FAST FACTS
Whether the Grizzlies are playing in a packed house, or with just a few fans in the stands, the WREG News Channel 3 Investigators uncovered an audit that says the company that owns the Grizzlies isn't paying its fair share.
"I don't think there's any question about it," Shelby County Commissioner Mike Ritz said. "The city and the county are supposed to get a seat tax for every ticket. It doesn't make any difference whether the ticket is sold by the Grizzlies or given away by the Grizzlies. All the tickets are subject to the seat tax."
But Hoops is only taxing the tickets a person pays for, not tickets *they* are giving out for free -- like buy one, get one free offers, special incentives for season ticket holders, and court side tickets for VIPs.
"It's a matter of what we need to do for charities, what we need to do for staff, what we need for VIPs. It's a very small number to be honest," Greg Campbell, President of Business Operations for the Memphis Grizzlies said.
An internal audit uncovered, in the last four years, more than 511,000 complimentary tickets were handed out, that's enough seats to fill the FedEx Forum 28 times.
But because Hoops doesn't apply the $1.15 tax on complimentary tickets, the audit says the city and county are owed nearly $600,000.
"How can you impose $1.15 on a free ticket?" Campbell said.
Campbell says giving away free tickets is what NBA teams do.
Memphis City Councilman Jim Strickland says he hadn't heard about the audit until the WREG News Channel 3 Investigators showed him. Strickland wishes the City Council would have been given the heads up.
"So far the revenue streams have been sufficient to pay those bonds, but anytime you're talking about $500-600,000, that's a significant amount of money, and we ought to look at how to recoup that," Strickland said.
That's why commissioner ritz says he's ready to launch a full court press to get the money -- now. Public money built the Forum, and Ritz says, $600,000 would help pay it off.
"I think everyone knows in their heart and their mind, the county and city are owed these funds. If hoops wants to get into this 'We don't have to pay it kind of thing,' we're just going to have to go to court and find out as far as I'm concerned!" Ritz said.
But that concern is not shared by Hoops.
"You guys got the audit, I don't know what they're thinking. We're just spending the money we're supposed to spend by what the lease says. Sorry guys!" Campbell said.
- An internal audit reveals Hoops owes the city and county nearly $600,000 in seat fee taxes.
- The fee applies to complimentary tickets.
- The Grizzlies say the city and county are wrong, and they don't have to pay.
Whether the Grizzlies are playing in a packed house, or with just a few fans in the stands, the WREG News Channel 3 Investigators uncovered an audit that says the company that owns the Grizzlies isn't paying its fair share.
"I don't think there's any question about it," Shelby County Commissioner Mike Ritz said. "The city and the county are supposed to get a seat tax for every ticket. It doesn't make any difference whether the ticket is sold by the Grizzlies or given away by the Grizzlies. All the tickets are subject to the seat tax."
But Hoops is only taxing the tickets a person pays for, not tickets *they* are giving out for free -- like buy one, get one free offers, special incentives for season ticket holders, and court side tickets for VIPs.
"It's a matter of what we need to do for charities, what we need to do for staff, what we need for VIPs. It's a very small number to be honest," Greg Campbell, President of Business Operations for the Memphis Grizzlies said.
An internal audit uncovered, in the last four years, more than 511,000 complimentary tickets were handed out, that's enough seats to fill the FedEx Forum 28 times.
But because Hoops doesn't apply the $1.15 tax on complimentary tickets, the audit says the city and county are owed nearly $600,000.
"How can you impose $1.15 on a free ticket?" Campbell said.
Campbell says giving away free tickets is what NBA teams do.
Memphis City Councilman Jim Strickland says he hadn't heard about the audit until the WREG News Channel 3 Investigators showed him. Strickland wishes the City Council would have been given the heads up.
"So far the revenue streams have been sufficient to pay those bonds, but anytime you're talking about $500-600,000, that's a significant amount of money, and we ought to look at how to recoup that," Strickland said.
That's why commissioner ritz says he's ready to launch a full court press to get the money -- now. Public money built the Forum, and Ritz says, $600,000 would help pay it off.
"I think everyone knows in their heart and their mind, the county and city are owed these funds. If hoops wants to get into this 'We don't have to pay it kind of thing,' we're just going to have to go to court and find out as far as I'm concerned!" Ritz said.
But that concern is not shared by Hoops.
"You guys got the audit, I don't know what they're thinking. We're just spending the money we're supposed to spend by what the lease says. Sorry guys!" Campbell said.
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