Belkin WINS!!!: Judge grants Belkin's Injunction

PrimeTime

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As previous posters already stated, this doesn't appear to be over. Here is all I heard just moments ago.

* At 11am the hearing began.

* The Judge didn't respond back with a ruling. The Hawks owners apparently were going to proceed with voting Belkin out as NBA governor this afternoon.

* Later, word came that Belkin was granted an indefinate injuction by the judge, stating that he didn't violate his contract and should remain governor.

* The Hawks ownership then met, and saught approval from David Stern to go ahead and do the deal dispite the Judge ruling. They are expecting an answer asap.

So now its all up to David Stern folks.
 
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Yuma

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They were talking about how ZAZA PACHULIA was supposed to have his big day signing with the Hawks today. He's lost in the shuffle today. Must suck for him.
 

Gaddabout

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PrimeTime said:
So now its all up to David Stern folks.

Dang. I was hoping it was up to Howard Stern, because the Hawks haven't done enough to embarrass the NBA or turn the off-season into a circus act.
 

sly fly

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I think the Suns will make one more attempt to hash things out with JJ. I expect Sarver to try and find out where JJ's mind is.

If Sarver doesn't feel JJ is 100% sure about his return the PHX, then Sarver will try and "re-examine" their trade with ATL.

If ATL wants JJ bad enough, they're going to have to sweeten the offer. It sounds like they're iffy on the future 1st rounders. If that's the case, they'd better be ready to part with Childress or Smith.

If Sarver feels ATL is unwilling to better their offer, I'm sure there are a couple other teams waiting to get in on the action. A 3 team trade is the likely scenario (New Orleans?/Clippers?).
 

sly fly

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BTW, David Stern would open up a huge can of worms if he bypassed the court system.

I can't see how he would even entertain the thought.
 
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Ow Belkin! That hurt!!!
 

elindholm

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It's a can of worms either way. Right now you have one renegade co-owner completely paralyzing two franchises who have already agreed to a trade. Stern is caught between a rock and a hard place.
 

Chaplin

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sly fly said:
BTW, David Stern would open up a huge can of worms if he bypassed the court system.

I can't see how he would even entertain the thought.

Agreed. Especially this soon after a ruling.
 

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I thought it was clear that Stern didnt want to get involved from the very begginning. He didn't issue any statement pro or con about the turn of events.

I can't see how he would rule in favor of the other Hawks owners. Afterall, it was he that determined what the bounds of NBA governor were. And it appears that Belkin didn't overstep his bounds. It'll be interesting how this turns out.
 
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Yuma

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From AZCentral.com:

"Now, the trade is in limbo because Belkin's power has been affirmed. A resolution could come if:

Belkin is bought out by the other owners, creating a nice turnaround on a 16-month investment;

Belkin buys out another owner to become a majority owner;

the trade is reworked, although Phoenix has resisted that idea although there have been discussions; ( :eek: )

a third team is involved to make the trade agreeable;

the other eight Hawks owners file a motion to reconsider, or take the case to an appeals court. "

There's some options...
 

Chaplin

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Wouldn't an appeal take forever? I would think right now August 15th has to be a drop dead date, at least, on the Suns end.

Belkin probably won't buy out another owner, and for all intents and purposes, Belkin is probably not going to be bought out from his share, considering he's wanted to be an NBA owner for some time.

To me, that leaves only 3 options:

JJ stays in Phoenix (whether that the tender or match)

The deal is reworked

Another team is included in the deal or a new deal with said team is created

Anyone else see any other possibilities?
 
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Yuma

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Chaplin said:
Wouldn't an appeal take forever? I would think right now August 15th has to be a drop dead date, at least, on the Suns end.

Belkin probably won't buy out another owner, and for all intents and purposes, Belkin is probably not going to be bought out from his share, considering he's wanted to be an NBA owner for some time.

To me, that leaves only 3 options:

JJ stays in Phoenix (whether that the tender or match)

The deal is reworked

Another team is included in the deal or a new deal with said team is created

Anyone else see any other possibilities?

JJ in Phoenix, we still have to see if Sarver will match if Belkin tenders JJ and offer. Also, noone is looking at this, but if Belkin doesn't tender an offer, we COULD get JJ at less money. Still a possibility, even if not a probability.

The deal being reworked? Is there anything Belkin would give up that we would want? Unlikely.

Maybe if a third team stepped up, but wouldn't Belkin have to give something more up than Diaw? Again what would he give up that another team would want? Seems unlikely.
 

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NBA is a syndicate. Stern can do whatever he wants. Let's say, if Hawks renege on the deal agreed upon by their GM and 70% ownership, they should compensate Suns for damages caused. How about, Suns are awarded Hawks' 2007 pick and in addition they are not allowed to extend an offersheet to JJ this season? :thumbup:
 

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Hawks ownership at odds over Joe Johnson trade
Associated Press

BOSTON -- A judge here stepped into the feud between owners of the Atlanta Hawks on Tuesday, blocking the other members of the ownership group from removing Boston businessman Steve Belkin as managing partner.

Suffolk Superior Court Judge Allan van Gestel granted Belkin's request for a temporary injunction, saying a contract signed by all the owners last year prevents the group from voting him out.

It was unclear whether the other owners would scrap plans for a Tuesday vote to replace Belkin, who owns 30 percent of the franchise, with co-owner Michael Gearon Jr.

Belkin is part of the nine-member Atlanta Spirit LLC group, which also owns the NHL's Atlanta Thrashers and the operating rights to Philips Arena.

The dispute stems from Belkin's refusal to approve a sign-and-trade deal for the Hawks to acquire guard Joe Johnson from the Phoenix Suns. As the team's NBA governor, Belkin must sign off on all trades.

The ruling, which extends indefinitely a temporary restraining order obtained by Belkin last week, can be appealed to a higher court. The judge said Belkin's refusal to sign on to the Johnson deal was not grounds for his removal under the contract.

"It is hardly apparent on the present record that the deal for Johnson, however talented he may be ... is in the economic best interest of the franchise," the judge wrote. "Sometimes the cost is just too great."

The five-year contract the Hawks offered Johnson -- worth about $70 million, including $20 million for the first year -- would have made him the team's highest-paid player. Atlanta would also give Phoenix two first-round picks, second-year guard Boris Diaw and a $4.9 million trade exception.

"Steve Belkin simply thinks that's too much to pay for Joe Johnson," Belkin's lawyer, John Fabiano, told the judge.

The feud between the owners has overshadowed attempts in the offseason to improve the team with the fewest wins in the NBA last season.

Attorney James W. Quinn, who represents the other owners, compared the Joe Johnson deal to the Celtics' acquisition of Hall of Famer Larry Bird, which led to three NBA titles for Boston in the 1980s.

"This transaction -- the Joe Johnson transaction -- is one that is critical to the future of the Atlanta Hawks," he said.

Johnson, a five-year veteran who has played for Boston and Phoenix, averaged 17.1 points per game for the Suns last season.

The team's vice president for basketball, former NBA star Dominique Wilkins, said after the hearing that he found it "unbelievable" that Belkin would try to block the trade.

"As a basketball player, we know this game, and this deal makes sense to us, plain and simple," he said.

General Manager Billy Knight also attended Tuesday's hearing. When Belkin approached him in court, Knight refused to shake his hand.

"This is what everybody wants -- what our city wants, what our franchise wants, what our fans want," Wilkins said. "I think it's what our fans have been waiting for."

The team's Washington-based owners, including Bruce Levenson and Ed Peskowitz, own 40 percent of the Hawks, while Atlanta-based owners, including Gearon and Rutherford Seydel, own 30 percent.



Just thought I'd post this update.
 

Chaplin

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It must suck to be a Hawk fan. JJ is good, but it's what the fans want? They're really making him out to be a savior of the franchise, aren't they?
 

Errntknght

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Belkin has said that his opposition to the sign & trade was due to the picks and players they were sending to the Suns. At one time he specifically said that he was okay with the original RFA offer the team proposed making to JJ. Of course, the other owners came back and claimed the only reason he was agreeable to that was that he believed Sarver would match.

I can't see why anyone would expect that the Hawks to offer the Suns a better deal than what they offered already since Belkin would surely refuse to sign off on losing more team assets. Heck, if Sarver really doesn't want to be forced to match he might agree to less from Atlanta.

FWIW, my gut feel is that Atlanta will make a direct offer to JJ, he will sign and the Suns will reluctantly match. Yesterday, I thought that the delay was working in the Suns favor because JJ might start having serious reservations about going to a team with so much discord among the owners but now I'm thinking that JJ may well have even more reservations about returning to the Suns - and will sign their offer because it's only way he's going to get paid what he was briefly sure he was getting. We might get a slightly better deal if there's a S&T with some other team but I doubt if he'll get more than 10 mil and his agent will realize that even if he doesn't. Of course, we probably get a slightly worse deal as the Suns have announced to the world what they'll settle for.
 

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This might be the craziest thing i have ever seen in the NBA offseason...who knew all this would take place. I dont know whats going to happen but the Suns better not get screwed........
 

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Arizona's Finest said:
This might be the craziest thing i have ever seen in the NBA offseason...

I certainly don't remember anything like this--the only thing that comes close to at least just having this kind of bizarre nature was the Kobe Bryant trial/allegations.
 

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Yuma said:
From AZCentral.com:

"Now, the trade is in limbo because Belkin's power has been affirmed. A resolution could come if:

Belkin is bought out by the other owners, creating a nice turnaround on a 16-month investment;

Belkin buys out another owner to become a majority owner;

the trade is reworked, although Phoenix has resisted that idea although there have been discussions; ( :eek: )

a third team is involved to make the trade agreeable;

the other eight Hawks owners file a motion to reconsider, or take the case to an appeals court. "

There's some options...


What I find interesting is the reported quote from the Judge (per Associated Press) in the Paul Coro Article from the Arizona Republic dated August 9th, 2004.

It reads:


An Associated Press story quoted the judge as being less-than-impressed by the proposed deal.

"It is hardly apparent on the present record that the deal for Johnson, however talented he may be ... is in the economic best interest of the franchise," Suffolk Superior Court Judge Allan van Gestel wrote in his ruling. "Sometimes the cost is just too great."

I did not think it was the Judge's decision to rule upon the best economic interest of the trade, but rather if the majority owners had a right to remove the Hawks Govenor for reasons already stated (that he was not representing the majority owner's will to enter into a contract and conduct business as previously discussed).

The Judge's ruling as I understand it, is that the Hawk's should not financially enter into this contract period and has nothing to do with the sign and trade package. IMO, this should void Atlanta's proposed offer sheet to JJ.

I think Mr. Stern will void the sign and trade offer with Atlanta as it is not in the best interest of the league. The Suns will either sign JJ or move on to other sign and trade options.

Atlanta appears to be a black hole.
 

Ouchie-Z-Clown

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SirChaz said:
The Hawks will probably still sign him to the sheet.

If for no other reason than to screw the Suns with a bad contract.


y'know, i doubt it. the suns didn't really play hardball with the hawks. if anything they were helping the hawks to get jj. it would be bad form and bad biz to do it just to screw the suns.

but i do worry that the suns will now accept some worse deal to trade jj to the hawks still. i realize belkin didn't want to spend the money, but one never knows . . .

just make jj stay!
 

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elindholm said:
or even worse if JJ signs the one-year tender.

What would be so bad about that? They'd still have his Bird rights, so he and his agent would still have incentive next summer to go the sign-and-trade route, giving the Suns compensation. I'd much rather have Johnson at one year for $3.2 million than at five years for $70 million.

they'd have incentive, but the suns would have no actual authority/leverage.
 

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Ouchie-Z-Clown said:
y'know, i doubt it. the suns didn't really play hardball with the hawks. if anything they were helping the hawks to get jj. it would be bad form and bad biz to do it just to screw the suns.

but i do worry that the suns will now accept some worse deal to trade jj to the hawks still. i realize belkin didn't want to spend the money, but one never knows . . .

just make jj stay!

Hey Ouchie, where is cheese? I'd think he'd be ALL over this board with all this happening!
 

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Mainstreet said:
I did not think it was the Judge's decision to rule upon the best economic interest of the trade, but rather if the majority owners had a right to remove the Hawks Govenor for reasons already stated (that he was not representing the majority owner's will to enter into a contract and conduct business as previously discussed).

The Judge's ruling as I understand it, is that the Hawk's should not financially enter into this contract period and has nothing to do with the sign and trade package. IMO, this should void Atlanta's proposed offer sheet to JJ.

An element of granting preliminary injunctions is if irrevocable harm will result if the injunction is not granted. I'm sure the Hawks atty's said the organization will be harmed if it is, and Belkin's said it'll be harmed if it is not. I'd imagine that's why the judge ventured into this territory.
 
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