My first impression was that the shot was released in time.
After watching a couple of times, I did have some doubts though. Watching the video again with some stopping at key points, and with the YouTube video, I think it is clear that the shot should have counted, and therefore Spartanburg should have won.
If this event teaches anything - it is that you do need 3 officials, and that video replay is needed: high definition video replay, with frame by frame analysis.
Edit: another angle, shows even more conclusively that the shot is good.
http://www.youtube.com/watch?v=01xPmkNsvwU