Originally published Thursday, July 10, 2008 at 12:00 AM
NBA seeks to intervene in lawsuit aimed at unraveling Sonics sale
The NBA filed a motion Tuesday with U.S. District Court Judge Marsha Pechman in Seattle to intervene in Howard Schultz's lawsuit to rescind the 2006 sale of the Sonics to an Oklahoma City ownership group. Schultz, the Starbucks CEO, claims Clay Bennett's Professional Basketball Club fraudulently induced the Basketball Club of Seattle to sell the Sonics and Storm for $350 million and wants the court to unwind the transaction, place the Sonics in a collective trust and sell to an "honest buyer who desires to keep the team in Seattle."
Seattle Times staff reporter
After months of sitting on the sideline — and nearly a week since Clay Bennett struck a deal with the city of Seattle to move the Sonics to Oklahoma City — the NBA wants to intervene in Howard Schultz's lawsuit to rescind the 2006 sale of the team to Bennett.
Schultz, the Starbucks CEO, claims Bennett's Professional Basketball Club fraudulently induced the Basketball Club of Seattle to sell the Sonics and Storm for $350 million and wants the court to unwind the transaction, place the Sonics in a collective trust and sell to an "honest buyer who desires to keep the team in Seattle."
In a motion filed Tuesday with U.S. District Court Judge Marsha Pechman in Seattle, Richard W. Buchanan, the league's vice president and general counsel, said Schultz's remedy would undermine the league's constitution.
"These claims for relief 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," Buchanan wrote in the motion.
Buchanan added the league wants to protect its interest and preserve the integrity of the process by which teams are sold and owners are selected. In most cases, the NBA Board of Governors votes to approve prospective owners before they're allowed to purchase a team.
NBA spokesman Tim Frank declined to comment Wednesday, and Schultz's attorney Richard Yarmuth did not return messages.
Generally, opposing counsel has 10 days to respond to a motion. The NBA wants Pechman to hear oral arguments by Aug. 1.
Pechman, who has yet to set a schedule in the lawsuit, could rule on the decision after receiving a written response from Yarmuth or after listening to oral arguments.
The NBA's motion is the latest move against Schultz's lawsuit. His case took a hit last week when Bennett secured a $45 million buyout, which allowed Bennett and the other owners to break the KeyArena lease and immediately move the team to Oklahoma City.
As a condition of the buyout, Bennett wanted the Schultz lawsuit dismissed, but Schultz declined to participate.
"The BCOS case will continue," Yarmuth said last week. "Our lawsuit is separate."
In Tuesday's motion, the NBA also submitted several exhibits, including documents that outline the league's procedures for transferring control of a team. According to the league constitution, if the Sonics sale were rescinded, the team would be put "under the management and control" of NBA commissioner David Stern.
Other documents released by the NBA included an agreement from the BCOS in which they agreed not to take any action against Bennett's group as a condition of the sale.
Percy Allen: 206-464-2278
Copyright © 2008 The Seattle Times Company
UPDATE - 9:40 PM
Portland stops Orlando, which plays without suspended Dwight Howard
Chicago Bulls hand Miami Heat fourth straight loss | NBA
Local NBA connections: Catching up with Martell Webster
New Jersey earns 137-136 victory over Toronto in 3 OT in London
Ex-Washington Husky Nate Robinson has knee surgery | NBA

general classifieds
Garage & estate salesFurniture & home furnishings
Electronics
just listed
***Stunning Akc POMERANIAN baby girl W/ FUL...
12 U Select Baseball Coach Wanted
1994 WIn 1901
More listings
POST A FREE LISTING
- Agency set to investigate handling of 911 call about Josh Powell
- Proposal to link Market, aquarium may be too ambitious for Seattle
- Chilling 911 tapes reveal pleas for help to go to Josh Powell home
- Lakewood cop accused of embezzling $150K meant for slain officers' families
- UW's Shawn Kemp Jr. makes own way despite familiar name, number | Steve Kelley
- State Medicaid program to stop paying for unneeded ER visits
- NBA's David Stern open to league returning to Seattle
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Prosecutor: Powell's final act ends doubt he killed wife
- Was idea of court-ordered test too much for Josh Powell?
- State Medicaid program to stop paying for unneeded ER visits
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Here it is: The secret to stir-fried chicken | Taste
- Local aerospace suppliers say they feel squeezed by Boeing
- Dicks channeled federal money to Puget Sound project his son ran
- 'Gauguin and Polynesia': dazzling mix-and-match | Art review
- Buttoned Up: Nine immutable laws of time management
- Happy Hour: French-accented charm at Gainsbourg
- One man's audacious pursuit of sailing history
- Gay-marriage bill passes House, awaits Gregoire's signature
