One thing that is very important when it comes to business is ethics. Part of being ethical is keeping up with one end of the bargain. AIG Insurance and AHBE had an agreement that was to be honored. However, when the group has sold the team, they have found out that the insurance company did not honor their end of the agreement. The policy was supposed to cover issues like wrongful terminations and any decisions that could cost money. Since they didn’t honor that, the old ownership group of the Atlanta Hawks has filed a lawsuit against the insurance company.
One of the members of the group was Bruce Levenson. He is the one that handled the transactions when it came to selling the team. He has worked on making a deal with the selling party in order to come to an agreement that is good for all parties He is the one that tried to come up with a price that is profitable. Since the team has performed well under his ownership, he was able to sell it for close 10 $1 billion, see http://www.forbes.com/sites/mikeozanian/2015/04/23/bankers-for-levenson-oversold-atlanta-hawks-by-27/. However, it feel short of that even though him and many others have figured that the team would easily sell for expected price of $1 billion.
As of right now, the insurance group is looking to pay a lot of fees for their breach of the contract. Among the fees that they have to pay are lawyer fees, courtroom fees and others. This goes to show that it is very important to keep all ends of the agreement. One group that doesn’t keep its end of the agreement is likely to face a lot of charges and wind up paying more for the breach in contract than they would’ve if they kept their end of the contract.
Information on this article can be found on brucelevenson.com and wikipedia.org.