Pera to keep control of Grizzlies
Buy-sell clause was exercised by ownership partners last year
Grizzlies owner Robert Pera announced Monday evening that he will retain controlling interest in the franchise.
Pera sent an email to Grizzlies MVP season ticket holders informing them of his decision. Pera also sent a formal notice to the NBA.
His decision came in the wake of a buy-sell process involving limited partners Steve Kaplan and Daniel Straus.
To keep control of the team, Pera had to commit to either buying Kaplan’s and Straus’ shares at a valuation price set by them, or Pera could have decided to sell his shares of the team at that price.
It wasn’t immediately known what valuation Kaplan or Straus set. Forbes recently published a valuation of the Grizzlies at roughly $1 billion.
Pera reassured his elite Grizzlies customers by writing: “I am committed to Memphis as an NBA market and as the home of the Grizzlies. We recognize that this has been a trying season for you as fans.
“That serves to reinforce our dedica-
tion to continue building a successful NBA franchise. We have made significant investment in our organization in recent years and considerable strides towards our goal of sustained success. We will continue to do so and are confident that you will see the results of those investments in coming seasons.”
Pera hasn’t been a cheap owner. He’s mostly been an absentee figure with the organization. He rarely attends games or grants interviews with the media.
Kaplan and Straus triggered the buysell agreement last fall around the fifthyear anniversary of Pera purchasing the team from late owner Michael Heisley.
All parties had a 60-90 day window to engage in good-faith negotiations, a source confirmed to The Commercial Appeal. Pera had to decide to sell his 25percent share of the team for 25 percent of an evaluation made by Kaplan or Straus. Now, Pera must buy out Kaplan’s 14-percent of the team and Straus’ 14percent share at the valuation that was presented.
The arrangement was suggested by former NBA commissioner David Stern as a safeguard in case Kaplan or Straus didn’t like being minority owners with Pera.
Pera led a group that bought the Grizzlies for $377 million in 2012.