Report: Ex-Duke player Davis to buy Grizz....

[BRad1055]

http://sports.espn.go.com/nba/news/story?id=2609333



Report: Ex-Duke player Davis agrees to buy Grizz

ESPN.com news services





Former Duke basketball player Brian Davis has reached an agreement to purchase Michael Heisley's 70 percent majority share of the Memphis Grizzlies, a source familiar with the deal told the Memphis Commercial Appeal.
According to the newspaper, the NBA is expected to review the agreement this week. The source told the newspaper that the contract to sell the Grizzlies estimates the team's value at $350 million.
Local ownership, which combines for a 30 percent share of the team, has the right to match the offer to purchase the team. The newspaper reports that Heisley's limited partners have 30 days to respond to Davis' offer from the point they receive official notification.
The Commercial Appeal, citing team insiders, reported that the Grizzlies lost more than $40 million following the 2005-06 season, spurring Heisley to try to sell his majority share.
If he is successful in purchasing the majority share of the Grizzlies, Davis reportedly plans to eliminate team president Jerry West's position in a cost-cutting measure, according to the newspaper.

 

[Bricklayer]

You knwo what is interesting there? The Memphis arena etc. is supposedly one of those being hled up as a model for Sacto, and yet the Grizz lost $40mil last year? That's unsustainable for basically anyone. That's -$200 million in 5 years.

 

[VF21]

While the FexEx arena is being held up as an example of the type of arena wanted, I think the main reason they've lost so much money is the fan base. They don't even sell out playoff games, IIRC.

 

[Sac.Kings]

While the FexEx arena is being held up as an example of the type of arena wanted, I think the main reason they've lost so much money is the fan base. They don't even sell out playoff games, IIRC.

Thats because they never win playoff games.

 

[SacTownKid]

You knwo what is interesting there? The Memphis arena etc. is supposedly one of those being hled up as a model for Sacto, and yet the Grizz lost $40mil last year? That's unsustainable for basically anyone. That's -$200 million in 5 years.

Hmmm. Maybe thats why the Maloofs want 8000 parking spaces.

 

[ShatteredVision]

Hmmm. Maybe thats why the Maloofs want 8000 parking spaces.

Pretty much, but what the Maloofs also want are the type of fans that will spend more beyond the ticket price. No matter where you sit at the game, everyone will pay the same for parking...

That's why they want more luxury suites, because those will serve people that will bring in the big $$$ and spend even more $$$ on merchandise, concessions and other hot ticket items inside.

Sure, a strong fan base and constant sellouts are nice, but if most of the fans aren't spending much elsewhere, they say that's bad for business.

 

[4cwebb]

can someone enlighten me as to how Brian Davis is leading this bid to purchase the Grizzlies? Or is this just a sham article?

 

[Packt]

I don't know exactly who is involved with this group, but Davis runs a company called Blue Devil Ventures--Laettner is also involved as a "limited partner". It seems they've been redeveloping Downtown Durham, with the emphasis on restoring historic landmarks/buildings.

Still, buying an NBA team requires major capital and I'm not sure where exactly it’s all coming from. It's also been mentioned Blue Devil Ventures is interested in revitalizing the area around the FedEx Forum and has been meeting with local politicians and business leaders.

Now, if they're in cost cutting mode, they should send us Gasol and we can send back Reef and enders. Go young with Gay and play for the lottery. I would feel sorry for Reef though- played all around the country, only to end up back with a losing Grizzlies team.