City of Seattle v. Professional Basketball Club LLC

Filing 124

CORRECTED/AMENDED NOTICE OF FILING OF OFFICIAL TRANSCRIPT of 5th Day of Court Trial held on 6/20/2008 before Judge Marsha Pechmen. (ONLY CHANGE - EXHIBITS REFLECTED ON THE INDEX PAGE)Parties have ten (10) calendar days to file with the court a Notice of Intent to Request Redaction of this transcript. If no such Notice is filed, the transcript may be made remotely electronically available to the public without redaction after 90 calendar days.Transcript may be viewed at the court public terminal or purchased through the Court Reporter/Transcriber before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER. Information regarding the policy can be found on the court's website at www.wawd.uscourts.gov.To purchase a copy of the transcript contact court reporter Barry Fanning/Nichole Rhynard by telephone at 206-370-8504. . Release of Transcript Restriction set for 9/18/2008; (MD)

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City of Seattle v. Professional Basketball Club LLC Doc. 12 833 1 2 3 4 CITY O F SEATTLE , 5 6 7 8 9 10 11 12 13 14 A P P E A R A N C E S: 15 F o r the P l a i n t i f f: 16 17 For t h e D e f e n d a n t: 18 19 20 R e p o r t e d by : 21 22 23 24 25 P r o c e e d i n g s r e c o r d e d by m e c h a n i c a l s t e n o g r a p h y, t r a n s c r i p t p r o d u c e d b y R e p o r t e r on c o m p u t e r . B a r r y L. F a n n i n g, C C R , R M R, C R R N i c h o l e R h y n a r d , C C R, R M R , C R R B r a d l e y S. K e l l e r Paul Taylor James Webb Paul Lawrence Jeffrey Charles Johnson Gregory Narver BENCH TRIAL VERBATIM REPORT O F PROCEEDINGS B E F O R E THE H O N O R A B L E M A R S H A J . P E C H M A N UNITED STATES DISTRICT JUDGE ) ) P l a i n t i f f, ) ) v s. ) ) P R O F E S S I O N A L B A S K E T B A L L C L U B ,) L L C, ) ) D e f e n d a n t. ) ) ) C a u s e N o. 0 7- 01620 -M J P Seattle , Washington J u n e 20 , 2 0 0 8 Volume V UNITED STATES DISTRICT COURT W E S T E R N D I S T R I C T OF W A S H I N G T O N AT S E A T T L E Dockets.Justia.com 834 1 2 3 4 5 6 7 8 9 10 11 EXHIBIT INDEX 12 13 14 15 16 17 18 19 20 21 22 23 24 25 EXHIBITS ADMITTED 616 625 619 620 567 618 570 601 624 579 622 573 574 623 575 576 626 627 522 520 525 518 PAGE 847 853 861 862 866 886 887 907 923 924 939 940 943 946 950 952 960 963 999 1001 1010 1014 E X A M I N A T I O N OF: WALLY WALKER DIRECT EXAMINATION C R O S S- E X A M I N A T I O N REDIRECT EXAMINATION RECROSS EXAMINATION MATTHEW GRIFFIN DIRECT EXAMINATION C R O S S- E X A M I N A T I O N C R O S S- E X A M I N A T I O N REDIRECT EXAMINATION RECROSS EXAMINATION NICHOLAS LICATA DIRECT EXAMINATION EXAMINATION INDEX PAGE BY BY BY BY BY BY BY BY BY MR . MR . MR . MR . MR . MR . MR . MR . MR . TAYLOR LAWRENCE TAYLOR LAWRENCE KELLER LAWRENCE LAWRENCE KELLER LAWRENCE 835 891 922 925 926 970 979 994 996 996 BY MR . K E L L E R 835 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY M R. T A Y L O R: Q G o o d m o r n i n g , M r. W a l k e r. M y n a m e i s P a u l T a y l o r, I T H E C O U R T: Good morning . Good m o r n i n g. I t is n o t a g o o d m o r n i n g? PROCEEDINGS __ __ __ __ __ __ ___ __ __ __ __ ___ __ __ __ __ __ ___ __ __ __ __ ___ __ __ __ __ __ _ A l l r i g h t. C o u n s e l , the f i r s t t h i n g we n e e d Yesterday the City used to r e v i e w is w h a t o u r b a l a n c e s a r e . 1 7 4 m i n u t e s, f o r a b a l a n c e o f 2 3 5, t h e d e f e n s e u s e d 1 3 1 minutes for a balance o f 357 . So w h o d o we h a v e c o m i n g t h i s m o r n i n g? MR . K E L L E R : T h i s m o r n i n g as o u r f i r s t w i t n e s s, y o u r M r. W a l k e r . H o n o r, i s Mr . W a l l y W a l k e r. W h e r e u p o n, WALLY WALKER C a l l e d a s a w i t n e s s , h a v i n g b e e n f i r s t d u l y s w o r n, w a s e x a m i n e d a n d t e s t i f i e d as f o l l o w s: T H E C L E R K: Please state your full name for the record , spelling your first and last name . T H E W I T N E S S: W a l l y W a l k e r, W- A- L- L- Y DIRECT EXAMINATION W- A- L- K- E-R . r e p r e s e n t t h e P r o f e s s i o n a l B a s k e t b a l l C l u b? A Q Good morning . Y o u w e r e f o r m e r l y t h e p r e s i d e n t a n d g e n e r a l m a n a g e r of t h e S e a t t l e S u p e r S o n i c s w h e n t h e y w e r e o w n e d by t h e S c h u l t z 836 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 g r o u p? A W h e n o w n e d b y t h e S c h u l t z g r o u p my t i t l e w a s p r e s i d e n t a n d chief executive officer . Q P r e s i d e n t a n d c h i e f e x e c u t i v e o f f i c e r. Y o u w e r e a l s o an o w n e r of t h e S o n i c s d u r i n g t h a t t i m e ? A Q A Y e s. F r o m w h a t t i m e p e r i o d w e r e y o u a n owner o f t h e S o n i c s? I h a d an e q u i t y i n t e r e s t f r o m t h e i n c e p t i o n o f my e m p l o y m e n t w i t h t h e S o n i c s s t a r t i n g in 1 9 9 4 . Q A Q A n d w h e n d i d t h e S c h u l t z g r o u p a c q u i r e t h e S o n i c s? 2001 . I w a n t t o t a l k to y o u a b o u t K e y A r e n a a n d i t s a d e q u a c y as O k a y? F r o m y o u r p e r s p e c t i v e as an N B A b a s k e t b a l l f a c i l i t y . an o w n e r a n d c h i e f e x e c u t i v e o f f i c e r , K e y A r e n a w a s n o t a c o m p e t i t i v e NBA f a c i l i t y? A Q A S t a r t i n g w h e n? As e a r l y a s 2 0 0 4. I believe I said publicly that i t was a challenging arena at t h a t t i m e , y e s . Q A Q A n d o n e of t h e p r o b l e m s w a s t h e t e r m s o f t h e lease , t r u e ? Y e s. T h e l e a s e w a s n o t c o m p e t i t i v e w i t h o t h e r N B A l e a s e s, r i g h t? A Q Y e s. The lease made things extremely challenging for the 837 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sonics , correct ? A Q R e l a t i v e t o our c o m p e t i t i o n, y e s . A n d o n e of t h e p r o b l e m s w a s t h e r e v e n u e s h a r i n g c o m p o n e n t of t h e l e a s e , r i g h t ? A Q Y e s. And that i s because suite revenue and ticket revenues had to b e s h a r e d w i t h t h e C i t y ? A Q T h a t 's c o r r e c t. A n d t h a t m a d e i t, i n y o u r e s t i m a t i o n , a n o n e r o u s l e a s e , true ? A Q A Q Y e s. O n e of t h e w o r s t in t h e l e a g u e ? Y e s. In a d d i t i o n to t h e l e a s e, t h e f a c i l i t y i t s e l f w a s a l s o a p r o b l e m, w a s n't i t? A Q I w o u l d n 't t o t a l l y s u b s c r i b e t o t h a t , n o. L e t me a s k y o u t h i s : Was the footprint v e r y small b y NBA s t a n d a r d s? A Q Oh , y e s. And that created problems with points o f sale issues , s p a c e f o r p r e m i u m c u s t o m e r s a n d t h o s e k i n d s o f t h i n g s, r i g h t ? A Q A Q Y e s. A n d t h o s e a r e a l l i m p o r t a n t d r i v e r s of r e v e n u e, t r u e ? C o r r e c t. A n d t h a t 's t h e r e a s o n t h e b u i l d i n g w a s a p r o b l e m f r o m a 838 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 f i n a n c i a l p e r s p e c t i v e f o r t h e t e a m , t r u e? A Q Y e s. B e c a u s e of t h e i n a d e q u a c i e s of K e y A r e n a t h e t e a m m a d e a d e c i s i o n t o go to t h e W a s h i n g t o n l e g i s l a t u r e to t r y a n d g e t t a x f u n d s f o r a s i g n i f i c a n t o v e r h a u l of K e y A r e n a. r e c a l l t h a t? A Q Y e s, I d o. A n d y o u f i r s t w e n t to t h e l e g i s l a t u r e i n t h e 2 0 0 5 s e s s i o n D o you to l o b b y f u n d s to r e m o d e l K e y A r e n a , right ? A Q Y e s. You were seeking 200 million i n tax dollars for r e n o v a t i o n , t r u e? A T h e r e a b o u t s. The total project would have been about that . Q A n d y o u m a d e a s e r i o u s e f f o r t to g e t l e g i s l a t i o n t o a u t h o r i z e t h i s $2 0 0 ( s i c) in t a x f u n d i n g? A Q A Q A Q A Q W e l l , we w e r e s e r i o u s . You hired lobbyists , for example ? Y e s. T i m C e i s , d e p u t y m a y o r, he c a m e d o w n to O l y m p i a to h e l p? He d i d . You had lawyers helping ? C o r r e c t. In f a c t, i t was K &L G a t e s w o r k i n g f o r t h e S o n i c s b a c k t h e n , r i g h t? 839 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q In t e r m s o f d r a f t i n g l e g i s l a t i o n , y e s. O n e of t h e l a w y e r s w a s K&L G a t e s ' l a w y e r G e r r y J o h n s o n , do you recall that ? A Q Y e s. If w e c o u l d be s h o w n E x h i b i t 5 1 4 , p l e a s e? MR . L A W R E N C E : MR . T A Y L O R : BY M R. T A Y L O R: Q T h i s i s a m e m o p r e p a r e d by M r. J o h n s o n in S e p t e m b e r "S o m e t a l k i n g p o i n t s a n d a n o u t l i n e f o r a p r o p o s a l I w a n t y o u t o t u r n t o t h e s e c o n d p a g e, I f w e c o u l d l o o k at t h e H a s this been a d m i t t e d? Y e s, i t h a s. of 2 0 0 4. f o r t h e C i t y ." please . " S o n i c s t a l k i n g p o i n t s. " first line . T h e t e a m 's c o u n s e l b a c k in 2 0 0 4 wrote , "t h e current lease between the City and the Sonics does not work f o r e i t h e r p a r t y. " Do y o u a g r e e w i t h w h a t he w a s s a y i n g t h e r e? MR . L A W R E N C E : O b j e c t i o n, your H o n o r . He h a s n' t e s t a b l i s h e d a f o u n d a t i o n. T h i s w a s not s e n t to Mr . W a l k e r . I am He d o e s n 't k n o w t h a t Mr . W a l k e r r e c e i v e d t h i s d o c u m e n t . n o t s u r e w h y Mr . W a l k e r is b e i n g q u e s t i o n e d a b o u t t h i s document . T H E C O U R T: I thought h e just established that the l a w y e r w o r k i n g f r o m y o u r l a w f i r m, M r. J o h n s o n, p u t t o g e t h e r t h e t a l k i n g p o i n t s f o r Mr. W a l k e r a n d t h e S o n i c s' e f f o r t i n the legislature . 840 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR . L A W R E N C E : Mr . W a l k e r . T H E C O U R T: W e l l, t h e i s s u e is d o e s he a g r e e w i t h t h e No , b e c a u s e i t is n o t a d d r e s s e d to s t a t e m e n t, n o t n e c e s s a r i l y w h e t h e r h e r e c e i v e d t h e d o c u m e n t. MR . L A W R E N C E : If i t is l i m i t e d to t h a t , y o u r H o n o r, I will w i t h d r a w t h e o b j e c t i o n. T H E C O U R T: BY M R. T A Y L O R: Q Mr . W a l k e r , o n c e a g a i n, y o u w e r e t h e p r e s i d e n t of t h e t e a m O k a y. in 2 0 0 4? A Q A Q Y e s. P r e s i d e n t a n d g e n e r a l m a n a g e r? Chief executive officer . I' m s o r r y. I apologize . Do y o u a g r e e w i t h w h a t y o u r l a w y e r w r o t e in S e p t e m b e r 2 0 0 4 w h e n he s a i d , "t h e c u r r e n t lease between the City and the Sonics does not work for e i t h e r p a r t y ?" A Q I w o u l d l i m i t w h a t I k n e w to t h e S o n i c s . So w e w i l l p u t a s i d e t h e C i t y. Y o u agree i t w a s n' t w o r k i n g f o r the S o n i c s? A Q Y e s. K& L G a t e s a l s o w r o t e in 2 0 0 4 , "f r o m the S o n i c s p e r s p e c t i v e Do y o u a g r e e w i t h t h a t ? There was another team it i s t h e worst l e a s e i n t h e N B A ." A We s a i d it w a s a m o n g s t t h e w o r s t . that tried t o claim that title . I t was a m o n g s t t h e w o r s t. 841 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q T h a t 's f a i r. Thank you . He g o e s on to s a y , a n d y o u t e l l me a s f o r m e r p r e s i d e n t if y o u a g r e e, "t h e S o n i c s a r e l o s i n g m o n e y a n d c a n n o t a f f o r d to i n v e s t m o r e in t h e t e a m i f increased revenues only mean larger lease payments t o the C i t y ." A Q A it . Q He g o e s on t o s a y b a c k in 2 0 0 4 , "c u r r e n t S o n i c s o w n e r s h i p Y e s. That w a s a true s t a t e m e n t, r i g h t ? T h a t w o u l d h a v e b e e n d i s c r e t i o n a r y , but I w o u l d a g r e e w i t h Do y o u s e e t h a t ? m u s t c o n s i d e r s a l e of t h e f r a n c h i s e under t h e s e c o n d i t i o n s ." Do y o u s e e t h a t ? A Q Y e s. A n d he w e n t on to s a y - - K &L G a t e s w e n t o n to s a y, " t h e team has t o consider moving possibly even outside the r e g i o n ." A Q A Q A Q Y e s. Y o u d i d n 't w a n t t o m o v e t h e S o n i c s , did y o u ? D i d n o t. You wanted t o fight t o keep them i n Seattle ? Of c o u r s e. We w e r e t a l k i n g a b o u t y o u r e f f o r t s i n 2 0 0 5 in t h e Y o u h a d t h e l o b b y i s t s, y o u h a d Do y o u s e e t h a t? W a s h i n g t o n l e g i s l a t u r e. Mr . C e i s , y o u h a d t h e b a c k i n g of t h e l a w f i r m K &L G a t e s. E v e n w i t h a l l t h a t y o u t h o u g h t i t w a s a l o n g s h o t in 2 0 0 5. 842 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Why was that ? A Q A My r e c o l l e c t i o n i s we g o t a l a t e s t a r t. What does that mean ? We w e r e n 't d o w n t h e r e , w h a t we w e r e t o l d by t h e p e o p l e w h o u n d e r s t o o d i t f a r b e t t e r t h a n I d i d, as e a r l y a s t h e y w o u l d have liked o r I guess w e would h a v e liked . Q A Q A Q A Q A D i d y o u have a n y s u c c e s s i n t h e 2005 s e s s i o n? We o b v i o u s l y d i d n 't g e t t h e l e g i s l a t i o n p a s s e d, no . It d i d n' t e v e n g e t o u t of c o m m i t t e e? It d i d n o t . D i d y o u go b a c k i n 2 0 0 6 ? Y e s. A n d t h i s t i m e y o u w e r e s e e k i n g a p p r o x i m a t e l y $2 2 0 m i l l i o n? T h a t w a s t h e e s t i m a t e o f t h e e n t i r e p r o j e c t , so t h e t a x d o l l a r s w o u l d h a v e b e e n s o m e t h i n g l e s s t h a n t h a t. Q A Q O r d e r of m a g n i t u d e in t h a t r a n g e ? Y e s. And this t i m e w e have a team o f what , a t least three l o b b y i s t s? A Q A Q Y e s. Y o u h a d a p u b l i c r e l a t i o n s f i r m? T h a t 's c o r r e c t. A n d t h i s t i m e I i m a g i n e y o u h a d a l l y o u r d u c k s in a r o w in a t i m e l y f a s h i o n, r i g h t ? A I t h i n k we w e r e b e t t e r. D u c k s i n a row ? T h a t is 843 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 subjective . Q I d o n' t k n o w. Were you more timely i n 2006 than i n L e t me r e p h r a s e i t. 2005 ? A Q I b e l i e v e we w e r e d o w n there e a r l i e r , y e s . And you had learned some lessons i n 2005 that could help y o u s h a p e y o u r a p p r o a c h in 2 0 0 6? A Q A Q I t h i n k we d e v e l o p e d s o m e r e l a t i o n s h i p s t h a t w e r e h e l p f u l. Y o u w e r e b u i l d i n g o n t h e w o r k y o u h a d d o n e in 2 0 0 5 ? Y e s. A n d y o u h a d the l o b b y i s t s, t h e p u b l i c r e l a t i o n s f i r m , a n d a g a i n y o u h a d t h e b a c k i n g of t h e l a w f i r m o r t h e a s s i s t a n c e of t h e l a w f i r m K &L G a t e s? A Q A Q A Q C o r r e c t. T h e i r r o l e w a s to d r a f t l e g i s l a t i o n? Y e s. A n d t h e y d i d so ? They did . And you had fans and other people lobby , kind o f a grassroots effort campaign ? A Q We d i d . Mr . S c h u l t z, t h e c h a i r m a n of S t a r b u c k s a n d t h e p r i n c i p a l o w n e r of t h e t e a m , he w e n t d o w n a n d t e s t i f i e d ? A Q A Y e s. A n d he w o r k e d w i t h l e g i s l a t o r s ? He d i d . 844 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q A Q You worked hard ? I t h i n k so . Y o u, M r. S c h u l t z, y o u r l o b b y i s t s , y o u r p u b l i c r e l a t i o n s firm , your l a w y e r s, y o u a l l d i d your best ? A Q A Q We w o r k e d h a r d. We t r i e d. And the effort failed ? A g a i n, n o l e g i s l a t i o n p a s s e d . N o w, o n e t h i n g t h a t d i d n't h a p p e n in 2 0 0 6 w a s - - t h e C i t y r e f u s e d to h e l p y o u i n y o u r e f f o r t i n 2 0 0 6, r i g h t? A T h e y e v e n t u a l l y d i d h e l p. E a r l y i n the p r o c e s s n o t so much . Q I s n' t it t r u e t h a t t h e C i t y of S e a t t l e w a s u n w i l l i n g t o w o r k i n O l y m p i a o n b e h a l f of t h e i r o w n b u i l d i n g a n d t h e i r p r i m a r y t e n a n t? A T o w a r d s t h e end o f t h e s e s s i o n M r. C e i s c a m e d o w n a g a i n a n d they w e r e d o w n b e i n g p r o a c t i v e a n d h e l p i n g. Q I s n' t it t r u e t h e y w e r e u n w i l l i n g to w o r k i n O l y m p i a e v e n t h o u g h t h e y had p l e d g e d to d o so t h e y e a r b e f o r e? A L i k e I s a i d, t h e y c a m e d o w n e v e n t u a l l y in t h e s e s s i o n. E a r l y in t h e p r o c e s s I d o n't r e c a l l t h e m b e i n g there . Q C o u l d t h e w i t n e s s b e shown E x h i b i t 6 1 6, p l e a s e? MR . L A W R E N C E : Y o u r H o n o r, i t s h o u l d n o t be s h o w n. If i t i s b e i n g u s e d to I t is n o t an It i s n o t an a d m i t t e d e x h i b i t. i m p e a c h h i m or r e f r e s h h i s r e c o l l e c t i o n - e x h i b i t at t h i s p o i n t . 845 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 T H E C O U R T: b e i n g u s e d f o r. MR . L A W R E N C E : the screen . MR . T A Y L O R : I am u s i n g it f o r i m p e a c hm e n t, a n d f o r I thought i t was being put u p you o n Mr. L a w r e n c e, I h a v e n o i d e a w h a t i t i s t h a t p u r p o s e s I w o u l d l i k e t o p u t it up o n t h e s c r e e n so t h e w i t n e s s c a n see i t. T H E C O U R T: BY M R. T A Y L O R: Q A Q A Q 6 1 6 is a n e- m a i l y o u wrote , r i g h t, M r. W a l k e r ? T h a t 's c o r r e c t. A n d y o u w r o t e i t to a l l of y o u r co -o w n e r s o f t h e S o n i c s? R i g h t. A n d y o u w r o t e i t in J a n u a r y of 2 0 0 7, a y e a r a f t e r t h e 2 0 0 6 All r i g h t . W h e r e is 6 1 6 ? s e s s i o n -- e i g h t m o n t h s a f t e r? A Q Y e s. A n d y o u w r o t e t h e n -L e t's t a k e a l o o k at t h e s e c o n d p a r a g r a p h. S t a r t i n g w i t h t h e s e c o n d l i n e , in J a n u a r y You wrote of 2 0 0 6, i f we c o u l d h a v e t h a t h i g h l i g h t e d p l e a s e? then i n January o f 2006 , " the City o f Seattle b y resolution w a s u n w i l l i n g t o w o r k i n O l y m p i a o n b e h a l f of t h e i r o w n b u i l d i n g a n d t h e i r p r i m a r y t e n a n t, u s, e v e n t h o u g h t h e y h a d p l e d g e d do s o t h e y e a r b e f o r e. " Y o u w e n t o n to s a y -t h a t b e g i n s "g i v e n" ? If we c o u l d h i g h l i g h t t h e s e n t e n c e " Given the extremely late start and 846 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 lack o f cooperation from our landlord w e knew that w e were a n e x t r e m e l o n g s h o t t o g e t l e g i s l a t i o n p a s s e d ?" A y e a r a f t e r t h e f a c t y o u d i d n 't s a y a w o r d a b o u t Mr . C e i s h e l p i n g y o u in t h e 2 0 0 6 s e s s i o n. Y o u s a i d t h e y d i d n 't h e l p a n d t h e y b r o k e t h e i r p r o m i s e , r i g h t, Mr . W a l k e r ? A I w r o t e w h a t I w r o t e. B u t M r. C e i s did c o m e d o w n, I A n d t h e n l a t e r in b e l i e v e it w a s in M a r c h , f o r a h e a r i n g. t h e s e s s i o n he w a s h e l p f u l . Q A f t e r t h e s e s s i o n y o u t o l d y o u r p a r t n e r s, y o u r co- o w n e r s , t h a t t h e C i t y b r o k e i t s p r o m i s e to y o u, r i g h t ? A We h a d h o p e d f r o m t h e y e a r b e f o r e t h a t t h e y w o u l d be involved from the outset o f the process , and they got started a l i t t l e l a t e r. Q T h e y p l e d g e d to h e l p a n d t h e y d i d n 't h e l p . True s t a t e m e n t? A L i k e I s a i d, at t h e b e g i n n i n g we d i d n't b e l i e v e -- I d i d n 't b e l i e v e t h e y w e r e h e l p f u l , b u t t h e n t h e y w e r e . Q W h e r e do w e see y o u t e l l i n g y o u r p a r t n e r s a f t e r t h e s e s s i o n t h a t t h e C i t y c a m e d o w n to h e l p y o u a f t e r y o u t o l d them t h e C i t y b r o k e i t s p r o m i s e? A Q A Q It i s n o t in t h i s l e t t e r. T h a n k y o u. It d i d h a p p e n. O n e of t h e p r o b l e m s o r o n e o f t h e r e a s o n s y o u w e r e u n s u c c e s s f u l in g e t t i n g l e g i s l a t i o n p a s s e d, a t least i n y o u r 847 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY M R. T A Y L O R: Q C o m i n g b a c k to my q u e s t i o n , Mr . W a l k e r. O n e of t h e e s t i m a t i o n , was s o m e of t h e p o l i t i c i a n s y o u w e r e d e a l i n g with , true ? A W e l l , we h a d o u r f r u s t r a t i o n s, a n d I a s s u m e v i c e v e r s a . MR . T A Y L O R : By t h e w a y , y o u r H o n o r, if I c a n c o m e b a c k t o 6 1 6 for a m i n u t e, I w o u l d m o v e f o r i t s a d m i s s i o n . MR . L A W R E N C E : T H E C O U R T: No o b j e c t i o n, y o u r Honor . 616 w i l l be a d m i t t e d . ( E x h i b i t 6 1 6 a d m i t t e d) r e a s o n s in y o u r m i n d t h a t y o u w e r e u n s u c c e s s f u l in O l y m p i a was the politicians you were dealing with , true ? A Q Y e s. A n d in y o u r e s t i m a t i o n t h e g o v e r n o r, f o r e x a m p l e, is - - or w a s r i s k a verse a n d u n w i l l i n g to g e t o u t f r o n t, r i g h t? A Q In 2 0 0 6? In 2 0 0 6, 2 0 0 7, d i d s h e e v e r do a n y t h i n g o t h e r t h a n b e r i s k av e r s e ? A Q I t h o u g h t t h e g o v e r n o r w a s h e l p f u l t o t h e p r o c e s s in 2 0 0 6. L e t me m o v e f o r w a r d . Y o u w e r e b a c k in f r o n t of t h e l e g i s l a t u r e in t h e 2 0 0 8 s e s s i o n, w e r e n' t y o u? A Q I w a s back i n f r o n t o f t h e l e g i s l a t u r e? A g r o u p y o u w e r e w i t h w a s in f r o n t o f t h e l e g i s l a t u r e in 2008 , true ? A Oh , at t h a t point I w a s t r y i n g t o be h e l p f u l. I guess you 848 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 would call i t a group . no . Q W e r e n' t y o u p r o v i d i n g a n a n a l y s i s of t h e p o l i t i c i a n s a n d B u t I w a s n 't e n g a g e d in t h a t p r o c e s s , t h e i r p r o s p e c t s w i t h certain p o l i t i c i a n s? A I am s u r e I had a n o p i n i o n b u t I d o n 't b e l i e v e it w a s v e r y informed . Q W e l l , y o u h a d a n o p i n i o n t h a t C h o p p -M r. C h o p p, t h a t is t h e s p e a k e r of t h e h o u s e? A Q C o r r e c t. Y o u r o p i n i o n w a s he d i d n't w a n t to d o i t a n d w a s h i d i n g b e h i n d p r o c e s s, t r u e? A Q I very w e l l could h a v e said that . A n d as t o t h e g o v e r n o r, it w a s y o u r o p i n i o n s h e is s o r i s k av e r s e s h e i s u n w i l l i n g to g e t o u t f r o n t, r i g h t ? A Q C o u l d h a v e b e e n a n o p i n i o n , y e s. A n d as t o Mayor N i c k e l s , y o u r v i e w w a s he i s p r o b a b l y w i l l i n g to g e t o u t f r o n t b u t p r o b a b l y h a s t h e l e a s t c r e d i b i l i t y, r i g h t? A I thought Mayor Nickels had done a very g o o d job i n 2008 in t r y i n g to p r o m o t e w h a t we v i e w e d as a g o o d s o l u t i o n . Q W a s n 't i t y o u r v i e w t h a t M a y o r N i c k e l s w a s p r o b a b l y w i l l i n g to g e t o u t f r o n t b u t p r o b a b l y h a s t h e l e a s t c r e d i b i l i t y? A Q Y o u r w o r d s, t r u e ? I a s s u m e s o, y e s. W e l l , t a k e a l o ok a t 6 2 8, p l e a s e ? W e d o n 't n e e d t o p u t it 849 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 on t h e s c r e e n. e- m a i l b l o c k . Mr . W a l k e r ? A Q I have . Do y o u a g r e e t h a t i t w a s y o u r v i e w M a y o r N i c k e l s i s R e a d t h a t to y o u r s e l f, p l e a s e , j u s t t h e t o p H a v e y o u h a d a c h a n c e to r e a d t h a t, p r o b a b l y w i l l i n g to g e t o u t f r o n t b u t p r o b a b l y h a s t h e l e a s t c r e d i b i l i t y? T r u e? Y o u r H o n o r, t h i s is i m p r o p e r MR . L A W R E N C E : i m p e a c h m e n t. Mr . W a l k e r . document . T h a t w a s a s t a t e m e n t b y a t h i r d -p a r t y, n o t b y I t h i n k t h a t is a n i m p r o p e r u s e of t h a t I t i s f r o m M r. S t a n t o n, n o t Mr . W a l k e r. I a s k e d if it w a s h i s v i e w t h a t Mayor MR . T A Y L O R : N i c k e l s w a s p r o b a b l y w i l l i n g t o g e t out f r o n t b u t p r o b a b l y h a s t h e l e a s t c r e d i b i l i t y. T H E C O U R T: Mr. T a y l o r, y o u c a n' t i m p e a c h s o m e b o d y Y o u c a n a s k h i m i f he a g r e e s w i t h s o m e b o d y e l s e' s s t a t e m e n t . w i t h i t, b u t if i t is n o t h i s w r i t i n g y o u c a n 't i m p e a c h w i t h a prior inconsistent statement . BY M R. T A Y L O R: Q V e r y w e l l. Let m e a g r e e w i t h y o u w h a t Mr . S t a n t o n s a i d, M a y o r N i c k e l s i s p r o b a b l y w i l l i n g to g e t o u t front b u t probably has the least credibility ? A Well , Mayor Nickels has been very helpful i n our process f r o m m y p e r s p e c t i v e i n 2 0 0 8. Q W e r e y o u s u c c e s s f u l o r w a s t h e g r o u p s u c c e s s f u l in 2 0 0 8 in 850 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the legislature ? A Q No . And this group was Steve Ballmer - Steve Ballmer was involved ? A Q A Q A Y e s. Matt Griffin ? Y e s. Tim Ceis ? T i m I w o u l d n 't c o n s i d e r p a r t o f, i f you w a n t to c a l l i t a g r o u p, t h a t group , no . Q A T i m C e i s a s s i s t e d t h a t group i n O l y m p i a i n 2 0 0 8 , t r u e? A g a i n, I w a s n't i n v o l v e d i n t h a t l e g i s l a t i v e p r o c e s s . I k n o w t h e r e w a s c o n t a c t, b u t I c a n' t a n s w e r t h a t . Q Were you sharing your observations o f the political p r o c e s s, t h e l e g i s l a t i v e p r o c e s s , in M a r c h of 2 0 0 8 w i t h M a t t G r i f f i n, K &L G a t e s' l a w y e r G e r r y J o h n s o n, K &L G a t e s' l a w y e r s S l a d e J o h n s o n, Mike M c G a v i c k ? A Q We w e r e, s u r e. You were frustrated with what was happening o r not h a p p e n i n g in t h e l e g i s l a t u r e , r i g h t? A Q I s t a y e d f r u s t r a t e d w i t h t h a t, y e s . A n d in y o u r v i e w it w a s t h e s a m e p r o b l e m s y o u h a d e n c o u n t e r e d in t h e p a s t in t e r m s o f p o l i t i c i a n s u n w i l l i n g to help ? A I w i s h e d f o r a s u c c e s s f u l o u t c o m e so I g o t f r u s t r a t e d. 851 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 H o n o r. Q A Q A n d y o u thought t h e r e w a s a lack o f l e a d e r s h i p? I v e n t e d a n d u s e d t h a t t e r m, y e s . In f a c t, y o u c o n c l u d e d it is t h e s i n g l e f i n g e r- in- t h e- a i r l a c k o f l e a d e r s h i p t h a t h a s g o t t e n u s t o t h i s p l a c e, t r u e? A Q I u s e d t h a t t e r m, y e s . A n d e v e n b a c k t h e n in M a r c h of 2 0 0 8 you w e r e w o r r i e d a b o u t t h i s t r i a l , weren 't y o u ? A Q I d o n' t r e c a l l b e i n g w o r r i e d a b o u t i t. D o n' t y o u r e m e m b e r a s k i n g Mr . G r i f f i n, Mr . J o h n s o n , Mr . G o r t o n a n d Mr . M c G a v i c k, " t h i n k how u g l y t h e t r i a l w i l l be , h o w u g l y t h e S o n i c s d e p a r t u r e w i l l be , a n d t h e n we w i l l r e l y o n an N B A m a n d a t e t h a t a n o t h e r t e a m c a n m o v e h e r e a f t e r a s c o r c h e d e a r t h, i n c r i m i n a t i n g p r o c e s s ." A Q A Q Y e s. A n d y o u w e r e r i g h t, w e r e n' t y o u? L e t me s a y t h i s : J u s t a n s w e r my q u e s t i o n , p l e a s e. MR . L A W R E N C E : Y o u r H o n o r, l e t h i m a n s w e r t h e True ? q u e s t i o n w i t h o u t i n t e r r u p t i o n from c o u n s e l. T H E C O U R T: question . Mr. L a w r e n c e, h i s a n s w e r w a s n o t to t h e He c a n H e w a n t e d to s a y s o m e t h i n g d i f f e r e n t . answer the question . T H E W I T N E S S: MR . L A W R E N C E : W h a t w a s t h e q u e s t i o n? Y e s , p l e a s e. I will withdraw the question , your 852 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY M R. T A Y L O R: Q I w a n t t o m o v e on n o w a w a y f r o m t h e l e g i s l a t i v e p r o c e s s O k a y , Mr . W a l k e r? a n d i n t o y o u r r o l e in t h i s l a w s u i t . A Q Sure . C o u l d we h a v e E x h i b i t 1 4 7 s h o w n, p l e a s e . 147 i s the arbitration demand filed b y the Professional Basketball Club . If w e c o u l d h a v e t h e f i l i n g d a t e b l o w n up , p l e a s e, r i g h t a b o v e t h e y e l l o w h i g h l i g h t e d l i n e? T h e a r b i t r a t i o n w a s f i l e d on S e p t e m b e r 19 th o f 2 0 0 7, d o you recall that ? A Q I s e e it t h e r e. A l l r i g h t. I d o n' t r e c a l l it a t t h e t i m e. Two d a y s later o n S e p t e m b e r 2 1s t, 2 0 0 7 y o u w e r e r e t a i n e d a s an e x p e r t c o n s u l t a n t b y t h e C i t y of S e a t t l e , true ? A Q No . T w o d a y s l a t e r on S e p t e m b e r 21 st y o u w e r e r e t a i n e d b y t h e f i r m o f K& L Gates t o a s s i s t t h e m i n their c o n t i n u i n g r e p r e s e n t a t i o n of t h e C i t y o f S e a t t l e, t r u e ? A Q A Q S e p t e m b e r 21 st? Y e s. I have n o knowledge o f that date . Y o u w e r e r e t a i n e d o n S e p t e m b e r 2 1s t to a s s i s t a n d c o n s u l t w i t h K &L G a t e s a n d t h e C i t y w i t h r e s p e c t to e f f o r t s to r e t a i n t h e S e a t t l e S o n i c s a n d Storm i n t h e C i t y of S e a t t l e b e y o n d t h e t e r m s of t h e e x is t i n g K e y A r e n a l e a s e, t r u e? 853 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY M R. T A Y L O R: Q 6 2 5 is t h e l e t t e r w r i t t e n to y o u b y l a w y e r G e r r y J o h n s o n A I w a s c o n c e r n e d , a n d my g o a l w a s f o r t h e S o n i c s to r e m a i n T h e c o n s u l t a n t t h i n g, t h e r e w a s a d o c u m e n t I s i g n e d i n I d o n' t h a v e a n y r e c o l l e c t i o n of S e p t e m b e r 21 st . Can the here . February . Q L e t me s e e i f I c o u l d r e f r e s h y o u r r e c o l l e c t i o n . w i t n e s s be s h o w n, p l e a s e, E x h i b i t 6 2 5? Y o u r H o n o r , I w o u l d m o v e t h e a d m i s s i o n of 6 2 5 . MR . L A W R E N C E : T H E C O U R T: No o b j e c t i o n, y o u r Honor . Exhibit 6 2 5 will b e a d m i t t e d. ( E x h i b i t 6 2 5 a d m i t t e d) of K &L G a t e s , t r u e? A Q A Q Y e s. "D e a r, M r. W a l k e r ." Y e s. F i r s t p a r a g r a p h , "I w r i t e to c o n f i r m o u r m u t u a l T h a t is y o u ? u n d e r s t a n d i n g t h a t y o u w e r e r e t a i n e d as a n o n t e s t i f y i n g e x p e r t c o n s u l t a n t b e g i n n i n g -- " A Q It s a y s S e p t e m b e r 2 1s t. S e p t e m b e r 21 st. T u r n t o t h e s e c o n d p a g e, P a g e 2. Your W h a t d a y , Mr . W a l k e r? s i g n a t u r e? A Q Y e s. R i g h t a b o v e it, i t s a y s "a p p r o v e d a n d a g r e e d. " Do y o u s e e that ? A Y e s. 854 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q L e t' s go b a c k t o t h e first p a g e a n d see w h a t y o u w e r e r e t a i n e d t o do b e g i n n i n g o n S e p t e m b e r 2 1, t w o d a y s a f t e r t h e arbitration demand was filed . I f we c o u l d l o o k at t h e f i r s t p a r a g r a p h in p a r t i c u l a r -- I 'm s o r r y , t h e f i r s t n u m b e r e d p a r a g r a p h. You were retained specifically t o assist and consult with K& L G a t e s a n d t h e C i t y, b o t h p a r t i e s , w i t h r e s p e c t t o e f f o r t s to r e t a i n t h e S o n i c s a n d t h e S t o r m i n t h e C i t y of S e a t t l e b e y o n d t h e t e r m o f t h e e x i s t i n g K e y A r e n a l e a s e. that ? A Q I do . L e t' s d r o p d o w n n o w t o t h e l a s t p a r a g r a p h , in p a r t i c u l a r If D o you see t h e s e c o n d l i n e , m i d d l e of t h e l i n e, "y o u a c k n o w l e d g e. " we c o u l d h a v e t h a t h i g h l i g h t e d , p l e a s e? You acknowledged that absent your retention a s a consultant you would not h a v e a c c e s s t o t h e c o n f i d e n t i a l p l a n s a n d s t r a t e g i e s by t h e C i t y -- o r t h a t t h e C i t y a n d K& L G a t e s a r e d e v e l o p i n g t o m e e t t h e g o a l o f k e e p i n g t h e S o n i c s a n d S t o r m in S e a t t l e f o r t h e l o n g -t e r m. A Q I do . I w a n t t o t u r n n o w to t h e C i t y 's c o n f i d e n t i a l p l a n s a n d Do y o u s e e t h a t? s t r a t e g i e s f o r k e e p i n g t h e S o n i c s in S e a t t l e f o r t h e l o n g -t e r m. I w a n t to t a l k a b o u t y o u r r o l e in t h a t . O k a y? A r e y o u w i t h me ? A Sure . 855 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q I w a n t t o t a k e us a l l t o O c t o b e r 7 th , 2 0 0 7. Do y o u r e c a l l t h a t d a t e? A Q A Q I do . T h e r e w a s a m e e t i n g a t y o u r h o u s e, w a s t h e r e? Y e s. By t h i s t i m e t h e a r b i t r a t i o n d e m a n d had b e e n filed a n d t h e C i t y h a d s u e d t h e P r o f e s s i o n a l B a s k e t b a l l C l u b; t r u e ? A Q A Q I b e l i e v e so . S l a d e G o r t o n w a s t h e l e a d c o u n s e l f o r K &L G a t e s , t r u e? I b e l i e v e so . I c e r t a i n l y w a s n' t f o c u s e d o n t h a t. Slade Gorton , At t h i s m e e t i n g w e r e t h e f o l l o w i n g p e o p l e : who was the lead counsel for the City i n the lawsuit , you w e r e p r e s e n t , a n d y o u h a d j u s t b e e n r e t a i n e d to a s s i s t K& L G a t e s a n d t h e C i t y w i t h r e s p e c t to e f f o r t s to r e t a i n t h e S o n i c s b e y o n d t h e t e r m of t h e e x i s t i n g l e a s e -A I h a d n 't b e e n r e t a i n e d at t h a t p o i n t . MR . L A W R E N C E : E x c u s e m e. I would like a question C a n we g e t a r a t h e r t h a n a s e r i e s of s t a t e m e n t s b y c o u n s e l . question i n there ? T H E C O U R T: H e is j u s t m a k e m a k i n g a s t a t e m e n t . Overruled . What i s t h e q u e s t i o n, your H o n o r ? How MR . L A W R E N C E : is h e q u e s t i o n i n g ? T H E C O U R T: BY M R. T A Y L O R: Q Mr. L a w r e n c e, it i s o v e r r u l e d . L e t' s go b a c k t o 62 5 -- 856 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 T H E C O U R T: MR . T A Y L O R : t h e t i m e b e i n g. BY M R. T A Y L O R: Q C o m e b a c k to 6 2 5. Top block , please . You were retained Did y o u w i s h t o c o m p l e t e y o u r q u e s t i o n ? No . I will withdraw the question for as a n e x p e r t c o n s u l t a n t b e g i n n i n g on S e p t e m b e r 21s t, 2 0 0 7. T h a t w a s b e f o r e t h e m e e t i n g at y o u r house o n O c t o b e r 7 th , 2007 , true ? A T h e r e h a d b e e n no d i s c u s s i o n o f t h e t e r m, I w a s j u s t Y o u s e e t h i s is d a t e d J a n u a r y 2 9, t r y i n g t o be h e l p f u l. 2008 . 2008 . Q I never heard this term until the beginning o f January Mr . W a l k e r , a c c o r d i n g t o t h e d o c u m e n t y o u s i g n e d, a g r e e d and approved , you were a consultant beginning o n September 21 st , 2 0 0 7 , t r u e? A Q T h a t i s w h a t it s a y s. Y e s, i t is . A n d t h a t i s b e f o r e t h e m e e t i n g a t y o u r h o u s e, w a s it n o t ? A Q S e p t e m b e r 21s t is b e f o r e O c t o b e r 7 th? T h a t 's t r u e. So a t t h e m e e t i n g a t y o u r h o u s e, l e a d c o u n s e l o f Steve Ballmer was also K& L G a t e s, y o u w e r e p r e s e n t -p r e s e n t? A Q A R i g h t. And Mike McGavick ? T h a t 's r i g h t . 857 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q T h e p u r p o s e of t h e m e e t i n g w a s t o d i s c u s s w a y s to k e e p t h e Sonics i n Seattle ? A Q A Q Y e s. S e n a t o r G o r t o n b r o u g h t a d o c u m e n t w i t h h i m, d i d he n o t ? He d i d . And that document was entitled " The Sonics Challenge . Why a P o i s o n ed W e l l A f f o r d s a U n i q u e O p p o r t u n i t y. " that ? A Q I do . Do y o u r e c a l l This was not the first time had you seen that document , w a s it ? A Q No , I h a d s e e n it p r i o r . In f a c t, y o u w e r e g i v e n a c c e s s t o t h a t d o c u m e n t t w o d a y s a f t e r S e p t e m b e r 2 1s t, t h e d a y y o u b e c a m e t h e e x p e r t c o n s u l t a n t , t r u e? A Q A Q A Q I think perhaps earlier . Even earlier ? I t h i n k so . You had been working with that document for a while then ? I t h i n k so . A n d t h e r e a s o n y o u h a d a c c e s s to i t was b e c a u s e y o u h a d a g r e e d , p e r 625 , t h a t y o u w o u l d k e e p in c o n f i d e n c e t h e c o n f i d e n t i a l p l a n s a n d s t r a t e g i e s t h e C i t y a n d K&L G a t e s a r e developing t o m e e t the goals o f keeping the Sonics i n S e a t t l e? 858 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q No . T a k e a l o o k at 6 2 5, p l e a s e. You acknowledged then , absent y o u r r e t e n t i o n as a c o n s u l t a n t , y o u would n o t h a v e a c c e s s to t h e c o n f i d e n t i a l p l a n s a n d s t r a t e g i e s t h e C i t y a n d K &L G a t e s a r e d e v e l o p i n g to m e e t t h e g o a l of k e e p i n g t h e S o n i c s in S e a t t l e f o r the l o n g- t e r m. A Q I s e e it . L e t' s c o m e b a c k t o t h e m e e t i n g a t y o u r h o u s e on T h e p o i s o n w e l l p r e s e n t a t i o n, t h a t w a s t h e o n l y Do y o u s e e t h a t ? O c t o b e r 7t h. document used a t the meeting , true ? A Q A Q Y e s. T h e m e e t i n g l a s t e d an h o u r -a n d -a -h a l f? T h e r e a b o u t s. I r e a l i z e y o u d i d n' t spend t h e w h o l e t i m e l o o k i n g at t h e d o c u m e n t , b u t t h e f o u r of y o u, l e a d c o u n s e l G o r t o n, M c G a v i c k , B a l l m e r a n d you , c o n s u l t a n t, w e n t t h r o u g h t h e d o c u m e n t , t r u e ? A Q We f l i p p e d t h r o u g h t h e d o c u m e n t. W h e n y o u f i r s t s a w t h e draft o n S e p t e m b e r 2 3r d y o u l o o k e d t h r o u g h it ? A A g a i n, I c a n 't r e m e m b e r e x a c t l y w h e n I s a w it . I thought it w a s b e f o r e t h a t. Q T a k e a l o o k at 6 1 9, p l e a s e. I f t h e w i t n e s s c o u l d be s h o w n E x h i b i t 6 1 9? T H E C O U R T: MR . T A Y L O R : Did y o u w a n t 6 1 9 o n t h e m o n i t o r ? I' m s o r r y, y o u r H o n o r ? 859 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 H o n o r. MR . L A W R E N C E : document . Y o u r H o n o r, t h i s is a h e a r s a y T H E C O U R T: s t i l l up . MR . T A Y L O R : I w o u l d m o v e t h e a d m i s s i o n o f 6 1 9, y o u r Did y o u w a n t 6 1 9 o n t h e m o n i t o r ? 6 2 5 is T h e r e h a s b e e n no f o u n d a t i o n e s t a b l i s h e d t h a t Mr . W a l k e r w a s a c t i n g i n h i s r o l e w i t h t h e C i t y at t h i s m e e t i n g. T h a t f o u n d a t i o n n e e d s to b e l a i d if t h i s i s g o i n g to b e t r e a t e d a s an a d m i s s i o n a g a i n s t a p a r t y o p p o n e n t . R i g h t n o w it is j u s t an o u t- of -c o u r t s t a t e m e n t by Mr . W a l k e r . T h e r e is n o f o u n d a t i o n l a i d at a l l t h a t a n y o n e at t h a t m e e t i n g w a s a c t i n g on b e h a l f o f t h e C i t y. He n e e d s s o m e e v i d e n c e o f t h a t in o r d e r to g e t t o t h i s p o i s o n ed w e l l document being a City document . H e h a s n' t e s t a b l i s h e d t h a t. Mr . W a l k e r a n s w e r e d n o w h e n a s k e d w h e t h e r o r n o t h e w a s w o r k i n g u n d e r a c o n s u l t i n g a g r e e m e n t at t h i s m e e t i n g . N i c k e l s a n s w e r e d no w h e n h e w a s a s k e d w h e t h e r h e h a d a u t h o r i z e d a p o i s o n e d well t y p e s t r a t e g y. T h e r e i s no Mayor e v i d e n c e o f r e c o r d to e s t a b l i s h a n y f o u n d a t i o n t h a t t h i s w a s a C i t y m e e t i n g or a n y o n e r e p r e s e n t i n g t h e C i t y. T H E C O U R T: MR . T A Y L O R : the document itself . Do y o u w i s h to r e s p o n d ? Y e s. I haven 't m o v e t h e a d m i s s i o n of W e are talking about Exhibit 619 , which I a m not is a n e- m a i l f r o m M r. W a l k e r t o Mr . M c G a v i c k. offering the underlying document - - 860 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR . L A W R E N C E : A g a i n, t h i s e -m a i l is h e a r s a y b e c a u s e it i s n o t - - Mr . W a l k e r w a s not a c t i n g w i t h r e s p e c t to t h e C i t y w i t h r e s p e c t t o t h i s e -m a i l . I t is an S o i t is a o u t- of -c o u r t s t a t e m e n t n o t t a k e n u n d e r o a t h . h e a r s a y d o c u m e n t. T H E C O U R T: W e l l, h e h a s n' t o f f e r e d it. He d i d o f f e r 6 1 9, y o u r H o n o r . I MR . L A W R E N C E : t h o u g h t t h a t 's w h a t h e j u s t s a i d . MR . T A Y L O R : I am o f f e r i n g 6 19 . 6 1 9 w a s p r e p a r e d by Mr . W a l k e r t w o d a y s a f t e r he w a s r e t a i n e d b y t h e C i t y as a n e x p e r t t o a s s i s t in k e e p i n g t h e S o n i c s in S e a t t l e. MR . L A W R E N C E : Y o u r H o n o r, h e n e e d s to a s k Mr . W a l k e r w h e t h e r t h i s w a s d o n e i n t h a t c o n s u l t a n t' s r o l e or n o t t o l a y the foundation for its admission . T H E C O U R T: Mr. L a w r e n c e, t h e l e t t e r f r o m K &L G a t e s b a s i c a l l y i n d i c a t e s t h a t M r. W a l k e r was a c o n s u l t a n t a s of S e p t e m b e r 21 st, a n d i t w a s s i g n e d o f f b y Mr . J o h n s o n f r o m y o u r l a w f i r m. S o I believe t h a t leads a n establishment - - t h a t e s t a b l i s h e s t h a t M r. W a l k e r w a s a c t i n g a s a c o n s u l t a n t at t h a t t i m e a n d m a k i n g s t a t e m e n t s c o n c e r n i n g t h e s t r a t e g y that the City had . MR . L A W R E N C E : T H E C O U R T: MR . T A Y L O R : T H E C O U R T: No. C a n I r e s p o n d , y o u r H o n o r? Y o u have made y o u r a r g u m e n t. M o v e t h e a d m i s s i o n of 6 1 9, y o u r Honor . 619 w i l l be a d m i t t e d . 861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY M R. T A Y L O R: Q C a n we h a v e 619 u p on t h e s c r e e n ? T h i s i s a l e t t e r -- a n Do ( E x h i b i t 6 1 9 a d m i t t e d) e- m a i l y o u s e n t t o Mr . M c G a v i c k on S e p t e m b e r 23 rd, 2 0 0 7. you see that ? A Q T h a t 's c o r r e c t. T h a t i s t w o d a y s a f t e r y o u b e c a m e t h e C i t y' s e x p e r t, S e p t e m b e r 21 st. Two days after you became the expert you got s e n t t h e p o i s o n ed w e l l p r e s e n t a t i o n, t r u e ? A Q Y e s. B u t I had s e e n it b e f o r e . When were you Mr . W a l k e r , let m e a s k y o u a q u e s t i o n. f i r s t s u b p o e n a e d to p r o d u c e y o u r r e c o r d s in t h i s l a w s u i t ? A Q F i r s t s u b p o e n a e d? A p r i l. M i d , l a t e A p r i l. Is i t c o r r e c t a t t h a t t i m e y o u d i d n o t p r o d u c e a l l o f y o u r d o c u m e n t s in r e s p o n s e t o t h e s u b p o e n a? A Q T h a t 's c o r r e c t. A l l r i g h t. And i s n 't i t t r u e t h a t a s r e c e n t l y as t h i s M o n d a y y o u f i n a l l y p r o d u c e d a p p r o x i m a t e l y 7 0 0 m o r e e -m a i l s that h a d b e e n w i t h h e l d? A Q T h a t 's t r u e. W h e r e is t h e e a r l i e r v e r s i o n o f t h e draft y o u s a y n o w t h a t y o u s a w, M r. W a l k e r ? A I b e l i e v e it is i n my c a l e n d a r n o t e s , w h i c h h a v e a l s o b e e n produced . Q Y o u r c a l e n d a r n o t e s s h o w y o u r e c e i v i n g it o n 862 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY M R. T A Y L O R: Q By t h e w a y , Mr. W a l k e r, c o m i n g b a c k to t h e e a r l i e r d r a f t S e p t e m b e r 23 rd, d o t h e y n o t? A Q A Q T h e y s h o w e a r l i e r e n t r i e s as I w e n t b a c k a n d l o o k e d at i t. We w i l l g e t to y o u r c a l e n d a r i n a m i n u t e, o k a y? Sure . C o m i n g b a c k to O c t o b e r 7th , t h e m e e t i n g a t y o u r h o u s e. In f a c t, y o u g o t a Y o u h a d t h e p o i s o ne d w e l l d o c u m e n t . d r a f t -A Q Y e s. T h e m e e t i n g w a s on a S u n d a y, r i g h t? Y o u h a d r e c e i v e d a d r a f t F r i d a y f r o m K& L G a t e s, r i g h t, a p r o c e e d i n g F r i d a y , O c t o b e r 5 th ? A Q I b e l i e v e t h a t' s r i g h t. T a k e a l o o k at 6 2 0, p l e a s e. MR . T A Y L O R : MR . L A W R E N C E : b a s i s, y o u r Honor . T H E C O U R T: 620 w i l l be a d m i t t e d . ( E x h i b i t 6 2 0 a d m i t t e d) I would move its admission . A g a i n, w e w o u l d o b j e c t o n t h e s a m e y o u s a w, d i d y o u g i v e i t t o us i n r e s p o n s e to t h e s u b p o e n a ? A Q I d o n' t t h i n k I h a d i t. I n f a c t , I' m s u r e I d i d n' t. K &L G a t e s would h a v e O t h e r p e o p l e h a d it , d i d n' t t h e y ? h a d it , M c G a v i c k w o u l d h a v e h a d it a n d y o u h a d it, r i g h t ? A Q I w o u l d h a v e s e e n i t. K& L G a t e s would h a v e h a d i t, r i g h t ? 863 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q I' m n o t s u r e . Do y o u k n o w why i n a l l t h e r e a m s o f paper i n t h i s l a w s u i t t h i s s u p p o s e d e a r l i e r d r a f t h a s n 't b e e n p r o d u c e d b y a n y b o d y? A Q I d o n' t k n o w . F r i d a y b e f o r e t h e p o i s o ned w e l l m e e t i n g , E x h i b i t 6 2 0 , L i n d a J a c o b s -- b y t h e K& L G a t e s sends o u t t h e l a t e s t d r a f t . w a y, y o u k n o w h e r t o be G e r r y J o h n s o n's s e c r e t a r y? A Q A Q Y e s. G e r r y J o h n s o n i s a K& L Gates l a w y e r? T h a t 's c o r r e c t. T h e F r i d a y b e f o r e t h e m e e t i n g s h e s a y s, " h e r e 's t h e l a t e s t D o y o u s e e t h a t? d r a f t w i t h o u t t h e c o l o r b a c k g r o u n d ." A Q Y e s. "I t' s n o t p r e t t y b u t t h e m a s t e r t h e y a r e w o r k i n g o f f ." K& L G a t e s w a s k e e p i n g t h e m a s t e r o f the p o i s o ne d w e l l p l a n , true ? A I am n o t s u r e a b o u t t h a t. M r. M c G a v i c k w a s t h e o n e I w a s conversing with . Q H e w a s t h e o n e d o i n g t h e d r a f t i n g. W e l l , on F r i d a y , O c t o b e r 5 th K &L G a t e s h a d t h e m a s t e r, true ? A Q A Q I am r e a d i n g it h e r e. F r i d a y , O c t o b e r 5 th K &L G a t e s h a d t h e m a s t e r, t r u e ? I s e e it . B u t I d o n' t r e c a l l h o w t h a t w o r k s. S h e a s k s - - K&L G a t e s a s k s , "i f y o u h a v e r e v i s i o n s p l e a s e A n d s h e, i n f a c t, s u g g e s t e d y o u f a x c a l l m e or f a x c h a n g e s. " 864 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 it d i r e c t l y to G e r r y J o h n s o n , t h e l a w y e r. A Q A Q I do . D i d y o u make a n y c h a n g e s? I' m n o t s u r e . L e t' s go n o w to t h e p l a n i t s e l f. Senator Gorton had Do y o u s e e t h a t ? b r o u g h t t h e d o c u m e n t w i t h h i m to t h e m e e t i n g? A Q T h a t 's r i g h t . A n d S e n a t o r G o r t o n d i s t r i b u t e d i t to t h e p a r t i c i p a n t s of t h e m e e t i n g, y o u B a l l m e r, M c G a v i c k , t r u e? A Q We e a c h h a d a c o p y. And the purpose o f the meeting was t o discuss ways t o keep the Sonics i n Seattle , right ? A Q Y e s. A n d at t h e m e e t i n g a n d in t h e p l a n y o u t a l k e d a b o u t t h e f a c t t h a t y o u w a n t e d t h e, q u o t e, O k l a h o m a n s t o s e l l t h e t e a m , r i g h t? A If t h e r e w a s an a r e n a s o l u t i o n h e r e, a n d t h e O k l a h o m a n s w o u l d n o t t a k e a d v a n t a g e o f it , t h e n we h o p e d t h e y w o u l d s e l l t h e t e a m t o k e e p it h e r e. Q W e l l , f o r t h e b e s t o u t c o m e t h e O k l a h o m a n s h a v e to be T h a t w a s t h e p l a n, w a s n 't i t? We h a d n o w a y t o do w i l l i n g to s e l l . A O u r g o a l w a s to k e e p t h e t e a m h e r e . a n y t h i n g o t h e r t h a n h o p e t h e y w o u l d s e l l to l o c a l o w n e r s h i p. Q T a k e a l o o k at B a t e s n u m b e r 2 1 8 of E x h i b i t 5 6 7. T H E C O U R T: 567 , is t h a t w h a t y o u s a i d? 865 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR . T A Y L O R : BY M R. T A Y L O R: Q T u r n t o B a t e s n u m b e r 2 1 8, p l e a s e . D o y o u h a v e t h a t y e t, 5 6 7, y o u r Honor . Mr . W a l k e r ? A Q I am n o t s u r e w h a t B a t e s 2 1 8 m e a n s . If y o u l o o k in t h e l o w e r r i g h t h a n d c o r n e r t h e r e i s d o c u m e n t n u m b e r s WW 0 0 2 1 8? T H E C O U R T: T H E W I T N E S S: BY M R. T A Y L O R: Q A Q A r e y o u w i t h me ? I am . "U n d e r t h e p o i s o n ed w e l l p l a n f o r t h e b e s t l i k e l y o u t c o m e T r u e? In o t h e r words , P a g e 2 4. O k a y. I' ve g o t it . T h a n k y o u. t h e O k l a h o m a n s h a v e t o be w i l l i n g to s e l l ." A R i g h t. MR . T A Y L O R : 5 6 7 at t h i s point . MR . L A W R E N C E : Your Honor , w e move for the admission o f Y o u r H o n o r, i f I m a y, c o u l d I a s k t h e A g a i n, w e d o n't b e l i e v e In f a c t, Court for a continuing objection ? t h e r e is a n y f o u n d a t i o n l a i d t h i s w a s a C i t y p l a n. the document indicates otherwise . I f I could have a c o n t i n u i n g o b j e c t i o n we w i l l s p e e d t h i s a l o n g . If n o t , I w i l l m a k e my s a m e o b j e c t i o n, t h e r e i s n o f o u n d a t i o n t h a t t h i s is a C i t y p l a n or C i t y d o c u m e n t. T h e d o c u m e n t pages 1 8, 2 8, 30 , 31 I t h i n k s u g g e s t t h a t t h i s w a s n o t p a r t n e r e d w i t h t h e 866 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY M R. T A Y L O R: Q C o u l d we h a v e t h e f i r s t p a g e o f t h e p o i s o ne d w e l l p u t up City , but that the City was a future partner and this was not a C i t y p l a n. H e h a s n 't i s s u e d a n y f o u n d a t i o n t h a t t h i s w a s a C i t y p l a n, t h a t M r. M c G a v i c k w a s w o r k i n g f o r t h e C i t y, t he a u t h o r o f t h e d o c u m e n t. T h i s is a h e a r s a y d o c u m e n t. There is n o f o u n d a t i o n to l i n k i t to t h e C i t y . T H E C O U R T: MR . T A Y L O R : f r o m K &L G a t e s. Do y o u w a n t to r e s p o n d , Mr. T a y l o r? Y e s. T h e m a s t e r of t h e d o c u m e n t c a m e We k n o w t h a t K& L Gates w a s d i s t r i b u t i n g i t two days before the meeting for everybody t o review the document . T h e d o c u m e n t w a s t h e n b r o u g h t to t h e m e e t i n g by S e n a t o r G o r t o n as o f t h e d a t e of t h e m e e t i n g T h a t 's w h a t he S e n a t o r G o r t o n. w a s t h e C i t y 's l e a d c o u n s e l in t h i s l a w s u i t . w a s r e t a i n e d to d o. Mr . W a l k e r as o f t h i s d a t e h a d b e e n He h a d r e c e i v e d t h e f i r s t r e t a i n e d a s an e x p e r t b y t h e C i t y. d r a f t of t h i s d o c u m e n t t w o d a y s a f t e r h e w a s r e t a i n e d as a n e x p e r t b y t h e C i t y. There i s p e r h a p s c l o s i n g a r g u m e n t t o be m a d e t h a t K& L G a t e s a n d t h e C i t y h a d no p a r t of t h i s , b u t t h a t g o e s to w e i g h t n o t to a d m i s s i b i l i t y. K& L Gates h a s n o t d e s i g n a t e d a n y b o d y from t h e i r firm , Gerry J o h n s o n, S e n a t o r G o r t o n o r a n y o n e e l s e t o c o m e in a n d s a y t h i s w a s n 't o u r w o r k on b e h a l f of t h e C i t y . T H E C O U R T: 567 w i l l be a d m i t t e d . ( E x h i b i t 5 6 7 a d m i t t e d) 867 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 on t h e s c r e e n, p l e a s e ? "T h e S o n i c s c h a l l e n g e . Why a p o i s o n e d w e l l a f f o r d s a u n i q u e o p p o r t u n i t y. We k n o w f o r t h e b e s t l i k e l y o u t c o m e t h e O k l a h o m a n s h a v e t o be w i l l i n g to s e l l ." We s a w t h a t a t P a g e 2 1 8. You wanted t o make the team If w e go t o P a g e 2 2 6, p l e a s e . a v a i l a b l e f o r p u r c h a s e, true ? A The best outcome was for the Oklahomans t o stay here . Shy of t h a t, t h a t w o u l d b e n e x t. Q 2 1 8, p l e a s e. You say the best outcome was for the B u t on t h i s d a t e t h e b e s t l i k e l y Oklahomans t o stay here . o u t c o m e w o u l d b e t h e O k l a h o m a n s h a v e to b e w i l l i n g t o s e l l ? T r u e , Mr . W a l k e r? A Q No . D o e s i t n o t say i n t h e p o i s o ne d w e l l p l a n f o r t h e b e s t likely outcome two things have t o happen next , Oklahomans h a v e t o be w i l l i n g to s e l l , t r u e ? A Q T h a t 's t r u e if t h e y a r e n o t g o i n g to k e e p t h e t e a m h e r e. W e l l , l e t' s t a l k a l i t t l e b i t m o r e a b o u t w h e t h e r y o u w a n t e d t h e O k l a h o m a n s t o s t a y h e r e o r h e a d on b a c k t o O k l a h o m a C i t y. I f we c o u l d go t o P a g e 2 0 2. P a g e 2 2 7. I' m s o r r y , "T h e t h a t 's t h e w r o n g. p a t h f o r w a r d ." I a p o l o g i z e , y o u r H o n o r. This was the path forward t o keeping the S o n i c s i n S e a t t l e , t r u e , M r. W a l k e r? A If t h e O k l a h o m a n s w e r e n o t k e e p i n g t h e S o n i c s h e r e , t h a t 's what this addresses . 868 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q No , t h i s a d d r e s s e s -- t h e p l a n a d d r e s s e s m a k i n g t h e m s e l l, true ? A Q A Q T h a t 's w h a t it s a y s . A n d t h a t w a s a d i s c u s s i o n t h a t d a y , t r u e? I d o n' t r e c a l l t h a t w e d i s c u s s e d i t. T h e g o a l w a s to m a k e t h e m s e l l . And then you started t a l k i n g a b o u t h o w t o do t h a t . plan was . L e t 's t a k e a l o o k a t w h a t t h e F i r s t b u l l e t p o i n t -- I 'm s o r r y, t h e f i r s t "T h e c r i t i c a l p a t h i n d e n t e d b u l l e t p o i n t , "c r i t i c a l p a t h." is t o s e p a r a t e t h e NB A f r o m t h e O k l a h o m a n s w h i l e i n c r e a s i n g t h e e x p o s u r e f o r e a c h ." A Q I do . T h e O k l a h o m a n s, i s that your w a y o f referring t o t h e D o y o u s e e t h a t? Professional Basketball Club ? A Q W e l l , t h a t 's w h a t i t r e f e r s to h e r e, y e s. A n d y o u k n e w by t h i s t i m e t h a t t h e y w e r e s e e k i n g t o r e l o c a t e t h e t e a m t o O k l a h o m a C i t y , t r u e? A Q I b e l i e v e so . A n d as a f o r m e r e x e c u t i v e of t h e S o n i c s y o u a t t e n d e d N B A B o a r d of G o v e r n o r s m e e t i n g s p r e s u m a b l y? A Q Y e s. You knew the Sonics under the league constitution could n o t m o v e t o O k l a h o m a w i t h o u t t h e N B A 's a p p r o v a l , r i g h t ? A Q I w a s a w a r e of t h a t . A n d as a r e s u l t t h e c r i t i c a l p a t h w a s t o s e p a r a t e t h e N B A 869 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 from the Oklahomans , right ? A W h a t I b e l i e v e t h a t r e f e r r e d t o, i f there w a s a n a r e n a s o l u t i o n h e r e, w h i c h there w a s n' t at t h i s p o i n t , a n d t h e O k l a h o m a n s w o u l d n o t s t a y h e r e e v e n w i t h an a r e n a s o l u t i o n , t h e n t h e N B A w o u l d h a v e to s i g n o f f on t h a t s o l u t i o n , a n d we h o p e d to k e e p t h e t e a m h e r e. Q Mr . W a l k e r , the g o a l w a s t o m a k e t h e m s e l l, a n d t h e critical path was t o separate the Oklahomans from the NBA w h i l e i n c r e a s i n g t h e e x p o s u r e f o r e a c h, j u s t as it s a y s h e r e , true ? A T h a t 's w h a t it s a y s , if t h e y a r e n o t g o i n g to k e e p t h e T h a t w a s t h e p r e f e r r e d o p i n i o n t h a t we s h a r e d S o n i c s h e r e. at t h e m e e t i n g. Q Y o u k n e w t h e y d i d n' t w a n t to k e e p t h e S o n i c s h e r e, r i g h t ? They h a d f i l e d f o r r e l o c a t i o n. A Well , until there was a n arena solution t h a t was a c h a l l e n g e t h a t c o u l d n o t b e o v e r c o m e f o r at l e a s t p o s t 2 0 1 0. O u r g o a l w a s to s t a r t a p r o c e s s to g e t an a r e n a s o l u t i o n a t l e a s t to p u t t h e m t o t h e t e s t w h e t h e r t h e y w o u l d s t a y or n o t . Q So y o u w a n t e d t o t r y to p e r s u a d e t h e m t o s t a y ; is t h a t what you are saying ? A We w a n t e d to at l e a s t h a v e a c o m p e t i t i v e a r e n a s o l u t i o n h e r e , w h i c h I b e l i e v e d w a s t h e K e y A r e n a r e m o d e l , a n d t o go from there . Q W a s n 't t h e g o a l t o l o c k t h e m i n t o l o s s e s h e r e i n S e a t t l e ? 870 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 W h a t w a s t h e g o a l , w a s n 't it ? A Q No . D r o p d o w n -I f we c o u l d go d o w n a l i t t l e m o r e on t h e " Making them sell . The path path forward , making them sell . f o r w a r d. " p o i n t. s t e p s. " A Q A Q Y e s. A n d we a r e t a l k i n g n o w about t h e s e c o n d b u l l e t "T h e C i t y h a s a l r e a d y t a k e n the f i r s t o f s e v e r a l D o you s e e t h a t? I s e e it h e r e . I w a s on t h e w r o n g p a g e . A r e y o u w i t h us , Mr . W a l k e r? Y e s. "T h e C i t y h a s t a k e n t h e f i r s t of s e v e r a l s t e p s on t h e p a t h First they hired Slade Gorton and used to m a k i n g t h e m s e l l . t h e m i s s t e p of an o u t -o f-s t a t e a r b i t r a t i o n f i l i n g to f i l e s u i t , i n c r e a s i n g t h e p r o s p e c t of l o c k i n g t h e m i n t o l o s s e s in S e a t t l e. " A Q I do . "T h e m" i s t h e O k l a h o m a n s, as y o u s a y ; w e c a l l t h e m t h e D o you see that ? P B C, t r u e? A Q Sure . L e t' s go n o w to P a g e 2 2 9, c o n t i n u i n g on t h e p a t h f o r w a r d . Y o u r t e s t i m o n y is t h e g r o u p w a n t e d t o k e e p t h e t e a m in S e a t t l e. L e t's t a k e a l o o k at w h a t the p l a n w a s, m a k i n g t h e m "S o i t is a p i n c e r sell a t t h e p o i s o n well m e e t i n g. movement . I n c r e a s i n g t h e O k l a h o m a n s ' c o s t s i n an u n p l e a s a n t e n v i r o n m e n t while i n c r e a s i n g t h e l e a g u e 's b e l i e f o f an 871 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a l t e r n a t i v e s o l u t i o n, g a i n s a g o o d n e w o w n e r a n d k e e p s i t in a d e s i r a b l e m a r k e t. " " G o o d n e w o w n e r." Y o u h a v e no i n t e n t i o n of t r y i n g t o k e e p t h e P B C as t h e o w n e r s of t h e S o n i c s , d i d you , Mr . W a l k e r, y o u w a n t e d a g o o d n e w o w n e r ? A The group discussed that day the preferred outcome would be f o r P B C t o k e e p t h e S o n i c s h e r e . Q T h e g o o d n e w o w n e r w a s Mr. B a l l m e r ; t h a t' s w h y he w a s t h e r e at t h e m e e t i n g, r i g h t? A T h e m e e t i n g was t o at l e a s t g e t h i m t h i n k i n g about a p l a n of b e i n g a n owner i f t h e S o n i c s w e r e g o i n g to l e a v e o t h e r w i s e. Q Mr . B a l l m e r was t h e r e b e c a u s e he w a s t h e g o o d n e w o w n e r y o u h a d in m i n d , t r u e , Mr. W a l k e r? A Q I b e l i e v e it is a g e n e r i c t e r m , b u t would h e q u a l i f y . W e l l , t h e r e w a s n' t a n y other g o o d n e w o w n e r s at t h a t m e e t i n g, w a s t h e r e? A Q It w a s n' t me . P a g e 2 3 6 , p l e a s e. You say this meeting was designed and But the path built around keeping the PBC i n Seattle . f o r w a r d, i m m e d i a t e n e x t s t e p s, " n u m b e r o n e, G o r t o n, et a l -- " T h a t 's S e n a t o r G o r t o n a n d h i s l a w f i r m, K &L G a t e s? A Q A Q S e n a t o r G o r t o n. I d o n' t k n o w w h o et al r e f e r s to. T h a t i s a legal t e r m. Is i t? "G o r t o n, e t al, i n c r e a s e t h e p a i n of s t a y i n g, f i n a n c i a l 872 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a n d r e p u t a t i o n. " A Q A Q I do . T h a t w a s p a i n f o r t h e P B C, t r u e? I a s s u m e s o. B u t y o u s a y now , no , we w a n t e d t h e P B C to s t a y h e r e in D o y o u s e e t h a t? K e y A r e n a , d o n't y o u ? A Q Yeah . Mr . W a l k e r , I w a n t to g o b a c k in t i m e n o w , b a c k in t i m e to t h e e v e n t s t h a t l e d t o t h e p o i s o ne d w e l l m e e t i n g o n O c t o b e r 7t h and t h e p o i s o ned w e l l s t r a t e g y. A Q Sure . We a r e g o i n g to g o b a c k to t h e s u m m e r o f 2 0 0 7 . This i s O k a y? b e f o r e t h e P B C h a d f i l e d a n a r b i t r a t i o n d e m a n d, a n d t h i s i s b e f o r e t h e City h a d f i l e d a l a w s u i t. A Q Okay . I w a n t t o go b a c k t o J u l y 9t h -- M o n d a y , J u l y 9 th. You O k a y? h a d l u n c h w i t h S e n a t o r G o r t o n t h a t d a y? A Q I b e l i e v e I had h a d l u n c h w i t h h i m o n t h e 1 9t h. T a k e a l o o k at y o u r c a l e n d a r , p l e a s e . MR . T A Y L O R : your Honor . T H E C O U R T: BY M R. T A Y L O R: Q If w e c o u l d h a v e P a g e 1 2 0, L i n e 18 u p o n t h e s c r e e n? Are All r i g h t . If w e could h a v e -- M o v e t o p u b l i s h M r. W a l k e r 's d e p o s i t i o n , y o u w i t h m e there , Mr . W a l k e r? 873 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q I s e e it , y e s. We a r e l o o k i n g at y o u r c a l e n d a r t h e r e, M o n d a y , J u l y 9t h, "I s t h a t t h e f i r s t c o n t a c t y o u h a d w i t h "W e h a d Slade Gorton . Mr . G o r t o n a b o u t k e e p i n g t h e S o n i c s in S e a t t l e? " l u n c h so i t s p o s s i b l e ." T h a t was right around the t i m e you and Senator Gorton started talking about ways t o keep the Sonics i n Seattle , true ? A Q A To g o b a c k , we h a d l u n c h o n J u l y 1 9t h. We w i l l g e t to J u l y 1 9t h. I am n o t s u r e I t a l k e d to h i m p r i o r to t h a t . I know w e h a d l u n c h t h a t d a y. Q T a k e a l o o k at y o u r c a l e n d a r , p l e a s e , E x h i b i t 6 0 1. D o y o u s e e t h e e n t r y t h e r e? Turn to J u l y 9t h. A Q A Q A I do . Slade Gorton . R i g h t. It d o e s n' t h a v e to d o w i t h l u n c h. Y o u t o l d u s in y o u r d e p o s i t i o n y o u h a d l u n c h t h a t d a y? No . I s a i d we h a d l u n c h i n t h e s u m m e r. If y o u l o o k a t J u l y 1 9t h, w e h a d l u n c h t h a t d a y . Q A l l r i g h t. Let m e a s k y o u a q u e s t i o n. Y o u h a d l u n c h -- y o u r c a l e n d a r s h o w s y o u w i t h S l a d e G o r t o n o n J u l y 9t h. A W e l l , if y o u l o o k t o s e e h o w t h e c a l e n d a r w o r k s , w h e n I have a n arrow t o the right i t means I a m deferring the c o n t a c t. I h a v e w r i t t e n h i s n a m e d o w n. A point t o the right There i s a key u p m e a n s we d i d n't h a v e c o n t a c t t h a t d a y. 874 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a b o v e. Q A l l r i g h t. You s a y y o u h a d no c o n t a c t w i t h S e n a t o r G o r t o n The very next t h a t d a y a b o u t k e e p i n g t h e S o n i c s in S e a t t l e. d a y w h o d i d you t a l k to ? A Q A Q R i g h t. Tim Ceis . R i g h t. L o o k a t y o u r c a l e n d a r , J u l y 10 th . So t h e c a l e n d a r s h o w s M r. G o r t o n J u l y 9 th , we k n o w y o u T r u e? Look a t the t a l k e d t o Mr . C e i s J u l y 10 th . A No . I t r i e d to r e a c h M r. C e i s o n J u l y 10 th . k e y up a b o v e . Q A Q You were unsuccessful ? C o r r e c t. So y o u w e r e t r y i n g to r e a c h b o t h M r. G o r t o n a n d Mr . C e i s in t h i s t w o- day p e r i o d about k e e p i n g t h e S o n i c s in S e a t t l e ? A S l a d e, I c a n 't r e c a l l t h e c a t a l y s t . I do r e m e m b e r t h e c a t a l y s t f o r c a l l i n g Mr . C e i s. t h e S o n i c s i n t o w n. Q A n d it w a s r e l a t e d t o k e e p i n g N o w, y o u s a y