The Hawks refuse to pay their former president Robert “Bob” Williams a $660,000 bonus for negotiating a $410 million TV rights contract, he claims in a new lawsuit against the NBA franchise.
Williams, who served as president of the Hawks and Philips Arena after joining the organization in 1975 as a ticket salesman, has accused it of breaching his final employment contract. He wants his bonus plus interest and attorney fees, according to his complaint filed June 28 in the Fulton County State Court.
“Mr. Williams has not been paid the bonus to which he is entitled resulting in a total principal amount due from (ATL Hawks LLC) of $660,000,” the lawsuit states. “(The company) has acted in bad faith, been stubbornly litigious, and caused (Williams) unnecessary trouble and expense.”
A spokesperson for the Hawks and State Farm Arena acknowledged the case but declined to comment further “as this is a legal matter.”
Williams’ 2013 employment agreement with the Hawks, attached to his complaint, provides for a bonus derived from the annual average value of television and related media fee payments under a new or extended contract with Fox Sports or a related entity.
In his lawsuit, Williams said he personally negotiated with a Fox affiliate for a TV rights contract worth $410 million over 10 years, resulting in an annual average value of $41 million. He said the contract took effect during the Hawks’ fiscal year ending June 30, 2015, and that he is entitled to $660,000 in bonus compensation as a result.
His employment contract, valid through 2018, states that the bonus derived from a TV rights contract with an annual average value of more than $32 million shall be $210,000 plus 5% of each dollar over $32 million.
The agreement also provides for a $200,000 bonus if the Hawks’ finances “break even or show profitability.” In a profitable year, Williams could earn 2% of the first $20 million in profit and 3% of any additional profit.
Under the agreement, Williams was not entitled to both types of bonus in any year – only the higher of the two. And he was only able to collect the TV rights bonus once, if the Hawks broke even or made a profit.
Williams’ complaint does not explain whether he received any profit-derived bonus. It states that the Hawks “achieved profitability in multiple years subsequent to 2015″ and that all conditions for payment of the television rights bonus were met.
Williams said he agreed in 2013 to a $750,000 annual base salary, which was significantly less than what his predecessors and counterparts were paid, only because he was promised the bonus benefits.
“For example, Mr. Williams’ predecessor, Bernie Mullin, received an annual base salary of more than $1.1 million plus an earned bonus – approximately three times Mr. Williams’ salary when he took over Mr. Mullin’s responsibilities in 2008,” the lawsuit states. “Mr. Williams’ successor, Steve Koonin, received a salary of approximately $2 million plus bonus opportunities – in line with the median annual salary of other NBA presidents and, again, three times Mr. Williams’ salary the year prior.”
Koonin was named CEO of the Atlanta Hawks in 2014. At the time, Williams remained the president of business operations for the Hawks and Philips Arena, which became State Farm Arena in 2018. Williams left the organization in 2015.
Williams now is the president of sports and entertainment consulting firm Align Sports & Entertainment LLC, its website states. He lives in Florida, according to his complaint.
The lawsuit states that Williams became president of the Hawks’ then-home arena, the Omni, in 1994. He then negotiated and oversaw the design and construction of the Philips Arena, of which he also served as president.
In 2008, Williams was appointed co-chair of the executive committee in charge of business operations for the Hawks, Philips Arena and the Atlanta Thrashers, a professional ice hockey team. He agreed in 2010 to an annual salary of $500,000, which increased by $50,000 in 2011 “with additional bonus compensation to be negotiated in good faith,” his complaint states.
Williams’ attorney did not immediately respond to questions about the case.
- Chris Vivlamore contributed to this story.
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