City negotiates letter of intent NBA franchise

(March 14, 2008) - Oklahoma City Manager Jim Couch announced today the City has negotiated a Letter of Intent with Professional Basketball Club, LLC to relocate its NBA basketball team to Oklahoma City.

Timing of the proposal is contingent on the outcome of ongoing court proceedings between the team and the City of Seattle as well as approval by the NBA in mid-April.

The Letter of Intent was presented to the City 10 days following voter approval of a 15-month, one-cent sales tax dedicated to making major improvements to the Ford Center and construction of a NBA practice facility.

The agreement will be introduced to City Council on March 18 and voted at the March 25 meeting.

Pending approval by the NBA, the City will enter into a 15-year contract with the franchise.  At the end of the contract the team can enter into five, three-year lease extensions.

The team will pay the City $1.64 million annually for 41 regular season home games as well as $40,000 for each pre-season and post-season home game. The team will also continue to pay the City the revenue it currently receives from naming rights, $409,000.

The City will receive $100,000 annually from the team for use of a practice facility, which will be built and owned by the City.  The practice facility may be used for City events during the NBA off season.

The Letter of Intent is on the City’s Web site at www.okc.gov/fordcenter.