B-Balling in Memphis
How the Grizzlies have Remodeled Ownership and Revitalized the Franchise
The Rough Road to Memphis
It is very rare to see a losing team turn around quickly after being sold. The Grizzlies, quite frankly, were a hot mess before majority owner Robert J. Pera bought the team in 2012. As someone from Western Canada, I recall the failed experiment of the Vancouver Grizzlies. When Toronto and Vancouver were awarded Canada’s first NBA franchises, my loyalties were split right down the middle. But as the Raptors had way more success along with the star power of Vince Carter, my devotions followed. In all honesty, the Grizzlies left nothing to cheer for. The team was defunct, and it seemed almost like a mercy killing to move the team to Memphis. While it was a new start for the Grizzlies, the reality was it was more the same. The Grizzlies carried the old losing ways to the new city.
The turnaround finally came with new ownership in Pera. Pera cleaned house from the bottom up and put in more analytically savvy management focusing on drafting and rebuilding. It worked. The Grizzlies saw immediate success on the court, which was capped with an impressive 56-win season the year Pera took over. However, despite all the success, the Grizzlies still struggled to generate revenue. According to Forbes, Memphis is 2nd to last only ahead of the Pelicans in terms of franchise net worth.
New Ownership, New Dynamic
Pera decided to shuffle the ownership deck in 2018. Rumors surfaced that Pera would sell the team. Instead, he sold parts of the team while maintaining majority interest. It is an exciting model, which should be of interest to Krause House in pursuit of `WAGBAT.`
The ownership structure is now diverse, with many parties involved, including the likes of Justin Timberlake, Peyton Manning, and Bill Rhodes, CEO of Autozone Inc. The team continues to win on the court, and the ownership structure seems to be a win off the court. Many have suggested that the ownership structure is, in fact, quite brilliant as many owners can leverage different resources. The team can draw on various resources in terms of exposure and management.
Many have suggested that Memphis will not be able to sign star players, such as the up-and-coming restricted free agent Ja Morant. Pera says the ownership group is ready to spend big. The new group has some swagger and some deep pockets. Even though attendance and revenue have been sparse, the group feels it can finally leverage all its avenues to win and drive up the value. Krause House could do just this as one of the owners of another team–bringing a wealth of talent and resources that it can apply to team promotion and management. It is a proof of concept that different ownership structures can not only work but thrive!
Flying High
The Grizzlies Nation is reveling in the unreal takeover of the fourth quarter in game 2 of the series against the Warriors. Ja Morant became the stuff of legends. After getting poked in the eye, he exited the quarter, saying he couldn’t see. Coming back with 9 minutes on the clock, he took over the game, leading to a big win. It gave the Grizzlies a sense they could beat the playoff hardened Warriors. The team has all the potential in the world, as does the new ownership group. The Grizzlies are flying high along with Morant.
