Saturday, July 22, 2017

Rockets Sale Could Be Cautionary tail for KeyArena

It's a cautionary tail about somebody that had exclusive control of an arena and how they kept a sports franchise from being considered as a destination.

Mike Baker
Arena ownership isn't a charity, or public works project.
Do I think Tim Leweike would put his interests ahead of the NBA returning?
Welcome to capitalism.
The City of Seattle MUST insist on a mechanism, financial or otherwise, that they control to best ensure the outcome of the NBAreturning to Seattle.
I want him bound to that obligation even if he doesn't have a NBA partner right now.
Assurances are never going to be enough to satisfy this requirement for me.
He bought the team in 1993 for $85 million. Twenty-four years later, the Rockets are worth $1.65 billion. That’s remarkable.
For the NHL, though, his stepping back from the sports world could be the catalyst that makes it possible for hockey to return to the fourth-largest U.S. city.

Also, the Rockets are worth $1.65b because of the artificial exclusivity. Why would the KeyArena hockey partners want to split revenues with the NBA when they, like the Rockets, could create that artificial exclusivity, driving up their revenues and franchise value, a franchise they made Lewekei a partner so his priorities were aligned with their$. That just says the Sonics would not be welcomed back.
This isn't a day one problem. This grows over time as they look for increased profits.
Again, welcome to capitalism, and worse, a monopoly of public property by a private corporation in direct conflict with the desires of the community that is supposed to benefit from their shared asset, certainly as much as anybody in the OVG corporation feels entitled to increased profits.

It is, in fact, the council's responsibility to act in the public's interest, don't say you want the Sonics back and then do as little as possible to ensure that in the KeyArena MOU.

They have no interest in the NBA as OVG is structured.