--Seeking to protect the league's interests in Howard Schultz's bid to regain control of the Sonics, the NBA filed a motion to intervene in the former principal owner's lawsuit in U.S. Western District Court in Seattle.
Schultz filed suit in April against the Oklahoma City-based ownership group, led by Clay Bennett, seeking to undo the $350 million sale of the team. Schultz claims in the lawsuit that Bennett's group never intended to keep the team in Seattle and cites internal e-mails revealed in litigation between the city of Seattle and the new ownership group as evidence of the intentions of Bennett and his partners.
Schultz's lawsuit cites breach of contract, fraud and negligent misrepresentation. It seeks to rescind the sale of the team on the grounds that Bennett and his partners did not live up to a "good faith, best efforts" provision in the sale agreement to spend 12 months trying to negotiate a new arena deal in the Seattle area.
Hours before an expected ruling from U.S. District Court Judge Marsha Pechman, the city and the Sonics agreed to a settlement that could bring $75 million to the city by allowing Bennett's group to break its lease with KeyArena and move the team to Oklahoma City.
However, when the city agreed to settle its case against the team, the settlement included no provision to dismiss Schultz's lawsuit.
Should Schultz continue his court action and win, the settlement goes away and Bennett could be forced to return the team to Seattle, while the city would be forced to refund the $45 million payment it received in the settlement.
A motion filed by Ralph Palumbo of the Summit Law Group, a Seattle law firm representing the NBA, claims the Schultz suit skirts the league's constitution, putting the franchise's stability at risk.
The Schultz lawsuit seeks to put the team in a trust and have it sold to Seattle-based owners. However, according to the league's filing, the NBA's constitution states that if a receiver is appointed for a team, the league's Board of Governors has the right to place the team in the control of NBA commissioner David Stern.
--Rookies Russell Westbrook and D.J. White signed deals with the Sonics. Westbrook will make $3.5 million in the first year of his deal, while White will make $1 million in the first year of his rookie contract.
QUOTE TO NOTE: "Personally, I didn't think we would move this soon. I settled in Seattle, bought a house with my mom, we moved out there with my family. That was my home. But it's a part of the business. We've got to get up and move." -- Sonics rookie Kevin Durant on leaving Seattle for Oklahoma City.
