The city of Memphis will consider suing the NBA and the Grizzlies to recoup losses caused by the ongoing NBA lockout, according to Lauren Lee of MyFoxMemphis. Memphis' city council approved a resolution on Tuesday that allows city staff to explore paths to reimbursement, including litigation, should the city be forced to pick up the tab for up to $18 million in bond payments usually covered by revenue generated at FedEx Forum by Grizzlies home games.
Memphis Could Sue League, Grizzlies Over Money Lost To NBA Lockout
The league has cancelled all of the preseason and the first two weeks of the regular season while negotiating off and on with the players’ union over salary concessions and salary cap changes. NBA commissioner David Stern has warned he will cancel all games through Christmas if a deal is not soon reached. As Memphis’ city council approved the resolution allowing for a lawsuit on Tuesday, league and players’ union officials were stretching toward their ninth hour on negotiations under the guidance of federal mediator George Cohen.
The FedEx Forum in Memphis, like many NBA arenas, is owned by the public. Reports have suggested that over the past decade, the public has funded $1.75 billion of the $2 billion in construction costs sunk into NBA arenas.
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