The former ownership of NBA’s franchise Atlanta Hawks has sued New Hampshire Insurance Company for what it terms a breach of contract regarding settlements forwarded by Danny Ferry, the former general manager.
The lawsuit, which excludes the current ownership of Hawks, was filed at the Fulton County Superior Court. It cited significant malpractices that culminate to a breach of contract and action of bad faith. The company had insured against losses ranging from workplace terminations to employee infringement of rights. The current ownership of Hawks acknowledged that they are aware of the lawsuit. However, they made it clear that they will not get involved in the case.
Danny Ferry and his management team agreed to sell Atlanta Hawks for undisclosed amount in June 2015 to Ressler Group. However, close confidants of the Antony-led Ressler Group revealed that the deal was a whopping $850 million. This sale ended Danny Ferry’s $18 million contract that began in 2012.
The companies that conducted the sale were Goldman Sachs and Inner Circle Sports. They were hired by Bruce Levenson, the former CEO of Hawks and owner of Atlanta Spirit. Bruce also co-founded UCG. Before he became an entrepreneur, he wrote for Washington Star. He was appointed the Director of Tech Target in February 2015, a position that he still holds today. He has also served on many boards within the sports landscape.
Time.com critics claim that the sale was overpriced and that the bankers hired to run the campaign had not achieved their target. They were off by 27%. Goldman Sachs apparently convinced the former ownership to give it the deal by promising it could get $1 billion in the sale.
Paradoxically, others say that the sale was overpriced (http://www.forbes.com/sites/mikeozanian/2015/04/23/bankers-for-levenson-oversold-atlanta-hawks-by-27/). They claimed that $1 billion was unrealistic. According to them, the real value of the company was supposed to be less than $825 million. Read more on prnewswire.com.