Atlanta Hawks is working with black owned banks to refinance a $35 million loan

This is great news, a couple of black-owned banks will be part of the syndicate that will refinance a $35 million loan for Atlanta Hawks. The move will allow black owned businesses in the banking sector to be able to pay bills and stay in business with interest that they’d make from helping Atlanta Hawks to refinance a loan for the Emory Sports Medicine Complex that is located in Atlanta.

The deal between Atlanta Hawks and some black owned banks will be the first major deal between a big sports team and black-owned banks. Most black owned banks do not get big deals from big corporations, a bid deal like this will encourage more organizations to want to work with black-owned businesses.

Even when companies are going public on the stock market and they need to work with banks as underwriters, black-owned banks mostly do not have access to those types of deals.

This $35 million loan restructure deal between Atlanta Hawks basketball team and the black-owned banks was made possible by the newly formed National Black bank foundation. The media and the black NBA players also played a huge role in this deal. They promote the need to support black-owned businesses and some big firms are listening. 

Since the Coronavirus pandemic began, black businesses have suffered the most, and they are most likely to lose their business due to the negative financial impact as a result of Covid-19 pandemic.

Carver State Bank, a Georgia-based bank is the lead syndicate that started the discussion, and Atlanta Hawks agreed to do the deal.

“Today’s announcement reflects our commitment to putting our values into action--by choosing to work with Black banks and drawing attention to the need for Black banks to thrive as they work toward addressing the lack of access to capital in Black communities,” said Tony Ressler, Principal Owner of the Atlanta Hawks.  “We always strive to ask ourselves how the Hawks can best help those in the community that are already helping others, and today’s announcement is another step in our commitment to use the Hawks as a positive agent of change.  This is both good for the community and good business to empower new and existing Black businesses.”

"The Atlanta Hawks are putting their money where their mouth is when it comes to being an ally of Black businesses, and Carver State Bank is proud to be the lead institution on this historic transaction. By selecting an all-Black bank syndicate to provide this financing, the Hawks are strengthening all of our banks,” said Robert E. James, II, President, Carver Development & Chairman-Elect, National Bankers Association. “What we earn from this loan strengthens our collective ability to provide even more loans and financial services to Black small businesses and consumers, and we are able to show our ability to pull off a large, sophisticated loan transaction. Tony and his team are real allies in the movement for racial equity."

"Because Black-owned banks are so starved for capital, they've previously not been able to compete with major commercial banks or scale to meet the unique needs of borrowers of color, who are rejected for credit at twice the national rate," Ashley Bell, NBBF general counsel, said. "Because of the Hawks' leadership and commitment to financial inclusion, Black banks are finally playing in the major league."

The Atlanta Hawk’s sports medicine complex sits on 90,000 square foot lot space on a big lot. It is the training facility for the Atlanta Hawks NBA team, the club’s healthcare sports medicine building, and sport science.

"The Hawks are not only the first-in-league with this deal, but are the first in all major league sports," said Ryan Clark, NBBF board member, ESPN commentator and NFL alumni. "Banking black is a simple but incredibly powerful demonstration of professional sports franchise's commitment to their players and their fans. Now we need other teams to follow the Hawks' lead."

List of Black owned Banks that are involved in the Atlanta Hawks $35 million loan restructure deal.

1. Carver State Bank led the syndicate of Black banks
2. Carver Federal Savings Bank
3. Citizens Savings Bank
4. Citizens Trust Bank
5. Commonwealth National Bank
6. Industrial Bank
7. Liberty Bank & Trust
8. M&F Bank
9. Optus Bank. 

“This partnership reflects the idea of the “genius of “AND” because it makes great financial sense AND has the ability to meaningfully change a community’s landscape.  It was truly rewarding to work with NBBF and our syndicate banks to develop the structure and create the relationships that have already made the transaction a success,” said Hawks & State Farm Arena Chief Operating Officer Thad Sheely