Spirit: Belkin's suit is robbery By TIM TUCKER The Atlanta Journal-Constitution Published on: 03/22/06 Estranged owner Steve Belkin's recent contention that he should be allowed to take control of the Hawks and Thrashers has drawn a sharp rebuttal from the teams' other owners. In their latest court filing, the other owners say Belkin's reverse-buyout scenario "would result in nothing less than judicially sanctioned theft of [their] interest in the Hawks, Thrashers and Philips Arena." The filing is a response to a motion by Belkin earlier this month asking a Maryland court to declare that the other owners failed to complete a buyout of his stake under the prescribed timetable and that Belkin therefore "shall purchase all of [their] interests" at cost. In their response to what they call Belkin's "audacious claim," the other owners — principally Bruce Levenson, Ed Peskowitz and Michael Gearon Jr. — contend that if the court were to allow Belkin to buy them out at cost, it would be allowing him "to effectively steal the franchises." But the filing also says that if the group were to complete its planned buyout of Belkin based on a recent appraisal it is contesting, he would get a return "of nearly 1,100 percent" on his investment. Amid a bitter dispute last summer about the Hawks' trade for guard Joe Johnson, Belkin's partners agreed to purchase his 30 percent stake in the teams for a price to be determined by a series of up to three appraisals. Controversy over the appraisals led the owners back to court in November, when Belkin filed suit in Montgomery County (Md.) Circuit Court, and the quagmire seems to deepen with each legal document. The new filing by Levenson, Peskowitz and Gearon says a December appraisal by J.P. Morgan Securities, retained by Belkin, values the teams "absurd[ly]" higher than what they fetched on the open market in 2004 — 178 percent higher, according to the filing. The Hawks and Thrashers were sold in 2004 "for the lowest value of any hockey or basketball team in the decade," but the appraisal values them at "the highest price ever paid for an NBA team, an NHL team and the operating rights to an arena," according to the court filing. "And not for a venerable franchise such as the Boston Celtics or the Detroit Red Wings, but for two franchises that lose large sums of money every year and by every financial and performance measure are at the bottom of their leagues." The specific amount of the appraisal is not disclosed in court documents. However, Time Warner publicly valued the sale of the teams at $250 million, including assumption of debt, in 2004. The 178 percent increase cited in the court documents would raise the value to $695 million, also including debt. The latest filing by Belkin's estranged partners claims that, based on the contested appraisal, Belkin would get a return "of nearly 1,100 percent in 17 months." The court document does not provide the amount he would get. But his investment is $11.7 million, according to previously filed documents, and an 1,100 percent return would yield a payout of about $140 million. Belkin and the other owners have considerably less than the announced $250 million purchase price invested. That is because most of the announced price was accounted for by the assumption of debt (including $142 million in Philips Arena bonds backed by Hawks revenues) and other liabilities, as well as the value of a small stake in the teams retained by Time Warner. The J.P. Morgan appraisal, which Belkin argues should set the final price for his stake, came in 60 percent higher than an earlier appraisal by CitiGroup, a Belkin attorney said in court. A Maryland judge ruled last month that Belkin was entitled to retain the second appraiser because he was the first party to object to the appraisal by CitiGroup, which he also retained. One argument, among many, now before the court is whether Belkin's JP Morgan appraisal, done before the judge's ruling, is valid as the second appraisal or whether Belkin must get a new second appraisal. Another argument is whether the other owners missed the deadline for a third appraisal and breached the buyout agreement so as to trigger Belkin's right to buy them out at cost. The court has not indicated when it will take up the latest issues. Belkin's partners insist they still intend to buy him out. "At the time that all contested factual and legal issues in the case are finally resolved, [they] most assuredly will perform that obligation," according to their latest legal filing. Belkin has repeatedly said he will not comment until the legal dispute is resolved. 資料來源 http://www.ajc.com/hawks/content/sports/hawks/stories/0322spirit.html --

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