Article VII, titled "Relocation," establishes the parameters of how an ownership group applies to move.
It must:
- Apply in writing.
- Identify the city and arena in which it plans to play.
- Pay a $250,000 fee to the league to defray the costs of the league's investigation of the group. (If the investigation winds up costing less than $250K, the group gets the difference back.)
- Apply for relocation by March 1 of the preceding season.
- The Relocation Committee must have at least five participating members for a quorum. And that committee must make a report to the full Board within 120 days of receiving the application.
For its part, the relocation committee must, as detailed in Article VII, make its decision on specific criteria. This includes:
- What is the support of the team in the existing location?
- What is the ability of the existing location to continue to support the team?
- What is the demographic breakdown of the existing location -- the population, age, income, market size for cable or other television?
- Conversely, what are the same conditions like in the city to which the owners want to move?
- What would be the effect of relocation on the overall ability to market the league? How would it affect the league's television partners, if at all?
- Would there be a particular disadvantage to travel and/or scheduling by allowing the move? (Interestingly, Article VII also allows for this possibility: are there any other owners who might want to move their teams to that market? This allows for the possibility that there could be an owner willing to spend even more to move there, allowing the league to max out the financial possibilities of a given market.)
Article VII also establishes that the league can demand a relocation fee from the owners that are planning to move the team. Clay Bennett's group paid $30 million to be allowed to move the Sonics from Seattle to Oklahoma City in 2008; it's likely the league would ask for more than that to let the Kings move to Seattle -- because approving the move would close the Seattle market to anyone else. What is it worth to the NBA to not have Seattle available in the future as a possible expansion destination, as opposed to Sacramento? Yet the relocation fee is not likely to be so onerous as to threaten to scotch the deal; the NBA wouldn't ask for, say, $150 million from the Kings' owners.
Article VIII, titled "Arenas," is key as well. The basic tenet of Article VIII is that the Commissioner must be satisfied that the arena to which a team is moving to play is acceptable on an interim basis, and that the new owners are committed to making whatever temporary upgrades are needed in the building until a new arena is built.
The relocation committee will also use Article VIII to determine which arena plan it believes is more viable, realistic and will be completed sooner.
Hansen's group has proposed moving the Kings to Seattle in time for next season, playing two years in Key Arena, where the Sonics used to play. After that, the team would move into a new arena near the Mariners' Safeco Field, in what is known as the South of Downtown (Sodo) area. Hansen estimates the building will cost $491 million, with the city of Seattle contributing $200 million toward construction, and Hansen's group contributing the rest.