Video: Judge to deliver ruling on Sonics trial today

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SEATTLE – The City of Seattle and the owners of the SuperSonics have reached a settlement on the KeyArena lease lawsuit, according to The Seattle Times.

The paper reports Seattle Deputy Mayor Tim Ceis and City Attorney Tom Carr have briefed members of the Seattle City Council.

The Oklahoman newspaper is quoting Seattle City Councilmember Richard McIver, saying "I hear that they were trying to work one up but I didn't know whether they were successful or not."

McIver went on to tell the paper that he thought the settlement talks centered round the Sonics leaving Seattle, but that the lawsuit by Howard Schultz needed to be withdrawn for anything to go forward.

The Times quoted councilmember Jean Godden saying "It looks like it, but I'm afraid what little I know is sworn to secrecy until after the mayor's press conference."

The mayor is set to hold a press conference at 5 p.m.

Calls by KING 5 News to the Seattle City Council have not been returned.

Judge Marsha Pechman is set to rule at 4 p.m. today whether to let the Sonics out of their lease at KeyArena or force them to stay and face estimated losses to the team of up to $60 million over the next two seasons.

During six days of testimony last month, both attorneys for the City of Seattle and the Sonics ownership marched out economists, city leaders, KeyArena officials and one Sonics fan to talk about the financial, cultural and emotional aspect of the team to Seattle, as well as to go through the language of the lease signed after the arena's renovation in 1994.

But the most dramatic testimony involved the e-mails between Sonics owners and others indicating the team was talking about moving away from Seattle as soon as two months after completing the purchase of the team in 2006 – this despite a promise to negotiate in good faith on a new arena for the Sonics for twelve months. Sonics majority owner Clay Bennett insisted in court he was still negotiating in good faith.

On the other side, Sonics attorneys feel they have shown the city had unclean hands and was involved in a plot to force the Sonics owners to sell by making it too expensive for them, both litigiously and in the public eye. The city denies having previous knowledge of the so-called "poisoned well" plan, but the Sonics' legal team questioned how two entities who had the same goal could go forward without knowing what each other was doing.

If Judge Pechman rules for the City, Bennett has said repeatedly that he will abide by her decision. However, an appeal is still possible by either side. If the Sonics win, a separate trial will determine how much the team has to pay to get out of the lease.

Schultz, the man who sold the Sonics to Clay Bennett and the Professional Basketball Club, is suing for breach of contract. Part of the sale included a promise by Bennett for 12 months of good faith efforts to secure an arena before talking about moving the team.

Schultz is asking for the 2006 sale to be rescinded and to have the team held in trust until new local owners can be found.

The Sonics say KeyArena is not a viable NBA facility and adds that disagreements with the city have hurt the team's bottom line.

The NBA has already approved the Sonics move to Oklahoma City, but it's contingent on the completion of the litigation. If the Sonics are forced to stay, they will have to re-apply for a move, which would likely be approved anyway.

Some Oklahoma City officials have also threatened to sue if the Sonics don't move there. The team has signed a lease for the Ford Center to begin whenever the team moves.

KING5.com and NWCN.com will post the ruling as soon as it comes down at 4 p.m. followed by minute-by-minute coverage of reactions. Also be sure to sign up here for breaking news e-mails.