A city that promotes itself as a sports capital of the South is in danger of losing its NHL franchise for a second time.
If that were to happen, Atlanta would not have a team in every major professional sport — an embarrassing step backward for a community that has hosted the Olympic Games and two Super Bowls.
Michael Gearon of the Atlanta Spirit — a board of seven businessmen that owns the Thrashers and the Hawks — said there is now a “sense of urgency” to find additional investors or a buyer willing to keep the Thrashers in Atlanta.
If the ownership group does not get additional financial help in the near future, the franchise could be sold and moved to another city. The Thrashers would join the Atlanta Flames who left for Calgary in 1980.
“If we are faced with that as the only alternative, that’s what’s going to happen,” Gearon told The Atlanta Journal-Constitution in an exclusive interview. “I don’t think there is an ability to stomach another $20 million in [yearly] losses. We just can’t do it.
“The reality is we need fans showing up and we need investors or a primary investor.”
Bob Hope, a longtime sports marketing expert and an influential voice on Atlanta’s sports scene, said some civic profile would be lost if the Thrashers go.
“Once you start losing ground, there are black marks against you,” Hope said.
Atlanta business boosters are quick to rattle off the economic impact of the many big-time professional and collegiate championships held here, such as the Super Bowl and NCAA men’s and women’s Final Fours.
There is no buyer currently lined up to purchase the Thrashers, according to a person familiar with the situation.
Debbie Cannon, director of the School of Hospitality at Georgia State University, said the Thrashers helped Atlanta make the case that it was a city with something for everyone year round. That’s critical to attract business travelers and conventioneers seeking a diversion after a day of meetings.
“Atlanta should do everything it can to hang onto to the Thrashers,” she said. “It’s important that our options for visitors expand, not contract.”
William Pate, president of the Atlanta Convention & Visitors Bureau, echoed Cannon. Sports, he said, are a big lure for Atlanta, with leisure visitors often planning their visits to the city around the home schedule of their favorite team.
“On game days, nearby attractions and restaurants benefit from incremental visitation,” Pate said. “It’s a very attractive selling point for conventioneers and business travelers to be able to walk out of a meeting at the end of the day and into a game on any given night.”
The Thrashers have long been the subject of speculation that the franchise would be sold and moved with Canadian cities Winnipeg, Quebec and Hamilton most often mentioned.
Atlanta Spirit has been trying to sell the Thrashers for six years, starting almost immediately after purchasing the team, according to the Jan. 21 lawsuit filed in Fulton County Superior Court against Atlanta law firm King & Spalding.
The group filed a $200 million malpractice lawsuit against the firm saying a “fatally flawed” and “botched” contract written to buy out former partner Steve Belkin prevented a Thrashers sale in the nearly five years it took to settle that suit in December.
Before the current litigation, the Atlanta Spirit stated publicly for the past two years that it was looking for investors for the Thrashers, Hawks or both franchises. According to the lawsuit, ownership reported more than $130 million in operating losses since 2005. The Thrashers value also has dropped by more than $50 million, according to the document.
At one time, Atlanta came close to losing the Falcons and the Braves. Then-Falcons owner Rankin Smith decided to keep the team in town when plans for the new Georgia Dome were finalized in 1987. Ted Turner prevented the Braves from leaving town by buying the team in 1976.
“I want to see this team in Atlanta,” Gearon said of the Thrashers. “We are working to keep it in Atlanta. We need others to step in and help. And as of now, no one in the Atlanta community has.”
Thrashers reported attendance, which refers to the number of tickets distributed but not actually used, for the 2009 calendar year was 368,652, a 15 percent drop from the previous year, according to documents from the City of Atlanta and Fulton County Recreation Authority.
This season, the Thrashers currently are 28th in the 30-team NHL in attendance.
Gearon said he is speaking out on the future of the franchise because he wants potential investors interested in keeping the team in Atlanta to have the first chance to make an offer.
“Long term, it’s important that a message gets out,” Gearon said. “Hopefully, I think it helps having fans show up because it demonstrates that the city is committed to the team. More importantly, I hope one, two or three other wealthy guys say, ‘OK, we’ll hop on this raft with you. Even though you are in choppy waters, stage four rapids, we’ll get on this.’”
If the Thrashers were to be sold and moved, the Atlanta Spirit would lose a pro-rated portion of the $10 million annual naming rights fee to Philips Arena. It would also lose concession revenue and other income generated by the Thrashers dates in the arena.
Staff writer Kristi Swartz contributed to this article.
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