As efforts intensify to bring the Seattle SuperSonics back to the NBA, internal briefing documents show Gov. Bob Ferguson was warned that Washington Democrats’ tax policy and the state’s economic climate could affect the team’s long-term viability.
The SuperSonics left Seattle in 2008, relocating to Oklahoma City and becoming the Thunder after disputes over arena funding. Since then, civic and business leaders have worked to position Seattle for a potential NBA return.
EXCLUSIVE: GOV BOB FERGUSON KNOWS DEMOCRATS' BAD POLICIES MAY COST SEATTLE SONICS RETURN
I have obtained documents used by WA Gov Bob Ferguson's team to prep him for his meeting with NBA Commissioner Adam Silver earlier this month
According to the docs, Joe Impecoven (Ferguson… pic.twitter.com/W0C3knNCjT
— Ari Hoffman (@thehoffather) February 19, 2026
Documents prepared for Ferguson ahead of his recent meeting with NBA Commissioner Adam Silver, obtained by The Ari Hoffman Show on Talk Radio 570 KVI, reveal that top Seattle sports executives raised concerns about the state’s business environment — including the proposed 9.9% “millionaire’s tax” currently advancing in Olympia.
According to the briefing materials, Ferguson policy adviser Joe Impecoven had been in communication with Tod Leiweke, CEO of the Seattle Kraken and Oak View Group — the lead investment group working to return the Sonics — as well as Samantha Holloway, owner and chair of the Kraken.
“Todd and Samantha wanted to share a few high-level points for your awareness ahead of your meeting with NBA Commissioner Adam Silver,” the memo states.
The documents note that Commissioner Silver is “fully committed to returning the Sonics to Seattle” but stressed the importance of “doing it right this time to ensure the team’s long-term stability in the city,” noting that the commissioner will not make public commitments until a formal deal is finalized.
Among the factors highlighted as critical to success:
- The high cost of maintaining an NBA franchise
- Employer layoffs and their impact on ticket sales (“fewer employees equals fewer ticket sales”)
- Challenges posed by the proposed millionaire’s tax in recruiting top players
- Whether Seattle remains an attractive and investor-friendly environment, noting recent investor relocations to Florida
The briefing underscores that success “hinges on securing the right investors and ensuring the city’s infrastructure and environment support sustainable success beyond the initial deal.”
Washington lawmakers recently passed Senate Bill 6346, a 9.9% tax on income above $1 million, while rejecting amendments aimed at limiting the tax to just millionaires and preserving a public referendum. More than 80,000 people signed in on the bill, with a large majority registering opposition. As part of the proposal, professional athletes could be taxed on income for games, practices, and other team activities performed in the state, as part of a “jock tax” that would likely rely on a duty-day allocation method to determine how much of an athlete’s annual salary is tied to Washington.
The documents also emphasize that Climate Pledge Arena is “fully prepared for basketball,” not just hockey, and that state assistance could be critical — particularly in securing a dedicated practice facility, a key issue for league officials.
Finally, the memo notes that city leadership is prepared to support the Sonics’ return and that Ferguson maintains a strong working relationship with Seattle officials.
The internal communications suggest that, beyond arena readiness and ownership structure, state tax and economic policy are now part of the NBA’s calculus as Seattle seeks to bring back its franchise. That does not bode well for the Evergreen State.
Business groups have warned that the state’s competitiveness is slipping, and surveys show many employers are considering relocation or delaying expansion. Additionally, Washington’s labor market is weakening. New Washington Employment Security Department data show the state’s unemployment rate rose to 4.7% in December 2025, up from 4.6% in November, marking a second straight monthly increase after holding at 4.5% from May through September. Over the same period, the national unemployment rate moved in the opposite direction, declining from 4.5% to 4.4%.
The uptick is being driven largely by continued job losses in tech-adjacent and professional services, concentrated in the Puget Sound region. The latest numbers arrive amid an extended layoff wave from Washington’s biggest employers: Microsoft cut more than 3,100 jobs statewide, Amazon eliminated more than 2,300 Seattle-area positions, and Meta laid off hundreds more in the region. Meta also pulled back from multiple real estate commitments — backing out of two office buildings in Bellevue, letting expansion rights lapse on additional sites, and vacating a 190,000-square-foot South Lake Union office. Seattle-area tech layoffs have exceeded 20,000 jobs since the new year.
Meanwhile, Democrats are advancing new revenue proposals, including a 5% payroll excise tax on the portion of employer payroll expenses above $125,000 per employee, alongside the income-tax push already moving through Olympia.
A survey of independent brick-and-mortar businesses across Greater Seattle found many struggling amid falling foot traffic, rising costs, crime, regulation and taxes. Separately, the Association of Washington Business reports that 44% of business leaders are considering moving their personal residence out of Washington, and taxes remain the top employer concern (64%).
BREAKING: Estate of Paul G. Allen Begins Sale Process for Seattle Seahawks
Will the Super Bowl champions stay in Seattle with the Democrats' massive taxes looming? pic.twitter.com/IELLdHIzxp
— Ari Hoffman (@thehoffather) February 18, 2026
On Wednesday, the Estate of Paul G. Allen announced it had begun the sale process for the Seattle Seahawks, who just won the Super Bowl, causing many to ask if the champion team will stay in Seattle with the Democrats’ massive taxes looming, and could the Emerald City lose another sports franchise?
