http://www.ajc.com/hawks/content/sports/hawks/0805/05hawks.html


basically what is says is he would take the player, but not for diaw and the picks. hes got a point, a point that could win in a court battle--it may not be his real intentions, but he found a way to stop it. after reading this piece, i dont think it goes through. it doesnt say it in the article, but i found out that both the 2007 and 2009 have very little protection on them and maybe none in 2009. as the nba governor, he can whip out the point about detroit getting a number 2 pick from a non-protected pick.

Courts are often averse to meddling in the business decisions of corporation, and often rely on the business judgment rule to dismiss such cases. We'll see what happens.

Belkin sues Hawks partners

By TIM TUCKER
The Atlanta Journal-Constitution
Published on: 08/04/05

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



[Edited by - djsunyc on 08/04/2005 23:39:06]