Since my retirement as president of the Trail Blazers in 1993, I have refrained from making any public comments about the organization, even though I must admit there have been times when I had a gnawing temptation to do that.
But in light of recent comments by owner Paul Allen, and the various statements that have been made by others in his organization, many of my friends and Blazers fans have urged me to speak out.
I take immense pride in having brought Portland into the sports major leagues back in 1970. Through the years, the Trail Blazers organization has had some tremendous accomplishments, including the NBA Championship in 1977, three Western Conference Championships and the longest sellout streak in the history of professional sports.
Portland ranks in the top three for consecutive playoff appearances in NBA history. Our organization always put character on the same level as talent when evaluating players.
On the business side, we ran a profitable operation every year. Going into the Rose Garden, 100 percent of the suites and more than 80 percent of the club seats (including the first five rows at courtside) were sold, and arena advertising sales exceeded projections. Local television ratings were consistently the highest in the NBA. The Trail Blazers were a part of the fabric of the local community, and companies lined up to do business with us.
Inside the NBA, Portland was considered the model franchise. The first thing Commissioner David Stern would tell a new owner was to fly to Portland and to meet with our management team.
But times have changed.
Once the Rose Garden opened, there were some pretty good years. Then I started noticing changes in the way the Blazers managed their business. These changes were not only reflected in the poor character of many of the players they brought in, but also in how management responded (or didn't respond).
Then I began to hear comments from longtime sponsors and business leaders that the Blazers were losing their community connections, which we had spent 25 years building. They were also frustrating City Hall by not advancing the Rose Quarter development. (Paul Allen acquired the Red Lion Inn and other adjacent properties, and received exclusive development rights on all the city-owned parcels adjacent to the Rose Quarter as part of a public/private partnership with the city.)
There were many other examples. It was becoming obvious the Blazers were losing their special place in the hearts of most Oregonians.
Today, we see the inevitable result: The Blazers are near the bottom in NBA attendance. In 1995, I believe we were fourth. There is no more telling statistic than the failure of the Blazers' most loyal fans to renew their season tickets.
Allen got into this situation because of a series of decisions he made during the past decade or so. If his current financial difficulties are the result of a burdensome loan on the Rose Garden, it must be pointed out that his advisers and attorneys negotiated that loan based on clear criteria that Allen himself set.
Specifically, his only exposure was to be the amount of equity -- the $46 million he invested. No other guarantees or collateral were available to secure the loan. Nothing at all was wrong with that approach because Allen and his advisers surely were fully aware of the consequences if he ever wanted to separate the Blazers and Oregon Arena Corp.
As a result, most of the experts told us that borrowing $167 million, without security from the owner, would be extremely difficult.
In spite of the challenges, a consortium of lenders was formed. And, as predicted by the experts, the terms of the loan not only required that all revenues from the sale of suites, club seats and arena advertising must be allocated to the arena corporation, but also that the Blazers must sign a long-term lease to assure the lenders they would always play in the Rose Garden.
Now, Allen and Blazers' management are calling this the "worst arena lease in professional sports." But this is not an accurate characterization, because the lease was negotiated between two companies wholly owned by the same person. The allocation of revenues was only a matter of satisfying the lender's requirements, which were dictated by Allen's desired financing structure.
It is sad for me to see the Trail Blazers fall into disrepute with their fan base, which once included nearly the entire population of Oregon and Southwest Washington. Like all fans, I want to live to see the Blazers restored to respectability and become, once again, a team our community can be proud to support.
The best solution for all concerned would be for Paul Allen to sell the team to people who understand that owning Portland's only major league team is a privilege. I would imagine any buyer would insist that his purchase is subject to once again aligning the interests of the Blazers and the Rose Garden.
In that case, I would encourage the city and the lenders to work with a new owner and find a solution that can work for all parties. In return, the Portland community should expect a new owner who will be the caretaker of the community's franchise, whose mission is to make Portland proud. If they do that, the financial part will take care of itself.
Harry Glickman, of Palm Springs, Calif., and Southwest Portland, is president emeritus and founder of the Portland Trail Blazers.