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).

4:03 p.m. Court is recessed for the day. Hatamiya will lead off tomorrow. Also could see writer Sherman Alexie, whom the City says will wrap up its case. Could also see Seattle City Councilmember Nick Licata tomorrow. Future witnesses include former Sonics President Wally Walker and local developer Matt Griffin. We're also waiting to hear from Sonics minority owner Aubrey McClendon.

3:55 p.m. - Barth is excused. Next on the stand is Lon Hatamiya, a Harvard-educated economist who also has a law degree and MBA from UCLA. He was asked to draft an opinion on the Sonics' economic contribution to Seattle, which he says is positive.

3:48 p.m. - Johnson finishes re-direct. Keller is back with more questions, going back to what the point about the Mariners high TV ratings during their playoff runs that Barth tried to volunteer earlier. Johnson again moves to strike, wondering where he gets those numbers from. Barth clarifies that he doesn't have access to the Mariners ratings specifically except for what he reads in the media. Johnson comes back up and makes the point that the Mariners have very low ratings this year (M's have the worst record in baseball). Barth agrees the bad season has something to do with the low ratings.

3:45 p.m. - Johnson points out that when the Sonics unexpectedly made a playoff run in the 2004-05 season, single ticket sales went up due to increased interest late in the season and that spilled over the following summer into ticket sales for the following season.

3:40 p.m. - Johnson revisiting the Sonics 3-year outlook report from Icon Venue Group (see yesterday's minute-by-minute for more on this). Barth tries to comment on comparisons of Icon's report to his own on the revenue projections, but this is the first time he's seeing the Icon report and can't comment, so Johnson drops it.

3:32 p.m. - More financial documents, including a Goldman Sachs prediction about the team's predicted losses through 2010.

3:22 p.m. - Going back to the TV ratings (see post at 2 p.m.) Johnson points out that the low ratings in 2006-07 was the worst in 20 years and came after the Oklahoma group bought the team. The ratings last season came after the worst record in the team's 41 year history. Johnson points out that came after PBC announced it would seek arbitration to get out of the lease. Barth then tries to volunteer a comparison to Seattle Mariners ratings. Johnson moves to strike and Pechman agrees, saying it's out of the scope of the question.

3:15 p.m. - Exhibit 514 is a September 2004 e-mail from Gerry Johnson of Preston Gates law firm (now known as K&L Gates, which is representing the City in this case). It includes talking points about the Sonics, one of which points out that, from the Sonics perspective, the KeyArena lease is the worst in the NBA and that the team may have to leave the city, if not the region, in order to turn the revenue around. Keller wraps up and Johnson re-directs. Johnson goes back to the earlier comment from Barth that nobody was calling for season tickets. Johnson points out that the team isn't even accepting orders for season tickets, to which Barth says the team didn't think it would be prudent based upon the current situation with the future of the team being up in the air.

3:02 p.m. - Back from break. Keller trying to bring in a new exhibit of a study in order to illustrate more of the costs from the Sonics as a lame duck franchise, but City is objecting to the methodology by a group called MZ Sports. Pechman is allowing it, but says if there is not a witness to testify later to support the study, there can be a motion to strike. Again, hard to see the entire document on the exhibit monitor, but basically, the idea is revenue vs. cost ratio projection is not good for the next two lame duck years if the Sonics have to stay at KeyArena. Another study by MZ Sports on projected revenues is submitted and objected to. Pechman makes the same ruling.

2:40 p.m. - Keller showing more exhibits about what the Sonics will have to pay out to the city, but the evidence monitor that we are seeing it on is cutting off dates, so it's hard to follow exactly, Basically, the point being made is that what the team has to pay to the city continues to go up. Court is in recess until 3 p.m.

2:35 p.m. - Exhibit shows attendance has dropped by more than 2,000 fans per game on average between the 2005-2006 season and this past season. It was 9,146 in the 2007-08 season, 27th in the NBA. Barth predicts based on the current marketplace, he does not expect that to turn around soon and says it could drop all the way to 30th, last in the league.

2:30 p.m. - Another exhibit charting season ticket sales. Total seat sales have been cut in half over a five year period. Another chart showing paid attendance shows the average net gate repceipt has dropped from $576,475 in 2000-01 (17th in NBA) to $457,863 in 2007-08 (27th). That's out of 30 teams in the league.

2:23 p.m. - Exhibit 509 shows the drop in suite revenue going to the Sonics, starting at $1.5 million for 23.5 contracted suites in the 2005-06 season down to a projected $231,403 for about four contracted suites in 09-10. Barth admits part of this drop is due to the effort to relocate.

2:20 p.m. - Barth explains there was also concessions issues with the city, including the fact the city had to give final approval to pricing. There was also a battle at one point over whether they could sell 20 ounce bottles of Pepsi because of concern there would be a manpower issue for cleaning up the trash from that.

2:15 p.m. - Barth testifies that out of about 125 positions on the Sonics staff, 23 have been vacated in the last six months. Barth says the situation has become a strain on the organization. "Keeping up general morale is going to be difficult." said Barth about the coming months and years. Barth says there has been some battles with the city on putting up advertising inside KeyArena. Barth says the city didn't want them seen from the outside.

2:10 a.m. - Showing an exhibit illustrating what Barth calls a "no show rate" -- percentage of people who have tickets but don't use them. Of those who had tickets in hand, the following percentage actually showed up to games: 2003-04, 80.9 percent; 04-05, 83.6 percent; 05-06, 79.6 percent; 06-07, 71.9 percent; 07-08, 71.4 percent. Barth testifies there are indications that that number will continue to drop and expects business to be difficult to get people to come back for the next two years if they know the team will be moving anyway.

2:06 a.m. - Barth testifying he is noting some apathy about the team in regards to their future. For example, he says after the NBA Board of Governors approved the Sonics move in April, there were no calls, positive or negative. After winning the fourth pick in the 2008 NBA Draft last month, Barth said there was no indication anyone was calling for tickets.

2:00 p.m. - Defense attorney Keller now cross-examining. First he presents an exhibit showing how Sonics TV ratings on FSN have dropped every years since 2004-05, the last season the Sonics made the playoffs. (3.12 in that season, 1.67 the next season, 1.60 next and 1.24 last season). Then he has Barth go through a step-by-step example of how the NBA is structured by conferences, divisions and how a team makes it to the playoffs, then how a team advances through the playoffs. Barth then testifies that a team gets a four percent bump in revenue for making the first round of the playoffs, and then a little bit more if they make it to the next round and so on.

1:55 p.m. - Johnson then asks Barth about the final game of last season in which KeyArena was packed with fans. Barth could only speculate it was packed because fans thought it might be the final game in Seattle.Near the end of the game, when the Sonics were clearly going to win, fans started chanting "Save our Sonics." At this point, the defense objects, basically asking what the point is. The judge sustains the objection and Johnson finishes questioning. For those not keeping score, the objections in the trial are clearly going in favor of the defense.

1:50 p.m. - More charitable examples presented, including the Sonics and Storm T.E.A.M. organization. Johnson asks if that kind of community involvement is good for business, to which Barth responds yes. This is followed with examples of press coverage in general (box scores, game recaps, Durant winning Rookie of the Year) -- all of which identifies the team as the Seattle SuperSonics.

1:45 p.m. - Johnson and Barth go over the Sonics' "Hip to be fit" program which promotes physically health kids, as well as the "Read to achieve" program promoting literacy. Then a video is shown of Nick Collison at an elementary school reading to children.

1:42 p.m. - After the video, Johnson and Barth go through more examples of charitable work. Barth mentions that former Sonic Ray Allen's foundation is still active in Seattle, but not sure if that's the case with former Sonic Rashard Lewis. Then another video is shown of Sonics players, including Kevin Durant and Nick Collison at a Christmas-time charity event.

1:35 p.m. - Court is back in session with Barth still on the stand and the questions involving community involvement by the team continues. Attorney Johnson shows a video exhibit Sonics players Kurt Thomas, Jeff Green and Kevin Durant at what appears to be a school assembly for Black History Month

11:55 a.m. - Johnson presents more exhibits with examples of Sonics players doing charitable work and a letter of appreciation from the Boys and Girls Club that states "You are truly a community partner in every sense of these words." He also shows a letter from Ronald McDonald House praising the Sonics and Storm. Johnson clearly trying to make the point that the Sonics are in integral part of Seattle on the civic level. Judge calls lunch recess at 12:04 p.m. Back at about 1:30 p.m.

11:50 a.m. - Up on the stand is Sonics Interim President and CEO Danny Barth. He is being questioned by Jeff Johnson for the city. Johnson is asking Barth about reasons why people would go to an NBA game, such as watching quality basketball, wholesome fun, etc. He's also questioning Barth about promoting players, specifically Rookie of the Year Kevin Durant. Barth replies that they focused last season more on promoting the team than promoting individual players, including Durant. Johnson then presents evidence of a tracking sheet related to the NBA Cares promotional program. Under a section called "player appearances" from Sept. - Dec. 2006 which included former Sonics Ray Allen and Rashard Lewis attending an assembly at Cleveland High in Seattle where some equipment had been stolen.

11:45 a.m. - Keller shows more e-mails, including another between Bennett and Kneeland stating that it would be easier to work directly with the King County Council on the details of an arena instead of the Legislature partly because of the deadlines in Olympia. Keller is done, and now Lawrence is up again. He's looking at a Goldman Sachs report on profilt projections. Lawrence points out a line in the report that says the $60 million loss projection assumes the team stays in KeyArena through the end of the lease in 2010 and that the team secures a new arena lease on terms as favorable as the average NBA team. Bennett's testimony is done.

11:34 a.m. - Lawrence finishes his re-direct by asking Bennett again if the PBC could accept the $60 million dollars in projected losses if the Sonics are forced to stay at KeyArena, to which Bennett says yes. Keller is back again questioning. he goes back to the e-mail mentioned in the last posting of this timeline about staying away from the investment financing. Bennett testifies that this statement was from November 2006, very early in the arena process. Bennett goes on to say basically it was too early to commit to specific numbers.

11:28 a.m. - Going through another e-mail string between Bennett and Jim Kneeland in regards to an newspaper interview about progress on the arena in which Bennett advises Kneeland to stay far away from talking about the investment in the arena. Lawrence quickly going through more e-mails now on the subject of public and private investment in the arena, including one in which Bennett writes to Kneeland in February of 2007 that they still had not announced a site or finanacing plan for the arena. By this time, the Legislature was already in session.

11:18 a.m. - Lawrence now presenting into evidence a memo from Bennett to PBC members dated June 15, 2007. It's an investor update. It states "We will be playing our games in Seattle next year. While the League was willing to consider a special relocation process, we could not meet ther requirements before their June 1 deadline." It goes on to mention the ideas that had been floated for an arena, including the Muckleshoot Tribe plan. It goes on to say the City of Seattle is still pushing the KeyArena renovation idea. Bennett writes "In the context of our 'good faith best efforts' commitment and working with our lawyers and communicating consultants, I am planning to respond as follows when the City ulimately gets their request to the media: 'We will consider a renovation fo KeyArena.'" But Bennett testifies that those discussions never happened afterward.

11:15 a.m. - Another e-mail from Bennett to McClendon about working with media counselor Lisa Levine about launching a PR campaign around the time PBC was asking for arbitration on the lease. “It is clear that such a strategy will have little or no (or quite likely negative) effect in Seattle, but we are attempting to impact the national sports media and most important (NBA Commissioner) David (Stern) and the other owners," Bennett writes.

11:06 a.m. - Exhibit 139 is presented - the e-mail between Bennett and McClendon after McClendon's interview in which he stated the reason the PBC bought the team hoping to move it to OKC. McClendon writes to Bennett "Oh no, just read this, have I created problems for you? I am so sorry, the truth is we did buy it with the hope of moving to OKC, but we did first have an obligation to Seattle to negotiate in good faith, which of course you have done. Does the team need to put out a clarifying press release? Again, I am so sorry about this." This is followed by Exhibit 138, Bennett's response in which he writes "I am concerned from a legal standpoing that your statement could perhaps undermine my basic premise of "good faith best efforts" when you infer that it was basically neve the plan to stay in Seattle." He adds that his lawyers are contemplating the next move.

11:00 a.m. - More from that last e-mail. Bennett writes “So yes, I am probably confused, conflicted, frustrated and becoming fairly hard edged about our requirements and the ability for all to perform within a time frame that will keep me within the window of opportunity relative to relocation.” Another e-mail string is presented from November 9, 2006 - nine days after the sale - involving Brent Gooden and Bennett. Gooden says "The question of the hour is what constitutes a good faith effort." Then another e-mail from July 2007 between Gooden and Bennett regarding a press release being released to the media about the next step for the PBC. In it, Bennett writes "In some respects, the tactics we are executing in Seattle tomorrow are part of our strategy to lay the groundwork to explore several options, including relocation."

10:48 a.m. - Court back in session. Still going over the NBA approval of ownership. Lawrence making the point that the approval of sale did not necessarily mean an approval to move the team. Lawrence says Bennett had to demonstrate to the league he would engage in "good faith best efforts" to work on an arena deal, to which Bennett agreed. Now Lawrence showing e-mail string between Tim Romani (Icon Venue consultant) to Bennett in December 2006 - two months into the "good faith" period. Highlighting a section in which Bennett asks "In doing the work we have done and now advising Washington leadership of our findings and inviting them to actively participate in a response - Have we met our obligation of "good faith best efforts?"

10:30 a.m. - Lawrence shows a letter from November 1, 2006 from the NBA approving the sale of the team to the PBC. Bennett agrees that the letter includes a clause saying PBC accepts all liabilities that the previous Schultz ownership had up until sale. Court in recess until 10:45 a.m.

10:22 a.m. - Lawrence makes the point again that PBC rejected KeyArena out of hand from day one. Bennett then testifies that none of the PBC owners, including himself, ever came out to look at KeyArena befoer the July 2006 sale. He says some representatives of PBC, including attorneys, did. Lawrence follows this by an e-mail from PBC negotiator Ed Evans to Bennett in which Evans said after meeting with Seattle Deputy Mayor Tim Ceis that they had a good conversation about a renovated KeyArena. Bennett testifies he characterizes it as a "good conversation," but admits that he never told Evans to tell Ceis that a renovated KeyArena was not an option.

10:17 a.m. - Bennett testifies that he did try to get some private funding for the arena, but that it needed a certain amount of public funding to be a good business model. Now, Lawrence is going over the Ford Center in Oklahoma City, which itself will have to be renovated over the next couple of years to reach NBA standards, something Bennett agrees is correct and adds on his own that a public referrendum was passed by 62 percent to pay for the funding of the renovation. Lawrence is showing an inside picture of KeyArena, pointing out that fans sit very close to the floor. Bennett testified earlier that courtside seating was key to a successful arena, but admits now that the Ford Center won't have that for at least a year. He adds that Ford Center has good sightlines (a good place to watch basketball).

10:10 a.m. - Lawrence really pushing the 'man possessed' title. Asks Bennett if, after the failure in the legislature, if a number of consultants for PBC stopped working on the arena issue, to which Bennett said yes. Lawrence points out that this is only six months into the 12 month "good faith best efforts" period.

10:05 a.m. - Lawrence says he wants to get back to "this 'man possessed' period." He shows an e-mail string from April 2007 (a few days before the 'man possessed' e-mail) between Bennett and Brent Gooden, PR guy for the PBC. Bennett advises Gooden that after learning that an arena deal would not go through the legislature, the PBC can now go forward with trying to get out of the KeyArena lease.

10:01 a.m. - Now showing an e-mail string between then-Renton Mayor Kathy Keolker in which she presents an arena proposal that would include cost overruns for the team. Bennett advises her not to get too far out on the idea because "cost overruns is a non-starter." The next day, Bennett send her another e-mail saying "Sorry Kathy this is just nothing we can consider.

9:56 a.m. - Going back over an e-mail presented yesterday from Apil 2007 in which Bennett asks Ballmer's advice. Ballmer advised Bennett to let him know what he could do to help. Bennett then responds to1 Ballmer "We are OK for now, getting a little better news in Olympia," and adds "Governor is working hard." Lawrence asks if there was any correspondence afterwards, to which Bennett said there were phone conversations, etc.

9:50 a.m. - Lawrence shows e-mail string between Bennett and Microsoft CEO Steve Ballmer from February 4, 2007. Bennett in the e-mail explains all the revenues associated with a new arena, and writes that the contribution from the team would be "nominal and should include development costs and some portion of ongoing operating losses." Bennett admitted that he did not disclose that to the legislature in his pitch. He's not sure whether he told Gov. Chris Gregoire.

9:44 a.m. - Keller's done. Re-direct by Lawrence. He asks Bennett if he had the city put provisions in the lease that if they put forth a good effort to get an arena but failed or didn't understand the political climate in Washington state if that would allow him to not perform his end of the lease, to which he said no. Lawrence then shows video deposition about whether Bennett talked to any of the players about the potential move, to which he said there was no indication the players were upset about the possibility. Then, Lawrence shows an e-mail chain from Jim Kneeland in which he heard "through my grapevine sources that the team is upset about the prospect of a move." Bennett's response to Kneeland was "Boo Hoo..." But Bennett says he has contacted players in response to this comment (which was made public a few weeks ago) and said he apologized to them and everything is basically OK.

9:40 a.m. - Bennett asked about the process that got him to the courtroom today. "We bought the team with grand visions for success," he said. Then admits that PBC didn't to everything right and made mistakes, but worked as hard as it could to get an arena deal done. "I believed at the bottom of my heart we would succeed," he added, but disapointed that they didn't.

9:36 a.m. - Bennett implying that the uncertain future of the Sonics is causing difficulty retaining people all throughout the staff. City's attorney Paul Lawrence objects as heresay. Objection overruled.

9:31 a.m. - As Bennett explains everything involved in building a competitive team, he mentions things like drafting players (noting that the NBA draft is next week and the Sonics have a high pick) and free agency. Keller stops, apparently trying to explain to the Judge what that means, to which the Judge replies "I know what free agency is." Bennett then goes on to say that the uncertainty over the future of the Sonics makes it hard to sign prime free agents, so Bennett says the team is basically taken off the table when it comes to getting the best players in that market.

9:26 a.m. - Bennett testifies studies show PBC will lose $60 million over the next two years at KeyArena, When asked by Keller about the earning estimates in Oklahoma City, the city objects as irrelevant. Objection overruled. Bennett says they expect to make a $7 million profit next season and $10 million the following season at Ford Center. Keller stops Bennett and points out that PBC will still have to pay the KeyArena rent, to which Bennett says he's fully committed to do. Then Bennett explains what constitutes the big difference between Seattle and OKC. He says the primary reason is the building (The Ford Center), a competitive lease with the city and fan support.

9:22 a.m. - Keller asks Bennett why he decided to consider moving. Bennett says PBC was out of options - no prospects for a new arena, a bad relationship with lawmakers, etc

9:20 a.m. - Bennett going over his history in ownership of amateur and pro sports teams over the past 20 years. He once had a stake in the San Antonio Spurs.

9:15 a.m. - Bennett testifies that after the Olympia defeat, he did approach the city manager of Oklahoma City to see if there were any dates available at the Ford Center to host NBA games. He also testifies he contacted the NBA about it, saying that the league was also upset with the outcome in the state legislature, but that a move would be dependent on what happened with the lease in Seattle. Responding to a question from Keller, Bennett says that's what led to the e-mail to NBA President Joel Litvin six days after the "man possessed" e-mail.

9:10 a.m. - Keller now presenting an email from Tim Romani again dated Deember 1, 2006, basically advising Bennett not to focus on KeyArena not being an good NBA facility because that had already been addressed with the Schultz ownership. He advised Bennett to focus more on what a new arena would mean for the Puget Sound region. Bennett then testified that after the defeat in the legislature in 2007, that PBC issued a press statement that there was little hope of getting a deal done, but when asked by Keller if he was still drying, Bennett responds "absolutely."

9:06 a.m. - Bennett says PBC said that when sale was negotiated that the PBC would have ultimate say as to what the ownership would pay towards a new arena. Bennett says PBC did not intend to pay any cost overruns on the construction of the arena, but was willing to pay cost overruns to what he calls "NBA specific" items.

9:02 a.m. - Court is called to order. Judge Marsha Pechman says the City has 601 of its 900 minutes remaining to present its case. The Sonics have 593 minutes left. Brad Keller, attorney for the Sonics, is back with his cross-examination of Bennett, going over the sale agreement and that there is a clause (Section 5.3) in which states there will be 12 months of good faith best offorts to negotiate an arena lease "to be used as a successor venue." Bennett making it clear in his testimony that he made it clear to the city that he meant a new arena, not a renovated KeyArena.

8:56 a.m. - Bennett is already on the witness stand waiting for the court to be called to order.

8:24 a.m. - Much of the media is waiting outside the Federal Courthouse in Seattle for Sonics Majority Owner Clay Bennett to arrive. He is expected to be first on the stand to finish his testimony. Other witnesses today we're expecting to hear from are Sonics minority owner Aubrey McClendon, business specialst Todd Menenberg (expert witness), economist Lon Hatiyama (expert witness), writer Sherman Alexie and Seattle City Councilmember Nick Licata.