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.

MyFoxMemphis.com 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 CBSSports.com 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 MyFoxMemphis.com's video report.

Hat Tip: SBNation.com NBA

Comments

Since: Jan 1, 2007
Posted on: October 18, 2011 10:59 pm
 

Report: Memphis plans to sue NBA for lockout?

I doubt Memphis, Indiana winds up on the map if your dream comes true. Going for 0-16 this year? The Lions don't want to be lonely.



Since: Oct 20, 2008
Posted on: October 18, 2011 10:57 pm
 

Report: Memphis plans to sue NBA for lockout?

is there a city more desperate than Memphis?  first Cal, and now this...
Not in the United States.

Good God, would the Mississippi just flood this hell hole and forgettaboutit?  
It'll get leveled by an earthquake pretty soon.



Since: Mar 18, 2009
Posted on: October 18, 2011 10:47 pm
 

Report: Memphis plans to sue NBA for lockout?

Pathetic



Since: Dec 16, 2010
Posted on: October 18, 2011 10:47 pm
 

Report: Memphis plans to sue NBA for lockout?

Epic Fail...


is there a city more desperate than Memphis?  first Cal, and now this...


Good God, would the Mississippi just flood this hell hole and forgettaboutit?     


The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com