Ole Dirty Klondike

Grizz May Terminate FEF Lease

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Grizz May invoke early termination clause if Memphis, Shelby County doesn't pay for attendance shortfall.

 

If they do this and try to exploit the city over a pandemic, I say goodbye. Not to mention that Pera came in at like #5 on the richest NBA owners list. I don't think they will do this but for this to even come up during a pandemic just rubs me the wrong way. 

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5 minutes ago, I❤️JV said:

....it's only money...what's more..... it's other people's money.... 

It's not other people's money if you live in Memphis. 

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48 minutes ago, chipc3 said:

It's not other people's money if you live in Memphis. 

Think (or at least hope...) he's being sarcastic and cynical towards Pera's view on this.

It's awful that taxpayers have to subsidize arenas/teams/etc. and then owners can hold cities and counties hostage over crap like this. I'm not from Memphis (have been a Grizzlies fan since the last Vancouver year) and I'd still cheer for the team if they moved, but I definitely have a soft spot for the city after having visited last year and also been on the board with you guys for years. It'd be a shame if the Grizzlies ever left Memphis.

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Pera isn't holding anyone hostage right now. There is a clause in the contract that both sides signed that says the team could opt out. The team has made no insinuation that they will exercise the clause at this time (which would be incredibly financially expensive considering no one knows when the NBA will be playing in front of crowds again anyway). 

This article is simply an attempt to get people worried about a possible outcome. If you read to the bottom of the article they finally start discussing why such an outcome is highly unlikely to happen and they include the city enforcing a clause that says the pandemic is an event that would put the lease on pause,  the local ownership group buying Pera out at his cost not market value and more. 

The Daily Memphian has had to increase their subscription rates lately to subsidize their falling ad revenue and need people to read their stories (and hopefully subscribe) to not go under. I believe this has more to do with the Daily Memphian's economic situation than the Grizzlies. 

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Once again, let me just say, I don't think they will leave before the lease is up but I don't understand why this is even a topic right now given what is going on not only in this country but the world in general. I get it, in the lease there is certain language which allows them to bring this up now after x amount of years but given that the NBA season is in flux, no one knows if they will really play again this season, not to mention the financial strain from the pandemic on cities, counties, states and businesses. It just rubs me the wrong way. I doubt if it will get to the point of him trying to force the city to pay for lost attendance. It sounds like talks are amicable, but I have no idea why this is even a thing given what is going on in the world. 

Sports are a nice distraction but it's not something that you should bankrupt the city over. I'm not convinced they will start the season back up. Heck, even some NFL players are starting rumblings about playing. The NFL has already cancelled teh Hall of Fame game. Sports are a nice distraction to get away from life but not essential to living. 

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3 minutes ago, chipc3 said:

Pera isn't holding anyone hostage right now. There is a clause in the contract that both sides signed that says the team could opt out. The team has made no insinuation that they will exercise the clause at this time (which would be incredibly financially expensive considering no one knows when the NBA will be playing in front of crowds again anyway). 

This article is simply an attempt to get people worried about a possible outcome. If you read to the bottom of the article they finally start discussing why such an outcome is highly unlikely to happen and they include the city enforcing a clause that says the pandemic is an event that would put the lease on pause,  the local ownership group buying Pera out at his cost not market value and more. 

The Daily Memphian has had to increase their subscription rates lately to subsidize their falling ad revenue and need people to read their stories (and hopefully subscribe) to not go under. I believe this has more to do with the Daily Memphian's economic situation than the Grizzlies. 

But it's coming from both the CA and Daily Memphian. 

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5 minutes ago, Ole Dirty Klondike said:

But it's coming from both the CA and Daily Memphian. 

The CA is just copying the stories that Herrington and Calkins wrote yesterday. The team has made no comment about exercising the option. The team most likely won't exercise for the reasons I stated above. 

I stand by my feeling that this has more to do with promoting the Daily Memphian's readership than a serious fear that the team will use the pandemic to get out of the lease with the Grizzlies.  

The CA reports "if the season is determined to be a shortfall (i.e. paid attendance below 14,900, all 64 suites not sold, club level tickets below 2,500)" then the team could exercise the option. Neither the CA nor the DM know if this has been breached but it is assumed by the DM that it has. The Grizzlies averaged 15,857 in attendance but I don't know if that equals paid tickets per game (probably not) or if the suites were sold out (probably were) or that Club level seats were above the mark (honestly I don't know with all the cuts in club level service if that is a thing anymore). 

If it is the attendance issue, how many free tickets do you believe the Grizzlies give away for each game? It would need to be at least 1,000 to even reach the level. That's a lot of tickets to give away for each game. 

It also says the team has "the right but not the obligation" to terminate the lease. Considering the situation the country is under right now I doubt the team would risk moving expenses if they don't know where or when they will play games again. It goes on the say the city, county and the Grizzlies have been in discussions. It doesn't say that the Grizzlies have warned the city and county that they will exercise the warrant. 

In my opinion if the Grizzlies did exercise the option the fans would turn on the franchise pretty quickly. 

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15 minutes ago, chipc3 said:

The CA is just copying the story that Herrington wrote yesterday. The team has made no comment about exercising the option. The team most likely won't exercise for the reasons I stated above. 

I don't believe they will exercise it but I'm also not confident that they will not. Who knows but based on these quotes, it does sound like the Grizz have been in talks with the city, they just aren't talking to the media:

Quote

“We are aware of that clause in the contract and we’ve been working proactively with our partners at Shelby County and the Grizzlies to address it," said Kyle Veazey, Memphis deputy chief operating officer.

Quote

Discussions between the parties — which have been largely tabled during the COVID-19 pandemic — have been amicable and geared to finding a mutually satisfactory solution, according to those with knowledge of the talks. At no time have the Grizzlies threatened to invoke the provision to terminate the lease and relocate the team. Grizzlies majority owner Robert Pera has repeatedly stated he is committed to keeping the franchise in Memphis.

I'm sure nothing will come of it but I'm not sure why talks are going on now. From the sound of it, talks may have been going on before COVID. I'm just not ruling anything out. Also, I think it was Calkins not Herrington who wrote the DM piece. 

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24 minutes ago, Ole Dirty Klondike said:

I don't believe they will exercise it but I'm also not confident that they will not. Who knows but based on these quotes, it does sound like the Grizz have been in talks with the city, they just aren't talking to the media:

I'm sure nothing will come of it but I'm not sure why talks are going on now. From the sound of it, talks may have been going on before COVID. I'm just not ruling anything out. Also, i think it was Calkins not Herrington who wrote teh DM piece. 

I was wrong about Herrington but I stand by my belief that this has as much to do with the DM's failing economics as the Grizzlies. Ad revenues are falling (understandable under the situation) and they have risen the subscription price from $7.99 to $10.99 a month. 

Besides, if the Grizzlies do have a ticket shortfall it isn't many. They averaged 15,857 attendance last season (and that number was rising with Ja playing so well and the team in the playoff hunt). The cut off point is 14,900. How many freebies did the Grizzlies hand out last season? If it was more than 1,000 a night it wasn't a lot more. 

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Just now, ALT GRIND said:

If the Grizzlies move and Penny helps to pay for it then I think that would be an NCAA violation.

How to stop smirking and laughing during a serious situation or an ...

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11 hours ago, Ole Dirty Klondike said:

This link is for subscribers only (which I am not). So what should we be worried about?

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9 hours ago, ALT GRIND said:

If the Grizzlies move and Penny helps to pay for it then I think that would be an NCAA violation.

To quote Jerry Tarkanian, "The NCAA was so mad at Kentucky they gave Cleveland State two more years of probation"

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42 minutes ago, GameOn said:

This link is for subscribers only (which I am not). So what should we be worried about?

Below: 

Quote

The “early termination” section provides that the Grizzlies “shall have the right, but not the obligation, to exercise The Early Termination Right” if in any season after the team’s 15th season in FedExForum 1) average paid attendance is “less than 14,900,” or 2)  “the 64 largest suites are not sold in full,” or 3) “the number of Club Season tickets is less than 2,500.”

Next year will be the 16th year of FEF and obviously with the pandemic, they may not hit those numbers which means the Grizz could pull out theoretically. I doubt if it would happen because it would be quite expensive among other things but I just didn't like the timing of the info coming out. 

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13 hours ago, Ole Dirty Klondike said:

To quote Jerry Tarkanian, "The NCAA was so mad at Kentucky they gave Cleveland State two more years of probation"

That quote applies even more now.

 

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They aren't going anywhere. I don't think they want too 

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On 6/25/2020 at 11:27 AM, ALT GRIND said:

If the Grizzlies move and Penny helps to pay for it then I think that would be an NCAA violation.

I am really gasping — was not prepared for this one!

well played 

💫🤣💫

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On 6/25/2020 at 11:27 AM, ALT GRIND said:

If the Grizzlies move and Penny helps to pay for it then I think that would be an NCAA violation.

But first the NCAA would sign off on it saying it was fine, everyone was eligible. Then the day of the first game, with no new information,  they'd change their minds and say " whoops, not eligible. our bad."

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On 6/25/2020 at 10:59 AM, ALT GRIND said:

I am tired of this stuff.

This 

I'm not even from or in Memphis and this is so annoying bascially every 3 or 4 months we get a story about us moving.

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1 hour ago, costarica2 said:

This 

I'm not even from or in Memphis and this is so annoying bascially every 3 or 4 months we get a story about us moving.

Tillery kicking himself for not digging deep enough to pull this out of his *** like Calkins did.

A writer can basically make a fear mongering story out of anything. There’s always a chance of something bad happening with anything. Calkins proves how unlikely this is by giving the obstacles in place of this actually occurring at the end of the story. I think ODK’s assessment of selling news is accurate. Its the method of operation for news more so now, than ever before. 

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On 6/25/2020 at 9:22 PM, Ole Dirty Klondike said:

Below: 

Next year will be the 16th year of FEF and obviously with the pandemic, they may not hit those numbers which means the Grizz could pull out theoretically. I doubt if it would happen because it would be quite expensive among other things but I just didn't like the timing of the info coming out. 

The timing is in poor taste to say the least, but Calkins has never let that stand in the way before. That’s why J Will got mad at “homie”-poor timing.

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