Portland sends draft term sheet to Trail Blazers days after NBA says talks ‘off track

Draft Term Sheet Provisions and City Requirements

Following a four-hour executive session on Thursday afternoon, Portland city leaders took the first step toward breaking an impasse by presenting the Trail Blazers with a draft term sheet. This document details what Portland taxpayers should expect in return for contributing at least $120 million to the arena project. While the draft itself was not made public, the city’s press office released a summary of its provisions.

The city’s proposal includes a binding 20-year non-relocation commitment from the team to play home games at the Moda Center. Additionally, the draft mandates labor-peace agreements to support a stable workforce and ensure trade union jobs on the renovation. Financial protections for the City, State, and County are also highlighted, featuring clear caps on public funding, limits on eligible expenses, and safeguards against cost overruns. The proposal includes an annual payment for property tax offset starting at $3 million, which would escalate over the 20-year term, with proceeds shared among the City, County, and Portland Public Schools. The draft also includes requirements for community event access, local hiring, sustainability standards, and partnerships with Albina-based organizations.

Negotiation Impasse and Public Finger-Pointing

The submission of the term sheet comes after weeks of public friction between City Hall and the franchise. Mayor Keith Wilson and City Council President Jamie Dunphy recently accused the team of withholding necessary project details and stonewalling the city. The deadlock reached a crisis point on Tuesday, when NBA Commissioner Adam Silver told a press scrum in Las Vegas that negotiations seem to have gone off track and expressed dismay that a deal was not further along.

City administrator Raymond Lee addressed the state of the negotiations after the executive session, stating: “When you get into these type of negotiations, they’re tough. Yes, the city has asked and requested certain information from the Blazers and we have not received that. We’ve had communication with the Blazers and had verbal conversations with the Blazers. That’s what has taken place thus far.” Lee added, “I believe the Blazers are waiting on a term sheet before they really start opening up into negotiations with us and start getting some of that critical information that we would want to see on our end as it relates to building out a deal with the Blazers that will be long-term for the city and the Blazers.”

People close to the negotiations speculated that new team owner Tom Dundon was ghosting elected officials so they would deny him the money and free him to pursue other markets where sponsorship dollars and luxury-box purchasers are more easily scooped up. In response to the draft, a Trail Blazers spokesperson said: I can confirm we received a draft term sheet this afternoon, and we’re reviewing the document now.

Financial Stakes and Future Outlook

A number of councilors remain unsure whether they would ultimately support a $120 million investment without any commitment from the team to share revenue. While none of the ideas discussed in recent council hearings—such as making the Blazers pay rent to the city or securing proceeds from arena naming rights—are mentioned in the current draft, they could return to the discussion as the council debates the funding package in coming weeks.

The city is operating under a compressed timeline, with a scheduled council vote on August 12 to approve a tentative term sheet. As officials move forward, the draft serves as the city’s first proposal in negotiating a long-term agreement to keep the team in Portland.