City of Seattle V. Professional Basketball Club LLC
Seattle filed a lawsuit on September 23, 2007 in an attempt to keep the Sonics from leaving before the end of their lease in 2010. The trial was set for June 16, 2008. On April 10, 2008, Seattle asked the Federal District Court to order the NBA to release documents related to the financial situation of each team, the claim that the SuperSonics' lease with KeyArena was financially unworkable, and the league's involvement in requiring PBC to make a good-faith effort to stay in Seattle. On April 28, the trial's presiding judge, Loretta Preska, ruled that the NBA must supply the internal documents about the possible relocation of the Sonics that the City of Seattle had requested. In addition, the judge said that Stern could be deposed at a later day should the need arise. The city hoped the documents would aid in building its legal case, and cited an email conversation among members of the ownership group that suggested they were privately discussing intent to move the team while publicly insisting that they would not attempt to do so.
The ownership group filed a motion saying that the lawsuit and the release of the emails by the city were meant to drive up the cost of leaving Seattle and force the ownership group to sell the team. The motion requested that all emails and other records be released to the team. Slade Gorton, lead attorney for the city, responded by pointing out that it was PBC that started the fight that led to the lawsuit when they filed for arbitration to break the lease. The motion was denied by the presiding judge, who said the team failed to make a "good-faith effort" to resolve the dispute and that it failed to show that trial preparations were hindered by the records not being made public. However, the ruling also said the team could bring up the issue again if it could prove the relevance or the confidentiality of the records.
On April 21, 2008, Gorton said he would be open to a settlement if the league promised a replacement team for Seattle. He said it was "highly unlikely" that the Sonics would stay and indicated the city should instead focus on gaining a replacement team, but noted that local governments would need to be willing to fund an expansion of KeyArena first.
When Bennett's group requested that the trial also decide the team's financial obligations to KeyArena should its lease be broken, Seattle's lawyers requested a six-month delay in the trial date in order to prepare for the additional issues, arguing that the ownership group's request would "dramatically change the scope" of the case and would require considerable preparation time to determine damages. The trial's presiding judge denied the motion by Bennett's group on March 6, noting that the team would have needed to make the request at the scheduling conference. A second trial would therefore need to have been held to determine the team's financial obligations.
Attorneys made their closing arguments in the city's case on June 26 and the judge announced that she would issue her ruling on the following Wednesday. On July 2, hours before the judge was to release her ruling, it was announced that the team and city had reached a settlement where PBC would pay the city $45 million immediately in exchange for breaking the lease and an additional $30 million if Seattle was not given a replacement team in five years. According to the conditions of the settlement, the Sonics' name and colors could not be used by the team in Oklahoma City, but could be taken by a future team in Seattle, although no promises for a replacement team were given. The OKC team would retain the franchise history of the SuperSonics, which could be "shared" with any future NBA team in Seattle. The team moved to Oklahoma City immediately and announced it would begin play in the 2008–09 season.
Read more about this topic: Seattle Super Sonics Relocation To Oklahoma City, Lawsuits
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