Mr.Bottomtooth
07-08-2006, 02:03 AM
Ruling complicates trade talks
By TIM TUCKER
The Atlanta Journal-Constitution
Published on: 07/08/06
A key piece of the Hawks' summer game plan - a sign-and-trade deal involving their free-agent forward Al Harrington - was up in the air Friday as the franchise digested a court ruling.
A Maryland judge on Thursday issued a stay, pending appeal, of his earlier order that part-owner Steve Belkin is entitled to buy out the Hawks' and Thrashers' other owners at cost. But Montgomery County (Md.) Circuit Court Judge Eric Johnson attached a condition to the stay that prohibits the owners from initiating transactions during the appeal process that involve multi-year contracts for players other than draft picks.
The condition makes a Harrington sign-and-trade tricky at best, undoable at worst.
Hawks and Thrashers president Bernie Mullin would not comment directly on the Harrington situation Friday but acknowledged the unique problems posed by the court-imposed restriction.
"This is a very strong handicap that puts us at a competitive disadvantage and is not something we can live with," Mullin said.
"We are evaluating with our counsel these restrictions and what to do about them," said part-owner Michael Gearon Jr., who declined further comment except to add: "We are thankful the judge granted the stay."
A Harrington sign-and-trade could be at odds with the court's order in two ways: The Hawks would have to sign him to a multi-year contract before trading him, and they might want to acquire player(s) in return who carry multi-year contracts. One way such a trade might be doable is if the Hawks are comfortable with the position that it already was "initiated" before the judge's order.
In light of the court ruling, the Hawks appear to have at least three options regarding Harrington:
• Simply let him walk away as a free agent without acquiring anything in return - a step that would hurt Harrington as well as the Hawks because there could be only one team (Charlotte) with sufficient room under the salary cap to give him the type of contract he could command in a sign-and-trade deal.
• Make a sign-and-trade deal with a team with whom there were negotiations and proposals before the court's order and argue that such a transaction is allowed because it already had been "initiated" - an aggressive approach that might carry legal risk.
• Try to have the condition regarding multi-year contracts clarified, modified or removed - a move that might risk opening up other aspects of the stay that the non-Belkin owners wouldn't want changed. For example, Johnson required that they post an $11.4 million bond to protect Belkin against losses during the appeal - far short of the bond in the hundreds of millions of dollars sought by Belkin. In his order granting the stay, Johnson said any requests for modification of the conditions should be taken up with Maryland's Court of Special Appeals.
The owners and Hawks officials would not comment Friday on the various options. The NBA declined comment and the NBA Players' Association did not return phone calls.
By TIM TUCKER
The Atlanta Journal-Constitution
Published on: 07/08/06
A key piece of the Hawks' summer game plan - a sign-and-trade deal involving their free-agent forward Al Harrington - was up in the air Friday as the franchise digested a court ruling.
A Maryland judge on Thursday issued a stay, pending appeal, of his earlier order that part-owner Steve Belkin is entitled to buy out the Hawks' and Thrashers' other owners at cost. But Montgomery County (Md.) Circuit Court Judge Eric Johnson attached a condition to the stay that prohibits the owners from initiating transactions during the appeal process that involve multi-year contracts for players other than draft picks.
The condition makes a Harrington sign-and-trade tricky at best, undoable at worst.
Hawks and Thrashers president Bernie Mullin would not comment directly on the Harrington situation Friday but acknowledged the unique problems posed by the court-imposed restriction.
"This is a very strong handicap that puts us at a competitive disadvantage and is not something we can live with," Mullin said.
"We are evaluating with our counsel these restrictions and what to do about them," said part-owner Michael Gearon Jr., who declined further comment except to add: "We are thankful the judge granted the stay."
A Harrington sign-and-trade could be at odds with the court's order in two ways: The Hawks would have to sign him to a multi-year contract before trading him, and they might want to acquire player(s) in return who carry multi-year contracts. One way such a trade might be doable is if the Hawks are comfortable with the position that it already was "initiated" before the judge's order.
In light of the court ruling, the Hawks appear to have at least three options regarding Harrington:
• Simply let him walk away as a free agent without acquiring anything in return - a step that would hurt Harrington as well as the Hawks because there could be only one team (Charlotte) with sufficient room under the salary cap to give him the type of contract he could command in a sign-and-trade deal.
• Make a sign-and-trade deal with a team with whom there were negotiations and proposals before the court's order and argue that such a transaction is allowed because it already had been "initiated" - an aggressive approach that might carry legal risk.
• Try to have the condition regarding multi-year contracts clarified, modified or removed - a move that might risk opening up other aspects of the stay that the non-Belkin owners wouldn't want changed. For example, Johnson required that they post an $11.4 million bond to protect Belkin against losses during the appeal - far short of the bond in the hundreds of millions of dollars sought by Belkin. In his order granting the stay, Johnson said any requests for modification of the conditions should be taken up with Maryland's Court of Special Appeals.
The owners and Hawks officials would not comment Friday on the various options. The NBA declined comment and the NBA Players' Association did not return phone calls.