Peltoncast No. 506

As you can tell from the intro, sports are happening in the city of Seattle, the reigning Super Bowl champions.

Seattle Mariners opening day is on tap, which means we have your favorite version of your favorite segment coming in later in the pod.

But we have to start.

the latest updates on nba expansion we delayed the podcast to wednesday because we wanted to record this after the board of governors had voted on this latest stage of expansion which they unanimously voted to explore expansion to seattle and las vegas specifically and engaged in investment bank pjt partners is a strategic advisor So Adam Silver said in the press conference after the Board of Governors meeting today, just to make that distinction, we didn't announce today that we're expanding.

We're exploring expanding, meaning that there's the economic implications of what the value of that franchise or franchises ultimately determined by the market.

Then the league has to make an assessment whether it's then worth it to go forward at those valuations.

Some other quotes here relevant to Seattle from the questions he was asked, some of them specifically about Seattle.

Chris Daniels and Tim Booth were there from the local market.

Referring here to the owners as a whole, I think they care a lot about who their potential partner or partners might be, then particular situations in each market, like what arena would we play in? What are plans? Are people looking at other arenas? All of those are part of the consideration set.

This was actually not Seattle specific, but potentially relevant.

I just want to make sure everybody understands there's been no handshakes on the side, no commitments, no promises to anyone.

This is a completely transparent process.

Nothing is set in stone right now.

Okay.

So then he was asked, with regards to both Seattle and Vegas, there had been reports that multiple ownership groups preempted in Vegas.

I do expect there will be multiple bidders, he said, referring to both locations.

And the decision about who gets the team or about awarding a team, I think it has more to do with who comes forward as the potential owner, understanding the arena situation, understanding the economics, because putting aside what somebody's willing to pay for the franchise, we want to make sure they're in a position to be successful, whether that means sharing a building with the hockey team, referring to the Kraken here, whatever arrangement is put forward, although there could be a similar situation in T-Mobile Arena with the Golden Knights.

So leading up to this announcement, something that's been in the works for a long period of time, the Kraken announced the official formation of One Roof Sports and Entertainment is an umbrella group overseeing, for now, the Kraken, Coachella Valley Firebirds, and their other operations, but something that an NBA team would very neatly fit into.

And there was, you'll recall back when I was reporting on expansion with Tim Bond, Temps and Brian Windhorst in the summer of 2024, Sam Holloway, Samantha Holloway, the managing owner of the Kraken had indicated in an email to season ticket holders at the end of the previous Kraken season that this was coming and then didn't happen then.

when expansion was also sort of delayed.

Now that is officially happening two days before this vote.

Simultaneously, also the Kraken announced that they have bought part of the equity from Oakview Group in Climate Pledge Arena, becoming the majority shareholders in the arena that they call home.

Okay.

I mean, that's an interesting distinction also, I guess.

Do we want to talk overall about the Sonics or about this particular ownership group?