By Tim Tucker The Atlanta Journal-Constitution Los Angeles businessman Alex Meruelo's deal to buy the Atlanta Hawks is off. The agreement between Meruelo and current Hawks owner Atlanta Spirit Group, signed in early August and contingent on NBA approval, was terminated by mutual agreement Friday. The development came after the deal stalled in the NBA approval process over the past month, as previously reported by the AJC. This means Atlanta Spirit –- a group led by Bruce Levenson, Ed Peskowitz and Michael Gearon Jr. -– remains as owner of the Hawks. UPDATE 4:55 P.M.: The Spirit says its current plan is to hold on to the franchise indefinitely. "The Atlanta Hawks are no longer for sale," Levenson said in a statement. "We're excited to remain as owners of the Hawks and are committed to building on our string of four straight playoff appearances." UPDATE 4:50 P.M.: Meruelo confirmed that the deal is off and provided this statement to the AJC: "I want to thank the Atlanta community who welcomed me with open arms. I am humbled and blessed by their warmth and hospitality. Basketball is my passion, but professional basketball is a business. Although all parties negotiated in good faith, we were not able to reach a mutually satisfactory agreement on some key issues given the current uncertainty surrounding the labor issue. As a result we mutually decided to terminate the deal effective immediately. I have great respect for the owners of the Hawks and the league and remain committed to fulfilling my dream of owning an NBA team. I look forward to that opportunity in the future." Meruelo announced on Aug. 7 what he called a "definitive" agreement to buy a majority stake in the team, subject to approval by the NBA Board of Governors. The approval process bogged down after the NBA required economic conditions that were not part of Meruelo's original deal. The NBA's stance was believed to be similar to that the league took when Atlanta Spirit bought the Hawks, as well as the Thrashers, from Time Warner in 2004. At that time, the NBA and NHL approved the transaction only after several Spirit partners agreed to make personal guarantees of tens of millions of dollars to ensure sufficient liquidity to fund the money-losing teams' operations going forward. A 75-percent vote of the NBA Board of Governors is required to approve a sale, but a vote is not scheduled until league officials and a committee of owners – the advisory finance committee –- sign off on a proposed deal. In this case, a vote was never held. The value of Meruelo's deal with Atlanta Spirit was estimated by sports business experts in August at $300 million-plus -- an amount based largely on the debt he was to assume or pay off. More to come… http://www.ajc.com/sports/atlanta-hawks/hawks-sale-to-meruelo-1217751.html?cxntlid=brkng_nws_bnr
Atlanta Hawks 'No Longer For Sale' After Alex Meruelo Bid Falls Apart Nov 04 2:16p by Tom Ziller Los Angeles-based businessman Alex Meruelo will not be buying the Atlanta Hawks after all, after a hitch surrounding financial backing perked up during the NBA approval process. That means that the Atlanta Spirit group, a consortium of area businessmen and widely considered the worst owners in pro sports, will hold on to the Hawks for the forseeable future. Or maybe forever. From the Atlanta Journal-Constitution: "The Atlanta Hawks are no longer for sale," [ASG partner Bruce] Levenson said in a statement. "We're excited to remain as owners of the Hawks and are committed to building on our string of four straight playoff appearances." This could be a bit of posturing to dim the bright lights of desperation that would shine after Meruelo's exit. But if it's not, if Levenson and the Atlanta Spirit really do intend on keeping the franchise hostage, then may God have mercy on Hawks' fans ... because management doesn't intend to. http://www.sbnation.com/nba/2011/11/4/2538808/atlanta-hawks-alex-meruelo-bruce-levenson
Atlanta Hawks: Tax strapped 11:18 am November 4, 2011, by Michael Cunningham You can read about the how the union’s decertification strategy “could signal the breakdown of collective bargaining talks,” would “be like taking a poison pill for the 2011-12 season” and take a look at the list of star players who are “leading the charge of decertification.” Or you can just pretend that everything is going to work out and there will be NBA basketball soon. Unfortunately for my blog people, that leads to pondering the Hawks’ financial issues. . . . The other day I assumed the salary cap would hover around $60 million and the luxury-tax level would stay at about $70 million. Cap expert Larry Coon, in a chat at hoopsworld.com, offers the first solid info I’ve seen on cap and tax levels: Anthony Sanchez It’s been said the salary cap for the 2012-2013 will be around $61 million. If that were the case, were would the tax threshold be? Larry Coon The best info I have right now is that the cap will be frozen at $58 million and the luxury tax threshold will be frozen at $70 million for two years. After that they will be tied to average team spending levels — the cap about five BRI points below average team salary levels, and the luxury tax about three BRI points above. Take a look at the Hawks’ committed salaries for the next two seasons and you can see their problem. The Hawks have roughly $65 million in guaranteed contracts committed to seven players in 2011-12. They will need to add six more players to get to the minimum of 13. I’m assuming the Hawks still don’t want to be a taxpayer–they didn’t want to do it under the old CBA and it’s doubtful they will be willing to do it in what’s certain to be a more punitive tax system. Let’s say all six of of those players the Hawks sign are minimum-salaried vets that meet the requirements for their salaries to count as two-year players for cap purposes. That still would add roughly $5 million to Atlanta’s cap figure. And that would mean pushing up against the $70 million luxury-tax threshold while adding nothing but bargain-basement vets and sticking with a roster of 13. The situation gets a little better in 2012-13, when the Hawks have roughly $61.5 million in guaranteed salaries committed. The Hawks could get a tiny bit more wiggle room this year by including younger, cheaper players like Pape Sy and Keith “Kito” Benson among those six players. But they can forget about (finally) using the mid-level exception if it will start at $5 million as most reports indicate. The bi-annual exception is probably out, too, if it still will start at around $2 million (and the owners reportedly want to get rid of it completely). It’s possible that the new CBA would have mechanisms in addition to the amnesty and the “stretch provision” to help teams shed cap salary. But if the Hawks still do not want to be a taxpayer, they may have to use one of those provisions just to clear enough salary to make some real improvements. Speaking of which . . . ESPN.com’s 5-on-5 riffs on Marc Stein and Chad Ford’s likely amnesty candidates story to identify the five most desirable targets if they are let go. Marvin makes the list twice. Jovan Buha of ClipperBlog says Marvin would be the fourth-most desirable amnesty free agent: Even though he’s only 25 years old, Williams’ productivity has regressed over the past two seasons. He’s been the odd man out in Atlanta, as he’s seen Joe Johnson, Josh Smith and Jamal Crawford eat away his minutes. But with loads of potential coming out of college, he might just need a change of scenery (just hope for the opposite of the Jeff Green effect). And Nick Friedell of ESPN Chicago says Marvin would be the most desirable amnesty free agent of the bunch: Has he lived up to the expectations he had coming out of the draft? No. But he’s still just 25 and has more time to get better. This list is full of guys who are past their respective primes. Williams may not have hit his … whatever that may be. Michael Cunningham, Hawks beat http://blogs.ajc.com/hawks/2011/11/04/atlanta-hawks-tax-strapped/?cxntfid=blogs_hawks
