AZLouis
07-06-2006, 10:50 PM
Hawks, Thrashers handcuffed
By TIM TUCKER
The Atlanta Journal-Constitution
Published on: 07/07/06
Rockville, Md. — Estranged part-owner Steve Belkin won't be taking over the Hawks and Thrashers anytime soon, but the teams could find themselves operating at a competitive disadvantage versus the rest of their leagues.
Those are the dual results of a court order issued here Thursday.
After a lively hearing, the Maryland judge who last month ruled that Belkin is entitled to buy out the teams' seven other owners at cost issued a stay of his ruling pending appeal. But the judge attached several conditions to the stay, one of which threatens to put Atlanta's pro basketball and hockey franchises at a handicap in bidding for players.
Montgomery County (Md.) Circuit Court Judge Eric Johnson ruled that during the appeal process the defendants — the owners other than Belkin — are to "not initiate the purchase, sale, trade or negotiation of any NBA or NHL player contract ... excluding contracts involving present or future draft picks and contracts for any other player with a contract duration of one year or less."
While attorneys for the teams were parsing and analyzing the judge's words late Thursday, the order apparently means that, during an appeal that could take at least a year, the Hawks and Thrashers are not to sign free agents to multi-year contracts or to make trades for players who have multi-year contracts.
Johnson said the restriction would not apply to players with whom negotiations already have begun, meaning, for example, the Hawks are free to complete their planned signing of free agent point guard Speedy Claxton to a multi-year contract.
As another condition of the stay, Johnson required the owners who have been ordered to sell to Belkin — a group led by Bruce Levenson, Ed Peskowitz and Michael Gearon Jr. — to post a bond of $11.4 million. Belkin had sought a bond in the hundreds of millions of dollars.
Belkin attorney Jack Fabiano argued that a huge bond was needed to protect Belkin against any potential drop in the value of the franchises during the appeal. Fabiano said Belkin needed protection against "not only the blunders" of current management, but against the possibility of reckless spending designed to saddle him with onerous obligations.
Those comments left a large contingent of Hawks and Thrashers executives in the courtroom fuming.
"I found the character assassination and the challenge to the professionalism, competence and integrity of myself and my staff to be, quite frankly, obnoxious," said Bernie Mullin, the teams' CEO. "And I was very heartened by the fact the judge saw through it and ignored it."
"It bothered me a lot; I was disturbed by it," Thrashers general manager Don Waddell said of the comments. "If you're criticizing me for wins and losses, I'll accept that. But when you're talking about trying to deceive the franchise and causing the franchise to lose money, to me that's really shooting at my integrity, and that's where it really hits home, and that hurts."
Mullin and Waddell were among seven high-ranking Hawks and Thrashers executives in court Thursday, all lined up on the side of the owners fighting Belkin. Also in court were Hawks general manager Billy Knight, Hawks coach Mike Woodson, Hawks vice president Dominique Wilkins, Hawks-Thrashers chief financial officer Bill Duffy and chief legal officer Scott Wilkinson.
"They've got everybody here except Speedy Claxton to try to influence this case," said Fabiano, a Boston attorney, who referred to the teams' executives as "the cheering section."
There was no interaction, not even apparent eye contact, between Belkin and any of the executives — a stark contrast to a court hearing last year when Knight famously refused a handshake from Belkin.
Knight declined to comment Thursday.
Johnson, the judge, ruled last month that Belkin is entitled to buy out the other owners because they breached the terms of an agreement to purchase his 30 percent stake. The other owners quickly filed notice of appeal to Maryland's Court of Special Appeals and asked Johnson to stay his ruling without requiring a bond, but they were happy with the size of the bond set Thursday. The judge said he arrived at the bond by taking 10 percent of the average of two appraisals of the value of Belkin's stake.
"I am pleased that the judge granted us a stay and am confident that we will prevail in the appeals court," Levenson said. "Our management team is going to be in place [during the appeal], and that's what we were fighting for today."
"I'm more confident than ever we'll prevail on appeal," Gearon said.
Belkin declined to comment.
Levenson and Gearon would not discuss the conditions of the stay.
At one point during Thursday's proceedings, the judge said he was going to order a provision that the teams initiate no transactions involving player contracts during the appeal. After Atlanta attorney Rob Remar, representing the owners fighting Belkin, said such a condition "would effectively destroy the ability of the teams to compete in their leagues ... and to continue as viable franchises," the judge called a recess and asked the two sides to agree on alternative wording.
When they were unable to do so, Johnson modified his order to ban transactions, other than with draft picks, involving contracts of longer than one year.
The purpose of the condition apparently is to prevent the teams from entering into long-term deals that Belkin would be obligated to pay if he winds up as sole owner .
As other conditions of the stay, the judge required that the non-Belkin owners continue to fund the teams' operating losses and that they make no changes in current management without Belkin's consent.
The judge said that if the owners "feel compelled to deviate" from any of the conditions of the stay, they should take it up with the appeals court.
Find this article at:
http://www.ajc.com/sports/content/sp...706owners.html
You have to register to read the article by following the link so I posted the whole thing here. (try [email protected], password falcons2)
By TIM TUCKER
The Atlanta Journal-Constitution
Published on: 07/07/06
Rockville, Md. — Estranged part-owner Steve Belkin won't be taking over the Hawks and Thrashers anytime soon, but the teams could find themselves operating at a competitive disadvantage versus the rest of their leagues.
Those are the dual results of a court order issued here Thursday.
After a lively hearing, the Maryland judge who last month ruled that Belkin is entitled to buy out the teams' seven other owners at cost issued a stay of his ruling pending appeal. But the judge attached several conditions to the stay, one of which threatens to put Atlanta's pro basketball and hockey franchises at a handicap in bidding for players.
Montgomery County (Md.) Circuit Court Judge Eric Johnson ruled that during the appeal process the defendants — the owners other than Belkin — are to "not initiate the purchase, sale, trade or negotiation of any NBA or NHL player contract ... excluding contracts involving present or future draft picks and contracts for any other player with a contract duration of one year or less."
While attorneys for the teams were parsing and analyzing the judge's words late Thursday, the order apparently means that, during an appeal that could take at least a year, the Hawks and Thrashers are not to sign free agents to multi-year contracts or to make trades for players who have multi-year contracts.
Johnson said the restriction would not apply to players with whom negotiations already have begun, meaning, for example, the Hawks are free to complete their planned signing of free agent point guard Speedy Claxton to a multi-year contract.
As another condition of the stay, Johnson required the owners who have been ordered to sell to Belkin — a group led by Bruce Levenson, Ed Peskowitz and Michael Gearon Jr. — to post a bond of $11.4 million. Belkin had sought a bond in the hundreds of millions of dollars.
Belkin attorney Jack Fabiano argued that a huge bond was needed to protect Belkin against any potential drop in the value of the franchises during the appeal. Fabiano said Belkin needed protection against "not only the blunders" of current management, but against the possibility of reckless spending designed to saddle him with onerous obligations.
Those comments left a large contingent of Hawks and Thrashers executives in the courtroom fuming.
"I found the character assassination and the challenge to the professionalism, competence and integrity of myself and my staff to be, quite frankly, obnoxious," said Bernie Mullin, the teams' CEO. "And I was very heartened by the fact the judge saw through it and ignored it."
"It bothered me a lot; I was disturbed by it," Thrashers general manager Don Waddell said of the comments. "If you're criticizing me for wins and losses, I'll accept that. But when you're talking about trying to deceive the franchise and causing the franchise to lose money, to me that's really shooting at my integrity, and that's where it really hits home, and that hurts."
Mullin and Waddell were among seven high-ranking Hawks and Thrashers executives in court Thursday, all lined up on the side of the owners fighting Belkin. Also in court were Hawks general manager Billy Knight, Hawks coach Mike Woodson, Hawks vice president Dominique Wilkins, Hawks-Thrashers chief financial officer Bill Duffy and chief legal officer Scott Wilkinson.
"They've got everybody here except Speedy Claxton to try to influence this case," said Fabiano, a Boston attorney, who referred to the teams' executives as "the cheering section."
There was no interaction, not even apparent eye contact, between Belkin and any of the executives — a stark contrast to a court hearing last year when Knight famously refused a handshake from Belkin.
Knight declined to comment Thursday.
Johnson, the judge, ruled last month that Belkin is entitled to buy out the other owners because they breached the terms of an agreement to purchase his 30 percent stake. The other owners quickly filed notice of appeal to Maryland's Court of Special Appeals and asked Johnson to stay his ruling without requiring a bond, but they were happy with the size of the bond set Thursday. The judge said he arrived at the bond by taking 10 percent of the average of two appraisals of the value of Belkin's stake.
"I am pleased that the judge granted us a stay and am confident that we will prevail in the appeals court," Levenson said. "Our management team is going to be in place [during the appeal], and that's what we were fighting for today."
"I'm more confident than ever we'll prevail on appeal," Gearon said.
Belkin declined to comment.
Levenson and Gearon would not discuss the conditions of the stay.
At one point during Thursday's proceedings, the judge said he was going to order a provision that the teams initiate no transactions involving player contracts during the appeal. After Atlanta attorney Rob Remar, representing the owners fighting Belkin, said such a condition "would effectively destroy the ability of the teams to compete in their leagues ... and to continue as viable franchises," the judge called a recess and asked the two sides to agree on alternative wording.
When they were unable to do so, Johnson modified his order to ban transactions, other than with draft picks, involving contracts of longer than one year.
The purpose of the condition apparently is to prevent the teams from entering into long-term deals that Belkin would be obligated to pay if he winds up as sole owner .
As other conditions of the stay, the judge required that the non-Belkin owners continue to fund the teams' operating losses and that they make no changes in current management without Belkin's consent.
The judge said that if the owners "feel compelled to deviate" from any of the conditions of the stay, they should take it up with the appeals court.
Find this article at:
http://www.ajc.com/sports/content/sp...706owners.html
You have to register to read the article by following the link so I posted the whole thing here. (try [email protected], password falcons2)