Read the entire article here on the Oregonian website.

Kahn buys development teams

By JIM BESEDA
The Oregonian
Tuesday, March 22, 2005

Local businessman David Kahn, who led the Oregon Stadium Campaign's failed bid to lure the Montreal Expos to Portland, is heading a private ownership group that has purchased four National Basketball Developmental League teams set to begin play next season, the NBA announced Monday.

"As of today, we're open for business," said Kahn, whose Southwest Basketball, LLC, will operate teams in Austin, Texas; Fort Worth, Texas; Tulsa, Okla.; and Albuquerque, N.M., raising the number of NBDL teams to 10.

"This is an opportunity for me to take the next step in my career," said Kahn, a former general manager with the Indiana Pacers. "I've never been an 'owner,' and I'm excited to not just fulfill that role, but also experience the attendant pressures that come with it."

Kahn, 43, who said it is important the franchises are not perceived as local teams run by out-of-town interests, still is in the process of making local connections -- everything from potential owners and team presidents to general managers and office staffs -- in each of the four cities.

"The plan all along has been to hold back some ownership for local folks to participate with us, and I want those folks to have a strong local presence," Kahn said. "These teams will very much be the property of these four cities.

"I'm sure I'll be a presence in all four markets from time to time. But if you hire strong, capable people, then that should be good enough. I'm hopeful they'll be able to handle everything that comes their way."

Kahn wouldn't say how much he paid for the four expansion franchises, but said he is "secretly hopeful that in year one we can, at a minimum, break even."

While he ventures back into basketball, Kahn hasn't abandoned his hope of helping bring major league baseball to Portland, but said those efforts have been put "in a firm resting place."

"Right now, there really isn't anything that Portland can do," Kahn said. "Even if somebody wanted to be working on major league baseball right now, there isn't too much to be done until some of the transactional issues at the baseball level work themselves out."

Jim Beseda: 503-221-8380; jimbeseda@news.oregonian.com

quote:

While he ventures back into basketball, Kahn hasn't abandoned his hope of helping bring major league baseball to Portland, but said those efforts have been put "in a firm resting place."

"Right now, there really isn't anything that Portland can do," Kahn said. "Even if somebody wanted to be working on major league baseball right now, there isn't too much to be done until some of the transactional issues at the baseball level work themselves out."

Let me clarify this statement by David as I discussed the MLB to Portland effort with David directly just over a week ago...

"Transactional issues" pertains to a couple of things...

The first transaction that has to be completed is the sale of the Washington Nationals.

As with the award of the Expos, there can be only one "winner" for the purchase of the new DC franchise, and then after that, there will be 7 other bidders that will be looking to get into the ownership game with the next franchise. Beyond that, MLB isn't going to focus on any further relocation, in any capacity, until this sales transaction with the Nationals is completed.

The second "transactional issue" revolves around the completed sale of the A's to Lewis Wolff, and Wolff's attempt to finalize funding for a new facility in Oakland. It is far too early – actually, the game hasn't even started yet – to determine whether Wolff and Oakland can, or cannot finalize funding for a new facility next to the Coliseum. Until there is a clear indicator that options are running out in Oakland, you can't move on that transaction.

Trust me, David's still very interested in MLB to Portland. He gets updates from me daily on anything that is occurring within the sphere of Business of Baseball that would impact us, and we converse on the matter via email, phone or in person fairly regularly.

As I have often times said, there needs to be a level of patience and a great deal of observation for several months, and perhaps as long as a year, before there is a good sense of where the wind is blowing on relocation options.

It's over for the forseeable future, which I would liken to the next 0-5 years, minimum. Sorry.

I think five years is a bit of a stretch. The new ownership has been very up front about their expectations. New ballpark or else. They won't word it that way of course, but everyone who's been to South Oakland and visited that monstrosity knows it's days are numbered one way or the other.

With the departure of Mulder and Hudson, it will be interesting to see how well they compete in the AL East. If the A's fall far off the pace of the last six years, the fans will disappear in droves. it's happened too many times in the past.

I'm not one that wishes ill will on anyone, but I believe it's in the best interest of River City to have Oakland falter this year.
If that happens and the 7,000 a night crowds return, the new ownership will be clamoring for a new park all the more.

And once and for all, San Jose is a complete non issue. SF will never give it up. I expect the dirt to be dug on a new park in the next two years. if not ownership will definitely be looking to move.

The question of "when" is irrelevant. The question of whether there is a group willing to be diligent in bringing MLB to Portland is the more relevant question.

To address a number of comments on how Portland moves forward on the MLB front...

The effort will need to be in observation mode for probably a year. You can't start getting the public, business, and political fronts jazzed up about relocation while a candidate is in the very early stages of trying to sort things out in their own backyard. Until Oakland is near a point where they are starting to run out of options, you hold back and see where things are headed and prepare to push when the timing is more opportune.

On presenting matters to the public at PGE Park, etc. At this time, I would not be approaching the new GM at PGE Park on this matter, one because it would be inappropriate given the state of the Beavers at this time, and two, as outlined above, it's far too early to consider that type of request. Consider the fact that many that follow this type of business of baseball situation are impatient in the result, and bring it up a notch or two. The general public would be asking if a team is coming, and the answer would be, "We'll have to wait to see if a team is even available." Not exactly a great method for keeping the average fan at a high level of interest.

The time will come when all these areas will be explored again, as there will come a point where discussion of making all the pieces come together in Oakland become more clear.

My suggestion is to delve into the business of baseball as much as possible, simply so the understanding of all the dynamics involved in this type of transaction are better understood.