Ares Management co-Founder Tony Ressler's group "has reached an agreement" to purchase the Hawks and Philips Arena "for an amount believed to be" about $750M, according to a front-page piece by Chris Vivlamore of the ATLANTA JOURNAL-CONSTITUTION. The sale figure "could fluctuate depending on how much debt is absorbed by the new ownership group." The 55-year-old Ressler, who is a co-founder of two private-equity firms and minority owner of the Brewers, "will be the clear majority owner of the franchise." Holding smaller ownership stakes will be former NBAer Grant Hill, Marquis Jet co-Founder Jesse Itzler and his wife, Spanx Founder Sara Blakely, and investor Richard Schnall. The current Hawks ownership group, led by Michael Gearon Jr., "will also retain a percentage of the franchise." Ressler "has begun to reach out to officials in the organization." He will "work closely with Hill, who was seen at Philips Arena offices earlier this week." Two other groups "were considered finalists earlier this month when final bids were due" -- one led by Grizzlies minority Owner Steve Kaplan and another led by Lionsgate Entertainment Chair Mark Rachesky (ATLANTA JOURNAL-CONSTITUTION, 4/23). ESPN.com's Kevin Arnovitz cited sources as saying that the sale price is "approximately" $850M. Sources added that team CEO Steve Koonin and recently crowned NBA Coach of the Year Mike Budenholzer "will be part of the long-term plans of the new ownership group" (ESPN.com, 4/22). Turner Sports' David Aldridge reported the new ownership group "will decide what happens" with GM Danny Ferry, who is "still on a leave of absence." The current front office has "made it quite clear that the new group would decide what happens with them" ("NBA Game Time," NBA TV, 4/22).
PRICE IS RIGHT:The WALL STREET JOURNAL's Ben Cohen notes the sale price "would be the second-highest in NBA history" behind Clippers Owner Steve Ballmer's $2B purchase. Ressler "was interested in the Clippers before they went to Ballmer" (WALL STREET JOURNAL, 4/23). N.Y.-based Foley & Lardner attorney Irwin Raij, who co-chairs the firm's sports-industry practice, said, "The price reflects the strength of the NBA product right now and views as to what they think the market can become. This takes into account the national and local media deals and the trend of increasing NBA team valuations." USA TODAY's Jeff Zillgitt reported Hill will have a "small stake in ownership but he must own at least 1%, per a new" NBA rule (USATODAY.com, 4/22). ESPN’s Tony Kornheiser mockingly said of the sale price, “What happened to a billion or bust?” ESPN’s Michael Wilbon asked, “Do you think the Hawks would have gone for ($850) million this time last year?” Kornheiser: “I thought post-Ballmer everything was going for a billion dollars” (“PTI,” ESPN, 4/22).
SWITCHING GEARS: In Atlanta, Jeff Schultz writes nobody "knows if Ressler will be a great owner," but the fanbase can "safely assume he won’t be the clown show that his predecessors were." Therefore, his arrival "should be cause for celebration in Atlanta sports." Meanwhile, Gearon's reported retention of a stake "can’t be good, unless he is tied in a corner with his mouth duct-taped shut." He will be a "speck on the spreadsheet," but "could there possibly be a louder and more intrusive speck?" Gearon’s presence "is the lone fly-in-the-ointment in this thing" (AJC, 4/23).
COMEBACK OF THE YEAR: NBA TV's Spero Dedes during Game Two of the Nets-Hawks playoff series said of Philips Arena, said, “The difference in atmosphere here -- fan buzz -- is astounding. This place most games the last couple of years was dead, and this was an Atlanta team that was pretty good.” NBA TV’s Mike Fratello said, “Credit a lot of that to Steve Koonin, who came in when they had the problems earlier in the year." Koonin has "kind of taken over the operation and brought spirit back." Fratello: "He's brought the people back into the building with a whole new attitude. He’s changed the production here during the course of the evening. ... He’s been so instrumental in bringing the people back in, getting them involved and creating a new atmosphere here.” Dedes added, “A complete franchise renaissance with this team” (“Nets-Hawks,” NBA TV, 4/22).
