Image (1) hawks_logo-thumb-250x134-11979-thumb-250x134-11981.gif for post 4050

Report: Sale of Atlanta Hawks “moving fast”

1 Comment

We still don’t know who the buyer is, but apparently the sale of the Atlanta Hawks is moving along quickly.

The Atlanta Spirit — the name of the ownership group — recently sold the NHL’s Thrashers (which moved to Winnipeg) and now are on track to sell the NBA team.

The Atlanta Journal Constitution has the report.

People familiar with the process say representatives of a potential buyer are doing due diligence — examining financial records — as the process moves toward a possible offer and more detailed negotiations for the basketball team and Philips Arena operating rights.

The people familiar with the situation, speaking exclusively with The Atlanta Journal-Constitution, would not identify the potential bidder because of confidentiality agreements, but described the process as moving fast. They said no offer or exclusive negotiating agreement is in place but that the potential bidder, who might have partners, has the financial wherewithal to complete a transaction.

While the sale price is not known, Forbes values the Hawks at $295 million. Expect toe Spirit or maintain a minority share in the team.

After the anonymous bidder does his due diligence, the usual procedure is for the Spirit and owner to set up an “exclusive right to negotiate” deal that locks out other bidders for a time. Then the two sides haggle over a price. If they can come to a deal, then they still need the approval of the other NBA owners.

Unlike the Thrashers, the Hawks are not going anywhere. First, the new owner is buying the building operating rights, not a sign he wants to move on. Also, the AJC reports there would be $195 million in loans that would need to be paid off first, which is a steep price to move a team.

The Spirit did have an exclusive negotiating period with John Moores, the man in the process of selling the San Diego Padres. However, no deal was reached.

Mark Cuban suggests supplemental draft for undrafted free agents

Mark Cuban
1 Comment

A lot of people around the NBA have ideas to improve the draft, free agency and the D-League, and Mavericks owner Mark Cuban has never been shy about sharing his. His latest idea seems pretty logical: a supplemental draft for undrafted free agents.

Via Hoops Rumors:

“I would have a supplemental draft every summer for undrafted free agents of the current and previous 3 years,” Cuban wrote in an email to Hoops Rumors. “If you are more than 3 years out you are not eligible and just a free agent.”

The supplemental draft would have two rounds, and teams would hold the rights to the players they select for two years, Cuban added. Players can opt out and choose not to make themselves eligible, but those who get picked would receive fully guaranteed minimum-salary contracts when they sign, according to Cuban’s proposal.

“That would make it fun a few weeks after the draft and pre-summer league,” Cuban wrote. “It would prevent some of the insanity that goes on to build summer league rosters.”

It’s an interesting proposition. Most undrafted players who sign during the summer don’t get guaranteed contracts, so when deciding to enter this supplemental draft, they would have to weigh the value of having guaranteed money versus getting to decide where they sign. It’s unlikely that anything like this could happen anytime soon, because of all the hoops to jump through to get the league and the players’ union to sign off on it, but it’s a worthwhile idea that deserves some consideration in the next CBA negotiations.