Luol Deng was one of the Hawks’ top free-agent targets this summer.
In reviewing his career, it was a comment in a background report, read by general manager Danny Ferry during a June ownership conference call, that caused the current franchise firestorm that led to majority owner Bruce Levenson agreeing to sell his stake in the team.
According to a person familiar with the situation, Ferry read the following assessment from the report: “He is still a young guy overall. He is a good guy overall. But he is not perfect. He’s got some African in him. And I don’t say that in a bad way.”
It was following that call that a member of the Atlanta-based ownership group raised a concern over the comment. That led to an internal investigation, which revealed Levenson’s incendiary email about his views of the racial makeup of Hawks attendance.
According to one person who heard Ferry’s comments about Deng, he had “never heard a comment as offensive.”
Deng is a native of the current South Sudan, is involved in several charities in Africa and has made trips overseas as part of the NBA program Basketball Without Borders. In April he was named the winner of the J. Walter Kennedy Citizenship Award given annually by the Professional Basketball Writers Association. Deng signed a two-year, $20 million contract with the Heat in July.
Ferry faces an undisclosed discipline from the Hawks for reading the comment, Hawks CEO Steve Koonin said. It is not currently believed that Ferry will lose his general manager position over the incident. Ferry will not face additional discipline from the NBA.
“I support Steve’s leadership and greatly appreciate his support,” Ferry told The Atlanta Journal-Constitution on Sunday. “I look to learn from this situation and help us become a better organization.”
Koonin said the Hawks were not in a position to discipline the author of the background report, which not prepared in-house, for the comment.
“It was not from our team,” Koonin said. “It was word of mouth. It was background information. Something was shared with Danny that was shared with the group.”
The NBA began its own independent investigation into the matter until Levenson abruptly announced his intention to sell is significant share in the team Sunday.
Following Ferry’s remark, the law firm of Alston and Bird, at the request of ownership, spoke to 19 people and reviewed over 24,000 documents, according to Koonin. During the investigation, an email written by Levenson in 2012, directed to Ferry and fellow Washington D.C. based co-owners Ed Peskowitz and Todd Foreman, in part contained inflammatory views African-Americans.
Koonin, who is also a co-owner of the Hawks, said he has received inquiries from multiple people interested in purchasing Levenson’s stake in the team. While it has not been his immediate focus following the recent revelations. he said there will be no shortage of potential buyers.
“I had over seven phone calls directly today from multi-billionaires,” Koonin said. “It blew my mind some of the people who wrote me (Sunday).”
It is not known the exact percentage that Levenson controls within the Hawks ownership group. It is enough that he is called the controlling partner in a group that includes seven others and at least five minor investors. Michael Gearon Jr. is referred to as a managing partner, along with Levenson, in the team’s media guide. Other listed owners include Levenson’s business partner Peskowitz, Foreman, Rutherford Seydel, Michael Gearon Sr. and Beau Turner. Koonin purchased an interest in the team in April when he was hired at CEO.
The Hawks searched for additional investors for the past several years. In February, they added five investors described as not having a significant ownership in the team and that their additions would not change the ownership structure.
The Los Angeles Clippers sold for $2 billion last month. In April, the Milwaukee Bucks were sold for $550 million. Forbes recently valued the Hawks franchise at $425 million. That figure is speculative and the Clippers were valued at far less than the final sale price.
The Hawks have one of the lowest attendance figures in the NBA, which was at issue in the Levenson email. Last season they ranked 28th out of the league’s 30 teams with a tickets distributed figure of 14,339 per game. Only Philadelphia (13,869) and Milwaukee (13,487) had lower attendance figures. Chicago led the NBA with 21,716 tickets distributed per game.
National Basketball Players Association acting Executive Director Ron Klempner issued the following statement Monday: “We’ve had continuing discussions with the league office about the incidents of disturbing statements attributed to representatives of the Atlanta Hawks’ franchise. We recognize that there is an ongoing investigation regarding the circumstances and we will continue to monitor these events and take any action we deem appropriate.”
The NBA said it will work with the Hawks and Koonin, who will now oversee all team operations, in the sale process. A new owner must be approved by the league’s Board of Governors. Levenson served as the Hawks representative on the board.
Koonin met with players Sunday night to discuss the Levenson news. He also met with team employees on Monday over the matter. He wrote a letter to season ticket holders and sponsors and said he has spent hours returning phone calls and emails for concerned fans. He will meet with Atlanta civil and human right leaders in the near future.
Gov. Nathan Deal, asked if he wished to comment about the Levenson email Monday, responded “not really.”
An email to Koonin results in an auto reply. “Thanks for the email. As you can imagine, I have received a high number of emails. I will try and go through each and every one of them and return them as quickly as I can. In the meantime, please visit http://www.atlantahawksinfo.com/ for more information on the matter.”
“I know deep in my heart that we can be successful in this city,” Koonin told the AJC Sunday. “I’ve seen it. I lived it. I cheered for it. Now, I hope and pray for it.”
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