Grizzlies could terminate lease deal
City, county may have to pay team for attendance shortfall
Memphis and Shelby County could have to pay the Grizzlies for a shortfall in attendance this season or risk the team terminating its lease agreement with
Fedexforum.
According to a provision of the agreement that kicked this season, if the season is deemed a shortfall, Memphis and Shelby County will have to purchase "the required number of Suites and or season tickets to cure the Regular Seat Shortfall, the Suite Shortfall and/or the
Club Seat Shortfall" within 60 days of being notified by the Grizzlies after the season concludes.
Per the contract, a shortfall season is defined as any NBA regular season after the team's 15th at the Forum "in which the (i) average paid attendance (for home games) is less than 14,900 or (ii) the 64 largest Suites available for public sale are not sold in full or (iii) the number of Club Season tickets sold is less than 2,500."
This season is the Grizzlies' 16th at Fedexforum. According to ESPN, the Grizzlies averaged 15,857 fans in announced attendance this season but paid attendance is generally lower than
what's reported.
If the city and county fails to pay, the team has "the right, but not the obligation to exercise the Early Termination Right by sending written notice of such termination within 30 days" after the 60-day window expires.
“We are aware of that clause in the contract and we've been working proactively with our partners at Shelby County and the Grizzlies to address it," said Kyle Veazey, Memphis deputy chief operating officer.
The Grizzlies declined comment when reached.
Before the season was suspended on March 11 due to the COVID-19 pandemic, the Grizzlies played 33 of 41 home games. The team does not release paid attendance figures or season ticket sales.
The Grizzlies resume their season July 30 at ESPN'S Wide World of Sports Complex near Orlando. If the Grizzlies were make the playoffs but lose in the first round, their season ends in August.
After that, they have 30 days to let the city of Memphis and Shelby County government officials that they've designated this a shortfall one.