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Report: Memphis plans to sue NBA for lockout?

Posted on: October 18, 2011 8:03 pm
Edited on: October 18, 2011 8:18 pm
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Posted by Ben Golliver. nba-lockout

There are billions of dollars at stake in the ongoing NBA labor crisis, and the politicians and lawyers are circling in the water like sharks.

MyFoxMemphis.com reports that the city of Memphis, home to the NBA's Grizzlies, is investigating its options with regard to the ongoing lockout, including litigation against the league to recoup up to $18 million that would have been used to pay off arena bonds for the publicly-owned FedEx Forum. 
At the suggestion of Chairman Myron Lowry, the council is considering a resolution that would ask City Council Attorney Allan Wade to explore all options, including a lawsuit against the NBA.

Wade says this is the first city he's heard of considering this type of action. "If it gets to be half a season that's a big problem. If that thing sits idle for a whole season that's a big problem," he said. "I think that goes against the spirit of our agreement because our arena is built with revenue, not guaranteed money." 
The site reports that the resolution passed by a vote of 8-3.

To boil this down: a portion of the money generated during home Grizzlies games at FedEx Forum goes back to the city to help pay off the original financing of the arena. If there are no home games there is no revenue with which to pay back the city. The city wants its money and could decide to sue the league to get the money at some point in the future. Good times. 

Ken Berger of CBSSports.com reports that NBA spokesman Mike Bass says the league has "no comment" on the matter.

It's worth noting that this type of legal action could theoretically happen in any other city that has a publicly funded NBA arena.

Here's MyFoxMemphis.com's video report.

Hat Tip: SBNation.com NBA

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Category: NBA
Tags: Ben Golliver, Memphis Grizzlies, NBA Lockout
 
Comments
mzracing76
Since: Dec 24, 2006
Posted on: October 20, 2011 9:21 pm
This comment has been removed.

Post Deleted by Administrator

Since: Dec 12, 2009
Posted on: October 20, 2011 7:07 pm
 

Report: Memphis plans to sue NBA for lockout?

Memphis is going after the party who is at fault here.....The NBA and the owners who locked out the players....

This should show everyone who is responsible for this work stoppage....and it's not the players.....

Since: Nov 7, 2008
Posted on: October 20, 2011 4:17 pm
 

Report: Memphis plans to sue NBA for lockout?

They won't sue becuase they are afraid the owners will come to their senses and move this crappy franchhise again....It's just like one of Stern's idiotic deadlines, all talk and no balls.  And was the city going to sue when the attendence went down, and thusly gate receipts as well, yet again?  

And if they do sue, get ready for the Seattle or Las Vegas or wherever Grizzilies because you know they will find a way to get out of that lease ASAP.

This is another reason why politicians should not be allowed to give money to sports teams....

 

Since: Sep 30, 2011
Posted on: October 20, 2011 3:50 pm
 

Report: Memphis plans to sue NBA for lockout?

I am not an attorney..........but every contract has payment terms, etc.  If the team financed an arena with public funds via bonds that need to be paid from basketball revenue, the team should have had a back up plan in the even there was no basketball.  Every team knows when the CBA expires and should have planned for the possibility of a lockout.  As far as I know, there are credit insurance policies that can be purchased for this......the policy is taken out by the party who is owed the money on the payee, in the event the payee is unable to meet its obligation, the policy will pay in full (less any self-insured retention).  The carrier reserves the right to subrogate against the team/payer......so at such a time that the games resume, they could collect.

I will make an offer to all NBA owner's........if you owe your city money for an arena right now and you cannot pay.......send me your city contacts and in the future I will supply them with the insurance on you so they get paid.
mzracing76
Since: Dec 24, 2006
Posted on: October 20, 2011 11:45 am
This comment has been removed.

Post Deleted by Administrator
EverettBill
Since: Oct 20, 2011
Posted on: October 20, 2011 11:08 am
This comment has been removed.

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jhoshamusing
Since: Oct 17, 2011
Posted on: October 19, 2011 11:10 pm
This comment has been removed.

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Since: May 25, 2007
Posted on: October 19, 2011 7:38 pm
 

Report: Memphis plans to sue NBA for lockout?

And this is why cities should never give money to build arenas, stadiums, etc. for professional athletes. EVER.

Since: Nov 7, 2008
Posted on: October 19, 2011 7:30 pm
 

Report: Memphis plans to sue NBA for lockout?

27th in attendence in 2010

28th in attendence in 2009

29th in attendence in 2008.  

And don't sue the NBA, sue the owner who asked for the money and the idiotic city council persons/mayor/whoever else was in charge who voted to give the team the money.

Since: Nov 7, 2008
Posted on: October 19, 2011 7:20 pm
 

Report: Memphis plans to sue NBA for lockout?

i love it when i hear haters bash memphis

Who bashes Memphis?  You have to be a relevant city to actually have people bash you. 

And I agree with other posters...if the NBA does go to contraction to figure out some of it's money woes, Memphis should be one of the teams on the chopping block.  Not hating on Memphis, I actually quite like visiting there for the food and then getting the hell out at night, but it just is a subpar NBA city.   
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