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Those of us who wonder about Blazers owner Paul Allen's way of operating got a vivid object lesson last week. All summer, Allen's people have been negotiating with Portland officials to build an 18,000-seat amphitheater at the city-owned Portland International Raceway (PIR). The city had originally discussed building such a venue with another firm--until Allen waved the yellow flag. Five years ago, when the Microsoft co-founder built the Rose Garden, he secured a non-compete agreement with the city. Under its terms, neither Portland nor the Blazers could participate in any "competing facilities" unless the other was a partner. A "competing facility," as defined by the contract, "shall mean any indoor sports, entertainment, or multi-use arena or amphitheater, or other public event facility, located within the Portland Metropolitan Area (Multnomah, Clackamas, Washington, Clark and northern Yamhill counties) having a capacity for total attendance of 10,000 to 20,000 individuals." Because of this clause, and because Parks commissioner Jim Francesconi wants an amphitheater at PIR (both to generate a few hundred thousand dollars annually for the city and to add to the cultural vitality of the region), the city's Office of Fiscal Administration is now trying to cut a deal with the Blazers. WW has learned that last week, at the same time these negotiations were taking place, Blazers representatives crossed the river to meet with executives from the Clark County Fairgrounds. The agenda? To make a separate bid to build an amphitheater on that property. When we called the Blazers and asked if the Clark County proposal violated the very same non-compete agreement used by Allen to horn in on the PIR deal, Blazers vice president J. Isaac demurred. The proposed Clark County amphitheater, you see, would have a capacity of 20,500 seats. There is nothing wrong with the Blazers shopping around for the best deal possible, but last week's development is clearly a breach of the spirit, if not the letter, of the non-compete clause. It's also in keeping with the Blazers' style of doing business. WW also learned last week that if the Blazers develop an amphitheater at PIR, they will do so with a partner--Universal Concerts, one of the country's largest owners and operators of concert venues. Interestingly, city officials did not know of this arrangement until informed by a WW reporter. They expressed surprise that the Blazers would be negotiating with the city without disclosing this information. The Blazers' pursuit of a Clark County site and their partnership with Universal can be viewed in the larger context of Paul Allen's agenda, which is to secure as strong a foothold in the entertainment business as he can. Neverthless, it is not inconceivable for him and the city of Portland to reach a mutually satisfactory agreement for a concert site at PIR. But the style in which his organization is pursuing such a union doesn't bode well.
originally published August 12, 1998 |
