Sunday, March 25, 2012

Will Memphis Be the Next Seattle SuperSonics?????

Looks like the Memphis Grizzlies are following the same script as the Seattle SuperSonics did about 5 years ago: prospective franchise buyer wants to purchase the franchise and then move it to new location (in this case Oracle's Larry Ellison wants to buy the Grizzlies and move it to Anaheim, which would mean 3 NBA teams - Grizzlies, Lakers and Clippers - in 25 mile radius), but stadium lease with city includes specific performance language -- that is, the team has to play in arena until a certain date -- in this case, 2021. Even though specific performance clauses in stadium leases seem binding, courts usually find $$ figure to compensate for the team leaving. That's what happened in Seattle and I suspect that will happen in Memphis, too.
Michael McCann-

Tuesday, March 13, 2012