KING5.com is providing minute by minute coverage of the lawsuit by the City of Seattle vs. the Professional Basketball Club, LLC (The Seattle SuperSonics).
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4:05 p.m. - Lawrence says the City will call Seattle Deputy Mayor Tim Ceis as a rebuttal witness on Thursday. Closing arguments will also be Thursday.
4:02 p.m. - Time's up for today. Testimony will resume with Licata next Thursday. Court is in recess.
3:58 p.m. - Keller showing a public statement released in 2006 that Licata signed off on, which said studies show the Sonics have a limited economic impact on Seattle. Licata says he still believes that today.
3:54 p.m. - Keller shows results if study in conjunction with KeyArena renovation saying there is no empirical evidence that stadiums or arenas have any significant impact on a city's economy. Licata then asked about Initiative 91, which was a referendum to taxpayers about whether to subsidize funding for pro sports teams without a fair public return. It was passed by a large margin. Licata is asked if the fact the PBC was seeking arena funding in Olympia had to do with I-91 passing, Licata answered that he could not definitively say.
3:46 p.m. - Licata says he went back and forth on whether people who spend their money on sporting events would spend their money on something else (disposable income) if a team leaves. But in a previous deposition, he said he sides with economists that believe a team leaving has less of an impact. Keller just now asked Licata if he believes the Sonics have a limited impact on the City of Seattle, to which Licata just said yes.
3:43 p.m. - Licata also wrote to legislators that the Sonics have said that the KeyArena facility is inadequate and thus some legislators believe it would be a white elephant if the Sonics leave. Licata let legislators know that the city had hired sports consultants who determined the arena could be profitable without an NBA team. He added that if KeyArena had been remodeled for a smaller seating configuration for smaller events, the cost for renovation would be $20 million and could turn a profit. Licata says he still believes that today.
3:36 p.m. - Licata agrees that he urged legislators not to take action on the KeyArena funding until more study was done. In a February 2006 e-mail, Licata sited three public opinion polls showing that voters in Seattle and King County do not support using public money for KeyArena. One of them was a KING 5 News poll in which 65 percent of respondents said they didn't support using tax dollars to keep the NBA in town and 61 percent said they specifically opposed spending $200 million on a KeyArena upgrade.
3:31 p.m. - Now on the stand is Seattle City Councilmember Nick Licata. Keller is reminding him about the 2006 legislative session in which the Schultz ownership was trying to get funding for a KeyArena renovation, as well as the support from the Mayor's Office. Licata says he agrees with the statement that the city council was not keep abreast of the mayor's efforts and felt like he was learning about it in the paper.
3:26 p.m. - Keller re-directing. Griffin asked if he did anything personally to drive a wedge between the PBC and NBA. He said no, and agreed Walker was the one dealing with the NBA. Keller then asks what he did to secure another NBA team. Griffin basically says he did nothing. Griffin agrees that KeyArena as it stands now is not a viable NBA arena. Lawrence re-crosses. Asks Griffin if he thought Bennett would be open to a renovated KeyArena if Griffin's group proposed it. Griffin says no. Griffin is excused.
3:22 p.m. - Lawrence asks Griffin why his group didn't pursue having the PBC stay at KeyArena harder. Griffin said there was too much animosity. He added that there was no indication Bennett wanted to stay. He again said if the Sonics couldn't stay, he'd like to get another NBA team.
3:16 p.m. - Lawrence now backtracking to an e-mail about the political implications of the Ballmer group plan. It indicates the mayor could come out smelling like a rose. "He owns KeyArena and the (Seattle) Center and sees its viability largedly dependent on the presence of the Sonics. He is therefore willing to come up with a substantial chunk of money and to use some political capital to make our plan work."
3:12 p.m. - Lawrence going back over the earlier e-mails the Keller went through with Griffin. In addition, Griffin mentions in one of the e-mails that Seattle Deputy Mayor Tim Ceis said it would be good to renovate other real estate around KeyArena to revitalize the entire neighborhood.
3:06 p.m. - Griffin says one of the options discussed with Ballmer was buying the Sonics, but it wasn't necessarily the first option.
2:51 p.m. -
2:45 p.m. - Griffin testifies he wants to keep the Sonics here, but would be happy if another NBA team moved here. Court in recess until 3 p.m.
2:44 p.m. - Griffin asked if he believed that the plan he was approached about was a plan from the City of Seattle. Griffin answered no. When asked where he thought it came from, Griffin answered he understood that Ballmer was approached by Walker and others. Griffin said he rarely went back to that powerpoint after he received it. He reminds Lawrence that he was not the one who came up with the powerpoint.
2:40 p.m. - Cross-examination by Lawrence. Griffin says he's not a big sports fan, but got involved in the Ballmer project because he respect Ballmer, and that when he thinks of an empty KeyArena, he thinks of the decay that came to the businesses around the old Frederick & Nelson building after it closed down. He feared the same would happen to the Lower Queen Anne neighborhood.
2:33 p.m. - Keller asks Griffin about the renovation plan he was involved in. Keller asks if Griffin concluded that KeyArena needed $300 million in renovations to be a viable NBA arena. Griffin says yes. Keller finished questioning.
2:24 p.m. - Feb, 13, 2008 e-mail.from Gorton to Griffin, Walker and others. It partially reads "The Governor has spoken directly to the mayorthat the attitude of voters is so negative that he no longer plans to put a Seattle Center issue on the ballot this fall" and that the almost inevitability of the NBA approval for a Sonics move would "considerably undercut our chances of specifically enforcing the KeyArena lease."
A March 4, 2008 e-mail from Walker to Gorton, Griffin and McGavick reads "Think of how ugly this trial will be, how ugly the Sonics departure wlll be... and then we'll rely on an NBA mandate/approval that another team will move here after that scorched earth incriminating process?" Basically, Keller implies Walker is not optimistic about the NBA's future in Seattle after all this. Griffin agrees with Keller's assessment.
2:17 p.m. - Keller presents a list of all the e-mail snippets from October to December pointing to the "forced bleeding" that he just went over with Griffin. Keller asks Griffin again if part of the plan was trying to force the Sonics to sell by making hem bleed. Griffin said yes, it was one of the options.
2:11 p.m. - A December 2007 e-mail from Gorton reads: "Bennet owns the team, wants it in Oklahoma City, and sees relatively clear sailing to NBA approval except for our lawsuit.." Griffin confirms " our lawsuit" meant the City's lawsuit. When asked by Keller if Griffin knew the lawsuit was the means to induce the forced bleeding, Griffin answered yes.
When asked if he was ever in discussions with Gorton to force Bennett to sell, Griffin said he did not recall any such discussion. A video deposition is played of Griffin asking the same question, in which he said yes. Keller then reminded Griffin in court that he took an oath before taking the stand. Griffin then asked if he recalls changing the answer of that deposition from a " yes" to an "I don't know." Griffin says he recalls having the record changed, but didn't recall specifically what it was.
2:06 p.m. - Another status e-mail lists possible actions: One of them reads "Litigation win to stay and forced bleeding of about $20 million per year will help" Griffin agrees that was one of the options. E-mail from Gorton reads "Bennett will sell at a reasonable price, only if pressured by the NBA or if he forces an expensive and unpleasant legal future." Griffin admits again he didn't have the power to make it happen. When asked if only the City and K&L Gates had the ability to make that happen, Griffin said yes.
2:00 p.m. - Dec. 11, 2007 status report e-mail about the upcoming NBA relocation vote in April. Several possible outcomes outlined:
-League says it can move, subject to lawsuit resolution.
-Court case says they can't move
-City and county pass legislation first and serve it up to state in 2009.
-"Bennet (sic) has shorter negative tail to avoid, but feels bleeding."
Keller asks if Griffin was laying out a scenario to sell and Griffin says it was one option.
1:54 p.m. - Dec. 7, 2007 - Griffin to Ballmer status report. " Wally's deep throat at the leagues is Joel Litvin, COO, I think."< /p>
"Wally thought the mayor's position to assemble electeds was a big step forwards, along with the new city council members.
"11/30 Wally communicated improving political front to Litvin, but he needs more good news. This week, I'll push Ceis to help create more good news."
Griffin says good news means getting help on an arena from the City. Keller asks Griffin if it was obvious that the "wedge" - having the City swoop in with an arena renovation plan. Griffin says "not to me."
1:45 p.m. - Status report e-mail from Griffin to Ballmer admitted. It reads "'We' haven't hired KL&G yet; I'd like to keep them working for the City for awhile, which is easier to control." Griffin agrees he wrote that. Then on November 25, 2007, there is another status report from Griffin to Ballmer. Griffin writes "Obviously, Bennett isn't in a box yet." Keller asks if that means Bennett wasn't ready to sell. Griffin says it meant he thought Bennett wasn't ready to do something different. Keller asks what Griffin meant by that. Griffin says he would have been happy if Bennett would just stay in Seattle, but he acknowledges the powerpoint was about getting Bennett to sell.
1:38 p.m.- An excerpt from the powerpoint is read. "For the next best likely outcome, two things have to happen next: Oklahomans have to be willing to sell and the public folks have to do the right thing." Keller goes back to the reference about the "pincer movement" (see post at 10:05 a.m.) and about the "increase pain of staying." Griffin then agrees with Keller's assertion that he had no control over the efforts that could force the Sonics to sell.
1:33 p.m. - Court back in session. Griffin asked if, after reading e-mail, he met with Ballmer. Griffin didn't recall meeting with Ballmer right afterward. Once they did meet, Griffin said he agreed to start working with Ballmer. Griffin asked if Ballmer had a copy of the powerpoint and did he present a copy to Griffin. Griffin said yes. Griffin adds he received an electronic copy to take with him on a trip to China. Keller shows the powerpoint we've already seen in court. Griffin says it appears to be the same as the one given to him.
1:24 p.m. - Update from the last post. Jim Brunner, who posted the blog, has written an apology, basically explaining what happened the same way I did in my last post. Also, we have received a copy of the "poisoned well" powerpoint and hope to have it posted shortly.
12:17 p.m. - The media overflow room just became a buzz of activity over a Seattle Times blog posting, which basically implied that the city attorney Paul Lawrence might be conceding the case. In cross-examination of Wally Walker, Lawrence told Judge Pechman he need to get information from Walker for a possible appeal. (See post at 10:57 a.m.) This apparently lit up the phones at Sports Radio KJR. Since then, the blog post has been dropped. Both a legal analyst for Save Our Sonics and a rep for the City of Seattle says that implication was overreaching. City rep Alex Fryer says that the City's attorneys would need that information as well if the Sonics appeal the ruling.
12:01 p.m. - Keller shows and e-mail forward from Ballmer to Griffin on October 18 asking Griffin if he's interested, to which Griffin said he was still deciding at the time. The e-mail string he forwarded was originally from Walker to McGavick. On the second page, McGavick writes that Ballmer was to identify an "owner rep" to oversee process on his behalf. Another section of the e-mail string goes back to the Wally Walker tasks, including " driving a wedge".(See the post at 10:48 a.m.) When asked by Keller what the wedge was, Griffin said "I don't remember remembering on that much specifics of this e-mail." Keller keeps pushing the question, but Griffin continues to answer that he didn't focus on the specifics of it. Court in recess for lunch until 1:30 p.m.
11:54 a.m. - Walker is done. Now taking the stand is developer Matt Griffin, who was part of the group who presented the KeyArena renovation plan earlier this year. Brad Keller is questioning him for the PBC. Griffin confirms he was approached by Ballmer in mid-October about the idea.
11:47 a.m. - Lawrence wraps up, asking Walker again if he intended to force the Sonics to sell the team. Walker says no. Lawrence asks if Walker was trying to make the Sonics suffer large economic losses, to which Walker replied he would not have any control over that. Taylor is now re-directing. He's showing an e-mail chain between Walker and Gerry Johnson from K&L Gates showing concern about Walker being deposed. Then another letter is presented dated January 29, 2008, saying Walker was retained as a consultant on October 7, 2007 to assist in representing prospective new ownership of the Sonics and Storm.
11:42 a.m. - Walker going over Ballmer's and Griffin's interest in the arena solution. Walker also talks about meeting with NBA President Joel Litvin about securing an arena deal. Walker says his converstions were not about driving a wedge between the league and the PBC.
11:40 a.m. - Under "The Path Forward" section of the plan, there is a subsection called "Close with the City." Walker goes on to say the City was not aware of this meeting and was not involved. Bullet points within this section include: "Confirm scope of project and basic lease terms;" "Secure Mayor Nickels' commitment to provide leadership," etc.
11:34 a.m. - Another objection by the defense, sustained by Pechman. The rough estimate is 90 percent-10 percent on the objection battle in favor of the Sonics throughout the trial.
11:28 a.m. - Looking again at the powerpoint presentation, Walker testifies he knew at the time the plan was being shown to him, Bennett was seeking arbitration to break the lease. in a subsection called "Operating economics," there are bullet points that include "A white elephant at Seattle Center." Another says "After a long period of brinkmanship, Mayor is now willing to deal and to lead in securing a workable arrangement from other public partners (State and County) for capital investments in facility."
11:25 a.m. - Lawrence has Walker go over his relationship with McGavick. Walker testifies that McGavick was the one who brought him into the powerpoint presentation, not Gorton. Walker says he saw his role in this as just a resource.
11:18 a.m. - Lawrence asking Walker if September 9, 2007 was the first time he saw the powerpoint on the "poisoned well" plan. Walker said it may have been as early as August.
11:14 a.m. - Going back over Walker's previous testimony. Walker saying that a July 2007 meeting he had with Gorton was focusing on Gorton's effort to get a Bellevue arena. Walker says the idea was brought to Ballmer's attention in early September. Walker says Ballmer wasn't interested.
11:04 a.m. - Lawrence showing a letter from Bennett to former Sonics owner Howard Schultz saying "We will obviously assume all ot the BCOS' (Schultz owership group) obligations regarding KeyArena." Walker testifies that it was understood that PBC would honor the lease.
10:57 a.m. - Taylor done. Lawrence re-directs. Asking Walker more about his playing career, including with the Sonics. At one point, a question is brought up whether Lawrence needs to go into all this. Judge Pechman points out she has seen Walker play. Lawrence continues and Walker answers that he was on the 1979 NBA Championship team with the Sonics. Pechman says "I saw that too." Lawrence shoots back "I appreciate that your honor, but we do have to make a record for our appeal."
10:48 a.m. - Court back in session. Another e-mail submitted by Walker, dated about a month after Walker was retained by K&L Gates. Lawrence says foundation needs to be layed as to whether Walker was a consultant. Pechman says that has been established. Objection overruled. The e-mail from October 17, 2007 says "WW to NBA to learn reaction." then a subtitle says "WW to do this tomorrow." It shows three tasks, for Walker to do. One of the three is "Learn what the Oklahoma boys are up to and, if there is an opening, continue to drive wedge." Taylor says it was Walker's job to drive a wedge between the PBC and NBA when he met that day with NBA President Joel Litvin. Walker says even though it was his e-mail, "wedge" was not his word.
10:30 a.m.- Now submitted is an e-mail from John Stanton, a member of the group that offered up a $300 million KeyArena renovation option this past spring. He writes: "Agree completely that it should be excruciating for Clay to consider early departure. At some point they will need Patty (U.S. Sen, Patty Murray) and Maria's (U.S. Sen. Maria Cantwell) help if this becomes a real fight." Court in recess until 10:45 a.m.
10:27 a.m. - Another objection by Lawrence, saying a new document to be presented is hearsay. The Judge says it's not hearsay. After a lot of debate, Lawrence agrees with the judge and the objection is overruled.
10:25 a.m. - Taylor asks if Walker had the ability himself to make it too expensive and litigious. He said no. Taylor then asks, isn't the City the only one that had the ability to make it too expensive and litigious, to which Walker said he could not answer.
10:20 a.m. - Taylor asks if Walker wanted to stop the PBC from moving to Oklahoma. Walker agreed when asked if he wanted to make it too expensive for them to move. An e-mail is then shown from Walker saying he wanted to "make it too expensive and too litigious" for Sonics majority owner Clay Bennett. Walker also writes that he gets the impression that the City is in total agreement. Walker says in testimony that his impression actually was that the City wanted to enforce the lease.
10:15 a.m. - An exhibit is presented indicating a correspondence between Gorton and Walker over some "Sonics ideas". Then Taylor shows an e-mail from McGavick regarding some ideas to keep the Sonics that were told to him. "Very Machiavellian stuff that he things might work, or at least be fun. What's Slade got cooking?"
10:09 a.m. - Some confusion going through Walker's calendar. July 9, 2007, Taylor said Walker met with Gorton, which Walker says he didn't. Taylor says the next day, July 10, Walker met with Seattle Deputy Mayor TIm Ceis, but Walker said he tried to contact him that day but failed. Taylor says the same day, Walker talked to Gorton, but Walker said he talked to Gorton's assistant. Taylor says "you were trying to reach out to Senator Gorton."
10:05 a.m. - Also in the document "So it is a pincer movement: increasing the Oklahomans costs in an unpleasant environment while increasing the league's belief that an alternative solution gains it a good new owner and keeps it in a desirable market." Taylor asks if they wanted to force the team to sell in order to get a " good owner" and if that's why Ballmer was at the meeting. Walker again responding, only saying they wanted a solution to keep the team in Seattle. Under "immediate next steps" section, it says "Gorton, et. al, increase pain of staying (financial and reputation).
9:57 a.m. - The "poisoned well" document is presented . Lawrence objects that this is a City plan or document. He offers to make it a continuing objection to speed up proceedings. Lawrence says it's a hearsay document. Taylor says as of this date, Walker had been retained as an expert by the City. The document is admitted by the judge. In a section called "The Path Forward", the document says " For the best likely outcome, two things have to happen next: Oklahomans have to be willing to sell and the public folks have to do the right thing. Walker is not agreeing that's what he said. Further down, there is a subsection called "Make Them Sell," which outlines the plan: "The critical path is to separate the NBA from the Oklahomans." Walker responded that if an arena solution was not reached, the NBA would have to sign off on KeyArena. Walker then finally says that if the team intended to move, then yes, this was the best way to keep the Sonics in town. Walker goes back to say that they preferred to get an arena deal done here. Taylor asks if the goal was to make the PBC lose money, to which Walker says no.
9:50 a.m. - Taylor says in the meeting, there was discussion about wanting to get "the Oklahomans" to sell the team. Walker says the goal was to keep the team in Seattle and there was nothing else to do but hope the PBC would sell the team.
9:45 a.m. - Taylor is asking why an earlier draft of this document hasn't been found anywhere. An e-mail sent October 5, 2007 from Linda Jacobs of K&L Gates to Walker, McGavick and Gorton says "Here's the latest draft... It's not pretty, but the master that I'm working off of looks much better. If you have revisions, please call us." This is two days before the "poisoned well" meeting as Taylor calls it.
9:41 a.m. - As Taylor tries to admit an e-mail from Walker to McGavick on Sept. 23, 2007, Lawrence objects as heresay. After an exchange with the judge, Lawrence asks if he can add something else, and Judge Pechman sternly says "no."
9:35 a.m. - Taylor now asking about an October 7, 2007 meing at Walker's home. Also there was Slade Gorton, former U.S. Senator from Washington state and current lawyer for K&L Gates. Microsoft CEO Steve Ballmer was also present and former Safeco executive Mike McGavick. Taylor now brings up a document that was titled "The Sonics Challenge: Why a poisoned well affords a unique opportunity."
9:30 a.m. - Taylor asks Walker if he was hired as a consultant for K&L Gates and the City of Seattle on September 21, 2007 in an effort to retain the Sonics and Storm beyond the KeyArena lease. Walker says he doesn't remember that date. Taylor shows a document from K&L Gates to Walker confirming he has been retained as a consulant.
9:26 a.m. - Taylor asks Walker if he told others that he was worried about this trial, which he said yes. When Taylor asks another question, Walker tries to answer a different way. Taylor says "please answer the question." The City's lead attorney Paul Lawrence asks Judge Pechman to let Walker answer. Pechman says that Walker was trying to answer differently than what Taylor asks Lawrence drops it and Taylor subsequently drops the question.
9:20 a.m. - Taylor asks Walker if Gov. Chris Gregoire was "risk averse" in 2006. Walker replies he thought she was quite helpful. Taylor then asks if in 2008, Walker said that the Governor was so risk averse, she would not get out in front to help, to which Walker basically agreed he said. Taylor then asks if a statement by another person that Seattle Mayor Greg Nickels was willing to get out front but had the least credibility, to which Walker basically replies that he thought Nickels was very helpful.
9:14 a.m. - Walker says the City of Seattle did eventually give the Sonics some assistance during its 2006 attempt to get money from the legislature for a KeyArena remodel, but that they were not helpful during the early parf of the process. A January 2007 e-mail is shown that was written by Walker to his fellow co-owners (Walker had a stake in the team). In the second paragraph, Walker writes "In January 2006, the City of Seattle (by resolution) was unwilling to work in Olympia on behalf of their own building and their primary tenant (us), even though they had pledged to do so the year before." Walker goes on to write that eventually, the Sonics started to get some bipartisan support.
9:11 a.m. - The K&L Gates report from 2005 reads "The current lease between the City and Sonics does not work for either party. Walker would only agree it was not working for the Sonics. It goes on to say "The Sonics are losing money and cannot afford to invest more in the team," and "Sonics must consider ownership sale of the franchise," and "the real possibility that the team will move to a more modern facility (possibly outside the City or even the region."
9:07 a.m. - Walker testifies the team did try to lobby the Washington state Legislature for a $200 million upgrade to KeyArena. k&L Gates, the same firm representing the City in this case, was hired to write up the legislative proposal.
9:04 a.m. - Walker asked if he had said that KeyArena was not a good NBA arena. Walker says he believed it was "challenging." He agrees with Taylor that the lease had something to do with that. He agreed it was one of the worst leases in the NBA.
9:00 a.m. - Wally Walker called to the stand. Judge Pechman says the CIty has 235 minutes left to present its case. The Sonics have 357 minutes. Paul Taylor is questioning Walker for the PBC.
8:24 a.m. - Former Sonics President Wally Walker has been spotted already in the courtroom. He's expected to be the first witness the Sonics call to the stand today on what is likely to be the last day of testimony before closing arguments. Also expected to be called today are developer Matt Griffin and Seattle City Councilmember Nick Licata. We may also hear from a pair of rebuttal witnesses for the city.
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