U.S. Sen. Ron Wyden warned NBA owners Friday, Sept. 25, that he will target the league's federal tax benefits if they let the Trail Blazers leave Portland.
Wyden, the ranking Democrat on the Senate Finance Committee, identified three tax policies he oversees that benefit pro sports: tax-free bonds used to build arenas, goodwill amortizations on team purchase prices and the tax treatment of rising franchise values. The threat was first reported by The Oregonian's Bill Oram.
"Other owners should apply their experience to convince Tom Dundon it's in everybody's interest," Wyden said, "and they can use whatever kind of approach they want."
The message is aimed at the NBA's 29 other franchise owners. Wyden wants them to pressure Dundon, who also owns the NHL's Carolina Hurricanes, to finalize a long-term Moda Center lease or vote to block any relocation bid if one reaches the Board of Governors.
No public response from Dundon or the Trail Blazers organization had appeared as of Friday.
The December deadline
Dundon faces a Dec. 31 deadline to bring binding legal documents before Portland City Council. The council approved a non-binding term sheet on Aug. 12 for a $573 million Moda Center renovation funded by three sources: $365 million in state-backed bonds under Senate Bill 1501, $88 million from Multnomah County and $120 million from the city.
Neither the city nor the county has publicly identified where its share of the money will come from. Local governments have not yet established the Joint Authority that would operate the renovated arena.
The most recent sign of progress: Portland City Administrator Raymond Lee flew to Dallas earlier in September for a face-to-face meeting with Dundon.
Wyden's leverage
If Democrats retake the Senate in November's midterm elections, Wyden would almost certainly return as Finance Committee chairman with broad regulatory power over sports-related tax policy. He is the second-longest tenured Democrat in the Senate caucus.
Wyden has a long friendship with NBA Commissioner Adam Silver dating to the mid-1980s, when Silver worked as an aide to Oregon Rep. Les AuCoin. The two were photographed sitting together at a Blazers game on March 13.
Silver himself has signaled support for keeping the team in Portland. At a Sept. 15 press conference following the Board of Governors meeting in New York, Silver said he spent significant time with Dundon over two days and that Portland discussions came up in a committee meeting.
"I would see it as a failure if we did not keep the team in Portland," Silver said at the Sept. 15 press conference, according to Willamette Week.
Expansion narrows Dundon's options
The Board of Governors also voted in September to explore expansion in Seattle and Las Vegas. Portland City Councilor Dan Ryan told Willamette Week the expansion vote may reduce Dundon's leverage by limiting available relocation markets.
Wyden, who helped lead the effort to bring the WNBA's Portland Fire to the city, cited the Fire's inaugural season as proof Portland can sustain professional sports. He said he plans to attend the Blazers' fan fest in October at Moda Center.
