Hawks On The Block?

[lethalweapon3]

http://www.ajc.com/sports/atlanta-hawks/hawks-no-longer-collateral-818248.html

The Atlanta Hawks franchise is no longer tied to Philips Arena as collateral in case its owners default on long term bond payments – making it easier for the owners to tap into NBA’s credit facility and for the team to be sold -- according to a bond refinancing document from the City of Atlanta and Fulton County Recreation Authority.

The owners, a seven-man group known as the Atlanta Spirit, refinanced the remaining $124.5 million of debt remaining on the arena in August 2010, just before the start of the 2010-2011 NBA season, documents show.

The refinancing pledges operator revenues up to the maximum annual lease payment as collateral for the bonds instead, the documents show.

When Philips was built, then-owner Turner Broadcasting System pledged the Hawks franchise as collateral in case it defaulted on its obligation to make the annual bond payments.

The original principal on the bonds was $130 million.

The Spirit bought the Hawks, Thrashers and arena operating rights from Turner Broadcasting in 2004.

The owners have consistently said that neither team is for sale and that they only are looking for additional investors for the hockey franchise.

A lawsuit filed by the Spirit on Jan. 14 said they have been trying to sell the Thrashers since 2005 but were hampered by a lawsuit that stemmed from a “fatally flawed” contract.

Thoughts?

~lw3

[Joker]

This ownership really screwed us as fans.

[Sothron]

I just hope this joke of an ownership sells to someone like Arthur Blank who will spend the money necessary to get a real franchise going here.

[Joker]

I just hope this joke of an ownership sells to someone like Arthur Blank who will spend the money necessary to get a real franchise going here.

No one is going to buy this team. Only reason why Arthur brought the Falcons is because they drafted a player that created such a buzz that the Falcons became profitable. The Hawks don't look profitable, don't have the cap to get the players you need in this type of city and what not. The Hawks are in the same mode as Rankin and the Falcons were when he wanted out in the 90's. No one wants to buy because it's a non-profitable organization. They won't sell the team till their is a buyer especially now that Billion Dollar Ted is no longer that guy.

[AHF]

No one is going to buy this team. Only reason why Arthur brought the Falcons is because they drafted a player that created such a buzz that the Falcons became profitable. The Hawks don't look profitable, don't have the cap to get the players you need in this type of city and what not. The Hawks are in the same mode as Rankin and the Falcons were when he wanted out in the 90's. No one wants to buy because it's a non-profitable organization. They won't sell the team till their is a buyer especially now that Billion Dollar Ted is no longer that guy.

If your premise is true, then surely you can find one NFL team that hasn't significantly appreciated in value over that time. I think you are dramatically overstating the financial significance of Michael Vick. The NFL has been a goldmine for appreciating assets for some time which is a big reason why the franchises are not sold very often.

[capstone21]

Maybe the best thing to happen to the team is for it to be bought and moved (simular to what happened to the Thunder).

[frankthetank966]

I just hope this joke of an ownership sells to someone like Arthur Blank who will spend the money necessary to get a real franchise going here.

Yea right! He wont touch the Hawks. Maybe the braves somewhere down the line. Hawks hell no.

[HawkItus]

Maybe the best thing to happen to the team is for it to be bought and moved (simular to what happened to the Thunder).

A few of those owners would still have to live here after doing something like that. If that did happen, I'd bid you guys adieu. I'm a fan because as a native Atlantan this is my team. If they moved I'd pick a better team to cheer for. I think the ASG is looking to hold on to the Hawks and add investors. Maybe Chuck, the Jet, and Smitty will buy in.

Edited January 28, 2011 by sultanofatl

[Sothron]

If the Hawks left the state of Georgia then I'd no longer support them. My #2 team the Bulls (thanks to being married to a Chicago sports nut of a wife) would be my favorite team unless Atlanta or somewhere else in Georgia got another team.

[Trueblood]

How many people on here are Thrasher fans? The only reason I ask is that I don't want to offend anyone if they are but I think it would be in the best interest of a lot of people if the Thrashers were the one that was sold and eventually relocated. Ownership could then use the money from the sale towards balancing out losses or paying off debts as well as making the Hawks a better team.

Let's face it, Atlanta isn't the greatest pro sports city around. Maybe it would be better off with 3 teams as opposed to 4 and you wouldn't have the oversaturated situation that we do now. There has to be some Thrasher fans that would become Hawks or Braves fans if the sale went through.

Also, let's not forget that the new cba will most definitely have more revenue sharing. That means that teams at the lower end of the totem pole, like the Hawks, will have more revenue and less losses.

[Diesel]

I don't think they would sell the Hawks.

The thrashers on the other hand could end up in Michigan. The Lansing Thrashers.

[Guest]

The Thunder moved because of they couldn't get a new Stadium built in Seattle, likewise there is talk about the Kings relocating because they want a new stadium and can't get one....Atlanta does not have that issue...the Hawks are not moving.

[DJlaysitup]

Rumor has it that Belkin may be putting together a new investment group up in Boston to bail out his old "buddies". He may even have the backing of a couple of the current ASG investors who have changed their minds over the years about his opinions.

Even though it will still be "Ownership by Committee" ....the new organization will have a "Director of Operations" as well as a "Director of Personnel" and an overall "Director of Basketball"...(each will have an assistant who will be a lesser owner).

As the lead investor, Belkin will have the final say in all decisions (of course) unless over-ruled by a simple majority in the case of administrative matters and a 2/3rds majority in the case of basketball/financial matters. Each owner will have one "decisional veto" which can stop a move (like a trade or a contract extension)...although that veto can be over-ridden by a 3/4 majority once the decision has been discussed by all parties.

It's based on the U.S. Senate model....I think it could work this time!!

[Crank]

I wonder how long it will be before the moving the team to Seattle talk surfaces

[Guest]

I wonder how long it will be before the moving the team to Seattle talk surfaces

Unless Seattle builds a new arena talk of moving any franchise there is useless.

[MaceCase]

Seattle is out of the question til a new arena is in place. Chicago is looking for a second team though, then there's St Louis just south of them and word that the CEO of Oracle either wants a team in San Jose or Frisco. Way I see it, Stern would only allow it if it's to a bigger market than ATL.

[Guest]

The Kings, the Grizzles, even the Hornets will move before the Hawks do...Atlanta is still considered a "big" market. Chicago might want a another team but I think the Bulls have some say so in terms of how close the location to them is.

[Kimsey]

Maybe the best thing to happen to the team is for it to be bought and moved (simular to what happened to the Thunder).

You believe punishing the city because of terrible ownership of time warner, asg, etc.

[lethalweapon3]

Maybe the best thing to happen to the team is for it to be bought and moved.

That's what people in St. Louis used to say.

~lw3

[AHF]

Seems like those rumors of the ASG willing to give JJ that huge contract because "hey when we sell the team we won't have to pay it!" might be true. Funny, especially because even though the ASG won't directly pay the contract they will indirectly because anyone who purchases a team will take into consideration current assets and liabilities when making a bid. If someone views the JJ contract as a bad contract then they will adjust their bid downward.

That is why those rumors are asinine to me. Those guys are not collectively stupid enough to ignore the point you make. Anybody marginally familiar with the NBA business model knows this so I think you have to assume they thought it was simply a move worth making.