Paul, Weiss Issues Supplement to Report to Special Committee of National Basketball Players Association

Thu Feb 14, 2013 3:52pm EST

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NEW YORK--(Business Wire)--
Paul, Weiss, Rifkind, Wharton & Garrison LLP today issued the following
supplement to its independent report to a Special Committee of the National
Basketball Players Association: 

On January 17, 2013, Paul, Weiss published a Report that presented the results
of an investigation commissioned by a Special Committee of the National
Basketball Players Association (the "NBPA" or the "Union") concerning the
current leadership of the NBPA. 

The investigation concluded that the facts did not show that the Union`s
Executive Director, G. William ("Billy") Hunter, engaged in criminal acts
involving embezzlement or theft of Union funds. Nevertheless, in our judgment,
the facts did show that, at times, Mr. Hunter`s actions were inconsistent with
his fiduciary obligations to put the interests of the Union above his personal
interests, and that Mr. Hunter did not properly manage conflicts of interest.
The Report also explained, among other things, that the NBPA`s Board of Player
Representatives never properly approved Mr. Hunter`s current employment contract
with the Union as required by the Union`s Constitution and By-Laws, that he was
aware that his current contract was never properly approved and that he
knowingly failed to disclose this information. In addition, the Report
identified open questions concerning a purported agreement between the NBPA and
Prim Capital, the Union`s outside financial advisor. We stated that we would
further investigate the circumstances surrounding the purported agreement and
promptly present additional findings about it. 

We had hoped to complete our investigation of this matter and present a
supplemental report to the NBPA before its All-Star Weekend meetings. We
understand that the government`s investigation of the Union`s activities, which
we referenced in the Report, is ongoing. Based on our discussions with the U.S.
Attorney`s Office, we believe that it would be inappropriate for us or anyone at
the Union to comment further about outstanding issues at this time. Although we
will make a presentation about the Report to the NBPA during All-Star Weekend,
we are convinced that disclosing additional findings from our continued
investigation now could jeopardize the integrity of the government`s criminal
investigation, and would be contrary to the NBPA`s public pledge to cooperate
fully with the government`s criminal investigation. We remain in communication
with the U.S. Attorney`s Office, and we hope that we will be able to provide the
Union with additional information at some point in the future. As stated in our
original Report, we can make no predictions about either the length or possible
outcome of the government`s criminal investigation. 

A full copy of Paul, Weiss` report to the Special Committee can be found at

Sard Verbinnen & Co
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