Trail Blazers Owner Paul Allen Reportedly Buys Back the Rose Garden

BREAKING NEWS: True Hoop's Henry Abbott just tipped me off to the fact that Portland Trail Blazers Owner Paul Allen has just signed a letter of intent to buy back the Rose Garden arena from Portland Arena Management. I have now confirmed this through several sources. An announcement from Vulcan (Paul Allen's company) and Portland Arena Management should be forthcoming. If you recall back in 2004 Paul Allen filed Chapter 11 bankruptcy. On January 1 2005 PAM took over operation of the Rose Garden and all of the revenue streams that go with it. As I told you a few weeks ago on my radio show reps from PAM were in New York meeting with NBA Commissioner David Stern as Stern tried to broker this deal. Its been a long drawn out standoff but now seems to be over. Now that Allen has the Rose Garden back he has all of the revenue streams that are the lifeblood for any pro sports team - courtside and preferred seats concessions parking ad signage etc. Allen will likely continue as the owner of the Trail Blazers but now that he owns the arena again it gives him much more leverage if he decides to sell the team at some point. Nobody in their right mind would have purchased ONLY the team or ONLY the arena....any potential buyer would ONLY buy the two entities together. The Seattle Sonics sold for $350M last year to a Oklahoma City group led by businessman Clay Bennett. That deal did not include the arena. If Allen were to sell the Trail Blazers with the Rose Garden at some point its quite likely he would get at least $400M for the package (Phoenix Suns sale at $401M is the most money ever paid for an NBA franchise). Another thing not to forget is that Allen owns a good chunk of the real estate around the arena. Could this land be part of a future sale of the team and arena or will Allen now develop the property on his own now that he owns the Rose Garden again? Regardless this is good news for Trail Blazers fans who wanted some stability for the franchise. More details of this transaction to come on this weekend's edition of Sports Business Radio. UPDATE: Here's the press release I just received from Paul Allen's company regarding this deal. I spoke with people involved in the negotiations late yesterday and I have little doubt a deal will in fact get done. As you'll see by the quotes in the release below everyone seems to finally be on the same page now. Vulcan Inc. and Portland Arena Management Sign Letter of Intent PORTLAND Ore. Feb. 2 /PRNewswire/ -- Vulcan Inc. and Portland Arena Management LLC (PAM) today announced that they have signed a letter of intent under which an affiliate of Vulcan will acquire PAM which owns among other things the Rose Garden Arena. Additional terms of the agreement were not disclosed. Vulcan is owned by Paul G. Allen who also owns Trail Blazers Inc. With this letter of intent we've taken a positive step forward. Assuming this deal gets finalized it will be a major milestone which will strengthen the long-term financial health of the Trail Blazers " said Paul Allen. "First and foremost we want to thank the City of Portland David Stern and the NBA for their continued support and diligent effort as we progress towards a solution. We also want to thank our great fans dedicated employees and loyal corporate sponsors for their patience as we work through these challenges now and in the future." Thomas Luther Chairman of the Board of Portland Arena Management said that "PAM is pleased to have reached an agreement with Vulcan to ensure that the Trail Blazers will remain in Portland. The team has long been an integral part of the community and we believe this resolution benefits all interested parties -- PAM's members the City of Portland and the team and its fans. I also want to thank David Stern and the NBA for their efforts in assisting the parties in reaching this agreement. We look forward to working with Vulcan the Trail Blazers and the NBA to promptly conclude this transaction." David Stern Commissioner of the NBA said "The ultimate winners here are the fans of the Portland Trail Blazers and the City of Portland and I want to thank both the Trail Blazers and Portland Arena Management for going the extra mile to reach this important agreement." Vulcan and PAM said that discussions were ongoing and neither party plans to make any additional public comments until a final agreement is reached. About Portland Arena Management Portland Arena Management LLC owns the Rose Garden in Portland OR. The Global Spectrum-managed Rose Quarter includes 20 000-seat Rose Garden 12 000-seat Memorial Coliseum 6 500-seat Theater of the Clouds 40 000-square foot Exhibit Hall and the Rose Quarter Commons. Home to the NBA Portland Trail Blazers the National Lacrosse League Portland LumberJax which started play in the 2006 season and the WHL Winter Hawks the Rose Garden is a $262 million multi-purpose arena that opened in the fall of 1995. The Winter Hawks also play in Memorial Coliseum which opened in 1960 and served as the original home of the Trail Blazers. Memorial Coliseum is attached to 40 000-square foot Exhibit Hall and seven meeting rooms. The Commons Portland's largest outdoor public plaza connects the Rose Garden and the Memorial Coliseum and can accommodate up to 5 000 people for outdoor events. Ovations Food Services is the official food and beverage concessionaire for the Rose Quarter. About Trail Blazers Inc. Founded in Portland Oregon in 1970 the Portland Trail Blazers won its only World Championship in 1977 under the leadership of basketball great Dr. Jack Ramsay. The team has a rich history of community involvement supporting issues focused primarily on children and education. With a corporate culture that promotes volunteerism the Blazers Community Builders employee volunteer program was a key centerpiece in the Trail Blazers receiving the prestigious National Points of Light Award for Excellence in Corporate Community Service. The Trail Blazers were the first and continue to be the only professional sports team to achieve this honor. About Vulcan Inc. Vulcan Inc. creates and advances a variety of world-class endeavors and high-impact initiatives that change and improve the way people live learn do business and experience the world. Founded in 1986 by investor and philanthropist Paul G. Allen and under the direction of President and CEO Jody Patton Vulcan oversees various business and charitable projects including real estate holdings and investments in more than 40 companies from Charter Communications DreamWorks Animation SKG and Digeo to the Sporting News the Seattle Seahawks NFL and the Portland Trail Blazers NBA franchises. In addition Vulcan projects and affiliate organizations include the Allen Institute for Brain Science SpaceShipOne First & Goal Inc. independent film production company Vulcan Productions the acclaimed Seattle Cinerama Theatre Experience Music Project the Science Fiction Museum and Hall of Fame and the Paul G. Allen Family Foundation. For more information about Vulcan visit http://www.vulcan.com. "

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