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February 15, 2008

Faithfully mine, the Sonics

SEATTLE - Reported in the Seattle PI today Greg Johns outlines (here) the City of Seattle's request for written communication (electronic) between the new owners of the Seattle Sonics, prior to and after the sale of the team.
Lawyers for the Sonics filed a Rule 37 objection this week to the city's request for access to e-mail files of eight members of the Professional Basketball Club, LLC ownership group, with the city countering with an extensive explanation of why it would like to see communications among owners both before and after the team's purchase.

The Sonics have agreed to provide access to pertinent e-mails belonging to team chairman Clay Bennett and minority owner Aubrey McClendon, but contend that providing the "responsive e-mail" files of six other requested owners would be unnecessary and perhaps even illegal, given the co-owners work at various private companies and use those firms' own e-mail systems.

The NBA has also objected to the city's subpoena of some of its records in the discovery process currently underway.
...
A magistrate, or independent judge, will likely settle the e-mail dispute so the discovery process can continue and depositions begin with the questioning of key figures in the case.
...
Lawyers for the city are also searching for documents concerning the KeyArena lease, details of the purchase, financial performance of the team, pursuit of other arena options and whether good faith efforts were indeed made to keep the franchise in Seattle.

This week's documents contain precise information on the ownership structure of the Oklahoma group, with Bennett, McClendon and Tom Ward each owning 19.23 percent of the club, with numerous other owners holding significantly smaller shares.
...
Sonics lawyers contend that some of the other owners might have exchanged e-mails either between themselves or with third parties that weren't sent to Bennett and McClendon and that such searches wouldn't be any more burdensome than those already being conducted on the archives of Bennett and McClendon.

The Sonics already have obtained city e-mail documents, as those are available via a public records request for a government agency.
Sonics in e-mail skirmish, by Greg Johns, Seattle PI

What does it matter if the eight members of the Professional Basketball Club, LLC ownership group did not give a good faith effort?
1) The City of Seattle and the eight members of the Professional Basketball Club, LLC ownership group, are business partners in sharing revenue from the sale of luxury suites for Sonics games. IF eight members of the Professional Basketball Club, LLC ownership group, acted in bad faith and intended to reduce revenue then they are acting against the shared interests, limited as they may be.
The city could collect damages from the minute the owners chose to act.

2) There was a "side letter" agreement between eight members of the Professional Basketball Club, LLC ownership group, and the Professional Basketball Club of Seattle, LLC ownership group.
The simpleton (that's me) thinking goes: If there was a side-letter agreement written to all of the owners that bennett would give a good faith effort for one full year then it's not to hard to argue that he didn't give that effort. He backed off the 10/31/07 date by one full and legal day, I do not think it had ANYTHING to do with not overshadowing the home opener (yes, I'm calling Clay Bennett a big, fat, liar even if some will not), and that it had a LOT to do with 366 days passing since taking ownership. Think about it for one second, when has Bennett acted not NOT overshadow the team's presence in Seattle by throwing cold water on any upbeat and exciting moment for the team? Answer: NEVER!
He backed off the 10/31/07 date for the same reasons he's done anything involving the Sonics, that's to cover his legal ass so he can take the team back to OKC.

So, how about that letter, and how about a person from the former ownership group stepping up to buy the team. We have one of those things on day one of taking the team back from Clay Bennett, from here on out know as the Renter of the Sonics, Clayton Bennett.
Dennis Daugs makes offer to buy and keep Sonics in Seattle, by me, here, 11/2/07, linked here!


SEATTLE - There has been a sentiment in various places that whenever something good or positive is happening with the Sonics Clayton Bennett finds a way to throw cold water on it, either by design or randomly. Today is no exception, in today's Seattle Post-Intelligencer there is a story about odd couple Brian Robinson and Chris Van Dyk working on a plan to remodel part of the Seattle Center, build an arena, parking, revenue generating lease spaces to help pay for it, good times, great hopes ... and on the same day what falls out of Clay Bennett's ass? He has filed papers to demand arbitration in hopes of breaking a lease that expressly states that arbitration is NOT something the city has to agree to.

Two quick things:
I would not count this as part of the good faith effort he agreed to when he purchased the team less than 1 year ago, Howard.

It is true, once you take your customers to court it’s tough to go back to a good relationship.

So, what do we need to really keep an eye on now?
It is true that a solution to the arena has to be in place in order for the Sonics to be here past 2010. The difference now, as of today, is that something acceptable to a new owner needs to be in the works, but it does not have to be the palace Bennett was demanding. Bennett has taken himself out of the picture in Seattle past 2010 no matter what happens.
It’s all or nothing for Bennett, he’s chosen nothing and is doing everything he can to leave nothing.
Don’t let him. Don’t let him stop people from imagining a new arena and a new Seattle Center, and the Seattle Supersonics here in 2010 and beyond.

Forget Bennett, he's forgotten about you, the fans. Think about you in your good future with the Sonics past 2010 and work toward that goal.
Pitchforks and Torches!, by me, here, 9/21/07, linked here!


I am interested in the "discovery" of the side letter agreement, what does it say, and if the city is making the case for a former owner to become the next owner.

Leverage.

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