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
Twisted Wrister
January 21st, 2011
7:39 pm
The ASG has been playing a shell game for years moving revenue between the two sports franchises and the arena operations unit. I’m sure King & Spalding are aware of the ASG’s shell game and will subpeona the financial records for the arena operations unit. At that time, King & Spalding will make the arena operation unit’s profits available as part of their case. The ASG will be exposed for “creating” greater losses by directing revenue and profits to the “arena operations unit” and losses to the two sports franchise units.
And, in the end, the ASG will, once again, be exposed as a bunch of “white collar” trust fund babies “con men.”
The Attack
January 21st, 2011
7:40 pm
Writing is on the wall. Bye Bye Thrashers and the last chance for Atlanta to ever have an NHL franchise. What a damn shame. I worked for the Atlant Spirit for 1 lousy year – WORST run organization in professional sports!
"Chef" Tim Dix
January 21st, 2011
7:44 pm
It doesn’t take connecting many dots to understand that Dickie Media was ready to purchace the Thrashers….But their bean counters even balked.
hbcuclassics
January 21st, 2011
7:44 pm
2010 HBCU NFL Draft Board (1-6)
1. Kenrick Ellis 6-5, 340 DT Hampton
AP/FCS All-American, All-MEAC, 34 solo, 15TFL, 2 sacks
2. Clifford Eugene 6’1, 198 CB Tenn State
FCS All-American, 3x All-OVC, 4 Ints, 14 PDs
3. Johnny Culbreath 6’5, 285 OT SC State
AP/FCS All-American, 2x All-MEAC
4. Derrin Nettles 6’6, 320 DT Morehouse
AFCA All-American, All-SIAC,37 solo, 23 TFL, 14.5 sacks
5. Ibrahim Abdulai 6’3, 282 DT Ark-PB
All-SWAC, 31 solo, 18 TFL, 7.5 sacks
6. Frank Warren 5’10, 195 RB Grambling
FCS All-American, 2010 SWAC Offensive POY,
1,592 yd rushing, 3rd in NCAA
http://www.hbcuclassics.com
Andrew
January 21st, 2011
7:45 pm
Ok, dont get all anti-Thrashers cuz of this yall. Remember, we still need to help our guys out, whether you want to or not.
JSS
January 21st, 2011
7:45 pm
Sean Grace
January 21st, 2011
7:36 pm
“I’ve heard a solution mentioned, a community purchase. Is it worth exploring? Is it possible? It’s worth looking into if the only other option is the team being moved.”
It would take a miracle and community cohesion to accomplish that… The Northside of the Metro has never done anything to make the rest of the Metro area want to step up to the plate and give that kind of back up… Sorry to put it that way….
ken
January 21st, 2011
7:48 pm
I truly hope and mostly believe that the NHL sees through this mess and will not allow the Thrashers to be relocated. This is way too big of a market and can certainly support a team under better circumstances. I cant imagine the NHL crushing the fans of Atlanta by allowing the Thrashers to move. Hopefully, a local owner will step up and get this franchise going in the right direction. This lawsuit, the last lawsuit and this whole thing is just awful.
old smelly socks
January 21st, 2011
7:53 pm
Boycott all Phillips events EXCEPT the Thrashers.
"Chef" Tim Dix
January 21st, 2011
7:57 pm
Kulvy looks like a Mensa wizard for getting while the gettings good….
"Chef" Tim Dix
January 21st, 2011
8:02 pm
Spirit Group should go to Dream group and ask (on their knees) for a loan.
Bluelander
January 21st, 2011
8:21 pm
Great. The pattern of lies and deception continues. Why do I continue to shell out 15k a year to these morons. Now they sue the biggest law firm in the State of Georgia. Good luck winning this one. Forget about handing this over to their E&O insurance carrier. King & Spalding will handle this themselves and whip their pants off in court. In the process it will distract the “spiritless” ASG. K&S will bleed them dry and the legal costs will be several million dollars. Millions of dollars that could have been used to pick up a player or two that this team needs for the rest of this season to secure a playoff spot. Idiots!
stu
January 21st, 2011
8:47 pm
i agree twisted. you know they are full of it with the amount of losses they are claiming.
hawks getting killed now. horford is the mvp for this team and without him, they are crap.
JSS
January 21st, 2011
9:00 pm
“King & Spalding will handle this themselves and whip their pants off in court”
You can’t do that… They’ve already farmed it out to Alston and Bird…
Fred
January 21st, 2011
9:19 pm
All members of the Atlanta Spirit Group don’t have any spirit for Atlanta and are not only a bunch of liars but worse……….hippocrites — they don’t deserve to be owners of any sports franchise…….I will never go to Phillips arena again for anything since they own that……….I want them to go bankrupt and then have someone else own the arena and the Hawks and the Thrashers.
Please leave Atlanta ASG………..you don’t belong here.
William Satterwhite
January 21st, 2011
9:28 pm
The fact that Atlanta Spirit has been trying to sell the team since the lockout (whether it has been a steady continuous effort or just once right after the lockout and again in recent years really doesn’t matter) puts a lot of things in perspective. First, it seems to shed some light on the panic trades from the playoff season in that it appears Waddell was probably under a great deal of pressure to guarantee a playoff berth that season. The Thrashers at the time had a solid enough young core (Braydon Coburn included) that they should have been allowed to grow into a championship team for years into the future but instead, it appears that Waddell maybe knew he was at a point where he couldn’t afford to worry about the future.
Second, it’s interesting to note that Atlanta Spirit has apparently always relegated the Thrashers to being a small market team. I think it’s fair to say that none of the other Atlanta sports teams would be considered among the “small markets” within their respective leagues- no one thinks of the Braves or Falcons in the same way they do the Kansas City Royals or the Chiefs. Outside of the handful of cities that are legitimately at the smaller end of the spectrum (Green Bay, Kansas City, San Diego, etc…), the praise “market size” typically is just another way of saying “owner’s willingness to invest in team”. The fact Atlanta Spirit on their own refer to the Thrashers as a “small market” team leads one to wonder exactly what their own expectations were for the team and how much they were willing to actually invest into operating a successful franchise.
MWC
January 21st, 2011
9:28 pm
ASG…a holes..
Joe Friday
January 21st, 2011
9:31 pm
“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?”
He used to bring his wife and either his or her mom and dad. They’d be in the clubs looking completely lost in their own house, and dressed for the nephews bar mitzvah, not a hockey game. Oy Vey (Sorry if I spelled that wrong, Shultzie!)
BG33Brown
January 21st, 2011
9:36 pm
I find myself in a familiarly difficult position. I want hockey here in Atlanta more than anything. By not supporting these “rubes” I run the risk of losing what I really want. Therefore I will continue to support these “rear end-hats” and there is nothing I am willing to do about it.
Sigh.
bilbo
January 21st, 2011
9:51 pm
I’ve heard King & Spalding represents Arthur Blank and the Falcons….Wouldn’t it be interesting if Blank used K&S to buy the Hawks/Thrashers?
Ted Striker
January 21st, 2011
9:54 pm
You’re passionate [like me] about hockey, disclosure, ethics, oversigning and big busted wome…. — oh, nevermind — however I don’t look at this lawsuit quite the same way.
Striker says this lawsuit is no indictment of ASG. If anything, is a positive step forward. Striker says: Is a GOOD sign.
When the David McDavid verdict went down I was stunned. Shocked. Stumped.
However I got a cane and carried on.
Told myself there is more to this than meets the eye. Realized due to the sheer lunacy of a verdict (a plantiff being awarded damages when he was out of the buy/sell parameters) that it was likely due to lack of due diligence by the attorneys for ASG. Didn’t know what. But figured there was a “what.” So, based on the McDavid verdict, I don’t doubt that King and Spalding — a FINE FINE FINE law firm [especially if they ever have a client who sues me] — had unwise conjugal relations with the pooch when putting other ASG related agreements together.
Can’t dispute a word — not a word — of what you quoted in article c, paragraph g, section 57 b.
However will tell you that I’m confident ASG didn’t draft a single word of the document. Dude. I’ve drafted documents for others. And had documents drafted for me. The twain do not typically meet.
Chances are not even all the partners of ASG actually even read all of the document before it was filed. Did all of them sign it? Prolly not.
Love your passion but I’m not on the jump ASG train over this.
5150 P.O.A.D
January 21st, 2011
9:55 pm
Seeing the Hawks score right now, why does anybody care about the NBA?
The Only Sport I will pay to go see live is football. I still go to a few tech baseball games and Braves games but I can’t see paying for season tickets for those sports.
Twisted Wrister
January 21st, 2011
10:08 pm
Tomorrow, Coach Ramsay should sit the team down and make them watch “Major League.” Afterward, he should pull out a stand up figure of Laura Turner Seydel and reward the players by taking off the pieces after each win.
Curly
January 21st, 2011
10:09 pm
Jeff – Good article… but it really doesn’t matter to a regular Thrashers fan. I’m still going to attend Thrashers games. I’m still going to buy my season tickets. It really doesn’t matter who the owners are. It would be nice to have owners that care, but I can’t control that. The only thing I can control is my support for OUR NHL team. Boycotting the Thrashers will not help. Just enjoy having an NHL team here in Atlanta.
See you down at the Bulb on Saturday night! GO THRASHERS!
RAIN MAN
January 21st, 2011
10:19 pm
The ASG Sucks!
Freddie's Falcon
January 21st, 2011
10:19 pm
I want to punch Bruce Levinson in the face…LOL
Not a Hockey Fan
January 21st, 2011
10:26 pm
Is the picture at the top of Jeff’s article the reincarnation of the Three Stooges???
Not a Hockey Fan
January 21st, 2011
10:31 pm
Freddie’s Falcon, that would wipe that jackass smile off Levenson’s face. It looks like Gearon has been going around sticking his finger in people’s faces, and someone finally bit it.
Ward
January 21st, 2011
10:45 pm
Enter Arthur Blank and another partner to make the Thrashers “local” and guarantee a better future and NHL hockey in Atlanta. This might be a “inexpensive” franchise to purchase now that all this “laundry” is hanging out there for all to see. And the team is showing better team play than ever before……..Go Thrashers!
He Hate Gator
January 21st, 2011
10:46 pm
I live in Fla and am a Lightning season ticket holder, so as an outsider looking in, and in a place that has had its own ownership issues, lets take a DEEP breath here…It looks it is probably true that ownership entanglement probably has prevented the group from being able to sell the team to a better owner. I feel for the Thrash fan as the team has been so mismanaged its only made the playoffs once here in its existence….in a non-traditional market, you’ve got to have a competitive team or don’t bother. I think the commish will have to intercede here as in Phoenix and Tampa to direct the team to a better ownership and I think this will happen before any serious talk of relo. The team is NOW finally competitive…maybe the Spirit ownership should it give a bit longer as a playoff appearance could help quite a bit (yes, I know, its not my money that was lost) and the fans (and writers) give support for this competitive team and not turn you backs on it quite just yet….just sayin’….
mpeters57
January 21st, 2011
10:51 pm
Hey Jeff, I think selling the Hawks and Thrashers to the ASG was one of the worst ownership changes in the history of sports. They don’t care about the teams or the fans, they just want to be able to say they own a NBA and a NHL team. Absolute disgrace.
Gen Neyland
January 21st, 2011
10:53 pm
The treesome at the top of this page look like car dealers for a GM product. Safe, smug and in it for the money. Atlanta sports fans had enough of this type of ownership with the Smith family. We want our owners to invest and create winners, not borrow a turnover product for profit…
Jeff Schultz
January 21st, 2011
10:53 pm
Joe Friday — When I see Levenson at games, I see him up in Waddell’s corner box for one period. I don’t know where he goes for the other two periods. …. and you spelled Bar Mitzvah correctly.
sue me
January 21st, 2011
10:53 pm
can the fans sue these moron owners for intentional infliction of emotional distress or fraud for all these terrible teams every year and obscene prices for low rent play?
Not a Hockey Fan
January 21st, 2011
10:56 pm
Relocate the team to Siberia and require the current owners and management to go with it.
gabugman
January 21st, 2011
11:01 pm
Told ya.
Blueland Fan
January 22nd, 2011
12:28 am
Schultz~The owners sit in the same club seats almost every single game. Levenson goes up to the box for less than a period and comes right back down. This whole article including the other one is nothing more than what any business would do. No where does it say they have been trying to sell the team for six years. The AJC has turned into the National Enquirer. Used to be a must have daily paper.
Matt the Brave
January 22nd, 2011
12:34 am
I’m guessing that if the NHL fails here once again that we have zero chance of ever hosting another hockey team in this town other than a minor league club?
Also, any chance that the NHL either 1) takes over operations from ASG and/or 2) contracts the team?
I’d hate to see option #2 because it seems that for the first time, the Thrashers have a team that Atlanta might can get behind. Of course, that will be determined by how far they go in the playoffs.
Albert
January 22nd, 2011
1:12 am
JS, although I’ve asked you many times to concentrate on football and baseball, you are dead on with you comments here. When it comes to the actual game of hockey though, please focus on football and baseball.
Innocent Bystander
January 22nd, 2011
1:16 am
Suing a group of lawyers… We’ll soon find out whether they did “shoddy work”. And ASG needs to go buy the Phillies and Jets and every other sports team I hate. I’m afraid they may have caused the downfall of hockey yet again in Atlanta.
scottbravesfan
January 22nd, 2011
1:32 am
These guys have RUINED two franchises! The Hawks and the idiotic Joe Johnson trade and with the Thrashers for letting guys like Hossa and Kovalchuk get away. If they put more players around both guys they would have probably stayed. I mean it’s not like the Devils draw any fans in New Jersey.
Pathetic! And all the national sports media will see is how the Atlanta sports fans don’t support it’s teams. It’s a joke.
scottbravesfan
January 22nd, 2011
1:37 am
Thrashers are a small market team? Atlanta is the 7th largest market in the United States. There are 24 American teams in the NHL. Atlanta is should spend like it and the fans would come out.
Jared Lee Palin
January 22nd, 2011
1:41 am
There are enough hockey markets left for the Thrashers, if they left (not that anyone would notice) an ECHL would probably work in Atlanta, not that Atlanta hockey fans would notice the difference in the caliber of play. If the fans can’t even support this years winning team and can only draw 8000-10000 crowds forget it already!
Pd Off Fan
January 22nd, 2011
2:10 am
I told you all along……Bobbleheads Equals Attendance!!! I want my Bobbleheads Dammit!!
wxwax
January 22nd, 2011
2:37 am
Blueland Fan, you and I are reading different documents, then.
You said: “No where does it say they have been trying to sell the team for six years.”
The lawsuit says: “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.”
Hmmmm. Seems pretty unambiguous.
Paddy
January 22nd, 2011
5:58 am
This photo with Mike Gearon says alot. What fan (owner) would watch a hockey game while holding his cell phone waiting for calls. You are at a game! Watch the damn game! You can return calls between periods. Can you say self-absorbed?
Paddy
January 22nd, 2011
6:01 am
In addition……..never once saw Ted Turner with a cell phone at a game.
Sportswriting is a Vacation!
January 22nd, 2011
7:13 am
If we all know that owners, coaches and players aren’t going to provide truthful answers, why do we keep asking the questions?
“Coach – are you staying or moving on?”
“Are you looking to sell the team?”
“Did you do steriods?”
The definition of insanity is doing the same thing repeated times and expecting different results.
Who is the insane group here?
The Atlanta Spirit legacy – Lies, lawsuits and losses | Atlanta Thrashers: Ice Man
January 22nd, 2011
7:19 am
[...] So…the Atlanta Spirit, LLC lied to us, did they? When asked many times over if they intended to sell the Thrashers organization over the past several years, they denied it…only to reveal in court documents recently that they had indeed looked to do just that. Not only that, but the ownership cluster known as the Atlanta spirit, LLC is now engaged in yet another lawsuit. [...]
Kevin
January 22nd, 2011
7:28 am
Ah the atlanta spirt owners n spongebob squarepants as President (former GM) and Don(oops) Waddell the worst GM in NHL history way to go Don u have done u job to move us to Quebec in canada to become the Quebec team was there when move in95..To denver col. folks remember after they became the colorado aves. won stanley cup first year in the new area.Lets all clap if i could say folks show up fill it up SRO crowds bring signs sayin we want owners who care not lie fire waddell why hell u think redwings were laughin when we got him!
Snoopy
January 22nd, 2011
7:31 am
I wish Bruce Levenson had been one of Michael Vick’s pit bulls.