Grizzlies Rumors

MONDAY, 11:02am: Exactly a week ago, news broke that owner Michael Heisley had reached an agreement to sell the Grizzlies to communications technology magnate Robert Pera. Over the weekend, a report from the New York Daily News suggested Pera's bid for the Grizzlies could be in jeopardy due to his company's plummeting stock, but Ronald Tillery of the Memphis Commercial Appeal says that's not the case. According to Tillery, rumors of Pera's declining worth are exaggerated, and his bid isn't in danger.

While Mitch Lawrence's initial report estimated that Pera is now worth $200MM, a figure well below the alleged $300MM+ price tag on the Grizzlies, Tillery hears that Pera's worth is still above $800MM and that he's still committed to joining the NBA. Pera's company, Ubiquiti Networks, has taken a hit on the market lately, but its stock is still strong enough that it's "inconceivable" that Pera's worth has fallen to $200MM, writes Tillery. The Daily News eventually reported the same $800MM figure, citing sources close to Pera, after Lawrence's first piece was published. The 34-year-old is alone in his bid and isn't expected to bring aboard partners to complete the deal.

Pera's purchase of the Grizzlies is far from finalized, however. The NBA is expected to take about six to eight weeks to determine the viability of the bid, and the league's Board of Governors will have to approve the agreement, which will likely happen at some point this summer. Since last week's announcement, Pera hasn't spoken publicly about the agreement, creating some uncertainty about what his plans are for the franchise, assuming the sale goes through.

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On why he made the decision to sell the team:

"Quite frankly, I’m 75. My son is not interested in going to Memphis and running the team. So obviously at some point it was going to have to be done. And quite honestly, I thought it was my job to get it done rather than leave it to my heirs. I've had my surgery on my heart. When [you] get to be my age and things start happening, it makes you suddenly realize if you're going to make these kind of decisions you got to make them while you're healthy — [not] from a hospital bed."

On whether the team will leave Memphis:

"We made it clear to anybody that came that we would like the team to stay here but we can’t make somebody stay here forever…. We still have… nine years left on a contract with the city to stay in the city. I have not yet figured how people think somebody is going to buy the team and leave. It’s going to be here for a while."

On whether he thinks Pera will want to move the franchise down the road:

"I had no discussion with this party about moving the team at all. They have not indicated that at all. That was never part of any conversation… As far as we're concerned, it's obvious they're going to basically be there for a long period of time."

On what kind of owner Pera will be:

"I think he’ll be a good owner. He’s young. He’s in his 30s. I think he loves basketball. And I think he’s financially very well off. I think he’ll be an excellent owner. But that’s a job for the NBA to decide."

On the experience of owning the Grizzlies:

"I love Memphis. Outside of basketball and in basketball, I’ve done a heck of a lot. I’ve spent a huge amount of money to make the team successful there. I didn’t do it because I’m a special person. I did because I love basketball and I love the city of Memphis and the people there and they’ve treated me fantastic. I have nothing but wonderful feelings."

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According to Ronald Tillery of the Memphis Commercial Appeal, Pera has yet to officially sign a purchasing agreement, and the deal could go either way in the next couple days (Twitter links). However, Stein says that a formal announcement to publicize the agreement between the two sides is expected at some point this week.

Earlier this year, Heisley had exploratory talks about selling the Grizzlies to Oracle founder and CEO Larry Ellison. Ellis was interested in moving the franchise to San Jose, which Heisley insisted was not on the table, saying "this team cannot be moved." At the time, Heisley was said to be seeking $350MM for the team and mentioned that another prospective buyer was in the mix. That additional suitor was likely Pera, who Stein says does not intend to move the team, despite being a California native. The purchase price is indeed in the $350MM range, according to Stein.

When I examined the Grizzlies' offseason earlier today, many of my expectations for the team's plans hinged on Heisley's comments about being reluctant to add payroll and wanting to avoid being a taxpaying team. However, if Pera's purchase becomes official, it could alter the club's approach to free agency and the trade market this summer.

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