Revival of NBA Basketball in Seattle in progress: Agreement reached on construction of arena
Finally Christopher Hansen’s dream to redeem basketball in Seattle is coming to life. The campaign which he has been running singlehandedly has entered its phase 1 as the King County and Hansen have signed a memorandum of understanding
laying out the financial roadmap for the construction of proposed arena.
Hansen, a renowned media icon and hedge-funds manager, came up with the proposal in February, with one sole objective in his mind and that was to bring back NBA basketball in Seattle. For that he has had to surpass many herculean
tasks. The first was to build an arena and arrange the finances for that.
The construction cost was initially estimated $450 to $500 million. Arena Co, the group which Hansen represents took the responsibility of funding $290 million. The other $200 million will be funded by the county and city through
a 30 year bond.
The memorandum laid out the financial map but it also has a clause which is turning out be a biggest hurdle. The construction of arena can only start when an NBA franchise has been acquired. The city officials had earlier stated
that for the construction of arena both NBA and NHL franchises will be required. Moreover the franchises willing to make Seattle as their abode will also have to sign a non-relocation agreement.
Hansen’s prime interest was, and is, to move an NBA team in Seattle. The city officials have now amended their stance, allowing him to start the construction with only NBA franchise on board.
Chris acknowledges the fact that persuading an NBA and NHL team at the same time is almost impossible.
"We've been very honest with everybody that actually having an NBA and NHL team to sign agreements with ownership groups to move on the exact same day is pretty unlikely,"
However the fact, adding a basketball club will increase the initial estimated cost and the additional constructional cost, direct and indirect expenditures will be met by Arena Co (Hansen group).
The memo also explains the breakdown of $200 million (city’s investment). It says that the city will meet the initial investment of $100 million for the acquisition of site in the 1st phase. During the 2nd phase
the municipality will pay $20million in case of both NBA and NHL franchises are acquired. The remaining $80 million will be invested by the public sector in form of bonds.
In case if only an NBA franchise is acquired then the public sector investment will be retained to $120 million, $115 million coming from the city and $5million from the county.
This will be an interesting development as NBA has clearly stated that no new team will be added. Amongst the already existing 30 teams, there is only one franchise which might consider relocating, the Sacramento Kings.
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