Tension fills air as Belkin sheds light

Rockville, Md. —- It took less than a day for the tension between Boston-based Hawks and Thrashers co-owner Steve Belkin and his seven business partners to come to a head in a Maryland courtroom.

The man called “evil” by his partners testified for the first time Tuesday and shed light on a tampering case that cost the NBA team more than $1 million.

Belkin’s testimony came on Day 1 of a trial that could reshape the ownership structure of the two pro franchises.

Belkin became the Hawks’ representative to the NBA when the eight owners, known as the Atlanta Spirit, bought the teams and the Philips Arena rights from Turner Broadcasting System in 2004. Rob Remar, an attorney representing the seven other partners, accused Belkin of trying to “control and dominate” the other owners, who live in Atlanta and Washington.

He wouldn’t let the other owners into the Hawks’ locker room. Or fly on the team plane.

Remar said Belkin accused co-owner Bruce Levenson of player tampering —- an act Belkin denied in open court. Belkin said his business partner, Felix Riccio, made the accusation. Tampering generally refers to recruitment of other teams’ players. No further details were provided.

“I didn’t do that,” Belkin told Remar. When pressed, he clarified.

“We weren’t sure if there was tampering or not,” Belkin said.

The NBA asked an Atlanta attorney, one who helped the Spirit buy the teams from Turner, to investigate the tampering claims. When the lawyer concluded the claims were false, Belkin engaged his own lawyer to investigate instead.

“I thought there were inaccuracies,” Belkin said of the first report. “We felt it was best to be honest and forthcoming with the leagues.”

The investigation cost the Atlanta Spirit $1 million in legal fees, Remar said.

During the morning opening statements, it became clear just how much animosity the other owners hold for Belkin.

In a memo cited by Belkin’s attorney, Levenson mentions “Belkin’s misdeeds” as a business partner and says his wrongdoings should have a “not-so-subliminal effect against the evil Belkin.”

Jack Fabiano, Belkin’s attorney, argued that the other owners wanted Belkin out of the group ever since they bought the teams. The other owners “were crowing about how they built relationships with the players,” Fabiano said.

Belkin stepped down as NBA governor after the others wanted to trade for then-Phoenix Suns guard Joe Johnson, and he didn’t. “Your honor, you’ll probably hear more about Mr. Johnson than you care for,” Fabiano said.

The group is in court trying to decide which side can pick an appraiser to establish how much Belkin’s 30 percent stake is worth. Both sides objected to the first appraisal, and the contract that laid out the buyout process was so vague it didn’t outline the next step if that happened. The trial is expected to last about two weeks.

Fabiano argued that Belkin completed his side of the deal —- he let the owners sign Johnson, and he stepped down as NBA governor. So, now, the other partners should pay up —- $142.8 million —- plus millions in interest.

“We ask the court to give Mr. Belkin what he bargained for,” Fabiano said, saying an appraisal completed by J.P. Morgan should be honored. “He was supposed to get a return, and he hasn’t gotten a nickel.”