Pera could lose ownership of Grizzlies

[Pugz]

Robert Pera purchased the Grizzlies from Michael Heisley in 2012 for $377 million. At 39 years old, he is one of the youngest owners in sports and one of the youngest billionaires in the world, according to Forbes' Kate Vinton.

According to Forbes, Pera has a real-time net worth of $4 billion.

As Krawczynski described, however, minority owners Steve Kaplan and Daniel Straus exercised their right to set a new valuation for the franchise. Peyton Manning and Justin Timberlake are also among those who own a stake in the organization as the group needed extra money to close the deal

 

[brett05]

Can you explain please how a new evaluation means a loss of a franchise?

 

[Giantmetfan07]

Pera has owned the Grizzlies since 2012 when he bought the team from previous owner Michael Heisley. Because Peras technology company took a big hit during the process, he was forced to bring on Straus and Kaplan as partners at 13.5 percent equity each and search for other lesser minority owners to purchase the rest of the franchise with the ownership group.

This buy/sell clause could effectively remove Pera from the ownership group. His only two choices are to allow Kaplan and Straus to set a new valuation for the Grizzlies and sell his ownership stake or buy out Kaplan and Straus in order to keep the team. His decision heavily rides on his own financial stability right now.