Memphis council seeks to recover lost NBA revenue
The Memphis City Council is asking its attorney to explore options for recovery of revenue lost during the NBA lockout.
A resolution adopted Tuesday says that the cancellation of the NBA season's first two weeks has caused the city to lose revenues that are used to pay the debt service on bonds issued by the city's sports authority to build the FedExForum, and public revenues may have to be used to cover the shortfall.
The bonds are paid with revenue streams related to the NBA, including tickets and concessions to Memphis Grizzlies games.
The Commercial Appeal has reported that, with the revenue loss associated with a season-long lockout, projections show the current surplus fund of $10.8 million would be gone in time for the senior bonds' Nov. 1, 2022, payment.