Atlanta Hawks on the verge of sale; Franchise won’t move towns – NBA Update
The Atlanta Hawks are set to be sold to California based pizza chain owner Alex Meruelo. A source familiar with the negotiations revealed that Alex, who is set to become the first Latin owner of an NBA franchise, will not relocate the team to another city, much to the relief of Atlanta natives.
There has not been any official statement as yet, but Alex has confirmed that he will take over the club and will be looking to bring unprecedented success to the city,
"I'm a person who doesn't give up. I want to bring a championship to the city of Atlanta." Meruelo said.
Meruelo also recently acquired the Grand Sierra Resort and Casino in Reno, Nev. That deal was worth a reported $42.45 million and was carried out through his California based investment firm, the Meruelo Group.
Meruelo will now buy over 50 percent of shares in the Atlanta Hawks and would thus have control over the franchise. There had been previous fears that the Hawks could move town, but Meruelo’s people have played them down. The NBA also has yet to ratify the deal, although that is just a formality at the moment.
The Hawks have been looking for new owners for some time now and will be relieved that someone has been found who is willing to keep the franchise in Atlanta. The current ownership group of the Atlanta Hawks is led by Michael Gearon Jr. and Bruce Levenson. Gearon is the son of former Hawks executive Michael Gearon Sr. and had certain affection for the team.
He sold the Atlanta Thrashers, the city’s NHL team, a few months back and they have since moved to another city. Gearon though grew up as a fan of the Hawks and was determined to keep the franchise in Atlanta. He tried to find buyers from the city itself so that they are loyal to the fan base, but things looked bleak when no one put forward a serious offer.
Gearson and Levenson were relieved though when Alex Meruelo came forward with his proposal promising that the team will stay at its current location. The former owner has also intimated that he would like to keep hold of a minority stake in the club.
Gearson and Levenson bought the franchise back in 2004 and became embroiled in problems as early as 2005. They have aggressively pursued deals for the star players whilst at the club.
The operating rights to the Philips Arena, where the Hawks play their home games, will also be sold as part of the deal.
Tags: