Two non-disclosure agreements were submitted over the weekend from parties showing preliminary interest in purchasing all or part of the Hawks, Thrashers and Philips Arena according to a person familiar with the situation.
The signed agreements were procured by the Raine Group, the New York City-based banking firmed hired by the Atlanta Spirit to seek a buyer or additional investors for the all or part of the three properties.
As many as five non-disclosure agreements have been signed over the past several weeks, according to the person familiar with the situation.
A non-disclosure agreement, or confidentiality agreement, is typically signed between two parties interested in doing business that requires inside knowledge of the inner workings by one or both to evaluate a potential relationship. In the case of the Atlanta Spirit, an interested party would want to see the ownership group’s financial records before deciding to take the next step in a possible purchase or investment. The next step would be for the Atlanta Spirit to see the financial records of the possible buyer or investors before proceeding.
The signing of a non-disclosure document is the beginning of a prospective buyer’s due diligence. It does not mean a deal is imminent. It would be the first step in a long process of completing a complicated sale.
The key to such a sale would be a letter of intent. Once that document is signed between the two parties, granting exclusive negotiating rights, a deal is more likely. In took nearly a year for the Atlanta Spirit to complete the purchase of the three properties from Turner once the letter of intent was signed.
Two investment groups recently inquired about purchasing the Hawks, Thrashers and Philips Arena, according to several people familiar with the situation. Both possible buyers intend to keep the Thrashers in Atlanta.
One group has met with league officials, including the NHL last Thursday. The Hawks, Thrashers and Philips Arena, owned by the Atlanta Spirit, have been for sale for several years. The Atlanta Spirit has been trying to sell the Thrashers since shortly after taking ownership, according to court documents filed in a lawsuit against their former law firm.
Several groups have expressed a singular interest in buying the Thrashers and moving them to another city. Canadian cities Winnipeg, Quebec and Hamilton have long been mentioned as possible destinations.
Earlier this month, Atlanta Spirit co-owner Michael Gearon Jr. told The Atlanta Journal-Constitution there was a sense of urgency to find a buyer or additional investors to keep the Thrashers in Atlanta. The franchise has lost $130 million over the past five years, according to court documents.
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