Basketball fans, especially those who live in Atlanta or the surrounding area, may have heard about the former Atlanta Hawks owner Bruce Levenson suing New Hampshire Insurance Company (also known as AIG) for a breach of contract involving the settlement of claims made by former manager Danny Ferry. What was the underlying cause of this lawsuit?
Bruce Levenson, an American businessman, founder of UCG and philanthropist, owned the Atlanta Hawks basketball team from 2004 to 2014. in 2012, he hired Danny Ferry as the general manager and president of basketball operations.
According to AJC.com, “Ferry and Hawks ownership reached an undisclosed buyout agreement on June 22, 2015 ending the relationship that began with a six-year, $18 million contract in 2012. The approval of the sale of the franchise to the (Tony) Ressler-led group came two days later.”
The article also stated that the lawsuit was “filed in the Superior Court of Fulton County on Sept. 13 against the insurance company also described as AIG, is a civil action for breach of contract and insurance bad faith.”
So what does all this mean? Those who are not familiar with this issue will not understand the cause of the lawsuit and what exactly it was about.
Did the lawsuit ever come to a settlement?
An article of Forbes mentioned that Mr. Levenson oversold the Hawks by 27%. He hired “Goldman Sachs and Inner Circle Sports to sell the Hawks and the operating rights to Philips Arena.” Would Levenson make a big profit by overselling the Hawks basketball team?