I'm not saying it wasn't a factor, but it also certainly wasn't the primary reason it was chosen like some of the whingiest twitter crowd like to suggest (purely so they can go "this is how far we've fallen, naming a professional sports team after a meme")
It's like, the Sharks benefit from the Jaws iconography they can pull from, but it would be stupid to suggest that Jaws was a primary driving force behind the name just because far more people are likely to have pop culture awareness of sharks through those movies vs awareness of the Red Triangle and the more natural connection to sharks and the bay area. The Kraken example is obviously more pronounced, but never underestimate marketing/branding peoples' ability to believe the most highbrow, deep, and cultured reasons for their brand choices.
That's fair. For me, Sharks always seemed a little more like a natural fit because a) "Sharks" is a fairly generic sports-team name, and b) growing up in the bay area, I was already aware of things like the Monterey Bay Aquarium and UCSC's marine bio program (I used to surf out at Cowell where they'd be sending boats out to chum for sharks). The Jaws kitsch seemed more or less incidental to that, but it might also just have been because I was a little kid without the context to think critically about it.
The Kraken theme here seems more tenuous to me because of the stated "connections." Yes, the Ballard area of the city was originally a Nordic/Scandinavian enclave, but they've been pushed out by yuppies and condos for 20 years. Not much Nordic heritage anymore aside from one festival a year and pancake breakfasts at the Swedish Cultural Center. (I have simliar complaints about bulldozing the cherry orchards in Sunnyvale and naming the resulting eyesore the Cherry Orchard Apartments.) And we have our own cephalopod myth here with the King Octopus under the Tacoma Narrows Bridge. No need to import an Atlantic story about a totally different animal. That would be like naming a team the Sharks because we had tuna in Monterey Bay. Impressive, yes, but not at all relevant. It just seems like a much bigger reach to me, like they picked the name first and backwards rationalized it.
All that said, if they bring in Bracken "Kraken" Kearns in some capacity, all is forgiven.