They were separated by hundreds of miles Tuesday, yet Michael Gearon Jr. and Danny Ferry were at the center of a firestorm that has engulfed the Hawks and grows hotter by the day.
Gearon was in New York to meet with NBA officials about his ownership of the team. Ferry was in Atlanta determined to remain general manager. Their actions occured one day after a letter written by Gearon demanding that Ferry be fired was made public.
Gearon wrote the letter to controlling owner Bruce Levenson asking that he request the resignation of Ferry or terminate him with cause in June.
In a letter obtained by Channel 2 Action News, dated June 12, Gearon cites a racist statement made by Ferry when discussing with ownership a potential free agent. The player was not mentioned by name in the letter, but was referred to as a “highly-regarded African-American player and humanitarian.” That player was Luol Deng.
After discussing positives of the player, Ferry described the negatives as, “He has a little African in him. Not in a bad way, but he’s like a guy who would have a nice store out front but sell you counterfeit stuff out of the back.” The letter states that Ferry completed the slur by describing the player as “a two-faced liar and cheat.”
In the letter, Gearon noted that Levenson and his business partner and fellow co-owner Ed Peskowitz were on the call. Gearon Jr. also noted that the call was recorded for the purposes of note taking.
Gearon states that he is “appalled” by the comments. He writes, “If Ferry’s comments are ever made public, and it’s a safe bet they will someday, it could be fatal to the franchise.”
In the final paragraph of the letter, Gearon writes, “We are calling on you, as majority owner and NBA Governor, to take swift and severe action against Ferry. Our advisors tell us there is no other choice but to ask for Ferry’s resignation, and if he refuses, to terminate him for cause under his employment agreement.”
On Sunday, Levenson announced he would sell his majority share in the team after an investigation, prompted by Ferry’s comment, discovered an inflammatory email he wrote in 2012. The discovery of the email, in part about the lack of whites in attendance at Hawks games, has left the team looking for a buyer for at least Levenson’s shares. It is unknown whether Peskowitz will sell his shares of the franchise.
Levenson declined to speak, and Peskowitz did not return messages Tuesday. Levenson’s name was taken off the staff directory on the team’s website. Gearon and Peskowitz are now listed as alternate NBA governor. Levenson has served as the NBA governor for several seasons.
CEO Steven Koonin, who is running the franchise following Levenson’s announcement, and Ferry insist he was reading from a background report on Deng.
Despite the revelation of the comments, Ferry has no immediate plans to resign. He declined to speak Tuesday. He issued a statement on the current issues facing the organization and said he spoke to Deng.
“In regards to the insensitive remarks that were used during our due diligence process, I was repeating comments that were gathered from numerous sources during background conversations and scouting about different players,” Ferry said in the statement.
“I repeated those comments during a telephone conversation reviewing the draft and free agency process. Those words do not reflect my views, or words that I would use to describe an individual and I certainly regret it. I apologize to those I offended and to Luol, who I reached out to Monday morning.
“In terms of the email that Bruce sent, the situation is disturbing and disappointing on many levels and I understand Bruce’s words were offensive.
“I am committed to learning from this and deeply regret this situation. I fully understand we have work to do in order to help us create a better organization; one that our players and fans will be proud of, on and off the court, and that is where my focus is moving forward.”
Deng, who signed with the Heat this summer, issued his own statement Tuesday evening. In part it read, “Concerning my free agency, the focus should purely have been on my professionalism and my ability as an athlete. Every person should have the right to be treated with respect and evaluated as an individual rather than be reduced to a stereotype. I am saddened and disappointed that this way of thinking still exists today. I am even more disturbed that it was shared so freely in a business setting.”
Ferry faces an undisclosed discipline that Koonin said exceeded the recommendation by the law firm that conducted the independent investigation. The NBA reiterated Tuesday that it will not seek to discipline Ferry above and beyond the team sanctions.
Reaction around the NBA was mixed in regard to Ferry retaining his position with the Hawks.
Hall of Famer Magic Johnson used social media to express his displeasure. Via Twitter he wrote: “Atlanta Hawks GM Danny Ferry should step down after making racist statements about NBA player Luol Deng.”
Wayne Embry, the NBA’s first black general manager with the Bucks, told ESPN, “I’ve observed Danny Ferry and his family for many years, and I can say Danny Ferry is not a racist. I don’t know all the circumstances, but in the capacity of a president or general manager, you have to do your due diligence on players. It is a responsible way to act.”
For the time being, the Gearon and Ferry will have to work together in some regard. Koonin will be the point person for Ferry and the daily operations of the basketball team. Gearon will remain as the process of resolving the ownership begins. Gearon met with league officials in New York on Tuesday. NBA Commissioner Adam Silver was not in attendance, as he was flying to Spain to watch the U.S. team compete in the FIBA World Cup tournament.
Koonin, who did several radio interviews Tuesday, was not available to comment on how the working relationship between Gearon and Ferry would be handled. As he stated in an interview with The Atlanta Journal-Constitution Sunday night, Koonin said Ferry would remain general manager.
