The Sonics may have found a great site for a new arena

It's just south of Boeing Field, with all kinds of highway and transit access. But is it available, and has salvation arrived too late for the frustrated Oklahoma owners?


In what may be a painful irony, the Sonics may have come up with a very promising location for a proposed new arena, just as the team is having more and more financial and political problems. The site in question, according to two separate sources in a position to know the Sonics' plans, is the sprawling Associated Grocers warehouse site just south of Boeing Field and just west of Interstate 5. It was recently bought by The Sabey Corp., whose owner, real-estate developer David Sabey, once held a stake in the Sonics and was a big civic booster of the 1990 Goodwill Games. Sabey did not respond to a phone message to his office requesting comment on the possible use of the site for an arena. Updates: Late Friday, May 18, Sabey spokesman Richard Milne explained that Sabey bought the site with "no intention" of using it as a home for the Sonics arena, and that the property is fully leased, counting options, for four more years to Associated Grocers, so is "impractical at this time" for Sonics use. Sabey added, through his spokesman, that he strongly supports the Sonics' owners in their quest for a good site. Then on Sunday, May 20, Sonics owner Clay Bennett made his first comments in weeks, telling The Seattle Times that he still preferred the Renton site and that he has not had substantive talks with Sabey about the property south of Boeing Field. Bennett added that he is a friend of Sabey's and is well aware of the site. "I'm open to ideas, but there's nothing there," Bennett added. Also on Sunday, the Tacoma News-Tribune, citing unnamed sources, reported that Sabey offered his newly acquired site as part of a stake in the team and, when that offer was rebuffed by Bennett, Sabey offered to buy the whole team. This site in question has many advantages for a large arena. It's large, at more than 55 acres, which means you could develop parking, hotels, meeting facilities, and other synergistic aspects. The site is visible from the freeway and has good freeway access at the Boeing Access Road exit. Sound Transit's new line passes right by, and there is a transit station planned (though currently deferred) just south of the Boeing Access Road, right by I-5, including a 350-car park-and-ride lot. The Sounder commuter rail line also passes right by, and the Sound Transit station plan is to enable transfers between light rail and commuter rail on the Burlington Northern Santa Fe tracks. Throw in the proximity of Highway 99 just to the west and you have about as ideal a situation for getting people to and from the site as you could imagine. Of course, such a large and convenient site would also work for many other uses. Bidding for it was intense, with a reported 200 interested parties vying before Sabey closed the deal for about $80 million in February. In turn, one problem could be that the land is too valuable to be affordable by the Sonics group. Another potential problem is the proximity of Boeing field, just to the north, which limits height on the site to 37 feet, though one source says that limit applies to only part of the site (where you could put parking). The Sabey site could be a real game-changer, and that seems badly needed. The Oklahoma City group of owners, led by investment banker Clay Bennett, has been floundering badly since setbacks at Olympia, according to the Tacoma News Tribune. A proposed Renton site on former Boeing land, cobbled together to have more plausibility in Olympia, is now said to be pretty much defunct, despite Bennett's continued support for it, and that could cost the Sonics a key legislative supporter – Sen. Margarita Prentice, D-Renton. Microsoft, a key to corporate support, continues to withhold its dowry. Possible Bellevue sites are awfully compact for such plans. Nothing in Seattle has turned up, and Seattle politics continue to discourage the Sonics owners. Interestingly, the Sabey site straddles Seattle and Tukwila, with 75 percent in Tukwila. That might be a face-saver for Seattle, keeping the team "in Seattle," but it might also mean that the Seattle initiative that severely constrains new sports facilities in the city limits could be a deal-breaker. It's a big enough game-changer, finally, that it could enable an ownership change. The Oklahoma City owners appear to be running out of patience and are worried that they have bitten off more than they can manage. Perhaps the Sabey site will be attractive enough to inspire a local group to take the Sonics off the hands of the Okies.

About the Author

David Brewster is Editor-in-Chief at Crosscut, and chair of the board of Crosscut Public Media. You can e-mail him at david.brewster@crosscut.com.

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Comments:

Posted Fri, May 18, 3:08 a.m. Inappropriate

Nine Speculative Scenarios Listed by Owner: Sabey
1. Sabey partners with other Eastside (and/or Seattle) residents to buy the team. The price may be an issue because, in my book at least, the OK City guys overpaid and made the Schulz consortium look -- although shrewd -- like chumps for selling out the City. Sabey is a former Owens-era Husky football player and has a history as an attempted savior (of Frederick & Nelson), so this fits his profile.

2. Sabey attempts to partner but finds it impossible, since it's obviously better and easier to stick with Key Arena in Seattle, or find a decent Eastside location where most of the front-court season ticket holders reside. Unfortunately, I find this the most likely Sabey option.

Paul Allen
3. Paul Allen trades the small-market Blazers for the larger market Sonics and say $50M in cash. This leaves the OK City group with a right-sized franchise ready to go off to OK.

4. Paul Allen sells the Trailblazers to a local group and then buys the Sonics for roughly what the OK group paid for it. If he wanted, he could take a boat or aircraft-carrier-sized yacht from his Mercer Island home to the Renton site. This would keep the Renton site in play, and it would be near the new Seahawks Training Camp.

5. Paul Allens sells the Trailblazers and settles back enjoying just the Seahawks. Unfortunately, I vote for this as the most likely Paul Allen option.

Steve Ballmer
6. He buys the Sonics outright and turns them into a champion. He's that good a motivator and that shrewd an operator. This would be good for his image personally and aligns with his passion for basketball. The main negative is that team ownership would be a distraction from running Microsoft. In Ballmer's case, this isn't as likely, since he's a ferocious delegator and he could make the purchase HELP Microsoft by associating the aging Microsoft dinosaur with the ever-youthful NBA, and by working politically to provide a Bellevue-area arena that would help attract and retain nearby Microsoft employees.

7. Same as above, except maybe he buys the Sonics as part of a partnership of Microsoft rich guys, maybe even including Bill Gates.

8. He does nothing because he's embattled in fighting Google and getting the Microsoft stock price to move. I vote for this option, because frankly, the guy's a Pistons fan.

City of Seattle
9. The City of Seattle buys 49% of the team. With the 49% the City is guaranteed that the Sonics will NEVER leave unless the City decides its time to go. As partial payment of the purchase price the Sonics commit to improvements to Key Arena. If the team is ever sold to new owners, the City would share in the profits. The NBA by-laws probably forbid this, but it's a reasonable option for the NBA to consider. This option would have to be done with a public vote, like we did for Safeco. Also, other municipalities should be able to join in ownership to spread-out the cost. Maybe these municipal partners receive discounts on tickets purchased by their residents.

If Soncis fans could invest in the team, that would be the ideal way to finance the team and stadium, since you'd get people to buy shares out of civic and fan loyalty.

(By the way, the profit-to-the-City-on-sale clause is a big deal. That's what really grates with many about the old Key Arena deal between the Sonics and the City. The City took the risk and lost money. In return, the Sonics try to blackmail the City into MORE improvements, fail, so then loot the franchise, taking out $100M in profit by selling it to a guy who wants to move it to Oklahoma. Sonic fans are left scratching their heads, and the resentment by your average taxpayer is thick as a brick thrown up by Danny Fortson.)
Stuka

Posted Fri, May 18, 12:46 p.m. Inappropriate

fortson brick: The last stuka analogy is flawed; both Fortson and the public resentment are thick; but he has real skill (e.g., good hands, passing, shooting) and did not shoot many bricks. The serious parts of the post are sound and consistent with a nice recent Art Thiel piece. The public ownership aspect could be pursued by the county instead of the city, as the suggested taxes are countywide; if the new owners sell the team, they have to pay off the public for their arena subsidy.

The site is fairly isolated from other commercial areas and would fit with the new owners objectives of putting an arena inside a mall to extract maximum fan-based revenue. But that also minimizes the external benefits to other bars and restaurants.
eddiew

Posted Fri, May 18, 1:08 p.m. Inappropriate

Sean: The team's financial troubles have little to do with Key Arena, and everything to do with disastrous personnel decisions made by hapless managers. The front office crushed the franchise with Jim Mcilvaine's contract, and when the Sonics finally showed signs of coming back to life, they curshed the team again by letting go of Nate McMillan as head coach.

The key to clearing the Sonics logjam is for the owners to improve the front office and the team. If the Sonics were plausible contenders for a championship, they'd see a huge increase in revenue (from ticket, merchandising, and broadcasting), and it would put the Okies in a much better position to negotiate with the city.
Sean

Posted Fri, May 18, 6:13 p.m. Inappropriate

RE: Nine Speculative Scenarios Listed by Owner: Citizen Buyout? - what about Player Financing?

I like your idea of a citizen buyout - certainly with the amount of money given to the owners a share is most definitely appropriate.

Let me throw another idea into the mix - how about applying the concept of player income taxes, as done in some states, to financing an arena? You could even give the 'players' ownership of the arena, in conjunction with the team, guaranteeing them the same return as required in Seattle. Return to the players would be from subsequent generations.

This does require pretty much a permanent team.

I've always wondered why teams get to hit up localities for big bucks when they 'threaten' to leave - like I could do that with my mortgage! Any public money whatsoever should have the ownership of the team as collatteral - anything less is imprudent financial management - not that we don't have a whole lot of that these days.

That collatteral would be permanent enough for me.

-Doug

Posted Fri, May 18, 10:59 p.m. Inappropriate

RE: Nine Speculative Scenarios Listed by Owner: Any income tax would require an amendmant to this state's constitution. Also would it be enough to pay for an arena?

Not that an income tax is a bad idea. This area's professional atheletes have to pay income taxes everytime they play in a state that has such. Why shouldn't visiting teams do likewise when they come here?
MarkS

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