Investor group reaches agreement to build $600M arena in Seattle

Seattle is now one step closer to reclaiming an NBA franchise.

The Oak View Group (OVG) have reached a formal agreement with Seattle mayor Ed Murray on the construction of a $600-million, privately funded arena at the Seattle Center, according to Chris Daniels of King 5.

OVG will assume all cost overruns and operating costs on the arena, both in the short and long term. The city of Seattle will not assume any city debt in the redevelopment of the site.

The project is slated to finish in 2020, and could perhaps lure NBA and NHL franchises to the city.

Billionaire David Bonderman, a potential NHL franchise investor, is said to have personally put money into the new stadium, although nothing is certain with regards to expansion or relocation.

NBA spokesperson Mike Bass, however, maintained that the league is not interested in expansion: "The NBA is not involved in the ongoing Seattle arena process, and we have no plans to expand at this time."

Seattle had the Supersonics for four decades before the franchise was moved by Clay Bennett to Oklahoma City to become the Thunder.