An opinion article appearing on the Web site NorthJersey.com last week suggested the state of New Jersey should possibly seek a current NBA franchise once the New Jersey Nets move into their new arena in Brooklyn, New York.
Ground was broken last week on the Atlantic Yards project in Brooklyn, a development that will include the Nets new arena, housing and office space. Construction of the new development is expected to take two years and possibly a third.
The Nets, who currently play their home games at the Izod Center in the Meadowlands, will move to the Prudential Center in Newark next season.
The article noted New Jersey Governor Chris Christie was “cautiously optimistic” that another NBA team could be lured to the state once the Nets relocate to Brooklyn.
The Nets have agreed that the state’s efforts to acquire a new NBA team wouldn’t be opposed by the franchise.
The article suggested that current NBA franchises in Memphis and Sacramento would be prime candidates for relocation to the state of New Jersey.
“The hunt is on for a new NBA team. And we caution the Grizzlies if they were to consider New Jersey, not to let their mascot roam unattended. New Jersey loves basketball; bears, not so much.”
While I can’t speak for the city of Sacramento or the Kings’ franchise, I can speak for Memphis and the Grizzlies.
Unfortunately, the writer of the op-ed piece wasn’t aware of the particulars surrounding the Grizzlies’ agreements with the city of Memphis and their lease with the FedExForum.
There’s a separate non-relocation agreement, stating that during the first 10 seasons in FedExForum, the Grizzlies can’t relocate from the City of Memphis.
That contract provision alone would preclude the Grizzlies from moving to a new city. Moreover, the provision is enforceable by injunction and the franchise would have a nearly impossible path to circumvent it.
The Grizzlies began playing in the FedExForum in 2004 and have four years remaining on their current lease.
Starting in year 10, the Grizzlies can relocate only if certain ticket and suite sales minimums are not met.
Even then, the city has the right to step in and buy enough tickets or suites to meet the minimums.
Even if the city of Memphis passed on that provision and a buyer wanted to move the franchise, the city would still have the opportunity to find a local buyer to match the purchase price.
Any out-of-town buyer would also have to pay off the debt service on FedExForum, a number that doesn’t dip below $100 million until 2015.
And the buyer would have to pay back FedEx for a portion of the naming rights. Those naming rights were purchased by Federal Express for $92 million.
A prospective buyer would also have to get the NBA’s approval and pay the NBA’s relocation fee.
That relocation fee would certainly be a lot more than the $25 million the Grizzlies had to pay to leave Vancouver.
What does all of this mean?
The Memphis Grizzlies aren’t going anywhere, regardless of what anyone in the state of New Jersey thinks.
The Sacramento Kings on the other hand…
Actually only 4 teams really need a new arena or relocation.
The Nets are relocating to Brooklyn to build a new fan-base.
The Kings are going to be considered but if they do relocate it would be to Las Vegas, Anaheim, San Jose & Kansas City in that order.
The Timberwolves need a new arena but would likely move to St. Paul, Minnesota in the Xcel Energy Center plus the Minnesota Wild owner is interested in an NBA team (see Bucks).
The Bucks are a prime candidate besides the Kings to relocate in the next couple years. Bradley Center won’t cut it and Kohl may just have to give up the team even if he wants it to stay in Milwaukee.
I think the Bucks are a prime candidate to relocate to Newark, NJ once the Nets move to Brooklyn, NY. Shaq wants to buy an NBA team and was raised in Newark. He made comments before about a team playing there too. Minnesota Wild owner made overtures about purchasing the Bucks.
Watch out for Vancouver in the end though, VancouverinNBA.org just opened and they could support a new basketball team. They were not given a fair-shake and I think a new team could work in Vancouver like the Timberwolves.
I left out Seattle because it seems like legislatures are not interested in revamping the KeyArena. Personally I think the Key Arena site should be demolished and a Seattle Sounders FC soccer stadium get built. That would be a boon to MLS and soccer in the Pacific Northwest.
Peace.
Thanks for the wealth of information. I’d be interested to know the lease agreements all of those franchises have with their arenas. I’d be willing to bet they’re nothing like the one Memphis has with the FedEx Forum.