Skip to content

Sale of Grizzlies to Robert Pera finalized for $377 million

Oct 29, 2012, 7:57 PM EDT

Grizzlies arena Getty Images

Michael Heisley bought the team in 2000 for $160 million. In January of this year, Forbes estimated the Memphis Grizzlies to be worth $269 million.

Monday the sale of the Grizzlies from Heisley to Robert Pera became official — at a price of $377 million, according to the Commercial Appeal.

For those of you scoring at home, that is a $217 million profit in 12 years, and if you adjust for inflation (using CPI) it comes to $162 million.

Just remember that next time an owner cries poverty about the tax line or how they are losing money.

But this is good news for the Grizzlies — Pera and his minority owners are now in charge of the franchise. The NBA Board of Governors (made up of the owners) approved the sale last week.

Pera has recruited a wide range of investors to join his bid, including local businessmen such as AutoZone founder J.R. “Pitt” Hyde, investor Staley Cates, financier Duncan Williams, investor Edward Dobbs and cell phone tower developer Billy Orgel. Performer Justin Timberlake, who has Shelby County roots; Memphis native Ashley Manning and her husband Peyton Manning, the NFL and former University of Tennessee quarterback; Tiger basketball legends Penny Hardaway and Elliot Perry; and former Congressman Harold Ford Jr. are also part of Pera’s ownership group.

Pera also agreed to a three-pronged proposal of safeguards that essentially binds the team in Memphis for another 15 years.

It’s impossible to tell how Pera’s ownership will impact what is a good team on the court and the direction they chart for the future. But Heisley was not considered a good owner for most of his term and came into a winning team and fortune on the court the past couple of years. It will be interesting to see what direction Pera will chart from here, and how he will influence front office moves.

Bottom line, an energetic new owner who is locked in to staying in Memphis is good for the city and good for the NBA.

  1. tomshoe - Oct 29, 2012 at 8:13 PM

    Dang, looks like Memphis is off the market.

    It’s gonna be a mad scramble for Sacramento.

    Seattle? VA Beach? Kansas City? Anaheim? Las Vegas?

    It’s gonna be a blood bath.

  2. nbascreed - Oct 29, 2012 at 9:44 PM

    I’m fairly sophisticated in valuations but I swear I must be a novice when it comes to NBA Economics. The Grizz had a 2012 EBITDA of -$25M…there’s no way you get to a positive operating cash flow from that. Assuming that this wasn’t a one year anomaly that means they’ve been losing money for sometime, even in the midst of a revival of sorts on the court. Yet they sale for $377M!!! Gladwell was right, it’s all about a feather in the cap and not about business b/c there is no way Pera, who by all accounts is a top shelf former APPL engineer, would pay such a price for the right to own a money losing asset. My guess is that the NBA and the Board of Governors collude to ensure no team is sold at too low of a price.

    Glen Taylor, our owner is trying to sale. I said before that he (nor Heisley) are selling b/c they’re making too much money, they’re selling b/c on a trued up cost basis they’re taking a BATH…but don’t tell that to the next guy who wants the all too intoxicating panache of NBA team ownership.

  3. cosanostra71 - Oct 29, 2012 at 9:56 PM

    good news for Grizzlies fans

Leave Comment

You must be logged in to leave a comment. Not a member? Register now!

Featured video

What players stood out at World Cup?
Top 10 NBA Player Searches
  1. R. Rondo (2498)
  2. L. James (2483)
  3. E. Bledsoe (2285)
  4. K. Bryant (2241)
  5. D. Rose (2175)
  1. K. Irving (1899)
  2. R. Allen (1700)
  3. K. Durant (1598)
  4. N. Young (1443)
  5. G. Oden (1420)