Allen looking to sell the Blazers

wow i never knew he has lost that much freakin money over the past decade....insane

http://sports.yahoo.com/nba/news;_y...?slug=ap-trailblazers-allen&prov=ap&type=lgns

Allen spokesman warns Blazers have uncertain future

By WILLIAM McCALL, AP Business Writer
February 23, 2006

PORTLAND, Ore. (AP) -- Billionaire Paul Allen's spokesman said Thursday the future of the Portland Trail Blazers is in doubt after Allen's investment managers estimated the NBA franchise stands to lose more than $100 million over the next three years.

Lance Conn, who heads Vulcan Capital, Allen's privately held investment firm, told The Associated Press in an interview that "all options are on the table" because "the economic model is broken."

Allen, a Microsoft co-founder, has lost more than $12 billion on various investments in the past decade, and his NBA team has been hemorrhaging money for much of that time.

He had to sell off his interest in the Rose Garden Arena, the home of the Blazers, after the company that ran it, Oregon Arena Corp., declared bankruptcy.

Conn told AP that Allen has decided it is time to cut his losses with the Trail Blazers -- or find a new way to finance the team.

"No business person could justify these kinds of losses continuing," Conn said.

Portland Mayor Tom Potter had no immediate comment but he has scheduled a meeting with Trail Blazers officials for Friday morning, a spokesman said.

A spokesman for Gov. Ted Kulongoski said the governor met with Vulcan and Blazers representatives two weeks ago, but there was no discussion about a bailout.

"I don't know what would leave the (Blazers) ownership the impression there is an opportunity for broad-scale public financing," said Pat Egan, Kulongoski's chief of staff. "I don't know how they could draw that conclusion at this point."

Conn said Vulcan has invested $600 million in the team and the arena since 1988 but has yet to see a profit.

He also provided an economic impact study done for the team that suggested the Trail Blazers pumped $2 billion in direct spending into the regional economy and $3.8 billion in indirect spending. The study by Horrow Sports Ventures also noted the team generated more than $127 million in taxes and other public revenue since the franchise was formed in 1971.

Conn also said the Portland arena lease "is recognized as one of the worst in the NBA."

In a comparison with the Key Arena lease for the Seattle SuperSonics, Conn said the Trail Blazers receive no revenue for suites, clubs, courtside seats, game concessions or parking.

The Sonics, by comparison, receive 40 percent of the revenue for suites, 60 percent for clubs, and 100 percent for courtside seats, game concessions and parking.

NBA Commissioner David Stern recently told AP that he considered the Seattle lease "the least competitive lease in the league, which is a decided economic disadvantage."

But Conn said the Blazers' lease is "far worse" than the Sonics' lease.

Stern did not immediately return calls left with the commissioner's office in New York.

But Stern indicated last week the NBA may not stand in the way if Sonics principal owner Howard Schultz decides to move or sell the team after telling the Washington Legislature he needs $200 million to remodel Key Arena or build a new home for the Seattle team.