Uncertainty surrounds Trail Blazers’ future in Portland amid Moda Center funding dispute
The future of the Portland Trail Blazers in Portland remains uncertain as discussions continue regarding the funding for renovations to the Moda Center. City and county leaders are scheduled to address the draft term sheet and potential public funding this week, while the city and the Trail Blazers franchise have exchanged accusations in local media.
The dispute centers on a proposed 20-year lease agreement, which includes labor agreements and property tax offsets. An anonymous team source, cited by Bill Oram, indicated that the team might “toss aside” the entire deal, including a $365 million commitment from the state government. This source suggested that the cost of relocating the Blazers could be offset by an increased valuation of the franchise in a new location.
Negotiations at a standstill
The city has presented the Trail Blazers with a draft term sheet for a 20-year lease. However, sources within the organization reportedly called the initial draft a “non-starter.” According to John Canzano, an anonymous source involved in the negotiations from the city’s perspective stated that Tom Dundon‘s group, representing the Trail Blazers, has not responded to the term sheet. This lack of response has effectively stalled talks, as the city is unwilling to alter the term sheet without input from the team.
The team’s new board of directors, comprising controlling owner Tom Dundon and at least four co-owners, was scheduled to meet to discuss the situation. A potential outcome of this meeting could be the ownership group resetting negotiations and reconsidering the $365 million state commitment.
The team official also highlighted economic challenges, noting that the Trail Blazers ranked last in the NBA in sponsorships last season and were the only team without a jersey patch sponsor. Citing the city’s business climate and rising construction costs, the official added that the deal would only “get worse with time.”
Public investment and community concerns
The draft term sheet includes a proposed public investment of $573 million for Moda Center renovations. In exchange, the Trail Blazers would be required to stay in Portland for at least 20 years and make a $3 million annual payment from Rip City Management, among other provisions.
City Councilor Mitch Green expressed opposition to the city’s current draft, calling it rushed. He stated that it is “unseemly to offer blank checks to a team that’s threatening to move.” Green emphasized the need for clearer answers before committing significant public funds, especially given tight budgets and competing priorities such as potholes and homelessness.
Some fans, however, believe the investment is worthwhile. Lifelong Blazer fan Ben Isaacson, a season ticket holder since 2008, stated that the team is integral to Portland‘s identity, saying, “I don’t even think we’re a city without the Blazers.” He also suggested that the money spent on renovations would pay for itself over time, unlike other less impactful economy boosters.
The provisions for unionized labor and partnerships with agencies in the Albina neighborhood, where the arena is located, have been described as particularly burdensome for the Blazers. A team source questioned the city’s intent, asking, “Why is the city sending this thing knowing that we’re not going to agree to it?” The source further claimed that the city does not recognize the favorable nature of the deal it received.
On Wednesday, the Portland City Council is set to hold an executive session to discuss the term sheet, followed by a Moda Center meeting by Multnomah County Commissioners on Thursday.
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Source: blazersedge.com
