The Grizzlies announced yesterday that Owner Michael Heisley has “entered into a sale agreement” for the club with Ubiquiti Networks Founder & CEO Robert Pera, according to Marc Stein of ESPN.com. Sources said that the purchase price is “in the $350 million range.” NBA BOG approval is “required before Pera can be officially installed as successor to Heisley.” Sources said that Heisley “received an eight-figure deposit from Pera on Monday to start that process.” Pera has “never mentioned trying to move the team out of Memphis.” The Grizzlies' lease at FedExForum would “make relocation difficult and expensive under any circumstances, thanks to a lease that binds the franchise to the arena until the year 2021, with steep financial penalties triggered by breaking that lease.” The 34-year-old Pera is a "former engineer at Apple" who left the company at 25 to start Ubiquiti Networks, which he operates “out of Taiwan as well as San Jose” (ESPN.com, 6/11). In Memphis, Ronald Tillery noted the transaction is “expected to be completed by the end of July or no later than Sept. 1.” Negotiations "centered on the purchase price," which will be $370-380M. Tillery noted Heisley has often cited “health issues, a lack of desire by his family to operate the team and a need for local ownership as reasons for him being open to a sale.” Sources said that Pera “approached Heisley three months ago, and has visited Memphis since then.” The Grizzlies' local investors “had known about the framework of the deal … for about six weeks” and were “given the chance to match the offer but did not do so.” The local partners "will be bought out when Pera's deal is completed” (Memphis COMMERCIAL APPEAL, 6/11).
IN HIS WORDS: Heisley, who bought the team in ’00 and relocated it from Vancouver a year later, said of the sale, “It's very bittersweet. I love Memphis. … 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.” Heisley added, “I'm 75. My son (Michael Heisley Jr.) 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.” Heisley: "These kinds of decisions, you got to make them while you're healthy. You don't want to be making them on a hospital bed.” Heisley said of Pera, “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” (FOXSPORTSFLORIDA.com, 6/11). NBA.com’s David Aldridge noted Heisley "had discussions last year with billionaire Larry Ellison." But the "discussions stalled when Ellison made clear his desire to move the Grizzlies to California.” Heisley: “We were not interested in getting involved in a relocation discussion. Mr. Ellison chose to go to the paper in San Jose, or one of his people did, which really did not please me too much” (NBA.com, 6/11).
LEASE APPEAL: In Memphis, Geoff Calkins writes, “Extend the lease. That's all Robert Pera would have to do to reassure nervous Memphians. Extend the lease that binds the team to FedExForum.” The lease states that the team “can't move until 2021,” so “make it 2031 and the citizenry would throw a parade for the guy.” Calkins: “Heisley says he's found someone to buy the Grizzlies ‘who has expressed a total commitment to Memphis?’ Then a longer deal should be no problem” (Memphis COMMERCIAL APPEAL, 6/12).
