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Blog Entry

Report: Memphis plans to sue NBA for lockout?

Posted on: October 18, 2011 8:03 pm
Edited on: October 18, 2011 8:18 pm
Posted by Ben Gollivernba-lockout

There are billions of dollars at stake in the ongoing NBA labor crisis, and the politicians and lawyers are circling in the water like sharks. reports that the city of Memphis, home to the NBA's Grizzlies, is investigating its options with regard to the ongoing lockout, including litigation against the league to recoup up to $18 million that would have been used to pay off arena bonds for the publicly-owned FedEx Forum. 
At the suggestion of Chairman Myron Lowry, the council is considering a resolution that would ask City Council Attorney Allan Wade to explore all options, including a lawsuit against the NBA.

Wade says this is the first city he's heard of considering this type of action. "If it gets to be half a season that's a big problem. If that thing sits idle for a whole season that's a big problem," he said. "I think that goes against the spirit of our agreement because our arena is built with revenue, not guaranteed money." 
The site reports that the resolution passed by a vote of 8-3.

To boil this down: a portion of the money generated during home Grizzlies games at FedEx Forum goes back to the city to help pay off the original financing of the arena. If there are no home games there is no revenue with which to pay back the city. The city wants its money and could decide to sue the league to get the money at some point in the future. Good times. 

Ken Berger of reports that NBA spokesman Mike Bass says the league has "no comment" on the matter.

It's worth noting that this type of legal action could theoretically happen in any other city that has a publicly funded NBA arena.

Here's's video report.

Hat Tip: NBA


Since: Apr 6, 2007
Posted on: October 19, 2011 1:13 pm

Report: Memphis plans to sue NBA for lockout?

You are all missing the point.

Why didn't the City of Memphis and the Memphis Grizzlies put terms in their agreement that specified what would happen if there was a work stoppage?  Why is the idea of specifying contingencies in a contract so foreign to people? 

Since: Apr 1, 2007
Posted on: October 19, 2011 12:36 pm

Report: Memphis plans to sue NBA for lockout?

I like it. I'd love to see more cities do likewise. It's about time these fat cats are being held responsible for the consequenses of their actions. The little guys are the ones that are being hurt most by this lockout. The vendors, employees that do maintainence & upkeep in the arenas, the ticket sellers, etc. They have no say in it and are being hurt the most. Make 'em way or another. Good call Memphis!

Since: Sep 5, 2006
Posted on: October 19, 2011 12:01 pm

Report: Memphis plans to sue NBA for lockout?

I am really confused by the amount of support out ther for the NBA owners.  People are actually criticizing the city of MEMPHIS for this?  Remember, this is not a STRIKE, it is a LOCKOUT.  The owners have DECIDED to not generate the revenue this season.  While I am not sure that this holds up in court legally, I cannot help but feel for the people of Memphis who are talking about a loss of revenue.  This is business, not leisure for them. They are not suing because they want to see Zach Randolph play, they are suing (potentially) because  they are losing revenues that were implied from a BUSINESS deal.

Seems worth investigating to me.

Since: Apr 7, 2011
Posted on: October 19, 2011 11:29 am

Report: Memphis plans to sue NBA for lockout?

you hit it right on the head...

Since: Aug 14, 2009
Posted on: October 19, 2011 11:16 am

Report: Memphis plans to sue NBA for lockout?

Are you mentally handicapped, Steve?

Since: Jun 9, 2009
Posted on: October 19, 2011 9:06 am

Report: Memphis plans to sue NBA for lockout?

It's actually pretty simple, you morons. The Grizzlies borrowed money against ticket sales. Just because there is no ticket sales, does not mean that there is no loan. IDIOTS. Analogy, I buy a car and finance it. If the car crashes and totals, and I have no insurance, do I still have to pay off the loan? YES

Since: Sep 21, 2011
Posted on: October 19, 2011 8:52 am

Report: Memphis plans to sue NBA for lockout?

This is the risk you take when you borrow money, whether an individual or organization. No revenue source is guaranteed.

Since: Aug 7, 2008
Posted on: October 19, 2011 3:15 am

Report: Memphis plans to sue NBA for lockout?

Incredibly that a city will sue for a lockout especially the small city of Memphis who does not know anything about NBA or college basketball for that matter. Really the USA are going down really fast if we have to sue a sport league because a city is not making money from them. Forget it Memphis you will not win a lawsuit because the NBA is in a lockout so try your best to improve your sorry city and state another way like going to school and improving your life's better than blaming someone else for your back water hillbilly ways.

Since: Oct 26, 2010
Posted on: October 19, 2011 1:03 am


Will the city use outside attorneys to file the lawsuit?  If so, will they work on a hourly rate or 40% contingency?

Since: Aug 17, 2006
Posted on: October 19, 2011 12:35 am

Report: Memphis plans to sue NBA for lockout?

Who cares. Always remember: FOOTBALL IS LIFE.

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