SportsPress Northwest: THIEL: BALLMER IS DONE HERE, BUT ARENA PROJECT ISN’T
Keep in mind that the expiration date on the project’s key document, the memorandum of understanding between Hansen and his public partners, the city and King County, is November 2017. At once, the date seems suddenly much closer, yet is far enough away that much can happen in the incredibly fast-changing world of sports business.
Many fans eager to see the return of the Sonics were floored by Ballmer’s abrupt abandonment of the Seattle project in favor of being an NBA owner in Los Angeles. Those who know Ballmer were not.
His longtime passion to be an NBA owner has not wavered. He wanted to be an owner years before he heard of Hansen, and is likely to be an aggressive supporter of Seattle’s pursuit of a team, although restrictions soon upon him as an owner will keep him from butting into the business of a Seattle bid.
As for the Seattle project, Hansen has a huge void to fill, but the cash is less of a consideration than credibility. There’s lots of wealthy, sports-minded people sitting on big piles of cash, most of it in the tech community. Some stayed away because the big dog, Ballmer, always eats first.
Hansen knows he and his remaining partners, led by the Nordstrom brothers, have more vetting to do, as would the NBA if and when the time comes. Hardly impossible, but another complication.
If TV revenues are substantially greater starting in 2016, that will help make expansion to 32 teams more plausible — the pie will have grown so much that sharing two more slices will be acceptable. Particularly after Ballmer’s wealth, impatience and boredom increased the likely expansion fee per team from $600 million to $800 million or, hell, $1 billion. Divide $2 billion among 30 existing franchises in a one-time payment, and you have many happy owners.
A year ago, I thought Ballmer/Hansen offering $625 million for the Kings to move from Sacramento was the acme of foolishness. And six weeks ago, I thought being a racist was a dead-end proposition.
Referencing No. 2 above: Regarding pro sports, business and crazy people with crazy wealth, assume nothing about outcomes.