A critical clause in Memphis’ franchise ownership agreement has been activated this week, Jon Krawczynski of The Athletic writes. As we’ve written in the past, the second-largest Grizzlies shareholders will now have an opportunity to possibly buy out majority owner Robert Pera.
In short, Steve Kaplan and Daniel Straus will be presented a chance to purchase Pera’s stake (25-26%) at a price point of their choosing, a caveat being that when they submit their offer, Pera will have the option to instead buy their shares (13.5% each) at the same rate.
All eyes will be on how Pera handles the forced decision. As Krawczynski writes, Pera has been a notoriously absent owner and the franchise appears to be trending in the wrong direction.
The clause, then, marks an opportunity for Pera to cash out on what could prove to be a very successful investment considering that Kaplan and Straus will naturally look to dissuade him from matching and, of course, the rise in franchise valuations across the entire NBA in general.
While the Grizzlies were purchased for $377MM back in 2012, the recent sales of the Clippers and Rockets for north of $2B has obliterated the former precedent.
Pera will have 60-90 days from the day that the clause was activated which means that, barring any complications, we could see a resolution here by the end of January or February at the latest. The exact date that the clause was triggered is not presently known.
If nothing else, the activation of the clause could bring an end to a chapter of uncertainty for the franchise. This year especially, with a lack of familiar faces on the roster, a plethora of injuries and now a coaching change, any semblance of stability could bode well.
Whether that means Pera assumes a larger ownership stake or Straus and Kaplan unseat him altogether, however, remains to be seen.