The Portland Trail Blazers are making a proposal to the State of Oregon with the goal of renovating the Moda Center arena in a $600 million, multi-year project. Details of the plan were reported today
by Bill Oram of The Oregonian [subscription required]. In a nutshell, the Blazers are asking the state to devote a portion of its income tax revenue equal to annual procurements from Trail Blazers players, team employees, and visiting NBA players.
In effect, the team is asking for the contributions it makes to the state coffers, funds that would disappear if the franchise moved because of a more attractive offer elsewhere. If the team is willing to relocate, both “yes” and “no decisions from the legislature would bring the same result: loss of tax revenue. The only question is, does the state want to lose the revenue and keep the Blazers or potentially lose both?
Oram offers details:
When legislators convene in Salem next month for the biannual short session, they will be met with a proposal from Blazers leaders that should look familiar.
Familiar because lawmakers passed nearly identical legislation last year in support of Portland’s pursuit of Major League Baseball.
The Trail Blazers, multiple sources close to the proposal said, are prepared to ask that state income tax on all players and team employees and those with visiting teams — an estimated $20 million per year — be redirected from the state’s general fund toward a $600 million Moda Center renovation that is seen as critical to keeping the franchise in Portland.
The Blazers are, of course, selling their standing as a singular asset in the region:
In a statement, president Dewayne Hankins described the Blazers as “a central part of Oregon’s economy and identity.”
“But,” he wrote, “Moda Center is bigger than basketball — it’s Oregon’s busiest entertainment venue and one of the state’s most important gathering places.
“Since early 2023, we’ve been in meaningful conversations with the City and our public partners about a long-term, market-rate lease extension for the Blazers that includes an investment to extend the useful life of Moda Center. The 2026 legislative session is an opportunity to move from conversation to action, and I’m encouraged to be working alongside leaders who see this as an investment in our economic prosperity and culture.”
Oram also offers a timeline on the rebuild:
Sources close to the proposal said the Blazers are eyeing a large-scale renovation that would span three summers, starting in 2027 with a completion date in 2029.
The obvious issue here: $20 million a year over three summers, or even ten, does not equal $600 million. Even if they got the proposed income tax dollars funneled towards the arena for each of the years of the rebuild, that would account for 10% of the estimated cost, leaving them $540 million short.
Presumably some of the renovation cost would be absorbed by the franchise and its new owner, Texas businessman Tom Dundon, scheduled to take control of the organization this spring. A 90-10 split between private and public partners is unlikely, however. Oram shares other possible sources of revenue from the governmental side:
State funding, in the form of 20-year bonds, would be just one, albeit sizable, piece of funding for the renovations. The Blazers will also look to tap further into the city’s spectator venues and visitor activities fund, which uses ticket fees to pay for maintenance and upgrades to city-owned venues, including Providence Park and Veteran’s Memorial Coliseum.
We’ll have to see how this plays out. It’ll be an interesting case. Part of the selling point for regions adopting professional sports teams is the added income those franchises bring to the area. $20 million per year takes a big chunk out of that pie. It might make sense for the legislature to go ahead with this proposal, given the circumstances. That doesn’t mean it won’t hurt, though. Presumably those tax dollars are devoted to other public benefits currently. Will legislators weigh the micro-issue of Blazers vs. Other Causes or the macro reality that the state can’t force a team—a private entity—to remain in-region and keep paying tax dollars no matter how good it might be for their bottom line?
It’ll also be fascinating to see the particulars of the team’s other proposals to fund the renovation. They certainly have a point that the Moda Center aging, a disadvantage compared to modern arenas. They also have some emotional gravity, having dedicated more than 50 years to the city and state, only to see their legislature offer incentives to a brand new sports franchise that hasn’t even arrived yet and may never do so. It’s a little bit like listing benefits on the hiring sheet for a brand new job position before you’ve given them to current employees in the same role.
Given all of that, this could be as simple as, “Duh…makes sense!” or it could become bitter and emotionally fraught. As we often say, stay tuned.
Would you be on board with the State devoting the NBA-related portion of its income tax revenue to arena renovations? What proportion of the cost do you think the public should bear, if any? Share in the comments below.
