NBA to Buy the New Orleans Hornets

The NBA is buying the New Orleans Hornets from owner George Shinn.
By Theresa McCabe ,

NEW YORK (

TheStreet

) -- The NBA is looking to buy the New Orleans Hornets from majority owner George Shinn after minority owner Gary Chouest decided not to acquire the team.

"In light of the uncertain economic situation in New Orleans and Louisiana, Gary has decided not to move forward with the purchase of George's majority interest although he was prepared to remain an investor in the team," NBA commissioner David Stern said today. "In the absence of any viable purchaser seeking to own the Hornets in New Orleans, I recommended to the NBA board of governors that the best way to assure stability and the adequate funding of the franchise would be for the league to step in, and complete the transaction and assume control."

The deal will appoint sports attorney Jac Sperling as team administrator while team president Hugh Weber will continue to manage daily operations.

Sperling, who is also the vice chairman of the Minnesota Wild NHL team, will be responsible for overseeing the sale of the Hornets to a permanent owner.

The move will mark the first time that the league has gained ownership of an NBA team. The transaction should be voted on by the NBA board next week.

-- Written by Theresa McCabe in Boston.

>To contact the writer of this article, click here:

Theresa McCabe

.

>To follow the writer on Twitter, go to

@TheresaMcCabe

.

>To submit a news tip, send an email to:

tips@thestreet.com

.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Loading ...