestuous KeyArena lease dispute on Wednesday, just hours before a U.S. District Court judge was to rule in the case.
Under the settlement agreement, Professional Basketball Club (PBC) LLC, an the Oklahoma City investment group led by Clay Bennett that purchased the Sonics last year, agreed to pay the City of Seattle $45 million in order to terminate the KeyArena lease. In turn, the agreement will allow the Sonics to move to Oklahoma City immediately.
"We believe this is a fair and appropriate resolution to the litigation involving the Sonics and the City of Seattle," Bennett said. "We are pleased that the uncertainty is lifted for our players, staff and Oklahoma City fans who can now make plans for the immediate future.
"We have a business to run and this settlement allows us to make the best decision for the franchise and allow the City of Seattle to begin planning its own NBA future."
An additional contingent payment of $30 million will be due in 2013 unless one of the following occurs: the Washington legislature fails to authorize at least $75 million of public funding for KeyArena renovations by the end of 2009 or Seattle obtains a new or relocated NBA franchise within that five year period.
The agreement also includes language regarding a lawsuit filed against PBC by the Sonics' former ownership group The Basketball Club of Seattle, headed by Howard Schultz. Under terms of the settlement, if PBC is prevented from playing home games in Oklahoma City in the 2008-09 or 2009-10 seasons as a result of the Schultz suit, Seattle will repay PBC $22.5 million for each season. In addition, if PBC is required to play in KeyArena in the 2008-09 and 2009-10 seasons as a result of the Schultz suit, PBC is released from its obligation to make the $30 million contingent payment.
The settlement document also confirms that the Sonics name, logo, and colors will remain available for a potential future NBA franchise in Seattle.
"The NBA has committed to helping us secure a future team -- informing us of any sale, relocation or expansion opportunities," added Seattle mayor Gregory Nickels. "The city is ready to do its part. Local investors have stepped up. Now, the State Legislature must act. If it fails to approve public funding next year to remodel KeyArena, we will lose our rights to that $30 million payment if we do not get a team.
"I believed all along that enforcing our lease would create time for a better deal. We now have that deal. The Sonics name and history stay in Seattle. Seattle is a natural home for professional basketball, loyal fans, and a rich, 40-year tradition.
"Working together, we are now in the best position to continue that legacy in Seattle."
Details of the name and colors for Oklahoma City's new team are still being developed and will be announced in the near future.
"We are pleased that the Sonics and the City of Seattle have settled their litigation," NBA commissioner David Stern said. "While the decision has been made to relocate the Sonics to Oklahoma City, the NBA continues to regard Seattle as a first-class NBA city that is capable of serving as home for another NBA team.
"In order for this to occur, a state-of-the-art NBA arena must be funded and constructed in the Seattle area, a subject that has been extensively debated -- but not ultimately acted upon -- by local political and business leaders over the past four years. We are pleased that the City remains committed to addressing this fundamental requirement for the return of NBA basketball to Seattle and we hope that other elected officials critical to a solution will support the Citys efforts."
