The Atlanta Spirit is in negotiations with True North Sports and Entertainment on the sale of the Thrashers which would result in relocation to Winnipeg, according to a person familiar with the NHL’s sale process.
The parties have not entered into an exclusive negotiating agreement nor has a deal been reached. It is not known how long the two 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 Monday.
Confidentiality agreements are typically signed between parties in negotiations which would prohibit Atlanta Spirit ownership from identifying suitors.
NHL Deputy Commissioner Bill Daly, reached via e-mail, said there was “nothing I’m prepared to say at this point.” A True North Sports and Entertainment spokesperson had no comment.
According to a person familiar with the Thrashers’ situation, a meeting was held Monday between team officials and a prospective buyer interested in keeping the team in Atlanta. However the talks have not progressed and time is of the essence.
Tom Glavine, the Braves’ pitching great who has expressed interest in helping keep the Thrashers in Atlanta, said he was not part of group that met with team officials Monday.
NHL owners do not have to get league approval to identify potential buyers and work out an agreement to sell their franchise. However they would have to get permission to negotiate with a party interested in relocation. Once an agreement in principle has been reached, the league’s Board of Govenors would be asked to judge the acceptability of the new ownership.
Negotiations between the two parties have begun as the Atlanta Spirit has not found 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, one with Atlanta and one with Winnipeg. Last season, the NHL released its upcoming schedule on June 22. Should a deal be completed in time for next season it might be too late for conference re-alignment.
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 would be losing an NHL franchise for the second time. The city lost the Flames to Calgary in 1980. An expansion team was awarded to the city on June 25, 1997, named the Thrashers eight months later, to begin play for the 1999-2000 season.
The NHL would be returning to Winnipeg after 15 years. The Jets were relocated to Phoenix in 1996. True North is led by Winnipeg businessman Mark Chipman and billionaire David Thomson and owns Winnipeg’s arena, the MTS Centre, and the American Hockey League team that currently plays there, 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, although the group has only had clear ownership since December after officially buying out partner Steve Belkin. Co-owner Michael Gearon Jr. told the AJC in February that there was a ‘sense of urgency’ to find a solution for the financially struggling franchise and that relocation was a possibility. The Atlanta Spirit has reported in court documents losses of $130 million over the course of their ownership with annual losses estimated at $20 million.
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