FedExForum, Liberty Stadium projects: How does Memphis get deal done?
But this isn’t a game show. This is about the future of sports in Memphis.
The Commercial Appeal obtained a recent stadium/arena proposal presented by the city to the Memphis Grizzlies and the University of Memphis pertaining to renovations for FedExForum and Simmons Bank Liberty Stadium. It provided nearly $500 million for FedExForum and $220 million for the improvements planned at the football stadium. The plan would use both the $350 million the state allocated to the city and additional tax mechanisms and funding streams – some of which still need to be approved by the state legislature.
The university is being very vocal about pushing the stadium project forward so it can start construction on time in January. The city is saying less and less, other than acknowledging the complexity of this situation. The Grizzlies haven’t said much at all.
With so much uncertainty behind the scenes, The Commercial Appeal convened a roundtable with sports columnist Mark Giannotto, Tiger football beat writer Jonah Dylan and Tiger basketball writer Jason Munz to debate and discuss some of the biggest looming questions.
Is this proposal a realistic framework for all sides?
Giannotto: Probably not. There’s a lot at stake for all parties involved, and this particular proposal features a gap of more than $100 million between what the Grizzlies want for FedExForum renovations and what the city is able to provide. After Oklahoma City announced plans to give the Oklahoma City Thunder $850 million in funding for a new arena, the city will have to get more creative to push this over the finish line.
Munz: Realistic? Sure. There is probably a universe where the parameters that were presented make for a viable path forward. But it seems unlikely that’s the universe we’re in right now. Now, that isn’t to say there is cause for any sort of major alarm bells. Negotiations are part of every business (and political) deal. I’d be surprised if anyone expected that proposal to be agreed upon as is.
What are the chances the deal gets done by the end of the year?
Dylan: It still seems unlikely at this point. The proposal showed there’s progress being made, but university officials have said they need a deal for Simmons Bank Liberty Stadium to be done before the City Council meeting in October so it can be fully approved. That’s awfully close, considering there are still significant details that need to be hammered out in the proposal.
Giannotto: Never say never, but all signs point to more time being needed. Memphis wants to get its share of the $350 million in the state’s budget now in order to begin construction in January, but pushing their portion through without resolving the Grizzlies’ issues would be shortsighted. Get the right deal done, not just the deal of least resistance.
Is it worrisome the university and Grizzlies are pitted against one another?
Munz: It’s certainly not ideal that the two most prominent sports entities in the city are seemingly at odds (even if some of it might be manufactured by the considerable discussion in various public forums). What’s more worrisome to me is the notion that some are surprised – and, possibly, turned off by the fact – that both sides are looking out for their own best interests.
Dylan: It’s worrisome because it’s not necessary. The projects were coupled in the first place so the city could get the largest possible sum for improvements to stadiums throughout Memphis. That worked, because the city now has $350 million it didn’t before. But without a clear plan on how the money would be allocated between those projects (to say nothing of renovations to AutoZone Park and a new stadium for Memphis 901 FC) it almost feels like this was an inevitability.
Will the city, the Grizzlies and the university get what they want?
Munz: I doubt it – not everything they want, anyway. Even the proposal obtained last week showed neither the university nor the Grizzlies were going to get all the money they were hoping for from the city. But wasn’t that sort of expected? The bet here is both entities will get enough to be satisfied overall. But it feels inevitable that neither side will get everything they want from the city.
Giannotto: Sort of. It appears the city, based on this proposal, isn’t moving forward with renovations to AutoZone Park and a new soccer stadium. The Tigers might not get to start their project on time. The Grizzlies are probably in the best position simply because they have the most leverage. But compromises were unavoidable and I do believe we will end up with renovations at the stadium and the arena. If that happens, everybody will have gotten enough of what they wanted.
