NBA seeks to be player in legal fray Courts: Fight continues to keep Sonics in Seattle Critics say former owner's lawsuit is ‘far-fetched' remedy. NBA seeks to be player in ex-Sonics legal fray
The team's former owners signed away their legal right to contest the move to Oklahoma City when they approved a release and indemnification agreement as part of the team's sale in July 2006, league officials say.
Because of the release, "former owners are prevented from taking future legal action that could disrupt the efficient management and operation of the league and each of its member teams,” the NBA told a federal judge.
The NBA has asked to intervene in a Seattle federal lawsuit to help prevent coffee mogul Howard Schultz's former Sonics ownership group from voiding the sale of the team to its current Oklahoma owners.
Requests to void the sale and transfer the team to other owners "are fundamentally inconsistent with the most basic rules and regulations governing the operations of the NBA and its member teams, which do not authorize or permit ownership transfers without the express approval of the NBA,” the league said Tuesday in its intervention request.
If the judge does undo the sale, the NBA says it has a legal interest in making sure any new owner is "qualified in all respects to operate an NBA team and has the ability to provide for the long-term financial stability and efficient operation of the Sonics.”
Schultz is chairman of Starbucks Coffee Co.
His former Sonics ownership group sold the team to an Oklahoma group headed by Clay Bennett for $350 million in July 2006.
This year, the Schultz group filed a federal lawsuit in an attempt to void the sale, contending Bennett's group fraudulently represented that it wanted to keep the team in Seattle when its real desire was to move the franchise to Oklahoma City.
Bennett's group contends it made a good faith effort to keep the team in Seattle, but a lack of public financial support for a new arena made the effort unsuccessful.
The team is currently in the process of moving to Oklahoma City after settling another federal lawsuit filed by the city of Seattle. That settlement allowed the team's Oklahoma owners to buy their way out of the remaining two years of a Seattle arena lease.
"The financial success or failure of the business of the NBA is vitally affected and substantially determined by the success or failure of each individual team,” the NBA said in its intervention request.
"The NBA constitution, which binds all NBA owners and member teams, makes clear that the NBA commissioner and NBA Board of Governors have the sole and exclusive authority to approve or disapprove any proposed transfer of an ownership interest in an NBA team.”
In its lawsuit, the Schultz group is asking a federal judge to cancel the sale and appoint a receiver to operate and manage the team until the team can be transferred to "an honest buyer who desires to keep the team in Seattle.”
‘Far-fetched legal remedy'
In the NBA's intervention request, it said that the league's constitution contains a provision that if a receiver is appointed for any team, the NBA's board of governors has the right to cause the team "to be placed under the management and control of the commissioner.”
"The purpose of these provisions is, of course, to ensure that NBA teams are, at all times, operated only by persons that have been found by the NBA Board of Governors to be fully qualified to manage and direct a professional basketball team in accordance with NBA rules and regulations,” the league said. "Enforcing and safeguarding the provisions of its own constitution are plainly protectable interests and entitle the NBA to intervene.”
Dan Mahoney, spokesman for the Oklahoma owners of the former Seattle team, said Wednesday they would have no comment on the NBA's request to participate in the Schultz lawsuit.
Brad Keller, lead attorney for Bennett's ownership group, previously described the Schultz lawsuit as a "far-fetched legal remedy seeking to salvage a tarnished reputation.”
Schultz's attorney, Richard Yarmuth, has denied the lawsuit is a long shot.
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Seattle people. Please focus your energy on getting a new team. Your revenge will come by beating OKC when the teams play. This is the perfect storm for a great rivalry. It will help make a new team a great success. The arena will be packed every time OKC comes to town. Turn a negative situation into a positive outcome. The NBA may not want another team in Seattle if you keep causing trouble for them.
Jeez, give an underdog some credit Le Taureau... OU is and was clearly a better team, has had a history of being an elite football program, but Boise State hung in there and showed a lot, deserved the win, and the right to be proud of the win. OU fans should have enough class to simply tip your hats for one of the greatest college football games ever played... but the other armpit thing and trashy inbred comment was unacceptable and uncalled for, but you actually took more offense to the comment about Boise State beating OU being the best thing to happen to them?? That is just weird.
devin - your ad hominem attacks have no merit. "Even a blind pig can root an acorn ocassionally", so revel in your one big win. When the BS broncos develop the tradition of winning NATIONAL CHAMPIONSHIPS in football then you can come back here and talk smack. Now back to your home under the bridge and stay away from the library computers.
Roger, I see no reason why Seattle wouldn't try anything short of kidnapping Schultz BEFORE he sold the team to Bennett and Co. to keep its team there in the "greater" Seattle area. Hasn't OKC been doing everything they can to get a team themeselves? Did they not build a stadium first before even having a team? Did they not approve stadium improvements (by a 7.5% of the population vote which is just salt in an open wound, and OKC says Seattle does not care, yet OKC did not care enough to have a decent voter turnout for something that was so supposedly important to them - seems rather cheap) I can respect every attempt to either get a team or keep a team in any city... but losing a team sucks. losing a team that had been there for over my entire life and believing it would still be in place long after I die is disheartening. Let Seattle do all that they can, to regret the mistakes made, to be angry over the way in which it was taken - I swear, it would have been better to have had the Sonics pack up in the middle of the night and leave for OKC rather than to witness this slow death of our franchise while no one outside of Seattle Sonics fans particularly cared where the team ended up. And the Schultz lawsuit is now our last hope, so yeah, until the case gets settled, heard, or thrown out, this is not over and I personally would rather cling to a little hope than have no hope at all... because in the end, if the Sonics are truly lost, and Schultz's lawsuit fails, all the Sonics fans will have a loooong time to "get over" losing our team because it seems to me that the NBA is not about to do Seattle any favors as Stern's soft promise of a new team is very weak so Schultz's litigation is the last hope for any Sonics fans out there.
Wow. Lying, cheating, deceiving, defrauding. Lots to be proud about Oklahoma, so I can see why you would all be annoyed over Seattle fans pointing that out.
First it was all a ploy and the NBA would never leave that large a market...Then it was the BOG would shoot down the move...Then they shifted to Gorton as the savior...Then they shifted to Ballmer...Then they shifted to the lease case...Wrong on every single prediction over the last two years yet they still try and be convincing?...Where will they turn to when the Schultz case disappears or gets settled?...Can't wait to find out...Not
I, for one, am getting pretty sick of reading posts from people from Seattle who thenk they are legal experts. Before the trial, we were told that the city couldn't loose because there is a specific performance clause in the lease. Any law student who has taken first year contracts class will tell you that just because a contract calls for specific performance, doesn't mean that a court will enforce it. Now they are saying the NBA thinks its above the law. Its not a matter of being above the law. When Howard Schultz bought the team, he voluntarily agreed to abide the the leagues rules regarding transfer of ownership. If Schultz does win the lawsuit, and I think it is a very long shot, there is no way the NBA would allow the team to go back to Seattle after a year in OKC. What would happen is the Schultz, or another Seattle ownership group, would be granted an expansion team. I have a feeling that is the result that he is trying to achieve. But, like I said, I think it is a very long shot.
Seattle fans responding to this whole legal mess remind me of the Black Knight in Monty Python's Holy Grail movie. King Arthur has chopped off the Knight's arms and legs and the guy is squirming around demanding a fight, anyway.
King Arthur says: "Look, you stupid B*****d. You've got no arms left."
Black Knight: "Yes I have."
King Arthur: "Look!"
Black Knight: "It's just a flesh wound."
Lyn Skyn, the NBA constitution would be third after Federal and State law in any decision in the Schultz suit. Stern merely exposed his fear that the suit has legs. As one used to getting his way, this is out of his jurisdiction however. By sticking his nose in the fray, one can hope that we can put his butt under oath. Now that would be interesting. And speaking of perjury, Mr. Bennett (happy Phillip?) might be a bit worried himself. If Martha can be put away and Barry Bonds brought up on perjury charges, is a big square head from Oklahoma above it all?
I wonder what the NBA doesn't want to come out in this trial??? Remember, schultz was a part of their little "club", and probably has tons of knowledge as to the inner working of the NBA. I don't think that schultz has a chance of returning this team to Seattle, but hopefully enough pressure can be put on the NBA to settle this with a PROMISE of a new team for Seattle, before the dirt comes out. Good luck guys with your new team guys, they should be much better than last year.
Ron-We've heard that BS about wanting to take their son/kids to Sonics games and how that has now been taken away from them from the Seattle side ad nauseum. You might want to think a little before you go calling someone else a hypocrite.
Now let's hear all about how you just want your son to be able to go to NBA games as your justification for spewing your crap again screw the kid's in Seattle right?
Anyone who comes here stating foul play, should not throw stones. THERE IS NO ONE in this world that is perfect and has stolen, or done something against the will of others, and anyone who responds that they have done nothing wrong in this world that voids any moral act, is not only lying through their teeth, but they are a huge hypocrite. Don't throw stones unless you are a perfect human being, and if you want to be mad, be mad at ALL parties involved, not pick the one you feel needs the punishment.
david, oklahoma city - Jul 10, 2008 12:25 Pm hypocrite why don't you practice what you preach
Philip, I undertand and agree with you on the "above the law" comment. What I'm saying is if people are nieve enough to think that courtrooms aren't bought every day, then I've got the proverbial swampland for sale. The NBA is a powerful enough "corporation" to influence judges, lawyers, jury pools, etc. This will go as the NBA wants it to go. Yes, I'm biased for OKC but I'm also not foolish enough to believe there won't be some "behind the scenes" stuff going on in Seattle. Shultz may be Mr. Coffee but not in the same league as the NBA, no pun intended. Can't wait for the Seattleites to rip me on this one...
You posters from the uppity leftist coast epitomize the blue state mentality. A redneck hillbilly (your monniker) outsmarted the big city slicker and all ya'll can do is whine about it...
David, thank you for the morality leason. It has no real relevance, is a horrible ideal, and a weak rationalization for this whole mess, but whatever, it is a great thing that society does not work that way. Schultz has a legitimate complaint, Bennett has a right to defend himself of the accusations, so it should be heard in a court of law to determine what action, if any should be taken in this matter. But fraud, as Schultz is claiming, is not acceptable even though it exists, and has happened before. And the NBA, despite being powerful, is not above the law to do whetever they would like, but again, that should be up to a court to decide.
Anyone who comes here stating foul play, should not throw stones. THERE IS NO ONE in this world that is perfect and has stolen, or done something against the will of others, and anyone who responds that they have done nothing wrong in this world that voids any moral act, is not only lying through their teeth, but they are a huge hypocrite. Don't throw stones unless you are a perfect human being, and if you want to be mad, be mad at ALL parties involved, not pick the one you feel needs the punishment.
Wow, according to Chris, I guess we all better get off these boards and go call our respective lawyers. Apparently we are all "as culpable as Clay Clay" in "stealing" the Sonics (anybody else sick of hearing that?). This, merely because we have sat on the sidelines and wished and hoped for an NBA team and for which we will now buy tickets.
Who brought the lawsuit? Howard Schultz, Starbucks chairman and former Seattle SuperSonics owner, sold the team to an Oklahoma group headed by Clay Bennett in July 2006. This year, Schultz's group filed a federal lawsuit in an attempt to void the sale.
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King Arthur says: "Look, you stupid B*****d. You've got no arms left."
Black Knight: "Yes I have."
King Arthur: "Look!"
Black Knight: "It's just a flesh wound."
david, oklahoma city - Jul 10, 2008 12:25 Pm hypocrite why don't you practice what you preach