The unusual ownership situation in Memphis appears set to take a step forward, according to a report from Daniel Kaplan of SportsBusiness Journal. As we’ve detailed in the past, the nature of the agreement between the Grizzlies’ various owners gives controlling owner Robert Pera the opportunity to buy out two of the club’s top minority stakeholders, or to sell his shares to one of them.
As Kaplan details, Steve Kaplan and Daniel Straus intend to place a valuation of just over $1 billion on the Grizzlies. Once the two minority owners make that price official, Pera would have to decide between buying out their shares or selling his own shares at the price of their valuation. According to Kaplan, most observers of the process expect Pera to keep the team, but if he sells, Kaplan and Straus would have to determine which of them will become the controlling owner.
While Pera may ultimately buy out Kaplan and Straus, that decision seems less obvious now than it has in the past. As Grizzly Bear Blues outlined last month, Pera’s company Ubiquiti Networks saw the value of its shares drop by 25% after the SEC issued subpeonas to look into the company’s finances and structure. However, Kaplan estimates that Pera’s shares in the telecommunications firm would still be worth nearly $4 billion today.
As we wait to see how the Grizzlies’ ownership situation plays out, let’s round up more notes out of Memphis…
- The Grizzlies’ 18-game losing streak has done wonders for the club’s odds of landing a top pick in the 2018 draft, but all those losses are taking a toll on many of the team’s players, writes Ronald Tillery of The Memphis Commercial Appeal. “I’m offended about losing. I’m just tired of losing,” JaMychal Green said. “I’d rather win so we won’t be talking about this. I’m trying to stay positive. … It’s tough for us to lose. I’m trying not to let the losing affect me and my game and my spirit. I want to just finish strong.”
- According to Tillery, Tyreke Evans probably won’t return to the court for Memphis before the end of the regular season, in part because it’s simply not worth the risk as he prepares to enter free agency.
- The Grizzlies signed Briante Weber to a 10-day contract on Wednesday to fill the roster spot vacated by Xavier Rathan-Mayes. We have that story right here.