The Atlanta Spirit is in negotiations with Canadian-based True North Sports and Entertainment involving the sale of the Thrashers, which, if completed, would send the hockey franchise to Winnipeg, according to a person familiar with the NHL’s sale process.
The parties have not entered into an exclusive negotiating agreement and they have not reached a deal. It is not known how long the sides have been negotiating. However, the fact that talks are underway could mean the Thrashers’ relocation to Manitoba perhaps as soon as next season.
“I have never confirmed nor denied specific parties we have been talking to in regards to a possible sale of the Thrashers,” Atlanta Spirit co-owner Bruce Levenson told The Atlanta Journal-Constitution on Monday.
Confidentiality agreements typically are signed between parties in negotiations that would prohibit Atlanta Spirit ownership from identifying suitors.
NHL Deputy Commissioner Bill Daly, reached by email, said, "[There was] nothing I’m prepared to say at this point.” A True North Sports and Entertainment official had no comment.
A meeting also was held Monday between team officials and a prospective buyer interested in keeping the team in Atlanta, according to a person familiar with the Thrashers' situation. However, time appears to be running out on that possibility. Tom Glavine, the former Braves’ pitcher who has expressed interest in helping keep the Thrashers in Atlanta, said he was not involved in that meeting with team officials.
NHL owners don't need league approval to identify potential buyers and work out an agreement to sell a franchise. Yet they would have to obtain permission to negotiate with a party interested in relocation. If an agreement in principle has been reached, the league’s Board of Governors would be asked to approve the new ownership.
Negotiations with True North Sports and Entertainment have emerged with the Atlanta Spirit unable to find a buyer willing to purchase the Thrashers and keep the team in Atlanta.
NHL bylaws require that an owner seeking to relocate a team submit a written application to the commissioner by Jan. 1 of the year preceding the proposed move -- “Unless a majority of the [clubs] consents to a later filing date.” That clause and caveat leave open the question of whether a move, if a deal is reached, would be for the 2011-12 or 2012-13 season.
The Winnipeg Free Press reported Monday that the NHL is working on two schedule drafts: for Atlanta and Winnipeg. Last season, the NHL released its upcoming schedule on June 22.
NHL commissioner Gary Bettman, speaking on NHL Live radio last week, said the situation regarding franchise relocation comes down to ownership.
“It’s the reason we ended up leaving Quebec City and Winnipeg,” Bettman said. “Those teams moved when nobody wanted to own the club there anymore. If you get to that position, where somebody is not prepared to own the club anymore and you can’t find a new perspective purchaser, then you are really between a rock and a hard place.
“We know that the current ownership of the Thrashers has been trying for a long period of time to try and sell the franchise, and they haven’t been able to do it. … If they can’t find local ownership, then we might all have to deal with that. But I know they have tried very hard and I assume that they continue to try very hard.”
Atlanta stands to lose an NHL franchise for the second time. The city's Flames moved to Calgary in 1980. An expansion team was awarded to the city in June 1997, named the Thrashers eight months later and played for the first time in the 1999-2000 season.
If a deal is completed, the NHL would return to Winnipeg after a 15-year absence, replacing the Jets franchise that was relocated to Phoenix. True North, which is led by Winnipeg businessman Mark Chipman and billionaire David Thomson, owns Winnipeg’s arena, the MTS Centre, and its American Hockey League tenant, the Manitoba Moose.
The purchase price for an NHL franchise to relocate to Winnipeg has been reported to be as much as $170 million. The NHL would receive a relocation fee from the sale.
The Atlanta Spirit has been looking for a buyer or investors for the Thrashers for several years, though the group has had clear ownership only since December after officially buying out partner Steve Belkin.
Co-owner Michael Gearon Jr. said in February that there was a sense of urgency to find a solution for the financially inept franchise and that relocation was a possibility. The Atlanta Spirit, in court documents, has reported losses of $130 million over the course of its ownership, with annual losses estimated at $20 million.
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