NBA Update: David Stern confirms takeover of New Orleans Hornets
The rumours that had been buzzing in the media for the past few days have finally been confirmed. NBA Commissioner David Stern announced on Monday that the league has decided to buy major shares in the New Orleans Hornets from
majority owner George Shinn. Since spring Shinn had been trying to sell his shares to minority owner Gary Chouest. With those negotiations stalled for one reason or the other, Shinn looked for other buyers.
Seeing no other option and wanting the team to stay in New Orleans, Shinn finally decided to give NBA interim ownership. He said, "When we were unable to complete the transaction with Gary, I suggested to the Commissioner that
the league consider the purchase of the Hornets. I wanted to ensure that the team remained in New Orleans, if that was possible, and recognized that the league could provide the necessary funding while a new owner was sought in New Orleans and negotiations
with the city and the state could continue."
Shinn founded the Hornets in Charlotte in 1988 and fourteen years later in 2002 moved them to New Orleans. Since then, the owner and founder has supported the Hornets through thick and thin. Chouest has also been extraordinarily
supportive of the team, though he was hesitant to buy the major shares when Shinn approached him.
Stern, while talking to the press, elaborates on why the league felt the need to step in. He said, “George Shinn has been an exceptional owner for New Orleans and Gary Chouest has been extraordinarily supportive as a minority owner.
However, in light of the uncertain economic situation in New Orleans and Louisiana, Gary has decided not to move forward with the purchase of George's majority interest although he was prepared to remain an investor in the team. In the absence of any viable
purchaser seeking to own the Hornets in New Orleans, I recommended to the NBA Board of Governors that the best way to assure stability and the adequate funding of the franchise would be for the league to step in, and complete the transaction and assume control.”
Although the takeover will be subject to the NBA Board of Governors’ approval, Stern expressed his confidence that the deal will follow through. Following the approval, the Hornets will be the first franchise to be owned by the
league. The league looks to appoint sports attorney Jac Sperling to administer the team.
Although Chouest did not buy the team, he confirms that his assistance and association with the Hornets team will remain. Talking to the press he said, "I have greatly enjoyed the experience with the Hornets and, of course, will
continue to support the team."
The Hornets are having one of their better seasons so far. With a season mark of 13-7, their home score rests at an impressive 8-2. It shows great wisdom in Shinn’s decision not to upset the team’s stability midseason with a new
owner. Although they have recently been alternating between wins and losses, the Hornets enjoyed a five-game winning streak early in the season. As the deal finalizes next week, Shinn and Hornet fans can hope that the team's good fortune will continue under
the league.
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