New: Allen, Rose Garden Group agree to sell TrailBlazers with Rose Garden
Wednesday, June 7, 2006 4:25 PM PDT
By Associated Press
Printable version
E-mail this articlePORTLAND, Ore. (AP) -- Portland Trail Blazers owner Paul Allen and the group that runs the Rose Garden Arena agreed Wednesday that when the time comes, the team and building will be sold together.
The agreement would make it easier to sell the Trail Blazers.
"We are pleased to have reached this agreement with Portland Arena Management. We look forward to working with PAM to explore ways to enhance the future prospects of the Trail Blazers franchise and the Rose Garden arena," said Lance Conn of Vulcan, Allen's holding company.
Allen announced the team was in financial straits as the Blazers were wrapping up one of the worst seasons in franchise history. Portland finished with the league's worst record, 21-61.
The team recently decided not to extend general manager John Nash's contract. Team President Steve Patterson is serving as the Blazers' interim GM.
At least two parties have come forward to express interest in the team, one led by former Trail Blazer Terry Porter and another by Mark Wattles, who founded Hollywood Video.
Earlier this year Allen, the billionaire co-founder of Microsoft, said the team was hemorrhaging money and he was seeking a public partnership to keep the Blazers in Portland.
Part of the reason the Blazers lost money included Allen relinquishing ownership of the Rose Garden by declaring it bankrupt in 2004. That meant lost revenue from luxury suites, among other areas.
Vulcan and Portland Arena Management, the group of bondholders that now runs the arena, had struggled to find common ground on an agreement that would allow the team and the building to be sold together -- making the Blazers more desirable for a buyer.
"As the owners of the Rose Garden, we see this process as potentially helping to accelerate the advancement of the Rose Garden for the benefit of our respective groups," PAM chairman Thomas Luther said.
In March, the two sides were so far apart that the NBA pulled out of negotiations to help find a solution. Allen had estimated the team would lose some $100 million over the next three seasons.
The NBA and commissioner David Stern would be involved in deciding the team's future, Vulcan spokesman Andy Brimmer said.
Allen's representatives will also continue discussions with the city of Portland.
"We've had productive meetings with the city over the past few months and we appreciate their interest," Brimmer said. "We will continue to have a dialogue with city officials as the process develops."
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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