Yuma
Suns are my Kryptonite!
Judge says Belkin stays for now
By TIM TUCKER
The Atlanta Journal-Constitution
Published on: 08/09/05
BOSTON — Eight of the Atlanta Hawks' owners failed to convince a Boston judge Tuesday that they should be allowed to remove the other partner, Steve Belkin, as the team's NBA governor so that a key player trade can be completed.
"We have a history of bad trades in this city," the unmoved judge said. "You know, Harry Frazee."
As in the Boston Red Sox owner who sold Babe Ruth to the Yankees.
The judge granted Belkin's request for a preliminary injunction that prohibits the other owners from removing him as the team's governor "until further order of this court or [an] appellate court." Among the reasons cited in the ruling: The Hawks did not have "prior approval" from NBA commissioner David Stern to remove Belkin, who owns 30 percent of the Atlanta team.
Belkin's partners responded later in the day by asking for Stern's approval. If they get it, they will ask the judge to reconsider his ruling, possibly as early as Wednesday.
Tuesday's courtroom developments, which included Hawks general manager Billy Knight refusing a proferred handshake from Belkin, provided further evidence the ownership squabble had reached the breaking point.
"It's pretty obvious we're going through a divorce right now," part-owner Bruce Levenson said. "I would hope, sooner rather than later, [Belkin] comes to the realization that . . . all that needs to be worked out now is the property settlement."
The Washington-based Levenson said he would not sell to Belkin "under any circumstances" but indicated he would like to join the Atlanta partners in buying out Belkin, who has said he doesn't want to sell.
"At this time, there have not been any discussions about a sale on any side," said Atlanta partner Michael Gearon Jr., who said he would "never" sell to Belkin.
The ruling Tuesday means Belkin remains in position to block his partners' desire to acquire guard Joe Johnson from the Phoenix Suns for Boris Diaw and two first-round draft picks.
As Belkin left the courtroom, he handed out a written statement to reporters but refused to answer questions. The statement said: "I am pleased that the judge's ruling has provided clarity that we all needed regarding our decision making and governance structure so that we can get back to the challenging task of building a championship caliber team."
It quickly became clear that the judge's ruling had not settled — or even interrupted — the raging dispute that has put a dark cloud over the Hawks franchise.
Within minutes, Belkin's partners summoned him to a meeting of the ownership group in a conference room adjacent to the courtroom. They called for a vote on whether to seek Stern's "prior approval" to remove Belkin and install Gearon Jr. as the NBA governor. The Washington- and Atlanta-based parts of the ownership group voted yes; Belkin voted no.
"It was like every meeting we have — Steve doesn't say anything; we vote; he dissents; majority rules," Gearon said.
"No comment," Belkin said after the owners' meeting.
In court and in his written ruling, Suffolk County Superior Court Judge Allan van Gestel focused on a line in the contract the owners entered into with the NBA upon buying the team: "Removal [of the governor] shall require the prior approval of the NBA commissioner, which shall be granted if the proposed replacement governor is any owner who . . . [owns] a greater than 10 percent stake."
Gearon owns about 17 percent.
Hawks president Bernie Mullin said the NBA "indicated" Stern would make an "expeditious response" to the request for prior approval. A spokesman for Stern said late Tuesday the league "currently is reviewing the judge's ruling."
Belkin and Knight, the Hawks general manager, were among the first people to arrive in Courtroom 1309 on Tuesday morning. Belkin approached Knight, extending his hand. "Billy, I just want to say hello," Belkin said.
Knight silently refused the handshake.
In an interview published in the Journal-Constitution on Tuesday, Knight lashed out at Belkin, saying the part-owner "is not telling the truth" about his motives for blocking the Johnson trade and "is not someone I can trust."
Knight declined further comment Tuesday but stood behind his earlier statements.
"I think this is the most unbelievable thing I've ever seen, not just in basketball but any sport," former Hawks star and part-owner Dominique Wilkins said after the court hearing.
As the lawyers argued the case, Belkin sat on one side of the courtroom with several business associates, including Jan Volk, former general manager of the Boston Celtics. On the other side of the courtroom clustered the other owners, along with team executives Knight and Mullin.
"I assume the NBA is concerned about teams in chaos," the judge said at one point. "But that's why they get paid bigger bucks than I do."
Belkin's attorneys argued he would suffer "irreparable harm" if an injunction were not granted because his partners would complete the trade he opposes, give up two first-round draft picks and take on a $70 million contract with Johnson.
Belkin's partners argued they would be done irreparable harm if an injunction were granted because they would be denied the opportunity to acquire Johnson. Attorney Jim Quinn told the judge his clients believe the acquisition can be as significant to the Hawks franchise as superstar Larry Bird was to the Boston Celtics in the 1980s.
When Quinn argued that time could run out on the deal, the judge said: "Well, we've seen trading deadlines come and go, and we still have Manny here being Manny." The reference was to temperamental Boston Red Sox outfielder Manny Ramirez, who requested a trade before baseball's trading deadline last month.
In his ruling, the judge wrote: "It is hardly apparent on the present record that the deal for Johnson, however talented he may be, given what was needed from the Hawks to effect it, is in the economic best interest of the franchise. . . . Sometimes the cost is just too great."
The partnership agreement among the owners, signed last year, gave Belkin a five-year term as the Hawks' governor. The NBA requires the team governor's endorsement on trades before they can be consummated. The partnership agreement stipulates that Belkin can be removed as governor if he takes a "legally binding action" against the wishes of a majority of the group.
Belkin's lawyer, John Fabiano of Boston, argued in court that the other partners are trying to remove Belkin for not taking a legally binding action of approving the trade. "If they wanted the wording [in the partnership agreement] to be 'action or inaction,' these fancy lawyers could have drafted the document to say that," Fabiano said.
Quinn argued that refusing to act can be as damaging as acting: "He could sign no players. He could have no uniforms."
The judge's ruling did not address the question of action vs. inaction.
They need Stern to approve of them removing Belkin. Stern is clearly in the hot seat now. No matter how Stern rules, he will set a bad precedent. Good luck Mr. Stern.
