As Hawks soon officially go on sale, buyers starting to emerge

A group of high-profile prospective buyers has begun to emerge with official announcement that Hawks are on the market now imminent. Assurances quickly came from Atlanta City Hall and the NBA that the team will not leave the city.

The sale of the team, with a 100 percent stake available, has already drawn interest from several NBA-experienced and financially viable individuals, several people familiar with the situation told The Atlanta Journal-Constitution.

The sale process is in its infancy with financial records becoming available with the announcement from the Hawks of the start of the sale procedure. Some of the prospective buyers, according to one source, have already visited Philips Arena.

The sale will be handled by Goldman Sachs and Inner Circle Sports, which will be responsible for vetting prospective buyers. According to one source, the process will likely take several months with April as a possible target date to finalize an agreement. A buyer must also be approved by the NBA.

According to sources, those who have expressed a substantial level of interest include:

• Jason Levian: The former Memphis Grizzlies CEO left the organization in May. He is a co-owner of the MLS franchise D.C. United.

• Steve Kaplan: The Los Angeles-based investor joined Robert Pera's group as a limited investor to purchase the Grizzlies. He has reportedly made attempts to buy baseball's San Diego Padres and Los Angeles Dodgers in recent years.

• Sheldon Adelson: The billionaire businessman is the chairman and CEO of the Las Vegas Sands Corporation. He is known to have Atlanta ties, including providing financial support for Gov. Nathan Deal's recent campaign.

• Bryan Colangelo: The former president and CEO of the Toronto Raptors, he is son of Jerry Colangelo and was the NBA's 2005 and 2007 executive of the year.

• Grant Hill: The former NBA player and current TV analyst joined Antony Ressler and Bruce Karsh in a $1.2 billion failed bid to buy the Los Angeles Clippers. Hill deflected questions about his interest in the Hawks during a recent segment on NBA TV.

There are likely also several prospective buyers who have not yet been identified. The Hawks are expected to go for significantly more than the $550 million price of the Milwaukee Bucks but well below the $2 billion of the Clippers when those franchises were sold earlier this year.

Others have stepped forward, according to published reports. ESPN reported Tuesday that Seattle’s Sodo arena investor Chris Hansen and film producer Thomas Tull are planning separate offers and each hopes to relocate the team to Seattle. Hanson recently tried to buy the Sacramento Kings and move them to Seattle last year. Tull, a partial owner of the Pittsburgh Steelers, is chairman and CEO of Legendary Pictures.

Relocating the franchise appears to be a non-starter. Current Hawks ownership and Atlanta Mayor Kasim Reed have previously stated their intentions to keep the Hawks in Atlanta when they are sold.

The NBA’s stance, since the Seattle Supersonics’ controversial move to Oklahoma City in 2008, has been that relocation would be considered only if a market gives up on team. That is not the case with the sale of the Hawks, who went on the market following the racially charged comments made by controlling owner Bruce Levenson and general manager Danny Ferry.

NBA spokesman Mike Bass told the AJC Wednesday: “The Atlanta Hawks are not moving to another market.”

Reed spokeswoman Anne Torres said the mayor was not concerned over the Seattle report, comparing the sale process to a flight that experiences turbulence before ultimately landing safely.

“When he initially met with the NBA commissioner (Adam Silver) over selling the team, the commissioner assured him that one of the requirements of the sale would be that the team would stay in Atlanta,” Torres said. “He’s confident that will happen.”

Complicating any sale and relocation would also be the remaining $124 million debt on Philips Arena and a $75 million penalty for paying off the loan before 2017.

The AJC has previously reported others with an interest in an ownership stake in the Hawks. Former NBA players Dikembe Mutombo and Chris Webber, who has stated his intent publicly, have expressed such an interest.

New York-based entertainment lawyer Doug Davis, the son of the legendary music industry executive Clive Davis, is also believed to have interest. Davis did not respond to a request for an interview.

According to sources, Jesse Itzler, an entrepreneur and former rapper who has done consulting work for the Hawks, is a prospective investor. He attends many home games and previously considered assuming a minor interest in the team. According to sources, his current interest would be as a minority owner. He is married to Sara Blakley, the founder of Spanxx.