When we last checked in on the Memphis Grizzlies, owner Robert Pera had just gotten allocated $350 million in state money for renovations for their not-yet-20-year-old arena, to be shared with the Liberty Bowl, then immediately turned around and had the city’s new mayor (and Grizzlies season ticket holder) ask for more public money if Pera is going to extend his lease past 2029. And now, state legislators think they’ve found some more cash under the sofa cushions:
The bill, introduced by state Sen. Raumesh Akbari, D-Memphis, and state Rep. Antonio Parkinson, D-Memphis, would direct more revenue from the city and county hotel/motel tax to the Memphis Sports Authority if needed. The allocation would bridge any funding gap related to FedExForum renovations that are projected to cost at least $550 million.
After spending $120 million of its state cash on the Liberty Bowl, Memphis has $230 million left over to upgrade the Grizzlies’ arena. Akbari and Parkinson haven’t indicated exactly how much money would be siphoned off from the hotel/motel tax, but if it really would bridge “any funding gap” and the funding gap is currently $320 million, we can make an educated guess.
The hotel/motel tax money is currently designated for “tourism and tourism development,” though it’s mostly being used for paying off the arena’s initial construction costs, plus acting as a slush fund for things like expanding the city’s convention center; the state legislators behind the bill also didn’t indicate how they would backfill paying for anything the tax money would otherwise cover. Pera has reportedly been interested in redoing the arena’s seating to have more lower-bowl seats and fewer upper-bowl seats because he can charge more for lower-bowl ones — which at a $550 million cost may seem like an awfully expensive way to raise ticket prices, but if you can get the public to pay for the expense, all the rest is gravy.
As for why Tennessee should want to give the local billionaire $550 million so that he can increase his profits a bit, city councilmember Chase Carlisle warned in December that Pera had put the city “on notice that we need $550 million” or else “we have to start seriously considering our options.” (It must be so nice to be a billionaire and have elected officials to make your non-threat threats for you.) So far there’s been no hint of how much of a lease extension Pera might agree to in exchange for his demand for public funds, but given that he got the first $230 million in exchange for agreeing to absolutely nothing, it’s probably best not to get your hopes up.