Allen, Rose Garden Group Agree to Bundle Team And Building

Salem-News.com SPORTS

PORTLAND - Portland Trail Blazers owner Paul Allen and the group that runs the Rose Garden Arena have come to an agreement that would allow the team and the building to be sold together as a package.

"We are pleased to have reached this agreement with Portland Arena Management. We look forward to working with PAM to explore ways to enhance the future prospects of the Trail Blazers franchise and the Rose Garden arena," said Lance Conn of Vulcan, Allen's holding company.

The agreement would make it easier to sell the Trail Blazers.

At least two parties have come forward to express interest in the team, one led by former Trail Blazer Terry Porter and the other by Mark Wattles, who founded Hollywood Video.

Terms of the agreement, including the potential value of the franchise, were not released.

Earlier this year Allen, the billionaire co-founder of Microsoft, said that the team was hemorrhaging money and he was seeking a public partnership to keep the Blazers in Portland.

Part of the reason that the Blazers were losing money was that Allen had relinquished ownership of the Rose Garden by declaring it bankrupt in 2004. That meant lost revenue from things like luxury suites.

Vulcan and Portland Arena Management, the group of bondholders that now runs the arena, had struggled to find common ground on an agreement which would allow both the team and the building to be sold together - making the Blazers more desirable for a potential buyer.

But the two sides issued a joint statement on Wednesday that said the parties had "entered into an agreement under which they will work together to examine ways to maximize value for their respective operations."

Both sides say a sale would be one way to do that.

"We are pleased to be working with Vulcan to explore ways to maximize the value of the Rose Garden and the Trail Blazers. As the owners of the Rose Garden, we see this process as potentially helping to accelerate the advancement of the Rose Garden for the benefit of our respective groups," PAM Chairman Thomas Luther said.

In March, the two sides were so far apart that the NBA pulled out of negotiations to help find a solution. Allen had estimated the team would lose some $100 million over the next three seasons.

The NBA and commissioner David Stern would be involved in deciding the team's future, Vulcan spokesman Andy Brimmer said.

"We will be consulting with the NBA as the process moves along and we welcome the NBA's participation and look forward to David Stern's support," he said.

Allen's representatives will also continue discussions with the city of Portland.

"We've had productive meetings with the city over the past few months and we appreciate their interest," Brimmer said. "We will continue to have a dialogue with city officials as the process develops."

Rob Kremer, spokesman for Porter's group, did not immediately return phone calls seeking comment on the agreement. Messages were also left at Wattles' offices in Las Vegas.

Allen's announcement about the team's financial situation came as the Blazers were wrapping up one of the worst seasons in franchise history. The Blazers finished with the league's worst record, 21-61.

The team recently decided not to extend general manager John Nash's contract. Team President Steve Patterson is serving as the Blazers' interim GM.

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