A deal to sell the Atlanta Hawks to a
California businessman has fallen through and the National
Basketball Association (NBA) team said on Friday it was no
longer for sale.

The Hawks said in a short statement that a deal to sell the
team to Alex Meruelo, a Cuban-American who made a fortune with
the La Pizza Loca fast food chain in southern California, was
mutually called off by both parties.

“The Atlanta Hawks are no longer for sale,” Hawks owner
Bruce Levenson said in a statement. “We’re excited to remain as
owners of the Hawks and are committed to building on our string
of four straight playoff appearances.”

The team also said that due to a confidentiality clause in
the agreement, neither party can comment further.

Meruelo reached a sale agreement earlier this year for a
majority ownership stake in the Hawks and the Philips Arena in
downtown Atlanta that hosts the team. [ID:nLDE77718Q]

The deal, which would have made Meruelo the first principal
Hispanic owner of a NBA team, was subject to approval by the
league’s board of governors, and financial terms of the
agreement were not disclosed.

Meruelo said the uncertainly of the NBA’s current labor
dispute, which has kept players locked out since July 1 and
wiped out the first month of regular season games, played a
role in his decision.

“Although all parties negotiated in good faith, we were not
able to reach a mutually satisfactory agreement on some key
issues given the current uncertainty surrounding the labor
issue,” he told the Atlanta Journal-Constitution’s website.

“As a result we mutually decided to terminate the deal
effective immediately.”

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California businessman Alex Meruelo’s purchase of the Atlanta Hawks is being partially financed by the team’s current ownership, Mike Ozanian of Forbes.com reports.

According to Ozanian, nearly 40 percent of  the purchase price, which has been estimated at nearly $300 million, will be financed by Atlanta Spirit LLC over a term of five years. The unusual seller financing could lead to the NBA’s Board of Governor’s to more closely scrutinize the sale to Meruelo, who has made his fortune as a real estate developer and as the owner of a successful pizza chain, La Pizza Loca.

Meruelo is purchasing controlling interest in both the Hawks and Philips Arena, which carries over $120 million in debt, from the same ownership group that sold the NHL’s Atlanta Thrashers, who were relocated to Winnipeg, Manitoba.

Despite his New York roots and California residence, Meruelo, who would become the first Hispanic majority owner in league history, plans to keep the franchise in Atlanta.

“I am committed to winning and look forward to engaging with our wonderful fans, our dedicated season ticket holders, our committed corporate partners and this passionate community,” Meruelo said on Monday. “I believe that both the Hawks and Philips Arena have unlimited potential for the future. I am honored to be a part of that future”  

By CHARLES ODUM
The Associated Press

ATLANTA – Alex Meruelo vowed Monday to do everything he can to bring a championship to Atlanta if his agreement to purchase a majority share of the NBA’s Hawks is approved by the league.

Meruelo, the son of Cuban immigrants, would be the NBA’s first Hispanic majority owner if the deal is approved.

The 48-year-old Meruelo will have controlling interest of more than 50 percent of the Hawks, who will remain in Atlanta. The deal also includes operating rights to Philips Arena.

Citing the NBA lockout and the fact the deal is pending, Meruelo would not discuss details of the agreement, including the purchase price.

He confirmed members of the current ownership group, including majority owners Bruce Levenson and Michael Gearon Jr., would retain minority shares “for a period of time.”

Levenson and Gearon did not attend Monday’s news conference.

Meruelo’s voice cracked and his eyes filled with tears at times, including when asked about becoming the league’s first Hispanic owner.

“First of all it’s a privilege and I’m honored,” Meruelo said. “I think it means a lot .Me being Hispanic, being first is really touching.. I hope to do the right thing. I just want to make sure I make them proud.”

He answered a few questions in Spanish after apologizing “I’m not the best, but I’ll do my best.”

Meruelo, a California developer and pizza chain owner, said he will spend as much time as necessary in Atlanta.

He slipped on a red Hawks cap and said he “will work my tail off” to earn the respect and trust of Atlanta fans.

Meruelo, born in New York and raised in California, said becoming an NBA owner is “a dream come true for me.”

Asked if he was a Knicks or Lakers fan, he said “I’m a Hawks fan, 1,000-percent Hawks fan.” He said his goal will be to hang a championship banner from Philips Arena.

“I will never ever give up,” he said.

The current ownership group also recently sold the NHL’s Atlanta Thrashers to a group that moved the team to Winnipeg.

Meruelo heads the Meruelo Group, a Downey, Calif.-based investment firm. The firm recently acquired the Grand Sierra Resort and Casino in Reno, Nev., for a reported $42.45 million.

He also founded La Pizza Loca, which has over 50 franchised and company-owned restaurants in Southern California, catering to the Latino community, according to the Meruelo Group website.

You don’t expect Atlanta Hawks fans to be upset at the news that the team’s midair collision of an ownership collective is about to be replaced by a successful businessman who has yet to relocate any Atlanta teams and has never been involved in litigation due to Joe Johnson. He’s also the NBA’s first Hispanic owner, which could form an instant connection with a diverse city like this one that has multiple bilingual players.

But what exactly do Atlanta’s NBA fans think about the move to sell the team? Let’s check in with some!

All three of Peachtree Hoops’ scribes have weighed in, with founder Drew coming out of semi-retirement to call it a “Sunday miracle:”

Put on your finest penguin suit and cook up your grandest tomato pie, the Hawks have a new owner. That is right friends. One. Single. Majority owner. Lawyers across the country are mourning. But us? We celebrate.    

SB Nation Atlanta’s own Kris Willis cautions against assuming the best for the team’s future, but finds at least one rock-solid positive note:

We ultimately won’t know what changes Meruelo will bring to the franchise for sometime. The lockout still has to be sorted out before we will start to find out if Meruelo is any different than the Atlanta Spirit group that has operated the club since 2004. However, as Bradley clearly states, it is unlikely that Meruelo will end up suing himself.    

And Jason Walker sees the sale’s biggest potential upside – the kind of owner Hawks fans have been dreaming of:

The city longed for a dynamic sole owner, much like Falcons have with Arthur Blank. The city needed a person in charge, somebody to associate with the Hawks, much like long time Bird Watchers had with Ted Turner.

Now, with the (hopefully) pending sale of the Hawks to Alex Meruelo, Hawks fans have what they have been looking for. And while he could be the next Mark Cuban or the next fill-in-the-blank-you-don’t-want-him owner, but that’s for later to unveil to us. Now is the time for hope, for excitement, for what will change.

More than one Hawks fan has summoned Mark Cuban’s name in trying to capture what an actual human owner could mean for the franchise. On the subject of whether the team is in danger of moving due to Meruelo’s California heritage, I think this comment best sums up why such a businessman is too smart to head down that road:

Hawks won’t move. ATL is ripe for the picking. Remember this is the perfect demographics for an NBA town. With an owner that cares and exciting basketball, the sky is the limit.

The Atlanta Hawks reached an
agreement to sell a majority stake in the National Basketball
Association team to Los Angeles pizza franchise owner Alex Meruelo, a person with direct knowledge of the transaction said.

The sale also includes Philips Arena and the team will
remain in Atlanta, according to the person, who was granted
anonymity because he wasn’t authorized to talk about the deal.
An announcement will be made tomorrow.

Hawks spokesman Arthur Triche didn’t immediately answer an
e-mail from Bloomberg News seeking comment. Ruben Gonzalez, a
spokesman for Meruelo Group, didn’t immediately return a
voicemail.

The value of the Hawks dropped 4 percent last year to $295
million, the seventh-lowest among the NBA’s 30 teams, Forbes
magazine said in January. Atlanta had an operating loss of $7.3
million on sales of $105 million, according to the magazine.
Attendance at games ranked 22nd in the league last season.

The transaction ends Atlanta Spirit LLC’s involvement in
major-league sports in the Georgia city. In May, the group
completed the sale of the Atlanta Thrashers to a company that
moved the National Hockey League team to Winnipeg and renamed it
the Jets. Atlanta Spirit bought the Hawks, Thrashers and Philips
Arena from Time Warner Inc. (TWX) for $250 million in 2004.

Meruelo, 48, is the founder and owner of a closely held
company that owns pizza restaurants, construction firms, real
estate, a Los Angeles television station and a Nevada casino and
hotel.

Should the sale be cleared by the NBA’s board of governors,
Meruelo will become the first Hispanic owner of an NBA team, the
Atlanta Journal-Constitution said on its website today. Meruelo,
who spoke to the newspaper about the purchase, was born in New
York to Cuban parents and raised in California, the report said.

The Hawks, who moved to Atlanta from St. Louis in 1969,
ended last season with a 44-38 record and beat the Orlando Magic
in the first round of the NBA playoffs before losing to the
Chicago Bulls. The team has reached the postseason in each of
the past four years.

The agreement comes about a month after the Philadelphia
76ers were sold by Comcast Corp. (CMCSA) to a group led by Joshua Harris, the co-founder of Apollo Global Management LLC.

To contact the reporter on this story:
Dex McLuskey in Dallas at
dmcluskey@bloomberg.net.

To contact the editor responsible for this story:
Michael Sillup at msillup@bloomberg.net.

Looks like the Atlanta Hawks finally have a new owner. Via AJC: ”A person familiar with the deal says controlling interest in the Atlanta Hawks and Philips Arena will be sold to California developer and pizza chain owner Alex Meruelo. The person spoke to The Associated Press on condition of anonymity Sunday because no official announcement has been made. The deal, subject to the approval of the NBA, is to be announced on Monday. The Hawks ownership group, led by Michael Gearon Jr. and Bruce Levenson, also recently sold the NHL Atlanta Thrashers to a group that has moved the team to Winnipeg. The Thrashers deal, for a reported $170 million, was announced on May 31. The Hawks will remain in Atlanta. Meruelo founded La Pizza Loca, which has over 50 franchised and company owned restaurants in Southern California.”

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According to an Associated Press report, a “controlling interest” in the Atlanta Hawks and Phillips Arena will be sold to Alex Meruelo, founder and owner of California pizza chain La Pizza Loco. That is some crazy pizza! The deal will be announced Monday, according to the AP. 

The Hawks have reportedly been very close to a sale since shortly after the Atlanta Spirit Group unloaded the Atlanta Thrashers, and were believed to be in talks to sell the team even before unloading their hockey venture. 

I know absolutely nothing about Alex Meruelo, but would heartily welcome pretty much anybody over the ownership of Michael Gearon and company.

And no, the Hawks aren’t moving to California. They’re set to remain in Atlanta for a long time. Coupling the team with the arena helps ensure profitability, as the venue is one of the best in the country at attracting top concerts.

For complete coverage of the Hawks, please visit Peachtree Hoops.

ATLANTA — A person familiar with the deal says controlling interest in the Atlanta Hawks and Philips Arena will be sold to California developer and pizza chain owner Alex Meruelo.

The person spoke to The Associated Press on condition of anonymity Sunday because no official announcement has been made. The deal, subject to the approval of the NBA, is to be announced on Monday.

The Hawks ownership group, led by Michael Gearon Jr. and Bruce Levenson, also recently sold the NHL Atlanta Thrashers to a group that has moved the team to Winnipeg. The Thrashers deal, for a reported $170 million, was announced on May 31.

The Hawks will remain in Atlanta.

Meruelo founded La Pizza Loca, which has over 50 franchised and company owned restaurants in Southern California.