Report: Grizzlies minority owners exercise buy-sell clause

Minority shareholders of the Memphis Grizzlies have triggered a buy-sell clause that will force controlling owner Robert Pera into making a firm decision on the franchise, sources told Jon Krawczynski of The Athletic.

Pera can either buy out the minority owners at the evaluation they set for the franchise, or sell his shares at that same evaluation and relinquish control, according to a report from Zach Lowe and Brian Windhorst of ESPN in 2016.

The clause was triggered by Grizzlies minority owners Steve Kaplan and Daniel Straus, who each hold a 14 percent stake in the team.

Estimates from 2012 suggest Pera only owns 25.6 percent, of which he purchased for $45 million. That was good enough for Pera to serve as controlling owner, although he requires participation from the other owners to reach a majority vote.

The clause was built when Pera and a group of 20 minority owners assumed control of the franchise. Pera had initially intended to buy the team on his own, but his technology company dipped in value at the time, which forced Pera to take on additional buyers.

Krawczynski reports Pera's company has since skyrocketed in value, but his absent presence around the franchise could signal a split.

Kaplan wanted $100 million when he tried to sell in 2016, according to Lowe and Windhorst, which would value the Grizzlies at $700 million. It's unclear if the price has changed, or if Pera is willing to meet it.