The owners of the Atlanta Hawks and Atlanta Thrashers have settled their six-year, high-profile legal battle, according to a statement from the ownership group Atlanta Spirit.
Terms of the settlement were not disclosed and are confidential, the statement said.
Part of the settlement includes seven of the group's co-owners buying out former partner Steve Belkin's 30 percent stake in the group. There are no new investors in line to replace Belkin.
Michael Gearon and Bruce Levenson will serve as managing partners of the Atlanta Hawks, Atlanta Thrashers and Philips Arena.
"I think if you talk to anyone in either organization, they will tell you that this lawsuit has had zero impact. Zero," Levenson said. "At the end of the day, we had a business partner who we were in a dispute with and we have settled that dispute. It may sound a lot more complicated but that's really what happened."
The eight-man group has been fighting in court since 2005 over how much the remaining seven partners should pay Belkin. The ongoing legal dispute earned the group a reputation as the most fractious ownership in North American professional sports.
A judge ruled in August 2009 that a contract outlining the buyout process was too ambiguous and that the Spirit should resume operations as it was before 2005.
The teams have been hemorrhaging money for years, including losing more than $50 million in 2008 and 2009 combined, according to court documents. The owners have had to make several co-called capital or cash calls to support the teams.
Belkin has not had to participate in the capital calls during the litigation. It is unclear exactly how much he owed the others.
Belkin – and his money – were due at the Maryland Court of Special Appeals in Annapolis on Dec. 6. The owners and their attorneys agreed on a settlement that day and forwarded it to the NBA and NHL for approval.
"Both sides represented to the appellate court that they had reached a settlement and it needed approval of the leagues and some other things to be worked out. And so we asked for a delay in the hearing, pending a final resolution," Levenson said. "We reached a final resolution today and went back to the court and said, ‘O.K., you can dismiss now,' which is what they've done."
Gearon and Levenson spoke with reporters at halftime of Wednesday's Hawks-Cavaliers game in an office outside the Thrashers' locker room. Levenson said settling the lawsuit isn't going to impact the teams and their performance going forward.
The group had been looking for additional investors, but that process was stalled by the litigation. Levenson told reporters that the group will continue to seek additional partners.
"We're still trying to find investors to come in here and help us," he said. "That hasn’t changed at all."
He acknowledged the possibility that the ongoing lawsuit scared away some potential investors.
"I don't know if somebody out there was reluctant to raise their hand because of this litigation," Levenson said. "I have no way of knowing. I guess if the phone starts ringing tomorrow, that'll answer that question."
Meanwhile, the Thrashers had been targeted as a franchise that could possibly be relocated, with the Canadian cities of Hamilton, Quebec and Winnepeg among the list of possible new homes.
Gearon and Levenson have both said previously they were committed to keeping the team in Atlanta and told reporters Wednesday night that "no other changes are planned."
"Michael and I hope to have as much success running these franchises as Bernie Marcus and Arthur [Blank, co-founders of Home Depot] have running Home Depot over the years," Levenson said.
"This isn't Los Angeles and it's not Toronto when it comes to hockey, so we have the challenge of building champions in a fiscally responsible way," said Levenson, referring to the Los Angeles Lakers and the Toronto Maple Leafs, flagship franchises of the NBA and NHL. "I'm proud of what we've done."
Staff writers Ken Sugiura and Chris Vivlamore contributed to this article.
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