Fast Facts
(Memphis - 3/11/2009) From Jonathan Jones lone spot in Section 119, he'd never guess what a wide-open shot the Grizzles have at leaving Memphis forever.
It started with a contract between Memphis, Shelby County, and Hoops, L.P., otherwise known as the Grizzlies.
Inside the contract, WREG News Channel 3 found some deals that most tax payers don't know about, and apparently Grizzlies owner, Chicago billionaire Michael Heisley wasn't aware of either.
"I'm not sure I understand what you're talking about. I don't know anything about that," Heisley said, when News Channel 3 Investigator Keli Rabon asked about the deal.
But tucked inside the 53-page "Operating Agreement", the Investigators uncovered an offer: a chance for the Grizzlies to leave Memphis, after their 9th season in the forum, in 2014. They're in the 5th season now.
The only requirement - the Grizzlies must fail to fill 14,900 seats, or 70 suites, or sell 2,500 club season tickets. Numbers that even today, Heisley says, they haven't been meeting.
"I may fall flat on my butt. if i do, the grizzlies are gonna fail, and I'm gonna pay the piper," Heisley said.
If the team leaves when the chance opens up, attorney Duncan Ragsdale says, that's too easy.
"In spite of all the problems they knew were going to incur, in spite of the fact they knew the Grizzlies couldn't draw 14,000 in Vancouver, why did they do it? They did it because they wanted to have a professional team. It didn't matter who paid for it," Ragsdale said.
Ragsdale filed suit against the city and county in 2001, trying to block the deal. He lost in the Court of Appeals.
"This is a one-way contract," Ragsdale said.
He says taxpayers would be stuck with the costs to build the forum -- $250 million.
But Ragsdale didn't know about this option: if the Grizz can't sell enough seats, the City and County can bail them out, by buying up tickets to make up the difference, costing taxpayers up to $10 million!
"To spend taxpayer money to buy seats so the Grizzlies have a better balance sheet? That's more of the same," Ragsdale said.
The WREG News Channel 3 Investigators requested financial documents from the city, but so far, Memphis officials have not produced them. Unless the situation improves, it's possible, the city and county governments would have to choose between buying seats and figuring out what to do with a vacant arena.
Heisley says he doesn't plan to use the outs, ever.
"We made a 20-something year commitment and so on. That's a huge length of time to make a commitment, okay? I would say, it's more likely they're going to tear this place down in 20-25 years than it is that we're going to leave," Heisley says. "Let's put it this way, I'm 72, I'll probably be gone before the Grizzlies are gone."
Mayor Herenton declined our requests for an interview, so did local representatives with the Grizzlies.
But when it comes to the agreement that could put the multi-million dollar taxpayer investment on the line, it appears the only way taxpayers can protect themselves, is to buy tickets to watch the Grizzlies play.
Jonathan Jones plans to do just that, to keep his home team from leaving town.
"I would follow them wherever they went, but it would really hurt. It would really hurt," Jones said.
- The Grizzlies could leave Memphis in the Fall of 2014, if their average daily attendance is below 14,900.
- The City and County would have the option of purchasing the remainder of tickets, on the taxpayer dollar.
- Michael Heisley, the team's owner, says he's committed to Memphis for the full 25-year term.
(Memphis - 3/11/2009) From Jonathan Jones lone spot in Section 119, he'd never guess what a wide-open shot the Grizzles have at leaving Memphis forever.
It started with a contract between Memphis, Shelby County, and Hoops, L.P., otherwise known as the Grizzlies.
Inside the contract, WREG News Channel 3 found some deals that most tax payers don't know about, and apparently Grizzlies owner, Chicago billionaire Michael Heisley wasn't aware of either.
"I'm not sure I understand what you're talking about. I don't know anything about that," Heisley said, when News Channel 3 Investigator Keli Rabon asked about the deal.
But tucked inside the 53-page "Operating Agreement", the Investigators uncovered an offer: a chance for the Grizzlies to leave Memphis, after their 9th season in the forum, in 2014. They're in the 5th season now.
The only requirement - the Grizzlies must fail to fill 14,900 seats, or 70 suites, or sell 2,500 club season tickets. Numbers that even today, Heisley says, they haven't been meeting.
"I may fall flat on my butt. if i do, the grizzlies are gonna fail, and I'm gonna pay the piper," Heisley said.
If the team leaves when the chance opens up, attorney Duncan Ragsdale says, that's too easy.
"In spite of all the problems they knew were going to incur, in spite of the fact they knew the Grizzlies couldn't draw 14,000 in Vancouver, why did they do it? They did it because they wanted to have a professional team. It didn't matter who paid for it," Ragsdale said.
Ragsdale filed suit against the city and county in 2001, trying to block the deal. He lost in the Court of Appeals.
"This is a one-way contract," Ragsdale said.
He says taxpayers would be stuck with the costs to build the forum -- $250 million.
But Ragsdale didn't know about this option: if the Grizz can't sell enough seats, the City and County can bail them out, by buying up tickets to make up the difference, costing taxpayers up to $10 million!
"To spend taxpayer money to buy seats so the Grizzlies have a better balance sheet? That's more of the same," Ragsdale said.
The WREG News Channel 3 Investigators requested financial documents from the city, but so far, Memphis officials have not produced them. Unless the situation improves, it's possible, the city and county governments would have to choose between buying seats and figuring out what to do with a vacant arena.
Heisley says he doesn't plan to use the outs, ever.
"We made a 20-something year commitment and so on. That's a huge length of time to make a commitment, okay? I would say, it's more likely they're going to tear this place down in 20-25 years than it is that we're going to leave," Heisley says. "Let's put it this way, I'm 72, I'll probably be gone before the Grizzlies are gone."
Mayor Herenton declined our requests for an interview, so did local representatives with the Grizzlies.
But when it comes to the agreement that could put the multi-million dollar taxpayer investment on the line, it appears the only way taxpayers can protect themselves, is to buy tickets to watch the Grizzlies play.
Jonathan Jones plans to do just that, to keep his home team from leaving town.
"I would follow them wherever they went, but it would really hurt. It would really hurt," Jones said.
