Portland Blazers owner stalls arena lease negotiations amid high cost estimates
Trail Blazers owner Tom Dundon halted talks with city officials over the arena lease's first-class standard clause, citing a valuation of over $1 billion, while NBA and state officials press for a resolution.
Portland’s Trail Blazers owner Tom Dundon cancelled a scheduled meeting with city officials, NBA representatives and league officials that was to discuss the team’s arena lease. The meeting was set for the week of the Blazers’ home opener but was called off, according to sources familiar with the negotiations.
The dispute centers on a clause in the current bridge lease that requires the franchise to maintain the Moda Center to a "first-class" standard. Blazers president of business operations Dewayne Hankins previously said the city must acknowledge the arena’s condition to remove the threat of litigation and allow negotiations to proceed.
Dundon indicated willingness to resume talks if the city could assign a specific dollar amount to the first-class standard requirement. City officials reportedly responded with a figure exceeding $1 billion, which Dundon deemed unacceptable.
Relocation costs add further complexity. Estimates suggest the NBA could impose $1.5-2 billion in relocation fees, potentially raising the total expense to more than $3 billion. Commissioner Adam Silver has warned that a move would be considered a "failure" for the league.
Senator Ron Wyden, who helped pass state funding for Moda Center renovations, has signaled that a Senate finance committee chairmanship could lead to increased scrutiny of the league’s business practices if the team seeks to relocate.
The lease also contains a provision requiring a 20-year commitment to the arena, which Dundon has sought to replace with an option for a ten-year buyout. The owner has expressed concerns about the local economy’s impact on the franchise’s growth.
Recent NBA team valuation rankings show the Blazers at 28th, the lowest in the six-year history of the list, with a modest 3.5% increase in value compared with a 21% league-wide rise.
"The first-class standard has been wielded as a weapon, chilling our negotiations. The city must acknowledge that the arena is and remains in first-class condition," said Dewayne Hankins at a public meeting.
"I would consider it a failure if the Blazers relocated," said NBA Commissioner Adam Silver.
The franchise begins the 2026-27 season amid the ongoing dispute, marking the 50th anniversary of its sole championship.