Venue Detail
Memphis Grizzlies
Revenues From Sports Venues Pro Facilities Report
February, 2011
Memphis Grizzlies
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PO Box 3463 Memphis, TN 38173 Phone: 901-888-4667 Fax: 901-205-1235 URL: www.nba.com/grizzlies
Owner
Brian Davis and other investors
League
National Basketball Association Western Conference, Southwest
Venue
FedEx Forum, 191 Beale St, Memphis, TN 38103 Owner: New Memphis Arena Public Building Authority Managed by: Team Built: 2004 Capacity: 18,190 Concessionaire: The Levy Restaurants Suite caterer: The Levy Restaurants
Naming rights
Sold to: FedEx Price: $90, 000,000 Term: 20 years Expires: 2022
Ticket prices
Season tickets range from $225 to $26,550 Single tickets range from $5.00 to $667.00
Attendance
2007 average attendance: 14,654 2008 average attendance: 12,770 2009 average attendance: 17,101
Luxury Suites
Quantity: 60 Term: 5 to 10 years Price: $175,555 to $400,000 Seats: 13 to 24
Club seats
Quantity: 1,620 Term: 3 to 5 years Price: $3,060 to $3,825
Financing
The Memphis City Council approved funding that called for $250 million in bonds to be issued by the city and county. Revenues to make payments come from several sources. State and local sales tax rebates fund $65 million and a hotel/motel tax funds another $52 million in bonds. A car rental tax covers $21 million in debt. The city's electric utility financed $34.80 million in bonds from payments in lieu of taxes and a $1.15 ticket surcharge funded $13.34 million in bonds.
State revenues funded $20 million in bonds and city and county general fund revenue accounted for another $24 million. Pct. public: 100
The Grizzlies moved from Vancouver, B.C., to Memphis in 2001 and played temporarily at The Pyramid while a new arena was being built.
The deal gave the team veto power over any plan to build a new arena during the team's lease term. Another gave the team a $6.25 million rebate if the arena were built for less than the $250 million budgeted. There was also a penalty of $3.75 million to be paid to the team if the arena was not available for play for the 2003 season. Many believed the 2003 deadline was too ambitious. It was and the team was paid for the delay.
The Grizzlies are prohibited from leaving the arena for 10 years, but could consider moving after then if season ticket sales dropped below 14,900 per game. A group of local business people say they will buy up to 5,000 tickets a year to make up for any shortfall. If the 5,000 were not enough to meet the 14,900 goal, the team must be put up for sale before it could move. Local owners would have the first right to buy the team, followed by candidates identified by the city and county.
Should all that fail and the team opts to move, it must pay a share of the remaining arena debt. That amount begins at $94 million in year 10 and declines to $8.4 million.
The Grizzlies manage the arena and get first crack at certain events over the city's other venue, The Pyramid.
The agreement allows the Grizzlies to play rent-free and keep all ticket, concession, parking and other building revenues. The team is responsible for operating expenses. The city and county must pay for capital improvements.
As part of the Grizzlies' move, a group of local investors paid $100 million to buy a minority share of the team. The team paid $16 million in relocation costs and $8 million in losses while it waited for the new arena to be built.
The arena includes 80 club boxes on the east end of the arena. They are available as a box of 3, 4, 6 or 8 seats. Most boxes include four seats with a flat screen television and adjustable chairs on casters for $23,750. Purchasers receive a $1,000 food and beverage credit during an introductory period. Club boxes are available for one-, three- and five-year terms and include tickets to all pre-season and regular season Grizzlies home games and most other FedEx Forum events.
Ledge seats cost $140 per person and include a buffet meal. Luxury suites are $3,960 for a 24-ticket suite and $8,910 for a 54-ticket suite. Floor seats are $10,575 to $26,550 per season. (Basketball, Facilities, Financial, NBA, Professional Sports)