Sonic ownership is offering McMillan, who has been a player, assistant coach or head coach in Seattle the past 17 years, a multiyear deal at between $4 million and $4.5 million per year.

Blazer owner Paul Allen apparently is willing to go as high as $8 million to $9 million a year to get McMillan.

Allen, who is said to have recently balked at giving $8 million to Flip Saunders, may now want to pass on the chance to steal the coach of the rival Sonics.
 
The Blazers can have no contact with McMillan or his representative, Lonnie Cooper, until after June 30, when McMillan?s contract is up.
 
?Nate doesn?t want to leave Seattle, but he is insulted by the offer so far,? says an NBA insider close to the situation. ?It?s likely he will stay with Seattle, but he feels he?s getting low-balled. He?ll probably still sign with the Sonics (before June 30), but if he waits to talk to Portland, it?s not impossible he would wind up coaching there.?
 
If McMillan re-signs with Seattle, the likely scenario would be for the Blazers to hire Phoenix assistant coach Marc Iavaroni.