Opinion column by Mark Kirchmeier
Most Portlanders deep down want the Trail Blazers to stay in Portland. The team’s arrival in 1971 was a landmark that helped place us on the national map and has reaped investment and tourism benefits ever since.
But City of Portland and Multnomah County officials need to show muscle in negotiating with new Blazer owners Tom Dundon, Portland venture capital executive Sheel Tyle and the Cherng family (owners of Panda Express), all of whom want taxpayers to pay 100 percent of a $600 million-plus upgrade of Moda Center, where the Trail Blazers play.
Dundon & Company are pressuring our local governments to sign a Moda Center lease in time for the 2026-27 basketball season, but they need to answer some questions first, such as: Where and how did they get that $600 million figure? Is that an independent architectural or engineering firm’s official accounting estimate, or is it the Blazers’ wish list?
Some electrical, lighting and loading dock expansion is certainly needed to accommodate money-making concerts for the city-owned facility, but that doesn’t cost $600 million. Dundon needs to show a detailed plan and budget showing how much will be spent on luxury boxes and vanity amenities before asking state, city and county taxpayers to swallow this.
Consider how down Interstate 5 in San Francisco, the Golden State Warriors owners with a mere $3.8 billion net worth, privately financed 100% of the $1.4 billion Chase Center in 2019. The Los Angeles Clippers’ owners similarly financed the $2 billion Intuit Dome in 2024 without taxpayer subsidies.
But since the Blazer owners’ have refused to help, Gov. Tina Kotek and the Legislature had to commit $365 million toward the Moda Center project, leaving the remaining nearly $300 million hole for the city and county taxpayers to pay.
Fortunately, our city councilors and county commissioners have time to be deliberate. The new Blazer owners’ lease at the Moda Center doesn’t expire until 2030 and includes a five-year extension option.
Meanwhile, the City Council has had to patch over a $169 million budget deficit with painful cuts to shelters and life-transforming services for homeless people, community center services and public safety.
Multnomah County still faces its own $93 million budget deficit. Chair Jessica Vega Pederson has recommended closing 605 adult shelter units, reducing SUN schools (after-school programs), and reducing the district attorney’s office.
It’s appalling that local taxpayers must make those service sacrifices – and also pay nearly $300 million to satisfy Dundon’s group.
Forbes magazine estimates the two lead Blazers owners’ net worth to be nearly $10 billion with the Cherng family at $7.5 billion and Dundon $2.3 billion. Multiple sources peg Tyle’s worth as approaching $500 million. These people can’t credibly claim that with their massive assets, such as Panda Express, 2,500 outlets worldwide, they couldn’t get a line of credit to contribute a few hundred million to complete financing of their Moda Center demands.
Local government officials may have more leverage over Dundon’s investors than previously thought. It’d be expensive to move the team to another city. The Blazers would pay a steep NBA “Relocation Fee” that some NBA watchdog groups estimate could be at least $250 million. Dundon’s group would also have to pay to relocate staff, renegotiate contracts and face the risk of a new home market that may not be as loyal in supporting a frequently losing team as Portlanders have been.
There’s also some evidence that Dundon might be personally in over his head financially. Twenty percent of his acquisition deal with Penny Allen is on layaway. Allen still owns 20 percent of the team until Dundon can afford to pay her the rest in cash. He recently laid off 70 Blazer front office employees, which does not inspire confidence in his resources. He probably can’t afford to move the team.
Let’s help Dundon, Cherng and Tyle come to that conclusion, so Mayor Keith Wilson, the City Council and Multnomah County Commissioners can continue to hang tough to get us a fair shake.