Atlanta Spirit lied to us about Thrashers? Go figure
Three of the Thrashers' caretakers (left to right): Ed Peskowitz, Michael Gearon and Bruce Levenson. (Curtis Compton)
They told you they cared. They lied.
They told you their biggest concern was putting out the best product for you, the fans. They lied.
They told you not to pay attention to any of those rumors of the Thrashers being for sale, although they eventually admitted begrudgingly that, yes, they were looking for “investors.” They lied.
The Atlanta Spirit is not looking for investors. They’re looking to sell the Thrashers. They’ve been looking to sell them for — ready for this? –six years.
Six . . . years.
Those are the caretakers of your franchise. Those are the ones who’ve pleaded with you since 2005 to support a mostly inferior product — and now they can’t figure out how they’ve burned so many bridges in this town why fans still feel too angry or worn down to show up for a pretty decent team. Reality never has been their strong suit.
Team Pinocchio (a.k.a. the Atlanta Spirit) has filed a $200 million malpractice suit against their former attorneys at King & Spalding. Within that suit, the often dysfunctional ownership group discloses it has been looking to sell the Thrashers since 2005.
The remaining seven heads of Team Pinocchio (Michael Gearon, Bruce Levenson, et al.) are suing King & Spalding for their perceived shoddy work in the original ownership agreement, which led to the protracted litigation and settlement between former partner Steve Belkin and the non-Belkins. Team Pinocchio members are trying to recoup some of the claimed nine-digit losses they say they incurred as a result of the litigation.
The problem with making such claims is you’ve got to make a case. Part of Team Pinocchio’s case is that it “incurred over $130 million in out-of-pocket losses” while operating the Thrashers, which it intended to sell. If that’s not clear enough, here are four bullet points from the 20-page, 75-point complaint:
♦ Point 53: “Plaintiffs’ inability to buy out Belkin’s interest in a timely manner and the resulting cloud on their title created by the Maryland litigation interfered with operation of the franchises and specifically prevented Plaintiffs from selling the Atlanta Thrashers.”
♦ Point 54: “Because of a dispute with the players, the National Hockey League suspended the 2004-2005 season. It was widely anticipated that the league would enter into a new labor contract that would inure to the financial benefit of smaller market franchises such as the Thrashers and thus increase their value. Plaintiffs expected that once the new labor agreement was finalized there would be substantial interest from potential buyers and that they would be able to sell the franchise.”
♦ Point 56: “Potential buyers talked with Plaintiffs about acquiring the Atlanta Thrashers. However, because they had been unable to acquire Belkin’s interest and were entangled in the Maryland litigation, Plaintiffs could not convey free and clear title to the franchise and thus were not in a position to sell. Indeed, during the period from June 2006, when the Maryland trial court entered summary judgment for Belkin, until the judgment was reversed on appeal in September, 2007, Plaintiffs were subject to a judicial decree specifying that Belkin, in fact, was entitled to buy out SSG and LPF.”
♦ Point 58: “In addition, the Thrashers have steadily lost money, requiring Plaintiffs to fund operations from their own pockets. Plaintiffs have incurred more than $130 million in out-of-pocket losses operating the franchise over this time period. Plaintiffs would not have incurred these losses if they had had free and clear title to the Thrashers and thus had the ability to sell or otherwise dispose of the franchise.”
Dispose of the franchise? They make it sound like it week-old lo-mein.
Makes you feel all warm and fuzzy, doesn’t it?
Team Pinocchio has shot down sell or sell-and-move rumors every time they’ve popped up. Sometimes, they put out statements. Sometimes, they scoffed and said a report didn’t dignify a response. Sometimes, as was the case in March 2010 after a New York Times story suggested both the Thrashers and Hawks were for sale, they didn’t even return reporters’ phone calls or emails to issue a denial.
In 2009, Thrashers president and former general manager Don Waddell — who has assumed the unenviable position of Team Pinocchio mouthpiece — stated: “In countless meetings with ownership, never once have we expressed any interest in selling the Thrashers or moving the Thrashers.”
He must’ve been out for coffee whenever the topic came up. I’ve heard better lies from “Baghdad Bob.”
I’ve stated this before but it bears repeating: If Atlanta loses its second NHL franchise, it won’t be because the sport failed here. It will be because ownership and management failed.
And right now, I wouldn’t even buy a hot dog to put a buck in these guys’ pockets.
By Jeff Schultz
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Previous posts:
– NCAA has lost sight of mission, needs to end ‘oversigning’
– Part I: A word about ‘oversigning’ (and revisiting Saban’s dance)
– Time to mock! Kiper, McShay say Falcons take . . .
– Stacy Searels leaving Georgia? Can I offer him a lift?
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342 comments Add your comment
Jeff Schultz
January 21st, 2011
3:57 pm
Art Vandelay — A job’s a job. A man’s gotta eat. But I hear ya.
Jon
January 21st, 2011
3:57 pm
Jeff, could you explain how this story came out on a Friday afternoon? This would have been so much better as a Monday morning story (with days upon days of follpw-up). It would be GREAT for Atlanta sports fans to show the requisite passion and fire to run Mike & Bruce out of here. That may not be possible with a Friday afternoon story that gets buried by NFL Championship weekend.
Larry E
January 21st, 2011
3:58 pm
I hate to see the Thrashers go and hope they can be saved, on the up side their is the Gwinnett Gladiators and you don’t have to go downtown Atl. The Spirt owners should be put in jail for misrepresentation and sued. They did not give a rip about the season ticket holders.
Jeff Schultz
January 21st, 2011
3:59 pm
Coachx — They COULDN’T sell the team when the economy tanked. It’s not that they WOULDN’T sell the team when the economy tanked. You think they would’ve turned down offers?
gdawginkalamazoo
January 21st, 2011
3:59 pm
Maybe Papa John can buy the Thrashers. Mike Illitch has done wonders with the Red Wings.
da' boomer
January 21st, 2011
4:00 pm
And while I am spewing hate, Tom Cousions can go to hell on the same bus w/ASG!!!!
Jeff Schultz
January 21st, 2011
4:01 pm
Layinlow — I’m not a lawyer. Obviously anybody can sue anybody for anything. But not sure where that would go.
Iron League 13
January 21st, 2011
4:02 pm
B.Thenet – EXACTLY!!!
I’m tellling you this is pure bullbleep, these guys are entirely full of bleep. They’re doing the same thing an AIG exec, would if they felt the squeeze, LIE! No, freakin’ way this team has it that bad, NO WAY!!!
Dear NHL,
Never trust prospective owner(s) who don’t give two rosy red bleeps about hockey when selling a franchise or allowing a sale.
Thank you,
One of Many Atlanta Thrashers Fans
Lynn Waldorf
January 21st, 2011
4:02 pm
The ASG is awful. Although I dislike them with all my heart, I do think the LA Clippers who have been forced to put up with Donald Sterling, hold the distinction of the worst ownership situation ever. ASG is probably second. Too bad Ted is apparently broke and Mr. Blank has his hands full with the Falcons.
Jeff Schultz
January 21st, 2011
4:03 pm
Jon — The suit was just officially filed today. Sorry.
Gareth Bale
January 21st, 2011
4:04 pm
Serious question: How about a someone buying the team and moving it to Gwinnett Arena? For how long are the Thrashers locked into playing at Phillips?
gdawginkalamazoo
January 21st, 2011
4:06 pm
Where is Matlock when you need him?
heartofdarkness
January 21st, 2011
4:09 pm
No lie involved, Jeff. The team wasn’t for sale, they were only waiting for offers. Has the Chinese delegation left the country?
Tampa Falcon
January 21st, 2011
4:11 pm
As an Atlanta native now living in Tampa, and a Lightning Season Ticket holder, let me tell you, an ownership change will be the best thing for the Thrashers.
Look at the difference one year has made for the Lightning since Jeff Vinik bought the team from Tweedle-Dee and Tweedle-Dum down here. Less than a year, really.
Hopefully the Thrashers will go to someone committed to Hockey and making it work in Atlanta. Clearly, the ASG has never cared, and never wanted the team in the first place. It was just baggage that came with the real object of their affection, the Hawks and Phillips Arena.
Jeff Schultz
January 21st, 2011
4:12 pm
Gareth Bale –Not sure moving Thrashers to Gwinnett Arena solves any problems financially.
Hollywould
January 21st, 2011
4:12 pm
The spin stops here!!
Smoothie
January 21st, 2011
4:12 pm
Tampa Falcon – and didn’t the league intervene and force them to sell the franchise since the two were inept and feuding?
Jeff Schultz
January 21st, 2011
4:13 pm
heartofdarkness — Hah. Funny.
Section 119
January 21st, 2011
4:13 pm
Sad. Too bad McDavid got screwed by Turner … Too bad Belkin didn’t win the war with “Team Pinnochio”. Still remember Ted Turner’s fat son-in-law whatshisname standing at center ice on opening night Oct.2007, the night the ‘06-’07 SE Division champion banner was raised, declaring to the crowd that the ASG (sic) would do everything in its power to bring the Stanley Cup to Atlanta. I guess that one is right up there with OJ’s never ending quest for the “real killer”.
Gwinnett Fred
January 21st, 2011
4:13 pm
Curosity point:
This story “broke” over an hour ago.
Interesting that no other media source has released anything on it. Guess we ARE the only people that care about the Thrashers!
Coach Cool
January 21st, 2011
4:14 pm
Move to Gwinnett?
Why not move to Uptown Charlotte!
Then, the N Carolina would have two NHL teams and no NFL teams.
skydawg
January 21st, 2011
4:14 pm
I wish Blank would/could buy both of the teams from the ASG. Wishful thinking, I know.
Sherry Taylor
January 21st, 2011
4:19 pm
Every photo I’ve ever seen of these guys is always at a Hawks game, never at a Thrashers game. I know Levenson swears he goes to the games, but not so the fan would know it. Does he hide away in one of the top, top boxes? Has anyone ever seen him?
They’ve lost money on this team because they refuse to spend the money required to bring in top players. They spent just enough this season to get to the eighth spot, but it isn’t enough, when one defensive line is well into the minus column, not to mention at least three of the forwards. They want a winner, spend some money! Otherwise, stop lying to the community and season ticket holders.
gdawginkalamazoo
January 21st, 2011
4:21 pm
skydawg, Blank could afford it too since they don’t give Gatorade baths for winning in BBall and hockey. No new suits to buy. Of course he might get hit with an octopuss when visiting Detroit.
Section 111
January 21st, 2011
4:22 pm
To Section 119: Yes, I absolutely remember Lie-dell’s statement on opening night in October 2007. What a putrid group of liars. I’m so angry right now, I don’t even have words for it.
Tampa Falcon
January 21st, 2011
4:23 pm
Smoothie — Yes, but the league was also putting money into the franchise because they couldn’t meet payroll and other financial obligations. Train wreck doesn’t begin to describe it.
Tim
January 21st, 2011
4:24 pm
I”M SO PISSSSED and sad :’(
john galt
January 21st, 2011
4:26 pm
Dear God, these guys are the biggest idiots in the world. Except, maybe, for the idiots they have taken their fan base to be. I’ve thought since Day One that this was a group of guys who could never hope to own a franchise by themselves, but by pooling their bank accounts they might just scrape by, some with the help of daddy or daddy-in-law.
I’ll never forget the picture of them all, dressed in business garb and a Hawks jersey on top, palming a basketball. They looked like the biggest goofs in the world.
So to hear that they lied to us for the last 6 years (at least) while trying to turn a quick buck or stop the flow of red ink does not surprise me. I’ve thought they were the laughing-stock of professional sports ownership for at least as long.
Lew39
January 21st, 2011
4:28 pm
Not going to games hurts the chances of finding a buyer that would keep the team here. Let’s find a way to isolate these liars and yet permit us to keep an NHL franchise in ATL. Jeff is right, people are not showing up because of the product. The product is a direct result of lousy management
Duck a Fawg
January 21st, 2011
4:31 pm
@Way to read, Jeff : Man! you need to get laid or something…who gives a s***…everyone knows what Jeff meant….
Dawg A
January 21st, 2011
4:32 pm
Jeff, It’s sad that the powers to be in the leagues don’t do a better job of keeping out idiots like the ASG. We have already lost this team once…. do you really think if we blow it again that we will get another team?
Why do the owners avoid you…… wait is it because you care and call them out for what they are? Keep doing this and maybe they will get their act together!!! OK………. I can dream can’t I?
Darren
January 21st, 2011
4:32 pm
Tampa Falcon, you are correct. Thank you for the optimism and hope on a dreary day.
And I still hate your favourite team with a passion.
JSS
January 21st, 2011
4:37 pm
So who comes off looking worse in the matter? The Belkin fan faction who have been vocal in believing everything that has come out of his mouth? The 7 dwarfs who called his buff on the appraisals and the valuation (and yes outright lied in regards to selling), and/or one of my favorite association of legal counsel (not), those fore-tellers of truth, justice, and the Georgia civil judgement masters of the universe: King and Spalding? So tell me if I’m missing something?
Tell the truth
January 21st, 2011
4:40 pm
These guys all appear to be jock sniffers with more money than sense(although apparently less money now than when they bought in). They have no idea how to run an NBA franchise it appears and they certainly have not been willing to buy the players that the Hawks need. I don’t even watch either of them for free on TV, much less make the trek downtown.
Dave "Killer" Carlson
January 21st, 2011
4:48 pm
My attitude is right.
Tampa Falcon
January 21st, 2011
4:49 pm
Thanks Darren. If it makes you feel better, my Dad had Flames season tickets, and I grew up idolizing Willie Plett and the guys on those teams.
Tim
January 21st, 2011
4:51 pm
@Lew39 You are right. All of these people saying they will no longer support the Thrashers actually increases the chances they will move.
JSS
January 21st, 2011
4:52 pm
layinlow
January 21st, 2011
3:53 pm
“Jeff, can the public pronouncements by Liar Inc. to the fans of Atlanta that the team was not for sale be used against them in court? I’m no lawyer but this seems like it could be used by the defense.”
It’s a malpractice suit, not a defamation suit. If King and Spalding had a muster of sense on this one, they’d work out a settlement and let the insurance company get this taken care of… Scary as it sounds, they may actually have a case… Even when the ASG screws up they somehow get out of the scrum!
Freddie's Falcon
January 21st, 2011
4:53 pm
Did you know Darren Elliot was a back-up goalie? He says it on every broadcast he is on.
Flames
January 21st, 2011
4:56 pm
We all knew that the ASG were liars…I’m just as pi$$ed as the next guy, but I do know one thing for sure. I love MY Atlanta Thrashers. I will continue to support MY team and pray that a new owner will come in and purchased this team. I cannot worry about things that I can’t control. All I can do is support the team that I love and pray that they don’t get sold to someone who wants to leave Atlanta. I will be at the bulb Saturday night with my Thrashers uniform on cheering on MY team. I will not let the media or a group of idiots like the ASG take away my love for hockey and the ATLANTA Thrashers.
Freddie's Falcon
January 21st, 2011
4:56 pm
I understand Slater has a concussion.
tim
January 21st, 2011
4:57 pm
TURNER should have sold everything to McDavid instead of the Spirit Clowns.
Don Waddell and the clowns had better not show their face at any game….Hawks or Thrashers.
Freddie's Falcon
January 21st, 2011
4:58 pm
This franchise is gone. A 10 year run was better than what you expected.
LAC
January 21st, 2011
4:58 pm
Jeff, At the least I think you should send a copy of AL THE NEGATIVE comments spoken here to those LIARS, so they would know they are Hated as much as Osama !!!
Paddy
January 21st, 2011
4:59 pm
Jeff, many of us fans suspected what you have now made public. ASG has treated the fans like “the great unwashed”! I see moving vans in the middle of the night in this franchises future and maybe sooner than we dare think. What a collection of Maroons!!!!
jerry
January 21st, 2011
5:01 pm
It was gone from the start because the ASG tried to sell chicken sh-t and pass it off as chicken salad, a theme the Atlanta fans know very well from every pro team that ever set foot in Atlanta.
Freddie's Falcon
January 21st, 2011
5:01 pm
I HATE THE ATLANTA SPIRIT!!!!!!!!!!!!!!!!! Bettman needs to step in.
JK Sockey
January 21st, 2011
5:01 pm
Greatest businessmen ever!
Zombie Steve
January 21st, 2011
5:02 pm
Anyone want to petition Arthur Blank to swoop in and save the day?
Jason
January 21st, 2011
5:03 pm
The NHL and NBA need to take note of this mess. Don’t approve sales to large groups of unrelated people who have to go digging under the couch cushions for change in order to make the purchase. Ownership by committee simply doesn’t work well.
As far as relation goes, my understading is that anyone who buys the Thrashers would have to pay a huge premium since the naming rights to Philips Arena requires both an NBA and an NHL team to be there. Philips made the agreement at the neight for the market for naming rights so there is a huge amount of money to be lost by Atlanta Spirit if they sold either team and it relocated. Who ever bought the team would need to pay not only the market value of the team but also for the lost revenue from Philips. If they wanted the team enough, they might pay all that extra money but more likely they’d just find a cheaper sunbelt team to relocation.