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The Opportunity Cost · Portland's real leverage

How much is keeping the Blazers worth to Portland?

The short version

Keeping the Blazers is worth something real. This page lets you set that number yourself — then shows what the ask costs against it, and what else the same money buys.

~$900M Modeled — the 20-year opportunity cost of the ask, with $0 required from ownership.

The honest question is never “is the team worth it?” It’s “is this deal worth it, when every peer city paid less for more?”

How these numbers fit together
$253MWhat the City’s own consultant priced the full renovation scope at, in today’s dollars. One-time cost. Verified
The same scope, escalated and repeated over 20 years: $505M. Inside it: ~$164M genuine repair, ~$341M revenue-generating upgrades.
$573MThe public construction budget in the July 17 draft: State $365M + City $120M + County $88M. One-time, nominal. Verified
This is the current number. The earlier “$600M ask” you may have seen was the floated figure this draft replaced.
~$99MEverything the public is priced to receive back across the 20-year lease: the $3M-a-year payment, growing 5% a year. 20-year total. Calculated
$1.02–1.11BThe all-in public commitment over 20 years once bonds and debt service, the City and County shares, and future arena spending are counted. Modeled
The balance sheet’s ~$850M–1B modeled core sits inside this range.
~$2.5BWhat the building hands the operator over the 20-year lease (~$100M+ a year), from an arena rented for $1 a year. Modeled
Not the $2.5M-per-year maintenance reserve — that is a separate recommended term.
$1.1–1.2BWhat a market-standard package would return the public over 20 years, priced line by line against 17 peer deals. Calculated
$4.25BWhat the franchise sold for in 2026. Verified

Verified primary document · Calculated arithmetic from verified inputs · Modeled assumptions disclosed & adjustable. Every line’s paper trail: the Public Balance Sheet.

What’s keeping the team worth to you? Drag your number.
$450M what you’d pay to keep the team, over 20 years
$0Walk away —
bid the building out
~$900MSign the deal —
owner pays $0

Vs. Dundon’s offer

$450M too much

By your number, the ask over 20 years costs $450M more than the Blazers are worth — and he chips in $0.

Where the difference could go

~$23M / yr

Public money that, by your own number, didn’t need to go to the arena. For scale: the deal pulls ~$36–41M a year out of Oregon’s General Fund — schools, parks, public safety — into a fund spendable only on this building.

The ~$900M opportunity cost of the ask is the conservative 20-year figure Modeled; the ledger is below. “Walk away” means bidding the publicly-owned building to a competitive operator.

Over 20 years, here is the entire choice — in two numbers.
Sign this deal
−$880Mto −$1.11B
total public cost · 20 years
−$44 to −$56M / year
for $0 in rent, naming or revenue share
vs
Say no — bid the building out
−$164Mto ~$0
total public cost · 20 years
−$8M to ~$0 / year
+ rent & naming a competitive operator pays
That’s only the cash. Add what his signed lease already requires — the $164–600M “first-class” duty plus the ~$18M repair match — and the per-year math flips:
−$53 to −$87M/yr
with the deal — even deeper underwater
+$1 to +$31M/yr
without it — the City comes out ahead

A ~$1 billion difference over 20 years — the price of this deal, not the team. Hold the owner to what he already owes, and saying no pays. The owner’s signed lease already requires the leverage figures; only their exact scope is contested, so we hold them above the audit-proof floor rather than bake them in.

The whole ledger — with the team, and without

The Blazers are worth a fortune. The deal is about who keeps that money:

~$100M+/yr
the operator makes off the building — gate, concerts, naming
$1/yr
his rent for the arena Portland owns
~$4.3M
all the public sees of it

The full accounting — every line, both ways — one yearly number per column.

Verified public record / enacted law / executed lease  ·  Modeled sourced estimate — terms not public  ·  “↔” marks offsetting lines.

Line itemWith the Blazersthe proposed dealWithoutnew operator, City’s buildingConf.
1 · Public capital & financing — annualized
State bond repayment$531–623M debt service over the life, avg ~$29M/yr (Oregon LFO) — repaid by diverting income-tax growth out of the General Fund (LRO).−~$29M/yr$0Verified
City capital + enhanced upkeep$120M capital + ~$280–285M upkeep pledge (~$14M/yr). Without: baseline upkeep only.−~$20M/yr$0Modeled
County contribution~$88M (~$130M w/ interest, Comm. Moyer’s est.) over 20 yrs — against the county’s ~$80M four-year deficit.−~$6M/yr$0Modeled
Real repairs the building needs either way↔ the ~$164M first-class / life-safety floor — buried in the deal’s budget; without, pay-as-you-go, or a competitive operator funds it.in the budget−~$8M/yrModeled
Subtotal — public capital−$44 to $56M/yr−$8M to ~$0/yr
2 · Public operating revenue — per year · as recited June 24, pending confirmation vs. the recording
Blazers user fees↔ lost if the team leaves+$2.9M$0Modeled
Non-Blazers user feeslarger than the Blazers’ slice — kept either way+$4.3M+$4.3MModeled
ParkingBlazers $1.4M + non-Blazers ~$2.5M; the non-Blazers share persists+$3.9M+$2.5MModeled
Coliseum, rents & visitor-facilities IGA$0.65M + $1.2M + $0.53M — unchanged either way+$2.4M+$2.4MModeled
Rent from the operator↔ a competitive operator pays real rent the $1 deal doesn’t — modeled, terms not public+$1/yr+$2–6M/yrModeled
Naming + revenue share to the City↔ the deal routes naming 100% to the operator; a bid could share it — modeled, terms not public$0+$3–7M/yrModeled
Subtotal — operating revenue~+$13.5M/yr~+$9.2M + operator (modeled)
3 · Other costs, leverage & tax
Operating cost of the buildinghistorically near break-even — the fees above ≈ cover opex either way≈ revenue≈ revenueModeled
Property tax forgoneORS 307.171 sports-facility exemption — identical either way; the building stays public−$1.2M/yr−$1.2M/yrModeled
“First-class” repair claim (§10.2)↔ the lease makes the operator keep the arena NBA-caliber at his own cost — a ~$164M repair floor ranging up toward the full renovation. The deal forgives that claim; without, it’s kept. Contested & tolled — leverage, not booked cash.−$164–600M+$164–600MModeled
Operator’s 50/50 match + clawback (§10.9)↔ for the ~4 remaining bridge years the operator funds capital, City reimbursement capped at ~$4.6M/yr, and repays the City if the team leaves (§10.9.1). The deal erases the match and the cap.$0+~$18M/ 4 yrsModeled
State income tax if the team leavesthe Blazers’ payroll tax is diverted to the Arena Fund regardless (SB 1501 §4); leaving keeps the smaller event/away-team tax in the General Fund — how the diversion worksdivertedstays in GFModeled
4 · Jobs — direction only (no salary figures; the softest data)
Event-day hourly (concessions, ushers, security)roughly a wash either waybaseline≈ washModeled
Full-time building operationsunchanged to slightly up — concerts need more booking & marketingbaseline≈ / upModeled
Team front officethe real loss if the team leaves — but the same owner already cut more than 70 business-office staff weeks before the earlier floated ~$600M ask (KOIN / Willamette Week). Scrutinize the counterparty.▼ already cutting▼ lostModeled
Skilled production / stagehands (IATSE)up — concerts are far more production-intensive than basketballbaseline▲ moreModeled

Reading it honestly. Fees and parking roughly cover the ordinary cost of running the building, so the real swing is capital: $880M–$1.11B of new public money for $0 in new rent, naming or revenue share, against ~$0 without (the ~$164M of real repairs are owed either way). The Without column’s operator lines are modeled ranges — Seattle, D.C., Orlando, Milwaukee and San Antonio all collect rent on publicly-owned arenas, but Portland’s figure isn’t public, so it never sums into a headline. Peer splits: /deals; a fair deal’s term-by-term value: /terms.

The Blazers aren’t the ceiling. The operator is.

The Blazers’ own affiliate runs Moda as a basketball arena with events on the side. A professional operator runs the building as the business — and the gap shows up in the numbers.

~$90M / yr
what Oak View Group grosses at Austin’s Moody Center — a comparable arena with no NBA team at all
Moda Center — run by Rip City Management (the team’s own affiliate)
  • ~150 events a year — the City’s own figure.
  • A ~30-year-old building its own backers say touring acts now bypass — “because the arena can’t meet modern production needs.”
  • Run by the team’s affiliate, whose priority is the ~41 basketball nights — not filling the other 300.
Moody Center — run by Oak View Group (no NBA team)
  • ~140 ticketed events + ~$90M gross a year.
  • Pollstar Arena of the Year, 2024; Billboard’s #1 venue in its size class.
  • A dedicated operator whose entire business is keeping the building full.

Portland is a bigger TV market than Austin (#23 vs #34), with a nearly identical metro — and NBA-anchored arenas book even more (the United Center and Madison Square Garden run 200–320 events a year). The City’s own renovation pitch is that touring acts bypass Portland — so bid the building to an operator whose whole job is filling it, and make them pay to run it, the way Seattle did.

Sources & method

Moda’s ~150 events/year and the “touring acts bypass Portland” framing are the City’s and Blazers’ own, from the 2026 renovation materials (portland.gov/council/moda-facts) and KOIN’s reporting. Moody Center figures — ~140 ticketed events, ~$89.8M gross (FY2025), Pollstar Arena of the Year 2024, Billboard #1 in its size class — from Billboard / CultureMap and moodycenteratx.com. Market ranks: Nielsen DMA. Honest caveat: Moda reports strong concert sell-through (83–94%), so the point is dated infrastructure, lost tours, and operator headroom — not an empty building; the two event counts are tallied differently, so treat them as directional.

The ~$900M is a premium — not a repair bill

Keeping Portland’s arena sound and safe costs about $164M, pay-as-you-go. This deal commits more than six times that. The gap is a premium — the price of keeping the team on the owner’s terms:

$1–1.1B
what the deal commits, over 20 years
$164M
to actually keep the arena sound — pay-as-you-go, no bond
~$900M
the premium to keep the team, on the owner’s terms

Even on the most conservative public count, the premium is ~$720M — still the single largest line in the deal.

 Take the dealSay no — run it as ours
Public cost, 20 yrs~$1.0–1.1B committed~$164M to maintain our own building — pay-as-you-go, no bond
Operator pays$0 private capitalStays bound by his “first-class” upkeep duty (his sole cost), plus a ~$20–25M clawback if he leaves
Public’s return$0 — no rent, share, or namingKeeps the option to bid it out (peers got 18–62%) and every non-Blazers dollar
If the Blazers leaveLocked into the commitment to keep themA small, largely-offsettable loss (~$3–8M/yr) — far below the “$670M” rhetoric
The premium~$900M on top of upkeep$0 premium — but the team-retention guarantee is forfeited

Held honest: the deal side also buys ~25 years of team retention the maintain-only path forfeits. But a ~$900M premium to keep the team, with nothing from the owner, is a steep way to buy it when every peer city’s owner paid 18–62% of the renovation.

He already owes a first-class arena — at his own cost

This is the clause the new owner wants erased. His signed lease requires the arena be kept “suitable for professional basketball arenas in the NBA” (§10.2) at “Tenant’s sole cost” (§5.4) — by the contract’s own words, the “first-class” upgrades the public is now being asked to fund are his obligation. Councilor Novick, June 24: “Why haven’t we filed a lawsuit asking for $600 million?”

Enforcement is tolled during the bridge term and the exact scope is contestable — leverage, not booked cash. Read §10.2 / §5.4 in the lease → · The clause-by-clause case: the renovation study.

Owners pay. Portland's deal is the outlier.

The precedents split into two honest tiers: full rebuilds a private operator financed 100%, and comparable renovations where the operator funded 18–62% of the capital. Portland’s scope sits in the renovation tier.

The operator's share of the capital, by city
Portlandproposed0%
Indianapolis18%
Atlanta26%
Washington DC36%
Cleveland62%
Seattlefull rebuild100%

Comparable publicly-owned arenas. Portland's proposal: nothing.

Arena (public-owned)Operator's capital shareHow it was selected
Full redevelopment — operator financed 100% (the demonstrated ceiling)
Climate Pledge Arena — Seattle~$1.15B (100%)Competitive RFP; City kept ownership, long-term lease; OVG absorbed all overruns
UBS Arena — Belmont, NY~$1.1B (100%)State RFP; public land via ground lease (~$2.24M/yr + ~$50M upfront)
Comparable renovation — operator funded 18–62% (Portland's realistic band)
Rocket Mortgage FieldHouse — Cleveland~$115M (62%)Negotiated; team absorbed all overruns
Little Caesars Arena — Detroit~$539M (60%)Negotiated DDA deal (weak public revenue return otherwise)
Capital One Arena — Washington, D.C.$285M (36%)P3 sale-leaseback; team funded its share + all overruns
State Farm Arena — Atlanta$50M+ (26%+)Negotiated; team absorbed overruns; $200M+ non-relocation penalty
Indianapolis (Gainbridge)~$65M (18%)Negotiated; team capital share + commitments
PROPOSED Moda Center — Portland$0 (0%)Negotiated, no competitive bid; $1/yr rent; no rent, revenue share, or naming share to the public — the July 17 draft adds a $3M/yr tax offset and a drafted relocation penalty

Seattle and Belmont are larger, newer buildings — proof a publicly-owned arena can be bid out with zero public construction dollars, not Portland's target; the renovation tier is the apples-to-apples band for Portland's ~$253M scope. Peer figures sourced on /deals.

The deal is worse than the lease already in force

You don't have to imagine a fairer arrangement — Portland signed one in 2024.

The lease in force — 2024 bridge
  • The operator does the capital work and pays for it.
  • The City reimburses at most 50% — capped at the Blazers-game fees + parking it collects (~$4.6M/yr).
  • “All capital costs… beyond the City’s limited contribution are the responsibility of Rip City Management” (§10.9).
  • If the Blazers leave, the operator repays the City (§10.9.1).
The proposed deal
  • $365M+ from the public.
  • $0 base capital from the operator.
  • The clawback returns in the July 17 draft — the 50% cap and the match are still gone.

A downgrade from the contract Portland is operating under right now. Councilor Avalos, June 24: “I will not accept anything less than half.”

Sources & method

Public commitments: Oregon LFO Fiscal Impact and Legislative Revenue Office Revenue Impact for SB 1501/SB 5701; the Mayor's Office “ModaFuture” page; reporting from OPB, KGW, and the Oregonian. Fees and parking are the FY 2024-25 figures stated at the June 24 work session, cross-checked against the Crossroads Consulting study. Peer capital shares and the §10.9 terms are sourced across /deals, /terms, /renovation, and /economic-impact. Caveats: the $1.02–1.11B range includes full projected bond interest (a conservative public count tops $880M); the ~$36–41M/yr General Fund figure averages the LRO's per-biennium numbers; the first-class duty is leverage, not recoverable cash; competitive-bid investment is upside, not booked money. We'll correct anything the records contradict.

Owning a billion-dollar asset is a responsibility.
Making it sweat is the job.

The Council doesn't have to choose between the Blazers and a fair deal. It has to refuse to commit ~$1 billion until the public gets value for what it owns. The alternative is priced. The leverage is real. Use it.

Tell the Council to make it sweat →

The opportunity cost of the Moda Center deal — built from the State's own fiscal estimates, the City's “ModaFuture” figures, the June 24 work-session record, the executed 2024 bridge lease, and verified peer-arena deals. Full analysis across /what-he-makes, /deals, /terms, /renovation, and /economic-impact.