L.A.-based The Meruelo Group Founder & Chair Alex Meruelo "has reached an agreement to buy a majority ownership stake" in the Hawks, according to Tim Tucker of the ATLANTA CONSTITUTION. The Hawks, "who will remain in Atlanta, are planning an announcement of the sale" for today. Meruelo said that he and Atlanta Spirit "have a signed agreement, which also includes the operating rights to Philips Arena." The deal, terms of which have not been revealed, is subject to NBA BOG approval. Meruelo, who noted that he would become the "first Hispanic primary owner of an NBA franchise," said that "some members of the Spirit group will maintain minority ownership positions but that he will own more than 50 percent and control ownership decisions." Asked if there is "any scenario in which he would seek to move" the Hawks from Atlanta, Meruelo said, "Absolutely no. None." Tucker noted The Meruelo Group "owns businesses ranging from pizza restaurants and construction firms to a casino and a TV station." Meruelo said that he "quietly looked into buying several other NBA teams in recent years." He expressed interest in the Hawks early this year but said that he "briefly 'bowed out' when the Spirit entered an exclusive negotiating period" with outgoing Padres Owner John Moores. This deal comes after the Atlanta Spirit sold the Thrashers to True North Sports & Entertainment, which relocated the NHL franchise to Winnipeg. Meruelo said that he "was never interested in buying the Thrashers" (AJC.com, 8/7).
A NEW ERA: In Atlanta, Jeff Schultz wrote Meruelo "is the right guy if for no other reason than he is a new guy." Once Meruelo takes control of the Hawks, it means Atlanta Spirit "isn't in charge." The sale "ends the rule of the Atlanta Spirit." Schultz: "It’s too late to save us from the absurdity of owner-vs-owner lawsuits and daily dysfunction we witnessed for most of roughly seven years ... in the front office. But we’ll take it today because it’s better than waiting until tomorrow. If the Atlanta Spirit wasn’t the worst ownership in the history of professional sports, it at least is in the argument" (AJC.com, 8/7).
