Tom Dundon Seeks $575 Million in Public Funding for Moda Center Renovations

Tom Dundon isn’t just changing the way the Trail Blazers are managed; he’s changing the cost of doing business in Portland. Since the NBA approved his group’s purchase of the team in March, the new owner has implemented a series of aggressive cost-cutting measures that have alienated staffers and fans alike. From hotel checkout disputes to broadcast layoffs, the Dundon era is defined by a relentless focus on the bottom line.

The $575 Million Standoff at Moda Center

The central conflict revolves around the aging Moda Center. Dundon has indicated he will only sign a 20-year lease if the team receives close to $575 million in public funding. This figure is a composite of several moving parts: $365 million already approved via Senate Bill 1501 by Oregon Governor Tina Kotek, and an additional $208 million that would need to come from the city of Portland and Multnomah County.

The city council, however, is not moving at Dundon’s pace. Council President Jamie Dunphy has accused the Blazers organization of stonewalling communication. On the other side, Blazers President Dewayne Hankins maintains that he wants a deal but believes public media disputes are counterproductive.

The financial gap is stark. While the state’s $365 million is contingent on a 20-year lease and a $235 million contribution from the city and county, Dundon’s demands push that local burden higher. The urgency is underscored by the fact that the team’s current lease expires in 2030.

A Pattern of “Chainsaw” Cost-Cutting

The arena dispute is the loudest conflict, but the internal cuts are more surgical. Dundon has taken what some describe as a “chainsaw” to the club’s staff. This began with the layoff of 70 front-office employees earlier this year and has since moved to the broadcast booth.

The broadcast team has seen a dramatic exodus. TV analyst Michael Holton, statistician Tom Haberstroh, and hosts Neil Everett and Jamie Hudson have all been let go. Play-by-play announcer Kevin Calabro announced he would not return to the Blazers because he refused to accept a pay cut.

These cuts extend to the very fabric of the game-day experience. During the NBA play-in tournament, Blazers staffers were forced to wait in a hotel lobby for hours because Dundon required them to check out early to avoid late checkout fees. During the first round against the San Antonio Spurs, the team was the only one in the league that did not send its two-way players on the road for Games 1 and 2.

The Carolina Hurricanes Blueprint

For those wondering if this is a fluke, the blueprint exists in North Carolina. Dundon’s ownership of the NHL’s Carolina Hurricanes since 2018 serves as a precedent for his Portland strategy. In Carolina, he famously pushed for a television simulcast on the radio to trim costs after Hall of Fame announcer Chuck Kaiton would not accept an 80% pay cut.

• Coaching: In Carolina, Dundon maintains one of the NHL’s lowest-paid coaching groups. In Portland, he reportedly capped the head coach’s salary at $1.5 million, a figure typically reserved for top assistants.
• Front Office: He previously had one person serve as both president and general manager for the Hurricanes and operates one of the smallest analytics-driven front offices in hockey.
• Fan Experience: In Portland, the tradition of color-coordinated T-shirts for fans was replaced with cheaper branded rally towels.

Relocation Risks and the August 12 Deadline

The ultimate leverage in any stadium dispute is the threat to leave. While some local politicians view it as a bluff, the possibility of relocation is a genuine concern. Given Dundon’s roots in Dallas, analysts suggest Austin and Nashville as obvious targets, though San Diego, Kansas City, and Vancouver are also potential destinations.

The financial tension is exacerbated by the purchase price. Dundon’s group acquired the team at a $4.2 billion valuation, and the ownership group has cited this high entry cost as a reason they are unwilling to contribute financially to the arena upgrades.

This approach has drawn fire from national critics. Bill Simmons recently blasted the demand for taxpayer money, stating, I don’t think the city should have to pay for jack sh. It’s bull sh. These guys are all fu***** rich.

The city now faces a critical decision. With a council vote looming on August 12, Portland must decide if it will meet the $208 million local funding requirement to unlock the state’s bonds, or risk a future where the Blazers find a more compliant city.