About Blazers Owner Takes Team Off Market
|August 5th, 2006||#1|
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Blazers Owner Takes Team Off Market info
PORTLAND, Ore. -- Trail Blazers owner Paul Allen has pulled out of negotiations to sell the team. Allen, the billionaire co-founder of Microsoft, and Portland Arena Management, which runs the Rose Garden arena, had been working together to sell the team and the arena as a package.
"As a result of the process, multiple bids were received, a number of which were in a range which PAM found acceptable, and PAM confirmed that it wanted the sale process to continue to pursue negotiations with certain of the bidders," the arena management group said Thursday. "However, Mr. Allen has advised PAM that he does not wish to pursue a sale of the team at this time, and the sale process has been terminated."
Allen's investment company, Vulcan Inc., issued a statement that said the two sides were unable to reach a mutually agreeable solution.
"No single entity has invested more over the years than Vulcan has in the Trail Blazers -- and in that sense, no single entity has more at stake in an outcome that enhances the future prospects of the Trail Blazers as a franchise than we do," the statement said.
Bids for Oregon's only major league franchise were due last week. It was not known what bids were made
Portland finished with the league's worst record last season, 21-61, and Allen said the team's financial situation was poor.
Allen relinquished ownership of the Rose Garden in bankruptcy proceedings in 2004. Giving up revenue from luxury suites and other arena sources contributed to the Blazers' financial losses.
In the offseason, he agreed with the arena management group to combine the Blazers and the Rose Garden to attract a buyer.
Several groups made public their intentions to bid, including an effort led by former Blazer Terry Porter and another by Mark Wattles, who founded Hollywood Video.
Prices for the past five NBA teams sold have fallen in the range of $300 million to $400 million. The owners of the Seattle SuperSonics recently announced a deal to sell the team to an Oklahoma City group for $350 million.
"We will continue to explore ways to address the broken economic model under which the franchise now operates, while working to ensure the viability of the Trail Blazers as a team and a business," the Vulcan statement said.