Ferry Deal an Ownership Signal?

[AHF]

It seems to me that the hiring of Ferry as President and GM on a 6 year is a pretty radical move for an ownership group that was ready to sell the team as of last year. I think this move is a signal but it isn't clear to me what it is signaling yet. It seems to me there are two likely possibilities:

(1) There is a new owner clearly in sight who approves of this so it won't be a problem to a deal and it won't be an issue for the ASG if the deal falls through.

or

(2) The ASG actually mean what they say when they say they are no longer looking to move the team.

There may be other possibilities I am not just seeing right now, but I don't think this ownership group commits to a 6 year deal to someone with real authority (necessary to get him to sign on) unless there is some direction for the long-term ownership of the franchise.

I'm just not sure what direction this is pointing.

Anyone ahead of the curve on this?

[Seano]

Point #1 is one I hadn't actually considered, but I think it presents at least a valid possibility. Certainly something to make a guy go 'Hmmm'.One question I have is what reasons could the ASG have for pulling the team off the market when it seemed not too long ago like they were so dead-set on selling?Interesting times ahead, I think.

[Seano]

And if there is a new owner so clearly in sight that he'd be in position to approve of this, then wow are they keeping it quiet.

[AHF]

One question I have is what reasons could the ASG have for pulling the team off the market when it seemed not too long ago like they were so dead-set on selling?

It isn't that unusual to see a business put up for sale and then pulled off the market if the sales process doesn't generate enough interest to make the deal worthwhile for the owner(s). Sometimes those businesses go back on the market (that is frequently the case where the reasons for the original effort are still there) but sometimes the ownership just decides to keep the asset and run with it.

And if there is a new owner so clearly in sight that he'd be in position to approve of this, then wow are they keeping it quiet.

It is my fear that the ASG are actually planning to run the team long-term. That is better than ownership that wants to move the team, but far from optimal, IMO.

[Joker]

Who knows? I heard they were set on keeping the team as recently as Feb and I've heard nothing since but I heard that last year as well and they sold the team. They seem to be keeping the team otherwise. In business, this happens. It's not the easiest thing to sell a 9 figure business.

[HawkItus]

Well Ferry was adamant the Bruce Levenson sold him on being GM. They have shared vision and commitment. That doesn't sound like a new owner is in the wings. Maybe Bruce is leveraging his stake?

[AHF]

Who knows? I heard they were set on keeping the team as recently as Feb and I've heard nothing since but I heard that last year as well and they sold the team. They seem to be keeping the team otherwise. In business, this happens. It's not the easiest thing to sell a 9 figure business.

The difference is that you don't usually commit to a 6 year deal if you are shopping the team. New owners are very likely to want to put their own person in charge of the business so you limit the future years on deals like this to cap your liability (because the seller will likely end up eating that deal in this economy). That is what the Hawks have done the last few years - kept their coaches and GM on short-term, easily disposable deals.The Ferry deal is a marked change in operations that doesn't make sense for owners that want to sell but don't a highly likely buyer identified. If that is the case (i.e., the status quo) then they are essentially doubling down Ferry by committing to pay him if they remain owners and also betting on him being so attractive to new owners that they will place incremental value on the franchise of at least the cost of the future years on Ferry's deal. Even at $2M/year, that is a $12M bet which vastly exceeds the management liabilities the Hawks have been willing to carry in recent years.

[Sothron]

If Ferry really does have total power it tells me that the other owners are finally putting Gearon Jr in his place and hired a capable basketball mind to actually run the franchise rather than let a maverick owner try to call the shots.

[niremetal]

I think we won't know what it means until at least the end of the summer. It might simply be that the owners saw a chance to hire probably the most coveted potential GM in the league, figuring that regardless of whether they end up "holding" or "selling," having perceived better management at the top will increase the team's value. Ferry doesn't seem to be the type you bring in just to be a rubber stamp.The problem is that I thought something similar when they brought in Sund, and he turned out to be just a yes-man. If Ferry is just looking to cash a few pay checks and hit the beach while Gearon runs the show, it'll be more of the same.

[Sothron]

I think we won't know what it means until at least the end of the summer. It might simply be that the owners saw a chance to hire probably the most coveted potential GM in the league, figuring that regardless of whether they end up "holding" or "selling," having perceived better management at the top will increase the team's value. Ferry doesn't seem to be the type you bring in just to be a rubber stamp.The problem is that I thought something similar when they brought in Sund, and he turned out to be just a yes-man. If Ferry is just looking to cash a few pay checks and hit the beach while Gearon runs the show, it'll be more of the same.

You thought Sund would be given real power? Why? He was practically personsa non grata in the NBA after his Sonics run as GM and the only team that would hire him was the Hawks and that was the caveat that he didn't get hardly any power. He couldn't even hire the coach he wanted (Dwayne Casey) because Gearon and the owners wanted the cheaper hire in Larry Drew.Ferry was actually sought after and is leaving perhaps the best run franchise in modern NBA history with the Spurs to come to Atlanta. It makes me think he actually will have power.

[AHF]

It might simply be that the owners saw a chance to hire probably the most coveted potential GM in the league, figuring that regardless of whether they end up "holding" or "selling," having perceived better management at the top will increase the team's value.

I agree that is a possibility but it would still be a major change for the Hawks along with an expensive gamble if they are wrong.

You thought Sund would be given real power? Why? He was practically personsa non grata in the NBA after his Sonics run as GM and the only team that would hire him was the Hawks and that was the caveat that he didn't get hardly any power. He couldn't even hire the coach he wanted (Dwayne Casey) because Gearon and the owners wanted the cheaper hire in Larry Drew.Ferry was actually sought after and is leaving perhaps the best run franchise in modern NBA history with the Spurs to come to Atlanta. It makes me think he actually will have power.

I agree. I think this is a change in direction moment for the franchise. I just don't know what direction the ownership is going.

[Bahamut]

According to ESPN a moment ago, Danny Ferry will have "full control" over basketball operations. Anyone thinking of buying this team would love to hear that, and I hope it's the death knell for the ASG.

[Bahamut]

Anyone notice how there wasn't a single clap for Levenson when he was introduced at the presser?

[niremetal]

You thought Sund would be given real power? Why? He was practically personsa non grata in the NBA after his Sonics run as GM and the only team that would hire him was the Hawks and that was the caveat that he didn't get hardly any power. He couldn't even hire the coach he wanted (Dwayne Casey) because Gearon and the owners wanted the cheaper hire in Larry Drew.Ferry was actually sought after and is leaving perhaps the best run franchise in modern NBA history with the Spurs to come to Atlanta. It makes me think he actually will have power.

Hindsight re: the Dwayne Casey hire. That was in 2010. Sund was hired in 2008. And other than blowing draft picks on big men, Sund hardly had a bad reputation coming in the gate. He was the guy who built the Mavs into a 50-win team in the West (and 1 win from the Finals) on a shoestring budget, rebuilt the Pistons into a 50-win team after the post-Bad Boys collapse, and stole Ray Allen from the Bucks in exchange for a declining and overpaid Gary Payton. I certainly don't recall reading anything saying that he was persona non grata after his tenure with the Sonics. That was a team going down a financial sinkhole that was hardly his doing...which is why it found itself halfway across the country a year later. I would love to see an article saying that.We found out in the summer of '10 that he wasn't the real power, but again I challenge you to find me anything saying that he was brought in as a "yes man" or that he didn't have real front office power before the Casey/Drew debacle.Even now, the fact that the Blazers were interested in him is a sign that he's well-respected around the league, the incompetence of the owners he's been stuck with notwithstanding. Edited June 26, 2012 by niremetal

[KB21]

I agree that is a possibility but it would still be a major change for the Hawks along with an expensive gamble if they are wrong. I agree. I think this is a change in direction moment for the franchise. I just don't know what direction the ownership is going.

I think they may have stated the direction in the introductory press conference when the comment about getting value was made. My hope is that ASG has realized their cash flow limitations and has decided to run the team like it is a small market team.

[Wretch]

Well, it's definitely not business as usual. Long term deal...full control...and where they plucked this dude from...all for a "yes" man? Doesn't make sense. But then again, we are talking about the ASG. Man, I'm hoping this is a sign that we're trying to be a grown up team or that they've sold the team.Which brings up another interesting angle - giving the city something to talk about.

[Guest]

Like I said previously, this is such a departure from business as usual, I'm good with it. Ferry being in charge of Basketball ops may mean they upgrade the scourting department and developmental coaches, etc.

[NineOhTheRino]

Well Ferry was adamant the Bruce Levenson sold him on being GM. They have shared vision and commitment. That doesn't sound like a new owner is in the wings. Maybe Bruce is leveraging his stake?

May signal that the other guys got together and told MGJ to stand down. Listen to both Ferry interviews. Not once did he mention the ownership group or any other owner by name. I think the KG dust up was the end for the many-headed monster approach. From this point on Bruce maybe is the main man, the face of ASG.

[AHF]

Listening to Bill Shank's excellent interview on the other thread, it sounds like the ASG is here to stay. Jason Walker suggests as much on Peachtree Hoops as well. That is the signal I am taking from this now. As much as I dislike the past from the ASG, they will absolutely keep the team in Atlanta and if they keep investing a top 10 payroll, they stop selling picks, they start investing in management and scouting (which you can say has started with Ferry) and -- most of all -- they step back and give their GM the authority to run the team then maybe they can work out in the long run. I think that is the best we have to hope for right now.

[frosgrim]

I posted a few days ago that I thought the Ferry hire could be a signal for a new owner, but as others have said, this looks like a change in internal ownership values. Gearon seems to be stepping away from the GM role and allowing real basketball people to come in and make decisions based on longer-term planning.I really hope that ownership has seen that there is another way of owning and managing a team. Letting basketball people take the team and make it into a single vision is a major step forward. I actually beleive that this will be the case.This is the first time I've been optimistic about the Hawks in several years. I'm really looking forward to see what happens over the summer. Ferry appears to be a guy willing to make trades to make a roster work better. Given that he has a chance to rebuild this team into his vision and has the contract length to make that happen. I see big changes in the roster, front office, and probably coaching over the next 12 months.