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.”

Read More: Atlanta Hawks

How much did California tycoon Alex Meruelo pay for the Atlanta Hawks? It’s complicated. According to a report by NBA.com’s David Aldridge, Meruelo paid about $300 million plus picked up a sizable piece of debt, which according to other reports could be as much as $120 million. That’s $420 million, friends.

But according to a report by the Atlanta Journal-Constitution’s Tim Tucker, which cites sports business consultant Marc Ganis, that $300 million figure “represents the ‘enterprise value’ that includes Meruelo assuming ‘virtually all’ of the debt on the team and the arena.”

The franchise was valued at $295 million by Forbes, a figure that doesn’t include Philips Arena’s operating rights, which Meruelo also acquired. If he was basically able to pick up the venue rights for free without that debt number pushing the sale price very far beyond the club’s valuation, he might be better at this stuff than we’d realized, even though his share in the Hawks is only about 80 percent for the time being.

Also, the Atlanta Spirit Group wouldn’t really be able to earn praises for turning a $100 million profit if an arena and various debts made up part of the sale price. Wonder if they might have broken even.

Of course, reports conflict. There’s still the possibility the sale price actually was almost a half-billion. Which, again, remember a modern, profitable arena was involved in the transaction.

For more Hawks, head to Peachtree Hoops.

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.

CHARLES ODUM, AP Sports Writer

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.

Atlanta Hawks guard Jeff Teague stands on the court during the fourth quarter of game 5 of the NBA Eastern Conference Semifinals against the Chicago Bulls at the United Center in Chicago on May 10, 2011. UPI/Brian Kersey 

ATLANTA, Aug. 8 (UPI) — The NBA’s Atlanta Hawks have been sold to Los Angeles businessman Alex Meruelo, who said he plans to keep the team in Atlanta.

Meruelo obtained a majority interest in the Hawks from the Atlanta Spirit Group. The deal includes operating rights to Philips Arena. Financial terms of the arrangement weren’t released and the sale must be approved by the NBA Board of Governors.

Meruelo, 48, becomes the first Hispanic principal owner of an NBA franchise. He is the founder and chief executive officer of the Meruelo Group, which includes a chain of pizza restaurants, construction companies, a casino and a television station.

“I am a lifelong basketball fan, a student of the NBA game and this is a dream come true for me,” Meruelo said. “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.

“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.”

This is the second major league franchise to be sold by the Atlanta Spirit Group this year. It dealt the NHL’s Atlanta Thrashers to a Canadian group that moved the team to Winnipeg.

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.