"The proposed sale of the Hawks to Los Angeles businessman Alex Meruelo has hit a significant snag in the NBA approval process, according to people familiar with the situation.

It is not clear at this point whether the deal will be completed.

Although Meruelo signed what he called a "definitive" agreement in early August to buy a majority stake in the Hawks from current owner Atlanta Spirit Group, the deal was contingent on the approval of the NBA Board of Governors. That has not been obtained as the league, as part of an extensive approval process, seeks financial assurances that Meruelo can fund the team's ongoing operations."