(Portland, Oregon) -- Vulcan Inc. and Portland Arena Management LLC (PAM) today announced that they have signed a letter of intent under which an affiliate of Vulcan will acquire PAM, which owns, among other things, the Rose Garden Arena. Additional terms of the agreement were not disclosed. Vulcan is owned by Paul G. Allen, who also owns Trail Blazers Inc.
"With this letter of intent, we've taken a positive step forward. Assuming this deal gets finalized, it will be a major milestone which will strengthen the long-term financial health of the Trail Blazers," said Paul Allen. "First and foremost, we want to thank the City of Portland, David Stern and the NBA for their continued support and diligent effort as we progress towards a solution. We also want to thank our great fans, dedicated employees and loyal corporate sponsors for their patience as we work through these challenges now and in the future."
Thomas Luther, Chairman of the Board of Portland Arena Management, said that "PAM is pleased to have reached an agreement with Vulcan to ensure that the Trail Blazers will remain in Portland. The team has long been an integral part of the community, and we believe this resolution benefits all interested parties -- PAM's members, the City of Portland, and the team and its fans. I also want to thank David Stern and the NBA for their efforts in assisting the parties in reaching this agreement. We look forward to working with Vulcan, the Trail Blazers and the NBA to promptly conclude this transaction."
David Stern, Commissioner of the NBA, said "The ultimate winners here are the fans of the Portland Trail Blazers and the City of Portland, and I want to thank both the Trail Blazers and Portland Arena Management for going the extra mile to reach this important agreement."
Vulcan and PAM said that discussions were ongoing and neither party plans to make any additional public comments until a final agreement is reached.