Hawks Deal Dead

Not only has a deal for the Atlanta Hawks NBA team to California pizza chain owner and investor Alex Meruelo fallen through, the team is now no longer on the market at all.

The team’s ownership group said Nov. 4 that the agreement to sell the Hawks to Meruelo was mutually terminated.

Had Meruelo, the son of Cuban immigrants, sealed the deal it would have included operating rights to Philips Arena in Atlanta, with Bruce Levenson and Michael Gearon Jr. of the current ownership group remaining in minority roles.

Instead, ownership group Atlanta Spirit remains in charge of the team it acquired in 2004 from Time Warner in a deal that included the NHL’s Thrashers. The group was harshly criticized locally for selling the Thrashers to a Winnipeg, Canada, group for a reported $170 million. The team moved and is now the Winnipeg Jets.

“The Atlanta Hawks are no longer for sale,” Levenson said. “We’re excited to remain as owners of the Hawks and are committed to building on our string of four straight playoff appearances.”

Muruelo issued a statement indicating that the ongoing NBA lockout, which has delayed the beginning of the 2011-12 season, helped scuttle the deal.

“I want to thank the Atlanta community who welcomed me with open arms. I am humbled and blessed by their warmth and hospitality,” Meruelo said. “Basketball is my passion, but professional basketball is a business. Although all parties negotiated in good faith, we were not able to reach a mutually satisfactory agreement on some key issues given the current uncertainly surrounding labor issues. As a result, we mutually decided to terminate the deal effective immediately.”

Meruelo said he’s still interested in team ownership, but it won’t be the Hawks. He heads the Meruelo Group, a Downey, Calif.-based investment firm that recently acquired the Grand Sierra Resort and Casino in Reno, Nev., for a reported $42.5 million.