Two bidding groups remain for the Hawks, "with their final offers due this Friday," according to sources cited by Daniel Kaplan of SPORTSBUSINESS JOURNAL. The groups are led by Lionsgate Entertainment Chair Mark Rachesky and Oaktree Capital Management Principal & Founder Steve Kaplan. The fact that only two bidders remain "after initial expressions of interest came from more than two dozen parties, and a high single-digit number of those parties submitted first-round bids, suggests that early projections of a frothy auction process leading to a sale price" between $900M-1B "have not played out." A source said that the team "is saddled with a lease at Philips Arena not as favorable to the club as most in the NBA," and added that this is because the Hawks have $107M of debt on the publicly owned facility, which "is factored into the lease." Sources said that the franchise "will lose around" $15M this season pending its playoff run. The loss next year "could decline, or disappear, with the team’s renewed media deal with Fox Sports South." That deal, "with a higher rights fee, takes effect next season." A Hawks spokesperson declined to comment. Another economic issue is that the arena’s title-sponsorship deal "expires in the coming years, yet the bonds on the venue stretch" through '26. A source said that the Hawks "made clear" the price the current ownership, which is led by outgoing Managing Partner Bruce Levenson, was seeking "did not include" the $107M of arena bonds (SPORTSBUSINESS JOURNAL, 4/6 issue).
DEAL DETAILS: In Atlanta, Chris Vivlamore reported Steve Kaplan in his bid is "joined by" DC United Managing Partner Erick Thohir, former Grizzlies CEO Jason Levien and Indonesian coal magnate Handy Purnomo Soetedjo. Baseball HOFer Hank Aaron "also has been associated with the group." Rachesky in his bid is "joined by" BTIG co-Founder Steven Starker. Marquis Jet co-Founder Jesse Itzler, "who has done consulting work for the Hawks and attends many games, is also associated with the group." The process "may take until June to complete." A source said that at least one of the prospective ownership groups "has concerns with Philips Arena." That group "feels the team’s practice facility is subpar and could be a hindrance in attracting free agents." The weight-room facilities "also are considered below NBA standards, and the group has expressed a concern over the setup of the arena luxury boxes" (ATLANTA JOURNAL-CONSTITUTION, 4/4).
