Collapse of Hawks’ sale is just one more Spirit nightmare
Alex Meruelo is out as Hawks' owner. That means ...
(Updated at 5:45 p.m.)
The only thing worse than bad ownership in professional sports is uncertain ownership. We have been cursed with both.
The sale of the Hawks from the Atlanta Spirit to Alex Meruelo has gone from in danger of falling apart to officially dead. Our Tim Tucker reports that the deal was terminated by mutual agreement.
This is what it means to you: There is nobody minding the office. Not Meruelo, who presumably never had the funding and/or wouldn’t provide the financial guarantees as laid out by the NBA to purchase a franchise, his claims to the contrary not withstanding. His purchase was announced Aug. 7. The dissolution of deal was revealed 89 days later on Nov. 4. This lasted only slightly
... These guys are back running the show.
longer than a Kim Kardashian marriage (72 days) — the only problem being that most consider this closer to real life.
Not the Atlanta Spirit. They weaseled out of NHL ownership and sent the Thrashers to Winnipeg, and now they’re looking to liquidate themselves of the Hawks and Philips Arena’s operating rights so they can get out of the sports business.
Not even Hawks’ employees, who aren’t in a position to make decisions because they don’t know who their boss is or what
Kim Kardashian's marriage to Kris Humphries lasted nearly as long as Meruelo's "ownership."
their boss wants.
One of the Spirit’s partners, Bruce Levenson, released a statement, saying: “The Atlanta Hawks are no longer for sale. We’re excited to remain as owners of the Hawks and are committed to building on our string of four straight playoff appearances.”
And why shouldn’t we believe Levenson? Doesn’t he always speak the truth?
(Pause for effect.)
And if you were trying to sell a property, wouldn’t you be “excited” when that deal fell apart?
(Pause again.)
The Spirit basically has gone from bad ownership to relative absentee ownership because their primary objective now is to sell the team, not improve it.
Granted, the NBA is in a lockout, and there is no sign of that ending any time soon. The league already has canceled a month’s worth of games. In that sense, a case could be made that the Hawks haven’t lost any ground during this expanded offseason. But other NBA teams can at least look at their roster, their payroll and their coaching staff and plan for the future. They can prepare themselves for next season under a new Collective Bargaining Agreement.
The Hawks? Well, imagine that you owned a team and you were looking to sell it. Your focus would be on finding a buyer, cutting overhead and maybe dusting the office furniture and vacuuming the rugs for any interested party who wanted to give the place the once over. It certainly wouldn’t be in investing time, money and resources to improve the product or cater to the fan base.
The problems created by Meruelo’s exit are compounded by a depressed economy, one that is thin on potential sports owners and ownership groups. It follows that Levenson, Michael Gearon, et. al. likely will continue in the executive suite for sometime. The Atlanta Spirit’s attempts to leave have become as big a headache as their attempt at sports ownership.
It’s the nightmare that won’t end.
By Jeff Schultz
• Earlier: Weekend Predictions: Guaranteed winners (I’m serious this time)
• Earlier: Alabama-LSU have what everybody else wants — a great coach
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168 comments Add your comment
Buzzer
November 5th, 2011
11:32 am
After what the “Spirit” did to the Thrashers, I’m not going to a Hawks game until someone else owns the team (assuming the NBA starts playing again).
zzzzzzzzz
November 5th, 2011
11:42 am
the hawkszzzzzzzzzzzzzzzzzzzzzzzzzz
ZAvs
November 5th, 2011
11:51 am
I disagree partially with with the “pro sports doesn’t work in the South, particularly in Atlanta” comments. I was a transplant and yeah, I kept my Broncos and Avalanche as my favorite teams, but I definitely adopted the Thrashers and Falcons as my teams as well. There are two problems here: 1. Atlanta has a very large number of transplants from the North and they are going to stick with their teams, 2. Any business that run poorly (A$$G) is going to fail (with the exception of the medicinal marijuana dispensaries). And for the pro sports in Atlanta comment, by all accounts, all of the Falcons games I have seen in the past 6 years that I have followed them, they all seem to be pretty much sold out. And oh yeah, pretty sure the Braves made some pretty good $$ in the ’90s. Good teams = good attendance. Bad teams and bad ownership = low attendance = savvy fan base. Think of it this way, would you prefer to spend $15 for pack of ramen noodles or a nice sirloin? A$$G f-d up and they know it but won’t admit it.
Peter
November 5th, 2011
12:12 pm
The Spirit will CHOKE on the big JJ contract, and fall off into oblivion even more. Hopefully they bankrupt and we get new owners.
The GM is clueless on draft day, thus where we are today.
Hawks Fan Since 1988
November 5th, 2011
12:41 pm
This is why MAJOR SUPERSTAR don’t want to play of the Hawks cause things like this. Mess up ownership like this and owner from the past who dont know how to run a team or build a championship team. We City of Atlanta had been wait for a championship since 1995 (Braves) and tired of these owner who is in it for making money. The time of losing and being the laughing stock of the NBA,NFL and MLB is over I’m callin every owner out here in Atlanta . IF YOU NOT IN IT FOR THE RINGS WELL YOU CAN JUST TAKE YOUR MONEY AND STOVE IT UP YOUR A$$ WE IN ATLANTA TIRED OF THIS B.S . SO ASG IF U DONT GOT THE BALLS AND MAN UP RUN THIS THE RIGHT WAY FIND SOMEBODY THAT WILL STOP HOLDING THE FANS OF THE HAWKS UP FOR OURS HARD EARN DOLLARS….
Matt from MN
November 5th, 2011
12:45 pm
Thus, my personal boycott of all things ASG and Philips Arena will continue. A pox on all their houses.
TheAntiMe
November 5th, 2011
1:25 pm
God is not an Atlanta sports fan.
ads
November 5th, 2011
3:13 pm
yes i am one of the 10% that took iowa. too bad dummy jeff didn’t.
doc
November 5th, 2011
3:22 pm
oh to be a life long atlanta native and sports fan. i have to remember back to ponce de leonball park and the crackers to re examine the halcyon days in atlanta sports
skip
November 5th, 2011
4:16 pm
Who really gives a rat’s ass? I mean its not something important, like football.
Barn
November 5th, 2011
4:18 pm
I guess Meruelo sees what its like to be Swiftboated since he donated his money to derail Gore.
LIVE: Alabama vs. LSU for division... and SEC, and BCS | Jeff Schultz
November 5th, 2011
5:41 pm
[...] • Earlier: Collapse of Hawks’ sale is just one more Spirit nightmare [...]
ROCKMEN1
November 5th, 2011
8:26 pm
Enter your comments here
ROCKMEN1
November 5th, 2011
8:27 pm
Well there goes my season tix renewal.
brigadierjerry
November 6th, 2011
12:14 pm
Forbes Magazine in an “unbiased” report indicated that 12 teams (40% of the NBA teams) lost money in the 2009-2010 season. They include: Trailblazers, Mavericks, Magic, Hawks, Hornets, Pacers, Bobcats, Nets, Bucks, Grizzlies, Wolves and Kings.
When you look at the Forbes list of Money Makers and Money Losers they are as follows listed geographically.
West Coast – Portland Trailblazers (ML), Sacramento Kings (ML), Oakland Warriors (MM), Los Angeles Lakers (MM)
Far West – Arizona Suns (MM), Utah Jazz (MM), Denver Nuggets (MM)
South West – Oklahoma City Thunder (MM), Dallas Mavericks (ML), San Antonia Spurs (MM), Houston Rockets, (ML)
North Central/Great Lakes – Minneapolis – Minnesota Timberwolves (ML), Milwaukee Bucks (ML), Chicago Bulls (MM), Indianapolis – Indiana Pacers (ML), Detroit Piston (MM), Cleveland Cavaliers (MM),
Toronto Raptors (MM)
South Central – Memphis Grizzlies (ML), New Orleans Hornets (ML),
South East – Miami Heat (MM), Orlando Magic (ML), Atlanta Hawks (ML), Charlotte BobCats (ML)
Mid/North Atlantic – Washington Wizards (MM), Philadelphia 76ers (MM), Newark- New Jersey Nets (ML), New York City – New York Knicks (MM), Boston Celtics (MM)
At this point in the negotiations it boils down to small market owners led by Michael Jordon who have banded together and will not agree to a 52.5% player to 47.5% owner revenue split. Jordon believes that it should be 47% player and 53% owner. Jordon is one of the owner of the Charlotte BobCats who lost money in th 2009-2010 season. Other owners will take a 50/50 split. The players union is under heavy not to concede any more.
The primary issue is the Basketball-Related Income (BRI) split – We all hear in the negotiations of a BRI percentage split of 52.5/447.5 (favored by players) and a 50/50 (favored by most owners). But in reality when you think about it, the important thing is not the BRI percentage, but rather the percentage of what. The BRI is a pool of money that takes into account REVENUE (most of the individual teams’ local revenue and the collective revenue of all teams).
The following are the primary components of BRI:
??? Regular-season ticket revenues
??? Local broadcast revenue
??? National broadcast revenue
??? Playoff ticket revenues
??? In-arena concessions and merchandise
??? 40 percent of signage revenue
??? 40 percent of suite revenue
??? 50 percent of naming rights revenue
So, it’s pretty easy to see that any revenue-generating activity — from selling tickets to hot dogs to television rights to video games — is divided between the players and owners. But it is important to note that only revenue gets shared, not EXPENSES associated with generating revenue. The EXPENSES fall only on the owners not the players. If owners spend more than they generate on marketing, construction, etc., the players receive a net benefit and the owners receive a loss. Although not unique to professional basketball, it is the prime thrust that owners are focusing in on in the negotiations, i.e., revising the BRI through a lower share allocated to the players, like 50/50.
With a group of players banding together to focus on decertifying their union so no more concessions will be made and the small market owner group pushing for at least a 50/50 BRI, it looks like both sides are too entrenched for there to be any negotiated settlement soon.
Prediction: No play in the NBA for the 2011-2012 season.
Read more: http://www.fannation.com/truth_and_rumors/view/316170-mj-leading-hard-line-owners?sct=hp_bf2_a9&eref=sihp#ixzz1cwUZiFOi
buyback
November 6th, 2011
9:36 pm
ted turner should buy the hawks at a rock bottom price and hire a real gm and coach to run the team instead of the morons in charge now.
move on
November 7th, 2011
2:42 am
hopefully, the atlanta thugs leave town like the thrashers. Overpaid, mediocre players and overpriced tickets. Good riddance!
John
November 8th, 2011
11:15 am
This may end up being a blessing. An underfunded, absentee owner (he was not going to move here) spells even more trouble than the current ASG.