Tony Ressler

League OKs Tony Ressler’s Purchase Of Hawks

June 24th, 2015 at 2:25pm CST by Chuck Myron

Private equity mogul Tony Ressler and his partners have officially assumed control of the Hawks after receiving unanimous Board of Governors approval today, the league announced. Controlling owner Bruce Levenson, who last September announced his decision to sell as he self-reported racially insensitive emails that he had sent in 2012, and the rest of an often-divided consortium of co-owners have relinquished the team in the $730MM deal. The Ressler group is also assuming some $120MM in arena-related debt, raising the total purchase price to $850MM, as several reports made clear in April, when Ressler and his partners secured an agreement to buy the team. USA Today’s Jeff Zillgitt reported a few days ago that league approval and the transfer would take place today.

“We are pleased that the NBA’s Board of Governors has approved the purchase of the Atlanta Hawks by principal owner Tony Ressler,” commissioner Adam Silver said. “Tony and his diverse and experienced ownership group will bring tremendous energy and passion to the Hawks and the team and its fans will greatly benefit from their commitment to the Atlanta community.”

Former player Grant Hill, private equity investor Rick Schnall, women’s wear magnate Sara Blakely and her husband, entrepreneur Jesse Itzler, are among those in Ressler’s group. They beat out another bid that reportedly involved baseball legend Hank Aaron as well as former Grizzlies CEO Jason Levien and current Grizzlies minority owner Steve Kaplan. Former Suns and Raptors GM Bryan Colangelo, former player Junior Bridgeman and neuropsychologist Richard Chaifetz also apparently teamed for a run at the Hawks as part of a bid that once included Hill.

The new owners appear poised to work on a deal that would make Mike Budenholzer team president and coach, as well as one that would give assistant GM Wes Wilcox a promotion to GM, as Adrian Wojnarowski of Yahoo! Sports reported last week. Former GM Danny Ferry received a buyout earlier this week that gave him more than he would have received over the remainder of his contract, according to Kevin Arnovitz of ESPN.com. Ferry had been on a leave of absence since September that he began after the revelation that he repeated racially charged comments about Luol Deng that had been written in a scouting report from an outside firm. The departures of Ferry and Levenson allow the team to move on from the scandal that hung in the background amid the team’s 60-win season.

Ressler and the front office face a challenge this summer to retain both Paul Millsap and DeMarre Carroll with only Early Bird rights on them and perhaps not enough cap space to meet their collective market price, as I examined in our Offseason Outlook for the team. Atlanta holds the 15th, 50th and 59th picks in Thursday’s draft.

Southeast Notes: Beal, Nene, Ressler, Fournier

May 19th, 2015 at 3:31pm CST by Chuck Myron

It’s conference finals or bust for the Wizards next season, opines Ohm Youngmisuk of ESPN.com. Coach Randy Wittman acknowledges the challenge is to find the right complements to John Wall and Bradley Beal, as Youngmisuk notes. J. Michael of CSNWashington.com reported in October that the team is planning an extension for Beal, who’s eligible to receive one this summer, and Wittman hinted that the team has no intention to let the shooting guard go anywhere anytime soon.

“We know what we have to do and the pieces that I would like to add moving forward,” Wittman said. “Brad and John will be here a long time and so we got to utilize their strengths and find the right people to put around them.”

There’s more on the Wizards amid the latest from the Southeast Division:

Marcin Gortat said Monday that he wants to play with a stretch four, but Nene, who doesn’t fit that description, made it clear that he’d prefer not to have to play more center, as Michael relays in a pair of pieces. Moving to center might mean a backup role for Nene as he enters the final season of his contract with the Wizards, Michael suggests. “As much as I love Nene, and I think Nene understands this, too, I would love to play with a stretch four, with a guy who shoots the ball from the three-point line because that automatically gives me more room under the basket to operate,” Gortat said. “It gives me more opportunity to play pick-and-rolls to the paint where the paint is open.”
The Board of Governors are expected to complete the approval process for Tony Ressler’s deal to buy the Hawks within the next four to six weeks, a source told Chris Vivlamore of the Atlanta Journal-Constitution. The draft is five weeks from Thursday, and free agency begins six weeks from Wednesday.
Offseason trade acquisition Evan Fournier was a revelation early in the season for the Magic, but his numbers were inconsistent after a switch to the bench, and he’d likely be a reserve again next season if the team re-signs Tobias Harris, writes Brian Schmitz of the Orlando Sentinel. Fournier is eligible for a rookie scale extension this summer.

Tony Ressler Finalizes Deal To Buy Hawks

April 22nd, 2015 at 7:04pm CST by Chuck Myron

7:04pm: The Hawks announced in a press release that a definitive agreement has been signed for the purchase of the team by the group fronted by Ressler. “We are honored and thrilled to have been chosen to become the new stewards of the Hawks,” said Ressler. “We respect the NBA’s approval process and, accordingly, can say no more other than we are incredibly excited by the Hawks’ success and wish them luck in the playoffs.” The sale, which also includes operation of Philips Arena, requires the approval of the NBA Board of Governors before it can be finalized.

The statement lists Hill, Itzler, and private equity investor Rick Schnall as members of the group, as well as clothing entrepreneur Sara Blakely, who is married to Itzler. Starker and Frankel aren’t listed.

2:50pm: Michael Gearon Jr., who currently owns a minority share of the team, will keep a small percentage of the Hawks, reports Chris Vivlamore of the Atlanta Journal-Constitution. Gearon reportedly pressed for Ferry’s dismissal this past June.

2:14pm: Shelburne, Soshnick and Kevin Arnovitz of ESPN.com all indicate that the Ressler group will assume debt as part of the deal (All Twitter links). Soshnick refers to it as about $120MM worth of arena debt, and Arnovitz says the total price, debt included, will come to approximately $850MM. So that seems to back up Soshnick’s original $730MM figure, which appears to represent the cost of the team itself.

1:35pm: The price will be somewhere between $750MM and $900MM, according to Wojnarowski, who writes in a full story.

1:32pm: A sale price of more than $800MM will be announced soon, as Ramona Shelburne of ESPN.com hears (Twitter link). The new owners plan to keep CEO Steve Koonin and coach/acting GM Mike Budenholzer aboard, Shelburne adds. The disparity between the figures may be related to $112MM worth of bonds left over from the construction of Philips Arena, a point Mike Ozanian of Forbes.com made earlier when there was about $100MM difference between reported amounts of the preliminary bidding figures.

1:20pm: The Ressler group is paying $730MM for the team, reports Scott Soshnick of Bloomberg.com (Twitter link). That’s somewhat lower than the roughly $800MM figure previously reported for preliminary bids.

12:56pm: Private equity mogul Tony Ressler is finalizing a deal with Hawks controlling owner Bruce Levenson to buy the team for a price of less than $1 billion, sources tell Adrian Wojnarowski of Yahoo! Sports (Twitter links). Ressler’s bidding group reportedly includes Grant Hill. Brokerage firm founder Steven Starker and rapper-turned-entrepreneur Jesse Itzler have also been a part of the bid, as has Tampa Bay Rays part owner Randy Frankel. Ressler recently replaced investor and Lionsgate Entertainment chairman Mark Rachesky as the leader of the group that was pitted against a bid that involved baseball legend Hank Aaron as well as former Grizzlies CEO Jason Levien and current Grizzlies minority owner Steve Kaplan.

Ressler was a late comer to the Hawks bidding, but he and Hill were part of a group that made a strong impression on the league when they put in a $1.2 billion bid for the Clippers, as TNT’s David Aldridge wrote in September, speculating then that Ressler and Hill could end up going after the Hawks. Hill reportedly left another group that included former Suns and Raptors GM Bryan Colangelo, former player Junior Bridgeman and neuropsychologist Richard Chaifetz to join the Ressler bid.

Levenson announced in September that he would sell his share of the team as he self-reported racially insensitive emails that he had sent in 2012. The rest of the owners later agreed to put 100% of the franchise on the block. GM Danny Ferry‘s fate also seems tied to the sale, as he’s been on indefinite leave of absence since his own racially charged remarks about Luol Deng surfaced.