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).

4:05 p.m. - After talking more about a concept called mulitpliers in the report, there is a brief re-direct by Narver in which Zimbalist agrees that the sections of the report that he copied from Los Angeles to Seattle were definitions that didn't need to be written from scratch. Court is in recess until Wednesday. We're still waiting to hear more testimony from Bennett and Aubrey McClendon.

3:55 p.m. - ZImbalist is getting a little upset. Taylor tries to move on, but Zimbalist tries to go back and ask Taylor what his point was in the previous questioning. Judge Pechman tells Zimbalist they are trying to accommodate his schedule and that he needs to answer the next question. The next question goes into the "feel good" economic value of sports teams. But Taylor shows part of a previous deposition from Zimbalist in which he says the weather can provide economic value.

3:50 p.m. - Taylor then shows a comparison between the Los Angeles and Seattle reports. Earlier, Zimbalist said you could not quanitfy those intangibles, but Taylor says the L.A. report does have a quantity, while the Seattle one doesn't. Taylor implies that the City of Seattle wanted Zimbalist to write a report without a quantifiable outcome because that could fall under a specific performance label. Zimbalist denies tnis.

3:43 p.m. - The issues continue over the similarities between Zimbalist's 2005 Los Angeles report and the Seattle report. So far, Taylor has not questioned Zimbalist directly on whether the study is wrong, but is continuing the push what he calls the "lifted" segments from the Los Angeles report. Zimbalist says he was able to use notes from previous studies to fill in his Seattle report. Taylor asking how much Zimbalist charged the City of Seattle for this report, to which Zimbalist doesn't have a solid answer.

3:27 p.m. - To clarify, Bennett's testimony is not done. He was temporarily taken off the witness stand in order to bring up Zimbalist, who is on a tight schedule. Bennett could be back on the stand before the end of this session or tomorrow. Cross-examination underway with Paul Taylor representing PBC. Taylor asking Zimbalist if he was honest when he said in a deposition that he had written is report from scratch. Taylor accuses Zimbalist of lifting parts of his report from notes he had taken for a similar report he presented in Los Angeles in 2005. Taylor says he sat down and compared the two reports (the Los Angeles report and the Seattle report). Taylor is showing a side-by-side comparison of several sections of the two reports. With the exception of a couple of words, the sections are exactly the same. Taylor says that's a sign it was not written from scratch. Zimbalist says he doesn't agree with the "characterization that I lifted it from Los Angeles." Ons section is the same, word-for-word. Taylor making the point that the Seattle report was not written from scratch as he testified in deposition,

3:22 p.m. - Narver asks the effect of the Sonics as a "lame duck team" on intangible benefits. Zimbalist says the magnitude of variables such as the "lame duck" status make it more difficult to quantify. He also talks about avidity level -- how avid the fans are. He mentions the Boston Celtics, that their avidity level was low last year, but high this year -- no doubt due to the fact they may win the NBA Championship tonight.

3:15 p.m. - Zimbalist goes through three types of intangibles: 1. Consumer surplus - when a person buys a product for less than they're willing to pay. He uses the example of getting a Sonics ticket for $30 when you'd be willing to pay $50. 2. Externality -- Someone goes to a game but you don't, but the person that went tells you what happened. 3. Public good - Zimbalist says a sports team is something everyone can share in and it's not exclusive to anyone.

3:09 p.m. - After going through his background a little more, questioning begins about the intangible benefits of a pro sports teams, which Zimbalist says includes cultural enrichment, a sense of community, bridging economic gaps (he uses an example of a taxi driver, a doctor, a lawyer can all be in an elevator and have nothing in common, but they can talk about sports).

3 p.m. - Back from break and, surprise, Bennett testimony is over. Now on the stand is Ivy League-educated economics professor Andrew Zimbalist of Smith College in Massachusetts, who specializes in the sports industry. He is being questioned by Greg Narver for the city. Zimbalist he was retained to determine the intangible benefit of the Sonics to the City of Seattle, but that those benefits are difficult to quantify.

2:45 p.m. - Keller now showing Exhbit 62, which is the purchase agreement between the Schutlz group and the Bennett group. In Section 5.2, it states there would be a 12 month "good faith" effort to secure a "successor venue" to KeyArena. Bennett identifies that as meaning a new venue, not a renovated KeyArena. Court is in recess until 3 p.m.

2:42 p.m. - Bennett testifies in court now that when things appeared to be dead in Olympia, that's when he became a "man possessed." He says, among other things, he talked with the Muckleshoot Tribe about its proposed location near Emerald Downs along Highway 167 in Auburn as part of his efforts to get something done,

2:35 p.m. - Now Keller is showing e-mails between Bennett and Kneeland over the aforementioned e-mail "blast" by the Sonics staff. Keller follows with an e-mail from Bennett to Microsoft CEO Steve Ballmer after Bennett was, in his words "blasted" by House Speaker Frank Chopp. Bennett asks Ballmer for help in any way he can. That's followed by another e-mail string between Bennett and Ballmer in early April 2007 in which he asks Ballmer again for help after things ground to a halt with the legislature.

2:30 p.m. - Bennett now going into the efforts after the Renton site was selected, including getting the support of Lenny Wilkens, NBA great Bill Russell and State Senator Margarita Prentiss. PBC's efforts in Olympia failed when the proposal didn't make it past committee. Bennett says the Sonics staff then started an e-mail campaign to get fans to contact their representatives about making something happen with the arena.

2:25 p.m. - Bennett goes into detail about why the Bellevue site didn't work (parking, traffic, etc.). He also goes into why the arena had to support a possible NHL team, saying there were indications that there was desire in the region to bring an NHL team to the Puget Sound area. Evidence being presented to support it, but the City's attorneys are objecting, asking what relevance the NHL equation has in this case. Judge Pechman is asking the same thing. Keller withdraws the evidence on the NHL study,

2:12 p.m. - Bennett says the 30 sites were quickly whittled down to two -- Bellevue and Renton. He goes on to say several firms were retained to do site analysis and tackle land use issues. Ultimately hired HOK to be the architect of the new arena. Bennett says they were tackling issues such as traffic congestion, etc. Keller also getting back into the KeyArena renovation question and why Bennett didn't engage in that. Bennett says besides the nice sight lines (proximate seating to the floor) there wasn't enough high-end amenitied (seats close to the court, suites close to the court, restaurants close to the court, other viewing areas close to the court). He says it needed a "courtside footprint" which required a complete reconstruction of the basic structure.

2:05 p.m. - Keller going over the funding proposal for the $500 million Renton arena, including the use of extending the King County car rental and restaurant tax towards the cost of the arena. Bennett also explaining other efforts towards building an arena, including searching some 30 potential sites and hiring the firm of Foster Pepper in order to prepare something to present to the legislature.

1:57 p.m. - Keller is going back to the Icon three-year outlook report. Nothing earth shattering in the re-visit. Now Keller is showing Bennett again at the Senate Ways and Means Committee saying that the team is determined to get an arena. He makes it clear that the arena would be a public building to which the Sonics would be a tenant. He also responds under questioning by the committee that he wants to make a good investment with the team in order to make it a winner. He says step one of that was attacting former Sonics head coach Lenny Wilkens, who was on Bennett's staff until last year as part of the effort to get an arena deal done.

1:53 p.m. - Brad Keller, Bennett's attorney, now takes over. Bennett says he didn't expect to be here, that he knew he would get an arena deal done that would be good for the region.

1:50 p.m. - Lawrence reiterates that the Schultz group went to Olympia more than once with a commitment to give some private money to a $200 KeyArena upgrade with no success, but Bennett went to Olympia with a $500 million arena deal and no private funding yet expected to be successful. Lawrence then says rhetorically that Bennett is an optimistic man. He then asks Bennett if he's as optimistic as Mayor Nickels (who described himself Monday as an eternal optimist), and Bennett basically says he's not quite that optimistic.

1:44 p.m. - Lawrence going through more e-mails. One from January 2007 is from Bennett to Seattle public relations director Jim Kneeland in which he wrote Gov. Christine Gregoire was concerned about asking taxpayers for money for an arena when there was no solid indication of funding from the team.

1:37 p.m. - Lawrence now asking Bennett about the NBA relocation vote and how the approval relates to the KeyArena lease. Lawrence says the move approval, set for this coming season, is limited by the results of the litigation, to which Bennett agrees. The league also said the Sonics could re-apply and that the team would likely be approved for the re-application. Lawrence then makes the point that the Sonics applied for the move after the lawsuit was filed. He also says PBC agreed to its lease with the Ford Center in Oklahoma City after the lawsuit was filed.

1:35 p.m. -- Bennett agrees with Lawrence's assertion that if the court orders the Sonics to stay at KeyArena, PBC will do everything possible to make it work from a business standpoint. When Lawrence says that means fans will still be able to go to games and that Mayor Greg Nickels for example will be able to go to games, Bennett responds (paraphrasing) "Well, more than I will," which gets a laugh in both the courtroom and the media overflow room.

1:30 p.m. - Court returns from lunch recess. Bennett is still on the stand. Lawrence admits Exhibit 5, a three-year outlook for the Sonics by the aforementioned Icon Venue Group, a consultant Bennett hired. The report is based on the assumption the current KeyArena lease was in effect, there were no significant roster changes and no playoffs for the Sonics. It mentions that player salary was a major issue. Icon predicted losses of $27 million in 2007-08, $40 million in 08-09 and $52 million in 09-10. Since then, Rashard Lewis left for Orlando and Ray Allen was traded to Boston.

12:00 p.m. - Lawrence then gets into Bennett's relationship with Seattle city leaders, but Judge Pechman calls a lunch break. Back at 1:30 p.m.

11:55 a.m. - Exhibit 501 shows Bennett's travel itinerary shows him going to meet with attorney Brad Keller, who is PBC's attorney in this lawsuit. This visit came a week after the "man possessed" e-mail.

11:45 a.m. - The "man possessed" e-mail is presented. From April 2007 -- six months into the 12 month "good faith period." Co-owner Tom Ward asks if there the Sonics are doomed for another "lame duck season" in Seattle. Bennett responded with "I'm a man possessed" and will do everything he can. In testimony, Bennett says in doing everything he can, he is not responding to the efforts to move the team, he is speaking about getting an arena deal done in Seattle. When asked why he didn't clary to Ward and McClendon what he meant, he says the pair knew his position. Then comes a second e-mail four days later between Bennett and NBA number two man Joel Litvin. In the e-mail, Bennett asks if there is any way to move to Oklahoma City for the 2007-2008 season. Lawrence makes a pointed statement to Bennett, saying the first thing the man possessed to keep the team in Seattle did was ask the NBA when he could move the team to Oklahoma City. Bennett said it wasn't the first thing he did, but that he was beginning it explore it.

11:42 a.m. - Lawrence asks Bennett about how much the Mariners paid in the construcion of Safeco Field. Defense objects on relevancy. Lawrence makes the point that since the issue has been brought up that KeyArena is competing with Safeco and Qwest fields for sports dollars, it's important to point out how much the teams that reside there paid in construction of those stadiums. The judge sustains the objection and the question is dropped.

11:35 a.m. - Trial Exhibit 98 is presented -- another e-mail, this time from Clayton Bennett and Jenny Durkan. Bennett admits he was considering hiring Durkan as a lobbyist t King County. In the e-mail, he said he was confounded on the focus by legislators on the team's contribution to the new arena. In the e-mail, he adds that the team's contribution would be negligible. In testimony, Bennett said ultimately, PBC agreed to contribute $100 million to the $500 million building. Lawrence asked if Bennett ever told any Washington lawmaker that PBC would pay any specific dollar amount up front for construction. Defense objected as repetitive and the judge sustained the objection.

11:32 a.m. - Lawrence shows a clip of Bennett telling the Washington state Senate Ways and Means Committee that he is "completely committed" to keeping the Sonics in Seattle. Defense then gets upset because the clip ends in mid-sentence. That's apparently the way it was edited. Lawrence says they'll find the original during the break and play the whole thing in the afternoon session.

11:27 a.m. - Lawrence now going into Bennett's efforts to get a new arena built. Bennett admits that by February 2007, the PBC was late in submitting legislation to Olympia for a $500 million multi-purpose arena. When asked if Bennett then considered postponing his October 2007 deadline to have an arena deal in place, Bennett said he did not consider postponing.

11:25 a.m. - Here comes the "sweet flip" e-mail string between Bennett, McClendon and Ward. In the e-mail, when asked what a "good faith effort" on a new arena would entail, Bennett responded that if it didn't work out, they could turn the team around for a "sweet flip," meaning the PBC could make a profit in selling the team. Bennett agrees in court that's what the e-mail meant. Then, going into the efforts to get a new arena, Bennett testifies that a remodel of KeyArena was never an option for him and that he never engaged the city in any such discussion. Bennett also admits that NBA Commissioner David Stern had lobbied in Olympia for a $200 million renovation plan when Howard Schultz was still the owner.

11:15 a.m. - Lawrence asks if KeyArena has a early termination provision, to which Bennett replies no. Then Lawrence gets into a USA Today article in which Bennett said he had long-term aspirations for a team in Oklahoma City. Bennett agress that's what he said and that co-owners including Aubrey McClendon and Tom Ward share that feeling. Bennett also said it's fair to say that he kept PBC to Oklahoma City investors and not include Seattle investors.

11:08 a.m. - Bennett asked about the economic benefit to the city if the Sonics stay, to which he replied the economic benefit would be primarily to the team. Lawrence wants to present evidence of Bennett's presentation to Oklahoma leaders about the economic impact if the Sonics move there. The defense is objecting. After much debate, Pechman allows it. The study was prepared by PBC to the Oklahoma state legislature about the franchise's payroll. Bennett admits this study was presented in order to get the State of Oklahoma to pay the Sonics to move there.

11:00 a.m. - Lawrence shows Exhibit 66, a press release from the Basketball Club of Seattle (BCOS) which was the official name of the Schultz ownership group. In it, there is a quote from Bennett saying "The Sonics and Storm are synonymous with Seattle." Bennett says he agrees that is still true.

10:55 a.m. - Video deposition shows Bennett acknowledging that owning an NBA team is a rare opportunity. Also admits that if the Sonics leave for next season, there is not another NBA team that could fill the Sonics home game dates at KeyArena.

10:47 a.m. - Lawrence presenting a December 2006 e-mail string from Tim Romani of consulting firm Icon Venue Group to Bennett. Lawrence says Romani makes the point that KeyArena is a perfectly functional basketball arena, to which Bennett disagreed. Lawrence then shows video of Bennett in Feb. 2007 testifying to the Washington state Senate Ways and Means Committee in his efforts to secure a new arena. In that testimony, he said to the committee that in the future (5, 7, 10 years), KeyArena would not be a viable arena.

10:45 a.m. - Back from recess. Lawrence asks Bennett if team play is a factor in its financial performance, to which Bennett replied it is one factor. Bennett admits that the team is coming off its worst season ever and that it was one factor in the financial performance,

10:28 a.m. - Lawrence asking Bennett if KeyArena is the same today as when he signed the contract in 2006, to which Bennett replied yes. Lawrence then asks Bennett if he is a sophisticated businessman who knows what it means to sign a contract, to which Bennett said "yes." And with that, Lawrence suggests that's a good spot to go into the morning break. Morning recess is called. Back at 10:45.

10:25 a.m. - Lawrence asks Bennett if he was aware when he bought the team that the owners would be incuring losses through 2010, in which Bennett replied "I never envisioned sitting here today," but went on to say they knew there were risks. Bennett then asked if he intended on honoring the KeyArena lease, to which he replied that he did. Now to more video deposition in which Bennett said after meeting with Mayor Greg Nickels that Nickels told Bennett the team would stay in KeyArena through the end of the lease. Bennett said he accepted that.

10:20 a.m. - Lawrence now going over the selling agreement between Howard Schultz and the PBC, including a letter in which the PBC agrees to incur all expenses. Not clear if this is the same as the "good faith effort" side-letter we've heard so much about. Lawrence showing another letter called "Instruments of Assumption," which includes assuming all liabilities and obligations of the Schultz group, including the KeyArena lease.

10:15 a.m. - Now Lawrene is showing Bennett a brief that the NBA was warning PBC that the team could continue to lose money and that the Sonics could reach "lame duck status."

10:10 a.m. - Lawrence show documents that show the Sonics had losses of $20 million in 2004 and $27 million in 2005. Lawrence asks Bennett if he realized there would likely be continued losses, which Bennett agreed. When asked if he realized there was a chance there would not be a new arena built, to which Bennett agreed, although he expected there to be negotiations. Utlimately, Bennett agrees that there was a risk the team would be playing at the Key through 2010 and losing money in the process, but says he expected the City to negotiate for a new arena for the good of the region.

10:05 a.m. - Lawrence presents Exhibit 75, a memo from Bennett to potential PBC investors dated Sept. 12, 2006. In one subsection, it shows risk factors, one of which is expected operating losses over the foreseeable future. It also indicates that the team would continue to lose money under the KeyArena lease as it existed. It also says there is no guarantee that the City would renegotiate. Bennett agrees with Lawrence that the memo shows the lease was a known risk.

10:00 a.m. - Bennett testifies that the owners thought KeyArena could be a money maker if a new arena development plan was in place. More video depositions are played in which Bennett admittted he was aware the KeyArena lease ran through 2010, that it was considered the most unfavorable lease in the NBA and that there was an understood money loss. Back to live testimony, Bennett says he was aware that KeyArena is competing for the same sports dollars as Safeco Field and Qwest Field when he bought the team.

9:55 a.m. - Lawrence asks Bennett if he knew the team was losing money before he bought it and whether he realized the losses would continue until a new arena was built. Bennett agreed. When asked if he understood that he might not get a new arena, Bennett basically said it was tougher than he expected. A video deposition from earlier asking the same question, Bennett said then that the owners were aware that they might not get a new arena.

9:50 a.m. - Lawrence questioning Bennett about a Goldman Sachs report about things such as franchise value, TV revenue, etc. Defense is objecting. Lawrence says it goes to Bennett's state of mind when he bought the team. The objection is overruled.

9:47 a.m. - Lawrence going over the names of the members of PBC (Aubrey McClendon, Tom Ward, etc.). He's trying to make the point the are all sophisticated businessmen.

9:45 a.m. – Lawerence asks Bennett if staying at KeyArena would cause him undue hardship. Bennett replies “There would be significant and ever growing hardship, but it would not significantly alter our lifestyle." A video deposition is played of Bennett basically saying the same thing.

9:39 a.m. - City's attorney Paul Lawrence asking Bennett about his financial history, investments, his marriage into a well-off family. Bennett agrees with Lawrence that he considers himself a sophisticated investor.

9:36 a.m. - Clay Bennett takes the stand.

9:31 a.m. - Now Taylor is getting into marketing of luxury suites and disputes over that. Singh says he's not aware of any disputes on that issue. Taylor asks Singh if people are unwilling to buy a three or five year suite lease not knowing if the team will be there after 2010. Singh says he can't speak to that.

9:27 a.m. - Now in evidence is exhibit 600, what Taylor calls a "more complete version of the lease" and focusing on the Food and Beverage Service Agreement and Novelties Concession Agreement. Taylor is also questioning Singh about advertising rights and signage. Singh says he can't recall any disagreements between the City and Sonics about those things.

9:17 a.m. - Singh testifies that there isn't as much restaurant space as larger NBA arenas and admits that it would be more attractive to have that space because all proceeds from that wouuld go to the Sonics.

9:10 a.m. - A piece of evidence that was presented by the defense yesterday which ultimately ended testimony for the day is not being allowed by Judge Pechman. Sonics attorney Paul Taylor is questioning Singh about improvements made to KeyArena that were paid for by the Sonics, making the point that the team paid for improvements to a city facility. He's also asking Singh about whether the size of the arena limits is amenities. Singh is agreeing to some of the points, but disagrees with others. For example, when asked if the loading docks at the Key are less accessible than other NBA arenas, Singh says the Key is just as accessible. Taylor is also pointing out that there are only 136 club seats in KeyArena, less than the NBA average which is over 1,000. Singh says there were originally over 1,000 club seats at the Key, but the program wasn't working, so it was downsized.

9:00 a.m. - Court is back in session. Jyo Singh is back on the stand. Judge Pechman says the City has 778 minutes left to present its case while the Sonics have 722 minutes. Both sides have a total of 15 hours (900 minutes) to present their cases.

8:35 a.m. - KING 5's Chris Daniels reports seeing Sonics owner Clay Bennett enter the Federal Courthouse surrounded by about eight security people. Also interesting to note that I saw about 50 people in line to get the limited spectator seats inside the courtroom. In case you hadn't heard yet, there was a spectator in a Sonics shirt in court yesterday who went on a coughing spree for about five minutes why Mayor Greg Nickels was under cross-examination. He reportedly admitted he did it on purpose because of how things were going in the court. In an ironic twist, it was Bennett who offered the man a lozenge. It will be interesting to see if any other interruptions from the spectators today. Judge Marsha Pechman has a reputation for not putting up with that kind of thing.