Why would the NBA relocate from a city willing to put in a lot public money , to a city who voted down to put in public money in the past?
This is the big issue IMO. Owners are going to want to embrace cities that are willing to dump in money to build their arenas.
1. The deal in the past that was "struck down" wasn't even a real offer. Clay Bennett asked for a fully tax-payer funded $500 million arena. He knew it would never get approved (no city or state would ever approve that), so it was never a real offer.
2. The past is not the present. The current arena deal in Seattle is being considered as a new model for public-private partnerships in pro sports. Some experts are calling it the best example they've seen of a private-public partnership for a sports stadium (and these are analysts with no vested interest). Hansen is paying for more than half of the new arena, along with every traffic study, EIS, etc.
And speaking of embracing owners willing to dump money into their product, I'm pretty sure the owners are more than willing to embrace Steve Ballmer and his $16 billion. Ballmer is also ultra competitive. He'd go into the luxury tax without hesitation.