NBA seeks to intervene in Schultz lawsuit to retain Seattle

Journal Record, The (Oklahoma City), Jul 10, 2008 by Marie Price

The NBA wants to intervene in a lawsuit filed by former SuperSonics owner Howard Schultz in Seattle federal court.

In a new court filing, attorneys say the NBA has a "strong and compelling interest" in the outcome of the litigation, in which Schultz's Basketball Club of Seattle is asking the court to rescind the sale of the team to the Professional Basketball Club, headed by Oklahoman Clay Bennett.

League attorneys told the court that the Schultz organization's claims "are fundamentally inconsistent with the most basic rules and regulations governing the operations of the NBA and its member teams, which do not authorize or permit ownership transfers without the express approval of the NBA."

The NBA also said the group's requests for relief are barred by a release the plaintiffs executed in exchange for league approval of the transfer of the Sonics to Bennett's group in July 2006.

"By conditioning a transfer on the release of all claims against the NBA and its owners, former owners are prevented from taking future legal action that could disrupt the efficient management and operation of the league and each of its member teams," the attorneys told the court.

The NBA approved the $350 million deal in November 2006.

"Because the ongoing ownership and control of the Sonics is directly at issue in this lawsuit, and because plaintiffs are attempting to transfer the Sonics to a receiver - and ultimately a new owner - the stable operation of the Sonics unquestionably has been put at risk by this proceeding," the NBA told the court.

The league has "an interest in ensuring that the team is transferred to an owner that is qualified in all respects to own and operate an NBA team and has the ability to provide for the long- term financial stability and efficient operation of the Sonics,' the NBA said in the filing.

The Schultz organization filed suit in April, alleging that the Bennett organization misrepresented its intention for the team's ultimate location.

A lawsuit has also been filed by a group of Seattle fans.

Last week, Bennett's organization and the city of Seattle settled another lawsuit regarding the team's lease of a Seattle arena, which resulted in an agreement to relocate the team to Oklahoma City.

Bennett's Professional Basketball Club is to pay $45 million to get out of the final two years on the lease, with another $30 million in the hopper if Seattle does not get another NBA team.