NEW YORK, Dec. 20 (UPI) -- The NBA's Board of Governors Monday officially approved the league's purchase of the cash-strapped New Orleans Hornets, officials said.
The move made the Hornets the NBA's first league-owned team and comes after Louisiana billionaire Gary Chouest was unsuccessful in his bid to buy a majority share from founding owner George Shinn.
NBA Commissioner David Stern announced the deal this month.
The league said New Orleans native and Minnesota sports attorney Jac Sperling will take over as the team's chairman and that team President Hugh Weber would remain in that position.
The NBA spent about $300 million to purchase the team, which recorded a net loss of $18.2 million in the 2009-10 season.
Stern has said he is seeking a new owner who would keep the team in New Orleans.
