The possibility of the Seattle SuperSonics returning is suddenly feeling a lot more real. The NBA has said it is exploring expansion, and Seattle is one of the two cities being considered.
But before fans get too excited, there is a far more important question to ask: what, exactly, will state and local government be expected to hand over to bring the Sonics back?
Thanks to insider documents I obtained from Gov. Bob Ferguson’s office, we now have a clearer look at what is happening behind the scenes. According to those documents, the NBA said “state assistance could be critical,” especially when it comes to securing a practice facility, which the league considers a key issue.
LET THE NEGOTIATIONS BEGIN
The NBA has said they are now "exploring" bringing the Sonics back to Seattle. That means what concessions can they get out of local government, and does the math work for the NBA owners
Concessions:
From internal documents I obtained from Gov Bob…
— Ari Hoffman (@thehoffather) March 25, 2026
That raises obvious questions. Does “state assistance” mean taxpayer money? Does it mean zoning help? Does it mean fast-tracked permits? Or does it mean tax carveouts and exemptions?
The proposed practice facility is expected to be in Northgate, near the Kraken Iceplex. That location makes sense. But if the government is being asked to help make it happen, taxpayers deserve to know exactly what kind of help is on the table.
Because here is the reality: as fun as it would be to have the Sonics back, public subsidies for sports franchises rarely make financial sense.
The math is hard enough already. Owning and operating an NBA team is expensive. Seattle’s economic conditions do not exactly make the pitch easier. Downtown office vacancy is hovering around 33%. Commercial real estate values have cratered. Companies are leaving. Layoffs mean fewer high-income workers, fewer corporate buyers, and potentially fewer ticket sales.
That is the environment any potential ownership group would be walking into.
Then there is the issue of Washington’s so-called “millionaires tax,” which is an income tax by another name. Recruiting top NBA talent is already difficult enough in certain markets. Adding another tax burden to elite players and ownership only makes Seattle less competitive.
And here is where things get especially interesting: Gov. Ferguson still has not signed the measure.
Imagine if the one thing that derailed the millionaires tax was the return of the Sonics. Imagine a scenario where a prospective ownership group tells Olympia, directly or indirectly, that the deal only works if the state shelves the tax for now.
That may sound far-fetched, but the concerns in the documents suggest tax policy is very much part of the conversation.
The documents also raise broader concerns about whether Seattle is still viewed as attractive and investor-friendly, especially in light of recent high-profile investor relocations to states like Florida. That should be a warning sign to everyone involved. If Seattle wants the Sonics back, it may not just be competing with Las Vegas. It may also be competing against its own political and economic climate.
And make no mistake: the NBA has the upper hand here.
The league can pressure public officials in both cities to offer more. That is how these negotiations work. The pitch to politicians is simple: help get the team, and you get the credit. Fail, and you get blamed for losing the deal.
Does anyone really believe elected officials would not be tempted by that?
That is especially true in Seattle, where city leaders have wanted the Sonics back for years. The pressure to “do whatever it takes” will be enormous.
But “whatever it takes” is exactly what should concern taxpayers.
Expansion is also expensive on the ownership side. The groups in Seattle and Las Vegas would have to pay billions just to buy the franchises. That money gets distributed among current NBA owners, who stand to gain enormously from expansion fees. But those same owners also have to consider the long-term downside of splitting national media and streaming revenue with two additional franchises.
In other words, expansion only makes sense if Seattle and Las Vegas can grow the pie enough to make up for adding two more slices.
There are a lot of moving parts.
One of the biggest revelations is that Samantha Holloway, owner of the Seattle Kraken, is formally bidding for an NBA franchise. That matters because Holloway was the one who raised many of these concerns directly with Ferguson’s office. If she is the likely ownership candidate in Seattle, then these are not hypothetical objections. These are the real concerns of the person trying to bring the Sonics back.
DEVELOPING: Seattle Kraken owner Samantha Holloway will lead a group to bid on an NBA franchise after the league announced it will officially explore expansion to Seattle & Las Vegas on Weds.
Halloway previously told Bob Ferguson the NBA was concerned about the income tax,… https://t.co/DBZnazqysz
— Ari Hoffman (@thehoffather) March 25, 2026
That includes concern over the millionaire tax.
So yes, the Sonics may be on the road back to Seattle. But fans should not just ask whether the team is returning. They should ask under what terms.
Are taxpayers being asked to subsidize a practice facility? Are tax exemptions being negotiated behind closed doors? Are elected officials preparing to trade away policy priorities in exchange for a major-league photo op?
That is the real story.
Bringing back the Sonics would be exciting. No question. But if the price is secret concessions, corporate handouts, or more taxpayer exposure, Seattle needs to know before anyone starts celebrating.
The NBA may want Seattle. Seattle clearly wants the NBA. The question now is who is going to pay for the deal.
