ARTICLE 14A
CONSEQUENCES OF TERMINATION
(a) When the Membership of a Member is terminated,
such Member and its assets, properties and operations shall be placed
under the management and control of the Commissioner, who shall
have the following powers: to cause the Members Team to continue to
play its Exhibition, Regular Season, and Playoff Games; to collect all
revenues from every source payable to the Member and apply such
revenues, to the extent available, to the payment of such Members
debts and obligations; and, as directed by a majority of the Board of
Governors (the Member whose Membership was terminated not being
considered a Member of the Board of Governors for the purposes of
this Article), either to transfer such Members Membership (including
its Player Contracts and other assets) in accordance with and subject to
Article 5 or to liquidate the Player Contracts and other assets of the
Member in an orderly manner in the best interests of the Member and
its creditors, and the Association, in each case at such prices and on
such terms as the Commissioner shall deem reasonable and appropriate.
(b) When the interest of any Owner is terminated, that
interest shall, unless the Commissioner has approved an alternative
arrangement, be placed under the management and control of the
Commissioner, who shall have the power to exercise all of the rights
otherwise exercisable by the Owner of that interest, including, but not
limited to, any management or voting rights and the right to transfer all
or any portion of that interest in accordance with and subject to Article
5 at such prices and on such terms as the Commissioner shall deem
reasonable and appropriate.
(c) All proceeds from any transfer of a Members
Membership or the liquidation of its Player Contracts and other assets,
or of an Owners interest in a Member, shall be applied first to
discharge the liabilities and obligations to all creditors of the Member
(or Owner), including the Association and its Members but excluding
any Owner of the Member, second to discharge the liabilities and
obligations to any Owner of the Member, and any balance shall be
remitted to the Member (or Owner). The existence or implementation
of this Article 14A shall not impose upon the Association or any of its
Members any requirement to provide funds to any Member (or Owner)
or any liability for any debts or obligations of any Member (or Owner).