Portland Trail Blazers owner Tom Dundon reportedly reacted angrily after city officials demanded more than $1 billion to resolve a contractual dispute over the Moda Center, creating another hurdle in negotiations intended to keep the franchise in Oregon for at least 20 more years.
Dundon had sought a specific financial figure for settling the arena”s existing lease requirement that the team maintain the facility to a “first-class” standard, according to Oregonian’s Bill Oram. City officials identified the provision as leverage against a potential relocation, while the ownership group has viewed it as a possible source of legal trouble if the franchise leaves Portland.
After Dundon requested a price for resolving the matter without litigation, the city responded with a figure exceeding $1 billion, leading him to react in a way a source described to Oram as, “He went crazy.”
The disagreement has disrupted efforts to bring both sides together. Meetings scheduled around the Trail Blazers’ season opener were canceled, and NBA representatives abandoned plans to help facilitate discussions. Dundon eventually agreed to meet with Portland City Administrator Raymond Lee and deputy Donnie Oliveira at the team’s practice facility in Tualatin, although the status of other meetings remained uncertain.
The dispute comes as Portland attempts to finalize a broader arena renovation agreement. The city council approved a term sheet in August requiring the franchise to pay rent and payments in lieu of property taxes, alongside commitments concerning labor harmony. Dundon’s ownership group has raised concerns about these conditions and has pushed for a 10-year buyout option rather than the 20-year lease required under state legislation.
The proposed funding package includes $365 million in state-backed bonds, $100 million from Multnomah County and $275 million in future city maintenance spending. The Trail Blazers have sought approximately $600 million in public funding for renovations, while the city expects the franchise to cover most of its proposed $120 million renovation costs through rent and tax-related payments.
Time is also becoming a concern. If Portland does not approve a new lease by the end of 2026, the state could lose its opportunity to exercise the bonds. State Senate President Rob Wagner has indicated that lawmakers are unlikely to authorize them again in a future legislative session.
Meanwhile, a poll commissioned by The Oregonian/OregonLive found that only 7% of Oregon respondents viewed Dundon favorably, compared with 36% who held a negative opinion and 57% who were undecided. Among Portland respondents, just 5% viewed him positively, while 59% expressed an unfavorable opinion.
Amid the mounting tensions, co-owner Sheel Tyle maintained that keeping the franchise in Portland remains the ownership group’s priority. With the existing lease expiring in 2030, the unresolved contractual dispute and expiring funding authorization have placed the future of the Moda Center agreement under increasing pressure.
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