Atlanta Spirit Still One Squad

((HT: AJC/Smith, Swartz))

"The feuding Hawks and Thrashers co-owners are still in business, now that a Maryland judge has scrapped an agreement between them saying the contract outlining how seven of the partners can buy out the eighth is too vague.

Boston-based partner Steve Belkin asked his partners to buy out his 30 percent stake in the teams in August 2005, a process that was supposed to take 125 days. The Spirit has been embroiled in a high-profile legal battle that has lasted more than three years.

The ruling, issued Monday afternoon, tossed out the initial purchase and sale agreement to buy out Belkin and keeps him in the partnership as a minority owner. The partners are now placed back in the same position they were in before August 2005.

Belkin, however, does have the right to appeal Monday's decision.

The eight-man ownership group bought the Hawks, Thrashers and Philips Arena operating rights from Atlanta-based Turner Broadcasting System in spring 2004.

The celebration was short-lived.

The group began squabbling over things such as who would speak publicly at events. Then Belkin wouldn't let the other owners into the Hawks' locker room or fly on the team plane.

The warring came to a head over how to trade for then Phoenix Suns' guard Joe Johnson, who has since become a three-time All-Star for the Hawks.

Belkin, who previously accused co-owner Bruce Levenson of player tampering, stepped down as the team's representative to the NBA and then asked that the seven others buy out his 30 percent share."

The case, should anyone be interested, is: Belkin v. HTPA Holding Co., 266748-V, Montgomery County Circuit Court (Rockville, Maryland).

Bizjournals is reporting annual revenue of Atlanta Spirit, LLC at $7-and-a-half million. Most of it, those of us at OSG HQ think, is still locked up in legal fees. We'd love to know how they're going to pull off successful franchises without being able to STILL spend any money...

Forbes Magazine, the last time they valued franchises, had the Thrashers at $158-million ((or 27th overall)) with an operating loss of just over $6-million on revenue of $70-million. Columbus, the Islanders, and Phoenix were the only three valued at a lesser amount.

We'd like someone to tell us how this is all going to work out, because simply it looks like it hasn't in the short-term and won't in the long-term.