Nickels said he's attended two Sonics games in the last 10 years.

In his cross examination, Sonics attorney Brad Keller tried to get Mayor Greg Nickels to admit that a 2006 city task force determined that the Sonics were suffering from an economic hardship because of KeyArena.

After several exchanges, Nickels grudgingly admitted the point. But he tried to assert that both the city and the team were not benefiting from the original lease.

Keller established that former Sonics owner Howard Schultz had complained about the limited revenue-generating potential of KeyArena.

Nickels acknowledged that the long-term the lease was not beneficial to Sonics ownership.

Keller described the lease as "economically dysfunctional," however, the mayor declined to use that characterization.

Keller introduced a Seattle Center task force report that agreed with the city's KeyArena subcommittee that the building had become antiquated and outdated.

Paul Lawrence, the lead attorney for the city of Seattle, made several objections during Keller's cross examination and argued a lack of foundation. Judge Marsha Pechman overruled the objections each time.

At 11:31 a.m., Keller began a line of questioning on what the city of Seattle did while the Professional Basketball Club lobbied to build a new $500 million arena in Renton.

Nickels said Deputy Mayor Tim Ceis told state lawmakers that they would need to consider adding another $30-40 million to pay off the KeyArena debt. The mayor said he did not think the additional cost would hinder PBC's effort to gain support for a new arena.

At 11:36 a.m., Keller introduced an April 2006 letter from Nickels and the City Council to Gov. Christine Gregoire that said a new facility outside of Seattle should not be built.

At 11:48 a.m., Keller introduced a July 2007 e-mail between former Sonics President Wally Walker and a Nickels' staff person.

Nickels repeatedly stated he had not met personally with Walker, however, Keller established that Nickels' staff was consulting with Walker.

It seems Keller is trying to establish that Nickels was in cahoots with Walker and the John Stanton group long before the city filed its lawsuit. If Keller establishes this point, he can assert that the city's lawsuit isn't about the final two years of the lease, but about the city's plans to "bleed the Sonics dry."

Keller repeated Nickels' infamous "lawyering up" quote and noted that the city set aside $1 million for legal fees.

At 11:56 a.m., Nickels said he's attended just two Sonics games in the last 10 years. Keller asked: "Are you going to feel pride and exuberance if the only reason they are here is because of a court order?" Nickels stumbled through his first response then said "yes" when asked again.

Keller hammered in on Nickels about Seattle being a word-class city before Pechman interrupted the questioning and suspended the proceedings for a lunch break.

The trial will resume at 1:30 p.m.

Percy Allen

Nickels says he did not help create the Ballmer group's offer

The morning session resumed at 10:45. During the break, media inside the courtroom noted that Jeffrey Johnson, a lawyer for the city, momentarily froze when Sonics attorney Brad Keller's objection was held. One reporter said: "It was awkward. Like he didn't know what to do next."

Two reporters observing the morning session said Keller gave a more impressive opening argument.

Johnson returned to questioning Mayor Greg Nickels in the second morning session.

Nickels said he did not assist in creating the Steve Ballmer, Matt Griffin, John Stanton and Jim Sinegal group that offered to split the cost of a KeyArena renovation and buy the Sonics.

Nickels said he did not consult with former Sonics President Wally Walker at any point during the past year or so, but he has had discussions with Griffin.

At 10:57 a.m., Johnson finished questioning Nickels and Keller began his cross examination.

Percy Allen

Nickels testifies that Bennett's reaction to renovating KeyArena "wasn't much of a reaction"

At 10:13 a.m., Mayor Greg Nickels took the stand and answered questions from one of the city's lawyers, K&L Gates attorney Jeffrey Johnson. Nickels is the first witness in the trial.

Nickels described his first meeting with Clay Bennett. The mayor said he presented Bennett with options about renovating KeyArena and "the reaction was, there wasn't much of a reaction."

Nickels said in May 2007, he was approached by the Sonics owners about a buyout, but he said he wasn't interested.

In July 2007, Bennett made an offer to meet with Nickels face to face. The meeting never took place because Nickels said he read in newspaper reports that Bennett said: "If my intention was to talk about KeyArena, it wasn't something he wanted to talk about."

Bennett responded by saying: "If he wanted to talk about a buyout it wasn't worth the cost of a plane ticket."

The next communication between Nickels and Bennett was a series of legal filings. Bennett filed a resolution to the lease and the city responded with its lawsuit.

Johnson asked: "Can the Sonics be replaced by having a college team?"

Nickels replied: "Not the role that the Sonics play." Nickels said the city benefits from the Sonics.

At 10:30 a.m., Johnson tried to introduce a letter from the owner of Sport Bar and Grill and get Nickels to expound on his belief that the Sonics play a key role to city. But Sonics attorney Brad Keller objected and Judge Marsha Pechman upheld the objection.

Before Johnson could get into another line of questioning, Pechman broke for recess at 10:31. The trial will resume at 10:45.

Percy Allen

Sonics attorney says strategy used by Gorton, Walker, Ballmer was "bleed them until they sell"

In his opening statement, Sonics attorney Brad Keller said the case hinges on two fundamental premises. He acknowledged the city wanted a 15-year commitment from the Sonics for the 1994 renovations, but argued the second fundamental premise was that "the Sonics would have a venue that was economically feasible and comparable from an economic and physical standpoint to other NBA venues."

Keller said the relationship between the city and the Sonics "broke down. And it failed as the years went by and just got worse and worse."

Keller said that while Clay Bennett's Professional Basketball Club was in Olympia lobbying for a new venue in Renton, the city of Seattle was thwarting that effort. "The landlord response was, 'You either play in my sandbox or drown in red ink.' "

Keller said when the city helped in the construction of Safeco Field and Qwest Field, KeyArena's luxury suite sales plummeted.

Keller told Pechman that she will learn about the economics of an NBA arena. That an NBA arena needs to be able to generate revenue streams well beyond selling seats. That an NBA arena needs very special amenities to attract suite holders.

Keller's first evidence was information about the inadequacies of KeyArena. He noted that the average NBA arena is 700,000 square feet and KeyArena is half of that. He said other arenas have larger coaches offices and locker rooms. He said the federal courthouse has a news conference room and KeyArena does not.

Keller highlighted a 2006 report from a city task force that said: "KeyArena has significant shortcomings and issues that affect the financial health of its tenants. ... The original funding plan doesn't work."

Keller introduced his "unclean hands" defense later in his statement. He noted that Slade Gorton, one of the city's attorneys, conspired with former Sonics president Wally Walker and Microsoft CEO Steve Ballmer to "force bleeding of about $20 million per year to get them to sell."

Keller said the trio engaged in a "bleed them until they sell" strategy that began months before the city filed its lawsuit November 2007.

Keller said the city has other tenants and treats them better. He said the city's other tenants are allowed to leave their lease. He said Seattle is a world-class city and would still be a world-class city without the Sonics.

Keller said a lame-duck relationship would not benefit either the city or the team. He downplayed arguments about the civic pride surrounding the Sonics.

Keller noted that lawmakers failed to support a KeyArena renovation package four times. He noted the passage of I-91 and said "the public has made it very clear how it views sports teams." He said 30 percent of the ticket buyers didn't go to games last season. He said television ratings have declined and the situations would just get worse.

Said Keller: "The last two years of this lease is all that this case is about. And rightly or wrongly the owner of this team has decided to move to Oklahoma City and instead of losing $60 million, it stands to make a profit of $10 million."

Finally, Keller said: "This marriage is broken and it has been broken for over five years. We say it's time to stop."

The city has called Mayor Greg Nickels as its first witness.

Percy Allen

City makes its opening argument

Judge Marsha Pechman calls the trial to order at 9 a.m. and Paul Lawrence, the lead attorney for the city of Seattle, began with his opening argument.

Lawrence spoke for 20 minutes, highlighting the benefits the team received from the $84 million KeyArena renovation in 1994 that was financed by taxpayers. He said Clay Bennett and his co-owners are "smart businessmen" who knew about the lease and knew the team was losing money before they bought the team.

Lawrence said the team has brought undue hardship upon itself and stressed the importance of forcing the team to honor its lease.

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Bennett greeted with calls of "liar" and "thief" as he arrives for trial

Sonics co-owner and chairman Clay Bennett arrived at the federal courthouse shortly after 8 a.m. with his team of attorneys in tow. Bennett hurried up a ramp on the side of the building and rushed in the front entrance attempting to avoid the small gathering of Sonics-clad fans gathered on the courthouse steps.

The fans greeted Bennett with insults, yelling "liar" and "thief." Bennett did not acknowledge them and neither did his lead attorney Brad Keller or spokesman Dan Mahoney.

Mayor Greg Nickels, who will be the first witness to testify, arrived at the building around 8:30 a.m. He will address the media after his testimony. Lawyers representing the city will speak each day at 4 p.m.

Judge Marsha Pechman overestimated public interest in the trial. She allocated 44 seats and established a lottery in which anyone wanting to attend the trial needed to sign up between 7 a.m. and 8 a.m. for a court pass.

Only 15 passes were distributed.

Percy Allen