Hawks will lose JT....

[Diesel]

If we don't have ownership in place.

We have been listening to a lot of crap lately. Kasten nor Knight or in no position to go over the cap to resign JT. I think AOL has said that they freeze all things that cost money. So really, Knight is looking for some cost cutting trades until McDavid finishes the deal. That's bad because McDavid probably doesn't have the money to finish the deal right now. What it all means is that we will do the same thing we did with DJ, Ira, and Dion... We will lose JT. Teams know we need a bigtime trade to get rid of capspace and they won't help us. GM's know that JT could be had in SNT (because we got to get something).

I believe we will work out a SNT with Miami.

But back to the threat:

It's like Dominoes....

Arenas might stay with GS or he might go to Washington. The Wiz has become a darkhouse. They have 6.5 million to spend and yesterdays beating led them to offer it all to Arenas.

If Arenas does either, Utah and Miami will be in a bad way. Miami has already tried to negotiate a SNT with us about JT. They can force the issue by threatening a 8 million dollar deal. 6 at 49 doesn't sound so bad for them but for now, it's SNT talk with Miami.

Maybe they're trying to get rid of Jones and Maybe we're offering CC...

I wouldn't be mad: Wade/Jones for JT/GRob? It's better than NOTHING.

Point is that I don't believe this thought that we would match any deal. AOL won't go for it.

I believe the sell of the Hawks is FAR off. McDavid has to finance the Hawks like a Car. Until somebody buys the Hawks, I don't think we will spend too much money.

[Blunt91]

Why in the Blue "F???" would someone try to buy a team or teams and doesn't have no where near the amount to purchase them? McDavid needs some co-owners to help make the sell go through. Jordan Maybe?

[Diesel]

SOme has said that McDavid is trying to finance the deal?

What that says to me is that he doesn't have deep pockets. It's almost a case of discrimination. There are other groups that probably have more money or all of the money who at one time was interesting in purchasing the Hawks and were (and still are) discluded. However, the holdup and what's causing the fall of the Hawks is probably got a lot to do with McDavid not having all the money....

Maybe he can get Cuban to be his "silent" investor.

[swolehawk2]

JT will be here....Kasten and Knight will match any offer, they feel they have to because JT is the mascot for the Hawks right now. He is the community face for the Hawks and he can score 20-25 a night jumping around with a smile on his face. Until we find out Ira and Dion have committed somewhere... we don't know. I actually think Knight would prefer proven veteran swing players (Lucious Harris Jim Jackson types) rather than Ira DJ or Dion.

We will see.

[jeddelong]

I keep hearing this part about him financing the deal. Where is that information officially? I really think you guys forget the complexity of this deal. I have said it before and I will say it again, this is not a sports team purchase. This is an arena (wrapped in numerous liscensing agreements) and two team purchase. These things take time. I wouldn't be suprised if he has to finance the deal, particularly because of the arena. He may be financing the arena portion because he knows he will generate more than enough revenues to cover the pay-outs for it and the teams. Just because he is financing doesn't mean that is bad. Plus, I believe AOL was looking for the right buyer. They want this team to go to the right person who will take care of the teams, not some miser. Remember, they have Turner South showing Thrashers and Hawks Games, they need these teams to draw a crowd. I feel like people are being negative and spewing misinformation. The truth is the deal is dragging on too long, but this is a difficult deal.

[Diesel]

http://hawks.realgm.com/showarticle.php?artid=326

In reply to:

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1) What is slowing this selling process down?

Two things as best as I can tell:

1. It is a very complex transaction, as I always claimed it would be, due to the triple ownership of the Hawks/Thrashers/Philips Arena. I am sure there are a myriad of things that are unresolved and that AOL would just like a buyer to assume responsibility for, and the buyer, in this case McDavid’s group is taking its time with each one.

2. (And this is the worst one) Money.

It has been said that McDavid has only put down about a quarter of the total money for this buyout, with the rest being financed. This is not good, and wouldn’t be good long term for this franchise, but AOL is too far down the road to stop now, and if they can get their money, what do they care about the long term future of this franchise or if McDavid can actually afford it?

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[Diesel]

In reply to:

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JT will be here....Kasten and Knight will match any offer, they feel they have to because JT is the mascot for the Hawks right now.

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Business wise, that won't work. AOL is in financial trouble. They need profits more than Losses. If AOL are still the owners, They will NOT Meet every offer. For instance... IF Miami were to offer JT an 8 million dollar deal. That means that For us to match it would mean we would spend that 8 million, match dollar for dollar meaning 16 million and then on top of that, we would lose out on probably another 4 million when it comes profit time. That's a total loss of 20 million dollars for JUST JT. You say... "Oh, the Hawks will happily do that to keep a Mascot".

In the meanwhile, we haven't won anything important. You see a struggling company like AOL doesn't care about potential. You say JT is the mascot, then where are the fans that he is drawing. Again, an empty Philips Arena is a LOSS of revenue for AOL and it doesn't matter HOW popular he is to the nonpaying customer. IF he is the face of Atlanta Hawks then he's failing because there are no sellouts.

So when I hear guys like you and others say... "Oh, Atlanta will match any offer" I laugh. You guys don't see the bigger picture. Babcock promised a winner. AND THAT'S WHY HE AND LON ARE GONE. There's no way that AOL will pay 20 million dollars more for the same thing they got last year.

What Knights Job really is is to manage what he has as cheaply as possible. That means if he can clear cap space, then he can probably sign JT... But Like I said, NOT many teams are willing to help us without putting a knife in ourback.

[jeddelong]

No offense to Jay Walker who does an amazing job covering the Hawks part-time; however, "it has been said" means nothing to me. Much of his writing is mere speculation, particuarly in this area. Because he says financing is bad for the team doesn't mean it is.

[swolehawk2]

Really....well before Aol, and its financial troubles let JT walk ...they will basically give Dog or Theo away for a nose hair trimmer and a crack ho. Jt stays period. Please don't bring up the fan issue...we know about the fan issue.

[dimes4life]

Your posts on this arguemnet are excelent. Let me start off by saying that the Wizards are very interested in gilbert Arenas which does mean as I mentioned before that the Heat and Jazz could offer JT 7-9 million dollars a year. Now how are the Hawks going to match an offer like this when first there is no permanent coach, GM or owner who can actually make a decision with JT! Diesel, your point about the Hawks going 20 million in the hole after everyhting is done IF they signed JT is exactly correct. Would the Hawks be willing to spend all this money to have another losing season. Remember too that the Hawks will have to fork over a ton of money next year to Reef if they want him to stay to. So many decisions, yet so little time....I say SNT JT to the Heat for Eddie jones...

[chillzatl]

But that's about all that goes on here, speculation. At least JW is in a position to ask questions of those who are actually involved and then speculate. That's a step up from the speculation that most of us bring.

And yes, financing this team IS bad. It means that if we don't turn a profit the "bank" can crank up the pressure on the owners more and more. The more they have to borrow to buy the team, the worse this situation can potentially become. Because in that situation Mcdavid only owns the Hawks as long as he can make payments on his loan. If they aren't making money then it gets harder and harder for him to do that and that puts the bank closer and closer to owning an NBA team itself. That IS NOT good.

[Hawksman]

Guys, this is going to work out. The max for the sale to go through is 2 weeks. That is the max! JT will be secured and remember Kastan said he will match any offer JT gets.

[Diesel]

Also,

The owners will not let a team be in a situation where there's an owner who cannot afford to keep the team afloat. RIght now, there is no profit on the arena. There may be some profits on the Thrashers. BUT... The Hawks will be in a situation where they will lose more profit than gains depending on moves they make. SO what I see right now is a FREEZE. McDavid really needs Cuban to Silently invest in this venture. I don't know if it's legal but why not. The teams are in 2 different divisions so there is no chance that they can really help each other that much. The only question is that of trades..... However, being that Cuban and McDavid are friends as well as former business partners, I think that that possibility will exist weather or not Cuban invests....

[jeddelong]

Your wrong about the arena it generates significant profits, unfortuantely I can't find the article to prove it. I have read it though (during the days when the bargaining window was first opened)

As for the financing piece, you are right the league won't approve a deal that is bound to fall apart. This one will be fine. Again, you have to pay by different rules because the purchase is so big. That is my point, you can talk around it as you like.

[jeddelong]

New owner to inherit control of Philips

By DAVID A. MARKIEWICZ

Atlanta Journal-Constitution Staff Writer

Texas auto baron David McDavid would get more than some basketball and hockey players with a purchase of the Hawks and Thrashers. He'd also get Philips Arena -- not title to the building itself, but the opportunity to do business in it.

The lease on Philips, signed between Turner Sports and local government officials in 1996, is a good deal for the teams' owner, according to industry experts. It allows whoever owns the teams to comfortably fulfill their obligation of making the annual payment on the $140 million in government-backed bonds used to build the arena.

In exchange for that payment -- $12.5 million a year for 30 years -- the owner manages the arena and gets all revenues from events there. That includes 82 regular-season basketball and hockey games, plus over 100 other events each year, from concerts to skating shows.

Revenues from ticket sales, luxury suite rentals, sponsorships, concessions, merchandise, advertising and parking add up to tens of millions of dollars a year and account for much of the clubs' total operating revenues.

Out of those revenues, the owner pays players salaries and the annual debt, plus the fees and percentages that go to non-sports acts and their promoters.

The financial benefits of the lease, along with the debt obligation, help assure that the club will remain in Atlanta no matter who owns the teams.

Turner Sports, which owned the teams when the arena was built, agreed with the city of Atlanta, the Fulton County Commission and the Atlanta-Fulton County Recreation Authority to make the annual payment on the $140 million in construction debt.

As part of the deal, Turner put the Hawks up as collateral. If Turner had ever defaulted on the payments, the club would have been be sold and the proceeds used to pay off the bonds.

It was a rather remarkable condition for a team to make, even in a world of creative financing. But if McDavid were to be successful in managing the arena, as AOL-Time Warner has been, he should never be in position to have turn over control of the club.

[KB21]

It's not about just turning in a profit on the Hawks though. He's going to have all licensing that comes with owning Philips Arena. The profits that will come from concerts, etc, in that arena will likely be much higher than whatever profit he will make off the two teams that play in the Arena.

Plus, in the negotiations, there is very likely a re-negotiation of TV rights. Seeing as how AOL/TW will be paying McDavid to show the Hawks on Turner South, there is probably some squabbling over that.

[Traceman]

Even if your speculation regarding the inability of Knight and Kasten to exceed the cap to resign JT is correct (it's not), your proposed trade with Miami does not help our cap situation, it HURTS it! Please tell me how bringing on the longterm contracts of Eddie Jones and Wade (to a lesser extent) help our cap situation?

[KB21]

Diesel's only purpose in these posts are to figure out ways to get rid of Jason Terry, Hawks be damned.

The Hawks are going to match any offer Terry gets. Bank on it.

Just like his infatuation with coming up with deals to land Penny Hardaway last season, it seems Diesel really wants to add a long term contract that will cripple the future of this team. It's just that his target is now Eddie Jones.

Ridiculous!

Miami would give Eddie Jones away just to get rid of that contract.

[Diesel]

Actually, what I said was that we would get Something for JT instead of Nothing. If it were possible we could do a SNT of JT for Wade/1 year of Filler if you wish or a SNT with Some other team that would land us a need. Like JT/Nazr for Rasheed.. Or JT/Nazr for Kukoc/D. Mason. It's all hypothetical (the sign and trade) but I just don't believe that we will extend ourselves to MATCH any offers. It's not good Business for a parent company that is trying to trim a 26 billion dollar debt.

[Diesel]

In reply to:

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The Hawks are going to match any offer Terry gets. Bank on it.

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http://asia.reuters.com/newsArticle.jhtml?...storyID=3086792

26 Billion dollars of Debt.

And you believe that AOL will match ANY Offer?

And we are already at the Luxury tax area....

Please KB?

Wake up.