Grizzlies' New Owners Used $175M In Financing To Purchase Franchise
Robert Pera and his group of owners used $175 million in financing to purchase the Memphis Grizzlies last month.
The Pera-led group closed on the $377 million purchase of the franchise from Michael Heisley. A source told The Commercial Appeal Monday night that the group used $125 million available to NBA teams through the league's credit facility and another $50 million in bank financing to close the deal.
"There is nothing unusual about the financing to acquire the Grizzlies," said Rob Friedrich, a vice president of the NBA and the league's general counsel. "It is standard in the context of team acquisitions and fully compliant with the NBA's debt policies. The financial wherewithal of Robert Pera and this ownership group is very strong and the team remains on a very solid financial footing."
Nineteen of the league's 30 teams use the league's $2.3 billion credit facility.
The owners must pay interest on the money, but never had to address the principal.
Franchises are also allowed up to $50 million in financing provided outside of the NBA's facility.
Sources told The Commercial Appeal last month that Pera will own less than 50 percent of the franchise. There are 24 people or entities listed as partners.