Two groups show interest in buying Hawks, Thrashers, arena

By Chris Vivlamore

The Atlanta Journal-Constitution

Two investment groups have inquired about purchasing the Hawks, Thrashers and Philips Arena, according to several people familiar with the situation. Both possible buyers intend to keep the Thrashers in Atlanta.

A deal is not close in either case because the proper paperwork has not been filed to begin serious negotiations. Typically non-disclosure agreements must be signed between buyer and seller. However, at least one group has met with the officials from the NBA and the NHL.

The group that met with league officials, including the NHL on Thursday, has a main investor who is connected to other parties, some of whom are from Atlanta. That group is interested in purchasing the three properties, plus it has a “development element” to the deal, possibly involving the area around Philips Arena.

The Hawks, Thrashers and Philips Arena, owned by the Atlanta Spirit, have been for sale for several years. The Atlanta Spirit has been trying to sell the Thrashers since shortly after taking ownership, according to court documents filed in a lawsuit against their former law firm.

Several groups have expressed a singular interest in buying the Thrashers and moving them to another city. Canadian cities Winnipeg, Quebec and Hamilton have long been mentioned as possible destinations.

Earlier this month, Atlanta Spirit co-owner Michael Gearon Jr. told The Atlanta Journal-Constitution there was a sense of urgency to find a buyer or additional investors to keep the Thrashers in Atlanta. The franchise has lost $130 million over the past five years, according to court documents.

At least a month would be necessary to complete a buyer’s due diligence on a proposal and another month to complete negotiations, according to people familiar with the situation.

NHL Commissioner Gary Bettman has stood firm that the league currently has no plans to expand or relocate a franchise. With several franchises struggling with finances and ownership issues, including the Thrashers, Winnipeg appears to have the necessary structure in place to regain a franchise. The city lost the Jets -- who became the Phoenix Coyotes -- in 1996. Ironically, Phoenix is now one of the franchises with ownership issues and, if not resolved, could be moved back to Winnipeg. Should the Phoenix issues get resolved, Atlanta would be the next logical candidate for relocation should a buyer or investors not be found to keep the team in place.

Stephen Rollins, an Atlanta native and filmmaker who has publicly stated a desire for his investment group to purchase the Thrashers, is not among the two groups of potential buyers. Rollins' group is said to be interested but has not made a formal bid.

The Atlanta Spirit has been trying to sell the Thrashers for six years, according to a Jan. 21 lawsuit filed in Fulton County Superior Court against Atlanta law firm King & Spalding.

The group sued the firm for $200 million, citing a “fatally flawed” and “botched” contract written to buyout former partner Steve Belkin for preventing any Thrashers sale during the nearly five years prior to the suit was being settled in December.

Before the current litigation, the Atlanta Spirit stated publicly it had looked for investors for the past two years for the Thrashers, Hawks or both franchises. Ownership reported more than $130 million in operating losses since 2005, according to the lawsuit. The Thrashers' value has dropped by more than $50 million, the document said.

“I want to see this team in Atlanta,” Gearon Jr. told the AJC. “We are working to keep it in Atlanta. We need others to step in and help.”