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Seven Remaining Members Of Atlanta Spirit
Ownership Group Buy Out Steve Belkin |
The lawsuit among members of the Atlanta Spirit ownership group has been settled. Michael Gearon and Bruce Levenson now will serve as managing partners of the Hawks, Thrashers and Philips Arena. Terms of the deal were not disclosed (Atlanta Spirit). In Atlanta, Kristi Swartz notes part of the settlement “includes seven of the group's co-owners buying out former partner” Steve Belkin's 30% stake in the group. There are “no new investors in line to replace Belkin.” Levenson said, “I think if you talk to anyone in either organization, they will tell you that this lawsuit has had zero impact. Zero. At the end of the day, we had a business partner who we were in a dispute with and we have settled that dispute. It may sound a lot more complicated but that's really what happened." The eight-person investment group “has been fighting in court since 2005 over how much the remaining seven partners should pay Belkin.” The dispute “earned the group a reputation as the most fractious ownership in North American professional sports.” Belkin has “not had to participate in the capital calls during the litigation,” and it is unclear “exactly how much he owed the others.” Levenson during halftime of Wednesday’s Cavaliers-Hawks game said that “settling the lawsuit isn't going to impact the teams and their performance going forward.” The group “had been looking for additional investors, but that process was stalled by the litigation.” Levenson said that the group “will continue to seek additional partners,” though he “acknowledged the possibility that the ongoing lawsuit scared away some potential investors.” Swartz notes the Thrashers “had been targeted as a franchise that could possibly be relocated,” but Gearon and Levenson have both said that they are “committed to keeping the team in Atlanta” (ATLANTA CONSTITUTION, 12/23).
STEP BY STEP: In Atlanta, Jeff Schultz wrote the lawsuit settlement is a “significant step forward” for Atlanta Spirit. Now that the dispute is settled, it “at least opens the door to front office matters in the two organizations being run more smoothly.” The Thrashers, “in particular, have been hamstrung financially.” The team has the NHL’s lowest payroll and Atlanta Spirit “has been seeking to bring in either a new partner or sell the club outright, which has fueled rumors of the club being moved.” Schultz: “Now that they’re out of the courtroom, the remaining members of the Atlanta Spirit need to go about trying to repair some of the damage they’ve inflicted during their tenure. But if they don’t succeed right away, maybe it’s because there are more than a few bridges that need repairing” (AJC.com, 12/22).
