Washington lawmakers balked mostly at the last-minute proposal, which would have to be approved before the legislature adjourns Thursday.
"There is absolutely no chance of us considering it this legislative session,” Rep. Jeff Morris told the Seattle Post Intelligencer.
The Seattle-based investor group is led by Microsoft CEO Steve Ballmer and includes Costco CEO Jim Sinegal, Seattle developer Matt Griffin and former Sonics part owner John Stanton.
Although Gregoire said the local interest "has dramatically changed the temperature in the Legislature,” she added that the state shouldn't aid their cause as long as Bennett refuses to sell.
"If there's no opportunity for them to buy a team at this point, there's no point for the Legislature to do anything this session,” Gregoire told The Seattle Times.