Pera agrees to deal with local investors
Memphis, TN-News Channel 3 has learned prospective Grizzlies owner Robert Pera has reached a deal with a number of local partners to invest in the team. It’s a deal that guarantees the Grizzlies will stay in Memphis for the next 15 years.
Pera agreed to three provisions to get the local investors to buy about a third of the team. Pera agreed to pay a 100-million dollar penalty if the Grizzlies move. The local group gets the right to match any offer Pera would receiver if he sells the team. The local group can buy the Grizzlies from Pera at the current price if he wants to move it. Pera is believed to be paying around 350 million dollars to Michael Heisley for the franchise. All of those provisions are in place for the next 15 years. The new group of local investors includes current minority owners Pitt Hyde and Staley Cates.
This new deal is separate from the team’s lease with FedEx Forum that has its own exit arrangements. The NBA is expected to approve the sale of the team to Pera in the next two months.