McDavid’s win is painful reminder of Atlanta Spirit’s birth
Here's David McDavid at his home in Fort Worth, Texas, in 2003, when he looked to be the next Hawks and Thrashers owner.
Two years ago, when would-be Hawks and Thrashers owner David McDavid kicked Turner Broadcasting System’’s butt in court, I asked him about the Atlanta Spirit group. It was like lighting a blowtorch.
“Do you know what a camel is? It’s a horse designed by a committee,” McDavid said in that December 2008 interview. “Those franchises are being run by a committee. They’re a camel. If I had taken over, nobody would be fighting, unless I was fighting with myself. … Does that guarantee anything? No. But I will always believe I would have done a better job.”
On Monday night, when Turner confirmed McDavid’s butt-kicking by surrendering out of court, I phoned McDavid again. This time, I only got his phone machine.
“This is Cutter Mac. You know what to do,” the recorded greeting said.
My guess is, he was out celebrating. I just wanted to ask a few questions. Also maybe tell him he was my hero, which is something I never imagined saying to a used car salesman.
This covers most of the Atlanta Spirit executive branch at the start.
Follow this, will you? It’s a combination of Atlanta sports fans’ trail of tears and McDavid’s improbable road to new-found wealth and good fortune, not that he didn’t have that before.
♦ In 2003, McDavid was on the verge of purchasing the Hawks, Thrashers and Philips Arena operating rights, signing a letter of intent. The sale price: $96 million.
♦ While McDavid stood at the front door, he didn’t realize Turner executives had slipped out the back door to negotiate the sale to a group of investors later to be known as the Atlanta Spirit (as well as less printable things). McDavid filed a breach-of-contract lawsuit.
♦ The Hawks and Thrashers floundered. Bruce Levenson, Steve Belkin, Michael Gearon and others came to set new standards for embarrassing ownership, even suing each other in court. They lost millions. Meanwhile, McDavid won his suit and was awarded $281 million. So not only did McDavid win a judgment for nearly triple of his intended purchase price, he didn’t lose the millions the Spirit did as the franchises struggled and the economy tanked.
♦ It is now 2010. Belkin and the non-Belkins still have not resolved their legal issues. The Hawks are better but both teams still are being run on tight budgets — particularly the Thrashers, who reportedly are available for purchase and will have one of the NHL’s lowest payrolls again next season. McDavid? Not only is he out of this mess, but Turner officially dropped its appeal of the $281 million judgment.
The two sides reached a settlement but terms were not disclosed.
“It’s been settled and we’re happy that it’s been resolved,” Mickey Mixson, McDavid’s attorney, said.
Atlanta sports fans can only wonder what might have been.
♦
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82 comments Add your comment
frustrated ATL fan
August 31st, 2010
9:59 am
I wonder if McDavid would be interested in trying to buy the franchises again? I think the ASG would be willing to listen to offers even for their beloved Hawks (we already know they’ve listened to offers for the Thrashers).
At this point, my personal preference would be to have McDavid be the owner and see what he can do, rather than continue down this spiral with the ASG clowns.
Spud Webb
August 31st, 2010
9:59 am
I think J and old stoogie work for the ASG. ahhahahah, ruffled some feathers shultz, I love it!
Stogie, write a letter to the ASG about this, they can sue me…they SUCK, they’re the worst group of owners this side of Don Sterling. 8 monkeys trying to run 2 teams, both of which are going no where. I’m curious as to how they made their millions, certainly wasn’t running sports teams. They have ZERO ideas on how to market/promote and build a CHAMPIONSHIP contender. J, there is a big difference in making the playoffs and having a REALISTIC chance at winning a championship…take a look at Art Blank and the REALISTIC shot that the falcons have over the next 3-5 years of winning a superbowl. I’d say better than they ever have. It’s no fun to watch the hawks make the playoffs and know they have ZERO chance of beating Boston, orlando, & now Miami (heck, I doubt we’ll be better than the bucks with the moves they’ve made this offseason). WE ALL KNOW THIS TO BE TRUE.
I don’t think it could be any worse if McDavid owned the teams, not sure if that’s possible.
J
August 31st, 2010
10:00 am
And just so you know, I refer to myself as only “J” because I wouldn’t want you to know that I have been on TV once–a surprise interview with Chris Hanson!
Brett
August 31st, 2010
10:19 am
Keep it up Jeff! ASG is awful. They took a public trust like our sports teams and have done little positive. Please do us a favor and sell.
Buffy
August 31st, 2010
10:30 am
I went to school with Rutherford at Lovett, the likes of all the ASG golden spoon fed candy as8es. He has never worked a day in his life. Married into Turner money. Wouldn’t know how to manage his clip on Lovett tie, much less a professional franchise. Stick to bogus charity work that keeps you in the papers Rutherford. You got a lucky ride in life. Do something useful and something you can handle, like a lawn service.
buckhead benny
August 31st, 2010
10:34 am
david mcdavid is my new idol- Talking about a great return on something you didn’t even technically invest in. This may go down as the biggest return ever on a major sports franchise- (and he didn’t even spend any money on any of the teams. This does show you how awful these teams were being run by turner, etc.
Jeff Schultz
August 31st, 2010
10:34 am
Now you see ‘em — What are Woody’s eyebrows going for on eBay?
Jeff Schultz
August 31st, 2010
10:36 am
Old Stogie — Have a nice day.
Jeff Schultz
August 31st, 2010
10:39 am
Dukester — Hah! Carmelo for Crawford/Marvin and a No. 1? Gee, you think the Hawks really need to throw in the No. 1?
Jeff Schultz
August 31st, 2010
10:39 am
Atl Sports Fan (and others): Thanks for the defense.
Jeff Schultz
August 31st, 2010
10:40 am
1990 J-school alum — Thanks. Who told you to major in journalism?
KevinM
August 31st, 2010
11:55 am
Buckhead Benny, you could very well be right, but take a look at this statement in history from the defunct ABA team St. Louis Spirit…..
“17Jun76 The ABA clubs reach a settlement with the Kentucky and St. Louis franchises, with the St. Louis owners receiving $2.2 million and a 1/7th share of the four remaining teams’ television revenues in perpetuity”
..meaning that there is nothing the NBA can do to break this agreement with shutting down their franchise and not joining the NBA. So 1/7th share of the remaining 4 teams’ revenue (Indiana/SanAntonio/NJNets/DenverNuggets) from television in perpetuity awarded to the Silna brothers forever and ever……any idea how much that has equated to in 34+years?
A link to 2007-08 NBA revenue sharing…average TV revenue per team across the NBA: 12Million….so just say the 4 teams that pay the old St.Louis Spirit pay 1/7th of 8Million….that’s 4.5M+ per year to the Silna brothers and now heading into the 35th year of that deal…what’s that tally so far for NOT joining the NBA? 160M so far…so if the McDavid numbers come in at 45% of the 281M judgment……127M…..that sir, is a sweet deal for anyone not to have had a fair opportunity to own one of the worse franchises in NBA history….more than fair…..
That’s a good gig if you can get it for sure…..
Jeff….re: that comment that a #1 might be too much to throw in with JC1 and Marvin for Melo……
Who really knows what value the league places on Marvin? He is our Sam Bowie draft pick…like Milicic is for Detroit…..we actually missed out on 2 franchise PGs….incredible to say the least.
And Jeff, as long as you don’t continue to slam Calipari, I will keep reading most of your opinions.
ryan
August 31st, 2010
11:56 am
And now there are rumors that ASG are trying to sell the Hawks and Thrashers and Phillips Arena because they have lost Millions of dollars from the law suit with Steve Belkin and slumping sales .
Atlanta Suckit Group
August 31st, 2010
12:12 pm
Bunch of no talent a$$ clowns
Yes
August 31st, 2010
12:13 pm
The Atlanta Spirit Group are the worst and are a step below dog feces.
James
August 31st, 2010
12:30 pm
I would rather have David McDavid as the Hawks and Thrashers owner than the ASG. The Hawks need to get sold and the Thrashers need to be moved.
ASR
August 31st, 2010
1:09 pm
Old Stogie is senile. The ASG is a company conducting business… since when can’t you criticize businesses??? HEHE I wonder if Stogie thinks to himself: that cable tv company of mine has over-charged me… but I have to be nice and take it… don’t want to come off sounding mean by criticizing them!
Jerry
August 31st, 2010
1:13 pm
To ASR regarding Stogie – That seems to be the mentality in the south in general! Don’t y’allz be mean and boo the players… they’re-a-tryin’ the best they can! LOL I am from St. Louis and I have never seen a group of people more willing to accept sports failure than in the south… DON’T YELL OR SCREAM, YOU MAY THEEEERRRR FEELINS! lol
Bruce Levinson
August 31st, 2010
1:24 pm
DEAL WITH IT (SUCK IT)
J-man
August 31st, 2010
1:26 pm
I’m not sure that things would have been better. The word on McDavid at the time was that he needed a LOT of outside money to buy everything and it could have just ended up with him being another cheap owner who is unable or unwilling to spend the money it takes to have a winner.
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August 31st, 2010
1:36 pm
[...] ♦ McDavid’s win is painful reminder of Atlanta Spirit’s birth [...]
athdog
August 31st, 2010
2:51 pm
I thought Time/Warner, not Turner, owned the Hawks and Thrashers back then. If it was Turner, no wonder they stuck it to McD and went with the idiots known as ASG. Gearon and Turner are old pals, Seydel, perhaps the most inept of them all, is Turner’s son-in-law and how’d you like to have that Flounder look-a-like in your family?
Dejay
August 31st, 2010
4:31 pm
At this point in time, I wouldn’t mind seeing Belkin, Ted Turner, Tom Cousins, Taylor Smith, or the Cox sisters take over much less McDavid. Short of moving the teams, either of them couldn’t do much worse than the Notorious A.S.G. has over the years.
And as far as J and Old Stogie is concerned, they must be relatives or employees of the A.S.G. because anyone with a speckle of common sense would’ve kept those thoughts to themselves and never, EVER put them on a keyboard for public consumption. The FDA needs to investigate because whatever they’re taking surely needs to be recalled; there are lives at stake.
There are many words to describe the Notorious A.S.G. but I’m pretty sure that my post wouldn’t get by the censor folks who patrol this blog if I typed them. So I’ll keep it simple; they’re the biggest running joke this side of Enron and the WWE (wait a second, the WWE actually makes $$$). If they were running pro basketball and hockey teams in Boston, NYC, Chicago, or Philly, the President would have to call in the 82nd Airborne to keep these clowns safe. They are, without question, the living manual as to how NOT to run a professional sports franchise, much less two. They’re the main reason why fans of rival teams look at the Hawks and Thrashers and fall over laughing, no matter what their records are.
And as far as the national media who dogged us for years about not showing up to their games, they’re finally beginning to learn what we’ve known for years. Did you see the ashen look on Hubie Brown’s face when Orlando was up in Game 3 by 31 with their players laughing, cracking jokes, and setting up postgame parties at the nightclub on the sidelines? This wasn’t some 8th seed getting beat on by the Showtime Lakers, MJ’s Bulls, or Bird’s Celtics; that would’ve been expected. But to see a #3 seed fold up their tent and call it a season like that was a slap in the face to every Hawk fan who ever invested a single dollar, much less any emotion into the franchise since they arrived here from St. Louis. After seeing that lack of pride, lack of emotion, and lack of physical and mental toughness being put on display for all to witness, there were no calls from the ESPN guys about the ‘bad, spoiled Atlanta fans’ needing to get behind the team more. I didn’t hear anyone from TNT pipe up about the fans needing to be more appreciative over the 53 wins they had, either; everybody on that set took turns taking shots at JJ, Smith, Woodson, et al.
You would think that after such humiliation, the ones in charge would be the first in line to tell the world that getting slapped around by 101 points in a four-game sweep is not acceptable. You would think that they would be the first ones to fire off the ‘changes are coming’ edict, starting with finding an established guy with an actual track record, along with bringing back JJ and having him ride shotgun next to some REAL players (and nope, Josh Powell and Jason Collins don’t count). Besides, that’s what the Lakers did with Kobe. Same with Paul Pierce in Boston and now, Dwyane Wade in Miami. And folks are wondering why Jamal Crawford all of the sudden wants out?
That’s where the problem lies with the Hawks and Thrashers; finding out whose in charge of this outfit is like being in a Laurel and Hardy episode of ‘Who’s on First’. There’s no voice we hear from them other than us being mean-spirited for having the gall to actually demand more than just lip service, a playoff appearance, the promise of bringing in better players only to talk about luxury tax problems, and nothing more. And I’m sure Thrasher fans would kill for just that.
The bottom line is that this summer has proven once and for all that they are not ready to compete in the ‘big-boy’ business and if they don’t have the goods to be in the ‘big-boy’ business, they shouldn’t BE in business. Case in point; Arthur Blank could’ve sat on his hands and counted his $$$ when you-know-who was the weekly headlight on every sports channel but his payroll remained among the tops in the league at that time. You know why? Because he wanted to win a world title. Did it work? Of course not, but it proved that he was willing to do whatever it takes to get one. Can we really say the same for this bunch? Sadly the answer is clear….
JSS
August 31st, 2010
4:58 pm
ASG is yhe worst? Sorry, I saw the reign of the Smiths and pure lunacy that was the Time-Warner (Turner Broadcasting) era in Atlanta. The ASG could be black-out drunks and never reach down that low…
Is McDavid going to sue Major League Baseball now since they didn’t accept his bid to buy the Rangers? I’m by no means a fan of the mess that Belkin made of the ASG in terms of his litigation. I’m certainly not a fan of the Spirit Group; nevertheless, they’ve at least got us from being a 13 win NBA team or the complete skin flint ownership of Time-Warner towards the poor Thrashers. I feel for fans of the Thrashers, I really do… The well is poisoned for most of them. They refuse to drink no matter how much the water system may have been cleaned up.
One last word on McDavid, he’s like Art Modell, be glad that we dodged that bullet. He would have Calvin Griffith us into the true dark ages…
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[...] ♦ McDavid’s win is painful reminder of Atlanta Spirit’s birth [...]
Spud Webb
August 31st, 2010
6:35 pm
Dejay, GREAT post.
jason
August 31st, 2010
8:05 pm
I wonder if he did take over that he would have brought in a guy like corlos boozer or chrish bosh
Jeff Schultz
August 31st, 2010
9:06 pm
Frustrated ATL fan — I’d like to ask McDavid that but he’s not talking right now. But I tend to doubt considering he told me two years ago he had lost his desire to owns teams then.
Jeff Schultz
August 31st, 2010
9:08 pm
JSS — You’re right, the Smiths might’ve been worse than the Spirit. MIGHT have been. There’s arguments on both sides.
Brendan
August 31st, 2010
10:10 pm
I wonder how much Turner Broadcasting is worth? This has to be a setback for them. I don’t know if it’s a lump sum vs. structured payments over time. But if it’s the latter, McDavid can’t just take his windfall of newfound cash and go buy a team with it, lest he was already in that position. Teams need an infusion of capital. What I remember of McDavid’s bit … was that his financing was always in question. And then, there was some “bond issue” over the arena, where McDavid would have to put up the Hawks as collateral. Well, he didn’t like the sound of that.
Imagine if you use your home equity line of credit to go buy a luxury car with it. Then, you default on the loan, but you put up your HOUSE as the collateral. Oops. People actually do this kind of stuff. So, I don’t blame McDavid for saying, “No, I won’t put up the Hawks as collateral.”
In any event, I know this much. We can’t say we cancelled any parades the moment McDavid’s bid to acquire the teams failed. Had Belkin not objected over the JJ deal, no. On second thought, no. I was going to say, “Who knows how well the AS, LLC would have done.” But from what I’ve seen of them, they just don’t understand the dynamics of owning pro sports teams. They’ve learned some, along the way. But this JJ contract will saddle them for years. The Thrashers just accountability coming out of the lockout, and they might have been better off, with a new GM, new scouts, and a new coaching staff, starting in 2006-07. 2007-08 at the very latest. The single most stunning inaction this ownership undertook … was the INDEFENSIBLE NOTHING that followed the 2007 playoff sweep. That was truly amazing. There is just no justification for not cleaning house at that point, and bringing in all new people to start over. But, I suppose, in fairness, this Thrashers franchise is rebuilding with players like Kane and Bogosian and Burmistrov, etc. They’ve tried their best to salvage assets.
Brendan
August 31st, 2010
10:14 pm
That should be, “The Thrashers just needed accountability.”
niremetal
September 3rd, 2010
10:08 am
This column is a painful reminder that you still try to write columns about pro basketball.