Turner Broadcasting System said yesterday that it would
forfeit ownership of the Hawks "if it fails to make even one
debt payment on the planned downtown arena," according to
Saporta & Unger of the ATLANTA CONSTITUTION. Turner execs
said that they were "surprised" by the NBA's edict that the
team could not "pledge all its revenues" to back arena
financing bonds, but say they are now offering a "better
taxpayer guarantee." The new plan, which still includes the
use of arena revenues to cover debt, states that if the
Hawks could not cover any debt "shortfall," $15M would be
"set aside" to cover payments, while the Atlanta Fulton
Recreation Authority foreclosed on the team. Proceeds from
the sale of the team would then repay the bonds. Hawks
President Stan Kasten said that government approval for the
new proposal "must come" by June 1 for the project to remain
on schedule. Kasten said, "We are not going to blow $10
million to $15 million," referring to the cost of delays
that would not allow the arena to open in the fall of '99.
Fulton County Commission Chair Mitch Skandalakis "vowed" to
vote against the plan (ATLANTA CONSTITUTION, 4/30).
