Belkin Sues Other Hawks Owners

sunsfn

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From the Hawks site, saying this is in the Atlanta paper.
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http://www.hawksquawk.net/forums/showflat.php?Cat=0&Number=95044&page=0&view=expanded&sb=5&o=&fpart=1#95044

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The bitter battle within the Atlanta Hawks' ownership group escalated Thursday when one of the owners took his partners to court and got a restraining order against them.

The order, sought by Steve Belkin in a Boston court, temporarily prohibits the majority of the Hawks' owners from removing him as the team's NBA governor — a position Belkin has used this week to block a trade his partners want to make with the Phoenix Suns for guard Joe Johnson.

Thursday's legal salvo is the latest setback for a troubled franchise that has struggled for years to win games, fans and credibility.

The Boston-based Belkin filed the lawsuit against his partners after they called a meeting for Friday to vote on removing him as the Hawks' governor.

One of Belkin's partners, Atlanta businessman Michael Gearon Jr., responded to the court action: "We are aware of the lawsuit filed by Steve Belkin in Boston. We will not allow that to deter us from building a winning team in Atlanta."

In an e-mail to the Atlanta Journal-Constitution, Belkin wrote: "Some of my fellow co-owners took action to prevent me from doing what I believe is in the best interests of the franchise, consistent with my role as NBA governor. There was no option but to seek legal protection."

It's hardly the first clash between Belkin and his partners in the nine-man group that bought the Hawks, Thrashers and Philips Arena operating rights from Time Warner last year. At the time, Belkin and the others professed confidence that the far-flung group — which would work well together.

But barely a year later, in late April, Belkin and two of the other principal owners — Gearon and the Washington-based Bruce Levenson — were summoned to New York for a meeting with NBA commissioner David Stern and a league committee to discuss discord within the partnership.

At the time, Belkin said the league's message was: "Hey, you guys, work it out."

Thursday, the league refused to address the worsened situation.

"All we're going to say is, this is an internal team matter," NBA spokesman Brian McIntyre said. "Due to the pending litigation, we decline comment."

Dominique Wilkins, former Hawks star and current team vice president, did comment: "This is real damaging. This can't work if everybody is pulling in different directions."

At the center of the dispute is a proposed trade that would send guard Boris Diaw and two future first-round draft picks from the Hawks to Phoenix for Johnson, who would sign a five-year, $70 million contract to play for Atlanta. The trade is favored by the Hawks' management and all of the owners except Belkin.

Belkin's lawsuit, which seeks a permanent injunction prohibiting his removal as governor, contends that his partners "seek to oust [him] . . . merely because they disagree with [him] over the day-to-day management of the Atlanta Hawks, because Belkin has been unwilling, based on prudent business considerations" to approve the Johnson trade.

A hearing is scheduled for 11 a.m. Tuesday in Suffolk County Superior Court in Boston. The court ordered that "in the meantime" the defendants "desist and refrain" from removing Belkin as governor.

Belkin has declined to be interviewed this week about the situation, but in an e-mail to the Journal-Constitution on Thursday, he said he wants Johnson on the team but is opposed to the proposed deal because he believes the Hawks would be giving up too much in return.

"As NBA governor . . . I have the responsibility to manage the business and affairs of the team and to look out for the best interests of the team," Belkin wrote. "In that capacity, I am charged with authorizing any player signing or trade. Like my fellow co-owners, I have supported signing Joe Johnson for the Hawks under contract terms proposed by general manager Billy Knight.

"However, I cannot support, in my capacity as NBA governor, a sign-and-trade that involves two first-round draft picks and a quality player, which I believe would be giving up too much of our future. I remain hopeful that Joe Johnson will be wearing a Hawks uniform next year, and that a deal can be completed in a manner that allows us to build around Joe in the future."

Said Gearon: "My other partners and I will continue to commit our financial resources, as evidenced [this week] by the signing of the biggest free agent in the history of the Thrashers, Bobby Holik."

Gearon expressed hope that a trade for Johnson still might get done. Belkin's e-mail seems to suggest he'd be open to a variation of the proposed trade - perhaps one that gives up fewer first-round draft picks.

Phoenix CEO Jerry Colangelo told reporters in Phoenix on Thursday the Suns would only agree to the current deal with the Hawks.

Under an agreement struck between Belkin and his partners when their Hawks-Thrashers purchase was consummated last year, he was given a five-year term as the team's NBA governor. The agreement allows for his removal "only on two narrow and explicit grounds," according to the lawsuit filed Thursday. Those grounds are identified as casting a vote at an NBA Board of Governors meeting that does not reflect the wishes of a majority of the Hawks' owners, or taking any action that legally binds the team against the wishes of a majority of the owners.

Belkin's lawsuit contends that his position on the Johnson trade does not meet either of those grounds for removal as governor.

Belkin holds a 30 percent stake in the ownership group, while the Washington-based partners — principally Levenson and Ed Peskowitz — own 40 percent and the Atlanta-based partners - led by Gearon and Rutherford Seydel — own 30 percent.
 

asudevil83

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with all the crap going on i HOPE TO GOD that this trade goes through. after this Atlanta FIASCO there will be absolutly no free agent who will be signing with Atlanta for at least 10 years.

even with JJ, Atlanta is guarranteed to be a pure crap team for YEARS to come. i'd be almost willing to bet my left nut (if it werent so important) that that lotto pick from atlanta will be ours in two years at #4, or the following year top 5 at least.

but in all honesty, its really getting sad what's going on. i feel bad for the suns having to put of with this BS by both JJ and Atlanta. i guess both are a match made in heaven for eachother.
 

cly2tw

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Belkin wants to sign JJ to the offersheet daring Suns to match. The other partners don't want to take the risk associated to lose Joe. They have different preference. If Belkin is not given the veto right to any deal by their ownership agreement, I don't see how the court would rule in his favor. :shrug:
 

tobiazz

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This time must be stressful for JJ. Luckily for him, $70 million will make you feel better pretty quickly.

I think ATL could actually do pretty well in 2 years w/ JJ, "Chillz", Marvin, and Josh Smith. If they add Curry, they could be in decent shape and be late lottery.
 

asudevil83

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cly2tw said:
Belkin wants to sign JJ to the offersheet daring Suns to match. The other partners don't want to take the risk associated to lose Joe. They have different preference. If Belkin is not given the veto right to any deal by their ownership agreement, I don't see how the court would rule in his favor. :shrug:

i think the best thing that the other two hawks owners can hope for IS a S&T right now.

if JJ signs, then the suns will match. like someone said earlier in another post, if JJ wants to go to the Hawks, then he better as hell find a way to get there.

additionally, after this BS, if the Hawks lose JJ, they'll be the crappiest team in the NBA for years. my prediction.....you will see them lose 73 games either next season or the season after.

oh, and one other question. what would happen if they couldnt fill their roster with FA's? lets say that they couldnt even find a 10th man.....what would they do?
 

George O'Brien

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cly2tw said:
Belkin wants to sign JJ to the offersheet daring Suns to match. The other partners don't want to take the risk associated to lose Joe. They have different preference. If Belkin is not given the veto right to any deal by their ownership agreement, I don't see how the court would rule in his favor. :shrug:

It's an interesting question. The problem for the Hawks is that it may be sufficiently ambiguous that it will take a trial to clarify. A continuing temporary injunction is the same as a permanent injunction as it relates to this case.

Sarver made it quite clear that the Suns will not let JJ go without compensation. The real question is going to be just how much love the Hawks have.
 

HooverDam

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asudevil83 said:
oh, and one other question. what would happen if they couldnt fill their roster with FA's? lets say that they couldnt even find a 10th man.....what would they do?

There are PLENTY of Paul Shirleys in the world my friend. They can always fill the bench, I mean, look how many street ballers,CBA guys, Euro players, etc etc would kill to get into the NBA. Heck, if the Hawks are having trouble filling the bench, I'll play for the minimum, I was a killer PG in middle school.
 

KloD

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asudevil83 said:
oh, and one other question. what would happen if they couldnt fill their roster with FA's? lets say that they couldnt even find a 10th man.....what would they do?

They could call me, I'll take the min.!!! ;)
 
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I wonder if JJ realizes he has been strung along more by the Hawks in these past few weeks than he has for the entire past year with the Suns.
 

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A hearing is scheduled for 11 a.m. Tuesday in Suffolk County Superior Court in Boston. The court ordered that "in the meantime" the defendants "desist and refrain" from removing Belkin as governor.

No JJ deal by Monday as reported!

Gearon expressed hope that a trade for Johnson still might get done. Belkin's e-mail seems to suggest he'd be open to a variation of the proposed trade - perhaps one that gives up fewer first-round draft picks.

Phoenix CEO Jerry Colangelo told reporters in Phoenix on Thursday the Suns would only agree to the current deal with the Hawks.

That's my guy! Shove the knife in deeper JC! This is EXACTLY the way I want them to pursue this! :thumbup:

Dominique Wilkins, former Hawks star and current team vice president, did comment: "This is real damaging. This can't work if everybody is pulling in different directions."

:biglaugh: :biglaugh: :biglaugh: :biglaugh:
 

asudevil83

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i say if either of these two deals are on the table, then the suns should take them and run:

Childress/Atlanta's pick same protection
Diaw/Childress/LA's pick same protection

Atlanta gives up only one of their picks, and we get the compensation we deserve after this fiasco that Atlanta has put us through.
 

Yuma

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asudevil83 said:
i say if either of these two deals are on the table, then the suns should take them and run:

Childress/Atlanta's pick same protection
Diaw/Childress/LA's pick same protection

Atlanta gives up only one of their picks, and we get the compensation we deserve after this fiasco that Atlanta has put us through.

I get the feeling the deal will fall apart before ANY sweetening of the pot happens for us. My gut says we either end up with trade as it is, or getting JJ back at a better price for us.
 

thegrahamcrackr

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Yuma said:
I get the feeling the deal will fall apart before ANY sweetening of the pot happens for us. My gut says we either end up with trade as it is, or getting JJ back at a better price for us.


Semi agree.

I think that the deal will go through as is, or JJ will take the 1 year tender.
 

Yuma

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thegrahamcrackr said:
Semi agree.

I think that the deal will go through as is, or JJ will take the 1 year tender.
I would think so, but also, if Atlanta folds, $50-$75 million dollars is going to look mighty good after that. It would be hard to give up that money not knowing if someone 100% for sure will pay you more the following season. I'd give JJ props if he could hold off a year for the big money. Although $3 million tender isn't exactly starving, either! :thumbup:
 

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Another alternative is that JJ restructures his contract to a no-frontloading one to make it less costly for the Hawks in general. The could, say, do a 6y/83mil deal with 10.5% raise starting at ca. 11mil, which is lower than the max of 12mil. And Joe has one year and 13mil. more guaranteed.

And btw, our 6/75 offer amounts to a starting salary of 10mil.
 
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Yuma

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cly2tw said:
Another alternative is that JJ restructures his contract to a no-frontloading one to make it less costly for the Hawks in general. The could, say, do a 6y/83mil deal with 10.5% raise starting at ca. 11mil, which is lower than the max of 12mil. And Joe has one year and 13mil. more guaranteed.
Seems from another thread on the Hawks lawsuit just posted that the money and front loading isn't the issue we thought earlier. It's more the compensation they are giving us is viewed as too much by Belkin. He really wants to hold one of the draft picks. BC is quoted in the article as saying the Suns will only do the deal that is on the table. They aren't backing down! :thumbup:
 

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Yuma said:
Seems from another thread on the Hawks lawsuit just posted that the money and front loading isn't the issue we thought earlier. It's more the compensation they are giving us is viewed as too much by Belkin. He really wants to hold one of the draft picks. BC is quoted in the article as saying the Suns will only do the deal that is on the table. They aren't backing down! :thumbup:

Everything converts to money, eventually, my friend. :D
Belkin might be OK with one 1st-rounder, or 10mil cash saving as in my proposal, off the original trade. I thought they would get rid of the front-loading once Suns signalled the willingness to do the s-n-t, since they'd have JJ on the balls as the only source to offer him the max. Stupid.
 

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I actually think that this issue has a lot more to do with the owners than the Joe situation.

It was simply the first move were the ownership could have a real power struggle.
 

TucsonDevil

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Suggestion to David Stern: Make a rule that unless a prospective owner lives in the same region as the team, he can't be apart of ownership - thus keeping him accountable in the community.... That Belkin is out of control.

Also, I could help but feel a little empathy for 'Nique. That is just a crappy situation - he can't ever get a break.

DONT back down JC, BC and SARVER - keep the HEAT ON!:thumbup:
 

devilalum

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TucsonDevil said:
Suggestion to David Stern: Make a rule that unless a prospective owner lives in the same region as the team, he can't be apart of ownership - thus keeping him accountable in the community.... That Belkin is out of control.

Also, I could help but feel a little empathy for 'Nique. That is just a crappy situation - he can't ever get a break.

DONT back down JC, BC and SARVER - keep the HEAT ON!:thumbup:

If JC has anything to do with it there won't be any backing down. He has BIG ONES.

I remember reading a story about him going to buy the baseball franchise. At the last minute the owners tried to up the buying price buy some rediculous amount. JC told him where to put it and they backed down.

He said he would have walked away.
 

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Ok being that i tired to start my own "rogue" thread on this very same subject...i will succumb and ask my questions over here...:trout:

Is anyone else worried that Sarver is posturing about the matching of the deal. Most of us heard him on Gambo and Ash, and while he said he would match, he seemed VERY leery of commiting that kind of money to a untradable (due to the setup of the contract) potential chemistry problem. And really i cant blame him. Thats a BIG risk. So if Atl. forces our hand w/ the compensation, im worried that all the big talk dies down and Sarver keeps the 70 million in his pocket and have a valid reason for doing so. This is by far the worst case scenario. I actually see Belkins point in what he is saying (20 million upfront, 70 million overall AND two picks and diaw is alot to give up for the man signing the check) and i think the pot will be taken away from (maybe one of the picks) before its sweetened. This whole thing has just been flat out crazy and i hope the suns dont end up w/ the short end of the stick....
 

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cly2tw said:
Another alternative is that JJ restructures his contract to a no-frontloading one to make it less costly for the Hawks in general. The could, say, do a 6y/83mil deal with 10.5% raise starting at ca. 11mil, which is lower than the max of 12mil. And Joe has one year and 13mil. more guaranteed.

And btw, our 6/75 offer amounts to a starting salary of 10mil.

The hawks can not offer a 6 year deal. Only a 5. The Suns said they will match an offer but I don't see the Suns giving him this big of an offer just to Atlanta can be happy.
 

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