Vancouver Grizzlies relocation to Memphis
Encyclopedia
The Vancouver Grizzlies relocation to Memphis was a successful effort by the ownership group of the Vancouver Grizzlies
to move
the team from the Canadian city of Vancouver
, British Columbia
, to the US city of Memphis, Tennessee
. The team began play as the Memphis Grizzlies
in the 2001–02 season
. It was the first of three National Basketball Association
(NBA) franchise moves between 2001 and 2008, and the third of four major league teams to relocate from Canada to the United States between 1995 and 2005.
The Grizzlies had been created as an expansion team
along with the Toronto Raptors
in 1995. For the six seasons in Vancouver, the Grizzlies performed poorly; it only once finished better than last in the Midwest Division
and never reached the playoffs
. The Grizzlies were owned by Orca Bay Sports and Entertainment, who also owned the Vancouver Canucks
of the National Hockey League
(NHL). In 1999, Bill Laurie, owner of the NHL team St. Louis Blues
, attempted to buy the Grizzlies, with the intent to move it to St. Louis
. After interference by the NBA, the Grizzlies were sold to Michael Heisley
. He immediately started the process to relocate the team, and seven US cities were candidates for the team—Anaheim
, Buffalo
, Memphis, New Orleans, Louisville
, Las Vegas
and San Diego—before settling on the move to Memphis at the end of the season.
The first four Grizzlies seasons had given average attendance in the middle third of the league. However, the last two seasons saw a reduction to among the league's lowest attendances; participating reasons were the teams poor performance and the 1998–99 NBA lockout
. The poor performance was in part caused by the expansion rules hindering the Grizzlies' from making good draft picks. Other reasons for the relocation were a weak Canadian dollar
, unwillingness of some US players to live in Canada, and lack of local ownership. As of 2011, the current Canucks owners have announced interest to relocate another NBA team to Vancouver.
. Founded as the New Orleans Buccaneers
in 1967, the franchise moved to Memphis in 1970, becoming the Memphis Pros
. The team changed its name to the Memphis Tams and then the Memphis Sounds, before folding in 1975.
The Grizzles were created as an expansion team for the 1995–96 season
, which along with the creation of the Toronto Raptors saw the NBA expand into Canada. The Grizzlies were owned by Vancouver Canucks owner Arthur Griffiths
. His company was in the process of building General Motors Place (GM Place) for the Canucks, and saw the Grizzlies as an additional tenant. Both the Canadian teams were hampered by the NBA's decision to deny them one of the top five picks in the first draft
, and the teams would not be allowed a top draft pick in the following three seasons, even if they should win the lottery
. The teams were also hindered from using their full salary cap
the first two seasons. For all six seasons in Vancouver, the Grizzlies had a terrible record. They finished seventh of seven in five seasons, and claimed one sixth place in the Midwest Division, never close to reaching the playoffs. The team won 101 games and lost 359, giving a winning percentage
of .220.
On 12 November 1996, McCaw bought the rest of company. He stated that he was committed to retaining the team in Vancouver. Griffiths was forced to sell the Canucks and Grizzlies following the cost overrun
s that occurred on GM Place, and the expansion fees to start the Grizzlies had made his company illiquid.
In 1999, McCaw started attempts to sell either Orca Bay or the Grizzlies, and at first negotiated an agreement with Dennis Washington
, owner of Seaspan, who had a large portion of his operations in Vancouver. Washington initially agreed to purchase 50 percent of Orca Bay, with the intent of keeping the teams in Vancouver. Instead, McCaw used Washington's bid to leverage a higher sales price with Bill Laurie, who offered US$148 million for the Grizzlies, and a US$52 million bonus if the team ultimately relocated to St. Louis. The announcement was made in September 1999, one month after Louis had bought the NHL team St. Louis Blues
and their home venue Kiel Center. St. Louis had not been the home of an NBA franchise since the St. Louis Hawks relocated to become the Atlanta Hawks
in 1968. Kiel Center had annual sell-out for 15 to 17 basketball games for the Saint Louis University Billikens
.
After the deal was announced, Commissioner of the NBA
David Stern
stated that he was opposed to a relocation, showing to that no NBA franchise had moved since the mid-1980s. He stated that his goal was that the Grizzlies remain in Vancouver and succeed there. The NBA Board of Governors' Finance Committee also made negative statements, as the purchase agreement was structured with incentives to move the team. The deal was then renegotiated before the board could vote on the issue. On 21 January 2001, Laurie announced that he had paid McCaw an undisclosed amount to walk away from the deal.
Four days later, on 25 January, it was announced that the Grizzlies was sold to Chicago-based Michael Heisley
for US$160 million. At a press conference, he stated that he had the support of Stern, that he was committed to keeping the franchise in Vancouver, to making it a winning team, and that he was an owner that was committed to the market.
Dick Versace, the Grizzlies' president of basketball operations, stated in the final Vancouver season that the company was losing US$40 million per season. These numbers were questioned by Richard Peddie, CEO of the Raptors, as the Grizzlies had a salary cap
of US$48 million. Retrospectively, Heisley stated that he lost US$87 million on owning the Grizzlies, although that included a US$30 million relocation fee to the NBA. Versace stated that he felt that the team did not get sufficient support from the business community. Colin Jones, University of Victoria
professor in sports economics, stated that it was difficult to attract corporate sponsors as long as the team was losing so many games; the Grizzlies lack of good draft picks lead to the team failing to win, thus losing revenue. He also noted that the team never sought help in the general business community regarding management issues.
Stu Jackson
, general manager for the first five seasons, made several non-optimal player selection decisions. This included selecting Bryant Reeves
in the 1995 Draft
, and signing him to a US$65 million six-year contract extension in 1997, putting the Grizzlies in a salary cap squeeze. From then he consequently drafted point guards, including Antonio Daniels
, who failed to develop. Jackson traded a 2003 first-round pick for Otis Thorpe
, who "hated Vancouver". He signed free agent Tony Massenburg
for US$1.5 million, just to sign Isaac Austin
for US$5.5 million and leave Massenburg on the bench. Griffiths retrospectively stated that the draft conditions from the NBA did not allow the franchise to build a winning team in years, and that the NBA had asked too high a price for not providing the means of a suitable income. On the other hand, the Raptors succeeded in drafting Vince Carter
, reached the playoffs in the 1999–2000 season
and played for a sell-out crowd.
The location of the team in Canada was a major contributor; at the time the exchange rate
was 67 US cents
to the Canadian dollar. Because revenue was collected in Canadian dollars but player and coach salaries were paid in US dollars, the team ended up spending an undue amount of its revenue on salaries. The 1998–99 lockout was the pivoting point for home game attendance. While the whole league experienced a drop in attendance after the lockout, Vancouver experienced an even larger fall. The average attendance in 1997–98
was 16,108, ranking 16th in the league, while it fell to 13,899 in 1999–00
, ranking 27th.
Retrospectively, Griffiths stated that Heisley intentionally ran the team financially aground by alienating people, running insufficient marketing, and claiming basketball did not work in Vancouver. While running the team, Griffiths had not lost "millions and millions" and he stated that Vancouver had a better fan base than most NBA teams. The statements were denied by Heisley.
, who were also considering a relocation.
In February 2001, the Louisville Board of Aldermen contacted the Grizzlies in an attempt to relocate the team to Louisville, Kentucky
. The city lacked a suitable venue, but state and local officials agreed to build a new US$200 million arena if the NBA franchise relocate to the city. In addition, Tricon Global Restaurants (now Yum! Brands
) would offer Heisley US$5 million per year for 20 years to locate the team in Louisville.
The Memphis relocation effort was led by AutoZone
founder Pitt Hyde, who promised to purchase 50% of the team. The city had a 1991 venue, Pyramid Arena
, which could be used as a temporary home until the construction of a new US$250 million venue be completed in 2004. The venue would be publicly financed through sales tax rebates, government-backed bonds and hotel and car rental taxes. The Memphis efforts to get an NBA team had started in 1997, following the relocation of the Tennessee Titans
of the National Football League
to Nashville.
New Orleans, Louisiana, mayor Marc Morial
stated that he had approached Heisley in an attempt to attract the Grizzlies to his city. The city had opened the US$114 million New Orleans Arena
in 1999, and offered the franchise to use it. Metrovision, the area's economic development chamber, stated that they had secured guarantees for purchasing suites
, season ticket
s and club seating from businesses to the extent that there was a waiting list for suites. Also a relocation to St. Louis, under the same conditions as with Laurie, was considered.
Another option was to relocate to Anaheim, California
, in Greater Los Angeles
. The Houston Rockets
had looked into relocation to Anaheim the previous season, with Arrowhead Pond of Anaheim (now Honda Center) as the home venue. However, the NHL team then known as the Mighty Ducks of Anaheim
had an agreement that any other tenant at the Pond should share revenues with their then-owner, The Walt Disney Company
, although Disney stated they were willing to negotiate the terms. There are also two existing clubs in Los Angeles, the Lakers
and the Clippers
, which would make the media market small and limit revenue.
Buffalo, New York
announced interest in attracting the Grizzlies. The city had an appropriate venue in HSBC Arena, home of the NHL team Buffalo Sabres
. Mayor Anthony Masiello
, a former college basketball star, stated that the attempt was "a long shot", but worth the try.
The city previously had an NBA franchise in the Buffalo Braves
, which was relocated to become the San Diego Clippers in 1978. The Clippers moved to Los Angeles in 1984, and San Diego was also mentioned as a potential site for the Grizzlies, although the city lacked a suitable venue. Las Vegas, Nevada
was visited by Hainsley, where he negotiated with Mayor Oscar Goodman
. The city offered the team free land for a new arena, but would not pay for construction. The other issue was the opposition from Stern against placing a team in Las Vegas unless casinos stop accepting bets on NBA games.
The strongest bids were Memphis, Louisville, Anaheim and New Orleans. As the latter two had venues in place, they were seen as having an edge on the other two. The former both needed public funding for a new venue, and where the team would have to play in a sub-optimal location for several seasons. However, the construction of a new venue was seen as an advantage by the Grizzlies, as it could be tailor-made for basketball, and the team would be able to control all revenue. The team also expected the highest local radio and television broadcasting rights in Louisville and Memphis, and that the two cities lacked other Big Four major league teams, granting the team preferred air times and increased attention from fans and media. A 2000 report from PricewaterhouseCoopers
concluded with small cities often had higher attendance than larger cities because of team's professional league exclusivity. It also pointed to the strong support for college basketball in Tennessee and Kentucky
.
In Vancouver, the organization Save the Grizzlies was established to find a local investor to purchase the team. Led by among others Peter Ufford
, they had a plan to create a public entity which could take over ownership of the team. Ufford retrospectively stated that had the attempt been given more time, they may have been able to secure a deal to keep the team in town, but that the relocation decision came too quickly for any plan to be finalized. Heisley stated that he had been willing to sell the team with a 30 percent discount to a Vancouver investor if he could secure a guarantee that the team would remain in town.
On 26 March 2001, Heisley announced that he had selected Memphis. Memphis and Louisville were the most promising cities, with Heisley selecting Memphis because it offered a better deal and because of poor local executive leadership in Louisville. The choice would still have to be studied by a five-member NBA group before permission was granted from the league. The team's final match at GM Place was a 95–100 loss against the Houston Rockets
on 14 April; final match overall was a road 95–81 win against the Golden State Warriors
on 18 April.
The NBA Relocation Committee gave its approval for the move to Memphis in late June, and on 4 July the Board of Governors unanimously approved the relocation. This also permitted Hyde to purchase a minority share of the franchise. By then the team administration had already relocated, and the day before the final decision, the team set up its rookie camp at Rhodes College
. A relocation party was held on 7 July. A week before the move, the Grizzlies traded away two of the top players, Shareef Abdur-Rahim
and guard Mike Bibby
, who therefore never played for the Memphis Grizzlies.
. As of 2011, the Grizzlies remain, according to Forbes
, the third-least valuable NBA franchise, at US$266 million. Attendance never climb over Vancouver levels; in the inaugural season the Memphis Grizzlies had an average of 13,737 spectators, and in the 2010–11 season had 14,650.
The Grizzlies were the first NBA relocation since the Kansas City Kings relocated to become the Sacramento Kings
in 1985. It was followed by two others in the same decade, with the Charlotte Hornets
relocated to become the New Orleans Hornets in 2002, and the Seattle SuperSonics
relocating
to become the Oklahoma City Thunder
in 2008. In the NHL, two teams were moved from Canada to the US during the mid-1990s: the Quebec Nordiques
became the Colorado Avalanche
in 1995, and the Winnipeg Jets became the Phoenix Coyotes
in 1996. In 2005, one of Canada's two Major League Baseball
teams, the Montreal Expos
, relocated to become the Washington Nationals
. The failure of the Vancouver franchise was part of the reason the NBA changed the expansion drafting rules following the Charlotte Bobcats
' entry in 2005. The Bobcats were allowed to pick fourth in their first draft, and were later not restricted from first picks.
In 2011, the ownership group of the Canucks, now owned by Francesco Aquilini
, announced they were considering purchasing the Hornets. In December 2010, the Hornets were bought by the league, and the financial difficulties faced by the club may see it relocated to another city. In a major change from 2001—when one unnamed former NBA executive stated that a franchise would not return to Vancouver in his lifetime—Stern revealed in February 2011 that Vancouver was being considered along with Pittsburgh, Tampa
and Kansas City
. Reasons for considering Vancouver are the strengthening of the Canadian dollar, which has been roughly at par with the U.S. dollar since early 2010; the influx of international players who would be more willing to play in Canada; sell-outs for pre-season exhibition game
s at Rogers Arena (the new name of GM Place); Vancouver having a state-of-the-art venue; and an increased realization among NBA executives that the Vancouver failure was not predominantly because of lack of interest for basketball in Vancouver. The city has also been through a resurrection in professional sports, with the creation of the Vancouver Giants
in junior hockey, the 2010 Winter Olympics
, and Vancouver Whitecaps FC joining Major League Soccer
. However, the location of the city also allows for more versatile sports experiences, such as skiing, hunting, fishing and golf, which could partially limit the interest for spectator sports.
Vancouver Grizzlies
The Vancouver Grizzlies were a professional basketball team based in Vancouver, British Columbia, Canada. They were part of the Midwest Division of the Western Conference of the National Basketball Association . The team was established in 1995, along with the Toronto Raptors, as part of the NBA's...
to move
Relocation of professional sports teams
Relocation of professional sports teams is a practice which involves a sporting franchise moving from one metropolitan area to another, although occasionally moves between municipalities in the same conurbation are also included...
the team from the Canadian city of Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
, British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
, to the US city of Memphis, Tennessee
Memphis, Tennessee
Memphis is a city in the southwestern corner of the U.S. state of Tennessee, and the county seat of Shelby County. The city is located on the 4th Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers....
. The team began play as the Memphis Grizzlies
Memphis Grizzlies
The Memphis Grizzlies are a professional basketball team based in Memphis, Tennessee, USA. The team is part of the Southwest Division of the Western Conference in the National Basketball Association . Along with the Toronto Raptors, the Grizzlies were established in 1995 as part of the NBA's...
in the 2001–02 season
2001–02 Memphis Grizzlies season
The 2001–02 Memphis Grizzlies season was the first season for the Grizzlies in Memphis. After six years of struggling in Vancouver, the Grizzlies relocated to Memphis. Although it was the first NBA team for the city, Memphis played home to an American Basketball Association team from 1970-1975. The...
. It was the first of three National Basketball Association
National Basketball Association
The National Basketball Association is the pre-eminent men's professional basketball league in North America. It consists of thirty franchised member clubs, of which twenty-nine are located in the United States and one in Canada...
(NBA) franchise moves between 2001 and 2008, and the third of four major league teams to relocate from Canada to the United States between 1995 and 2005.
The Grizzlies had been created as an expansion team
Expansion team
An expansion team is a brand new team in a sports league. The term is most commonly used in reference to the North American major professional sports leagues, but is applied to sports leagues worldwide that use a closed franchise system of league membership. The term comes from the expansion of the...
along with the Toronto Raptors
Toronto Raptors
The Toronto Raptors are a professional basketball team based in Toronto, Ontario, Canada. They are part of the Atlantic Division of the Eastern Conference in the National Basketball Association . The team was established in 1995, along with the Vancouver Grizzlies, as part of the NBA's re-expansion...
in 1995. For the six seasons in Vancouver, the Grizzlies performed poorly; it only once finished better than last in the Midwest Division
Midwest Division (NBA)
The Midwest Division was a division in the Western Conference of the National Basketball Association . The division was created at the start of the 1970–71 season, when the league expanded from 14 to 17 teams with the addition of the Buffalo Braves, the Cleveland Cavaliers and the Portland Trail...
and never reached the playoffs
NBA Playoffs
The National Basketball Association Playoffs is a best-of-seven elimination tournament among sixteen teams in the Eastern Conference and Western Conference , ultimately deciding the final four teams who will play in the NBA Conference Finals.-Format:Following the NBA regular season, eight teams in...
. The Grizzlies were owned by Orca Bay Sports and Entertainment, who also owned the Vancouver Canucks
Vancouver Canucks
The Vancouver Canucks are a professional ice hockey team based in Vancouver, :British Columbia, Canada. They are members of the Northwest Division of the Western Conference of the National Hockey League . The Canucks play their home games at Rogers Arena, formerly known as General Motors Place,...
of the National Hockey League
National Hockey League
The National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
(NHL). In 1999, Bill Laurie, owner of the NHL team St. Louis Blues
St. Louis Blues
The St. Louis Blues are a professional ice hockey team based in St. Louis, Missouri. They are members of the Central Division of the Western Conference of the National Hockey League . The team is named after the famous W. C. Handy song "St. Louis Blues", and plays in the 19,150-seat Scottrade...
, attempted to buy the Grizzlies, with the intent to move it to St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
. After interference by the NBA, the Grizzlies were sold to Michael Heisley
Michael Heisley
Michael E. Heisley is an American businessman who is the majority owner of the Memphis Grizzlies. He orchestrated the move of the team from Vancouver in 2001, after promising to keep the franchise in Vancouver when he purchased it in 2000...
. He immediately started the process to relocate the team, and seven US cities were candidates for the team—Anaheim
Anaheim, California
Anaheim is a city in Orange County, California. As of the 2010 United States Census, the city population was about 365,463, making it the most populated city in Orange County, the 10th most-populated city in California, and ranked 54th in the United States...
, Buffalo
Buffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
, Memphis, New Orleans, Louisville
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
, Las Vegas
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...
and San Diego—before settling on the move to Memphis at the end of the season.
The first four Grizzlies seasons had given average attendance in the middle third of the league. However, the last two seasons saw a reduction to among the league's lowest attendances; participating reasons were the teams poor performance and the 1998–99 NBA lockout
1998–99 NBA lockout
The 1998–99 NBA lockout was the third lockout in the history of the National Basketball Association . It lasted from July 1, 1998 to January 20, 1999, and forced the 1998–99 season to be shortened to 50 games per team and that season's All-Star Game to be canceled...
. The poor performance was in part caused by the expansion rules hindering the Grizzlies' from making good draft picks. Other reasons for the relocation were a weak Canadian dollar
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
, unwillingness of some US players to live in Canada, and lack of local ownership. As of 2011, the current Canucks owners have announced interest to relocate another NBA team to Vancouver.
Background
Memphis has previously had a different major basketball team, in the NBA predecessor American Basketball AssociationAmerican Basketball Association
The American Basketball Association was a professional basketball league founded in 1967. The ABA ceased to exist with the ABA–NBA merger in 1976.-League history:...
. Founded as the New Orleans Buccaneers
New Orleans Buccaneers
New Orleans Buccaneers was a charter member of the American Basketball Association. After three seasons in New Orleans, Louisiana the franchise moved to Memphis, Tennessee where it became the Pros, Tams and Sounds for four years before an abortive move to Baltimore in 1975.-Origins:With the...
in 1967, the franchise moved to Memphis in 1970, becoming the Memphis Pros
Memphis Pros
Memphis Pros were an American Basketball Association team during the 1970-1971 and 1971-1972 seasons.-Origins:The New Orleans Buccaneers were a charter member of the ABA and played for three seasons, 1967-1970, winning the Western Division championship in 1969...
. The team changed its name to the Memphis Tams and then the Memphis Sounds, before folding in 1975.
The Grizzles were created as an expansion team for the 1995–96 season
1995–96 Vancouver Grizzlies season
The Vancouver Grizzlies along with the Toronto Raptors became expansion NBA franchises in 1995. They were the first NBA teams to play in Canada since 1946–47's Toronto Huskies. The Grizzlies got off to a solid start stunning the Portland Trail Blazers on the road 92–80 on November 3...
, which along with the creation of the Toronto Raptors saw the NBA expand into Canada. The Grizzlies were owned by Vancouver Canucks owner Arthur Griffiths
Arthur Griffiths
Arthur Griffiths is a Canadian businessperson, philanthropist, and candidate for political office. He is former owner of the Vancouver Canucks and General Motors Place, and chaired the Vancouver/Whistler 2010 Bid Society which helped to bring the 2010 Winter Olympics to the region...
. His company was in the process of building General Motors Place (GM Place) for the Canucks, and saw the Grizzlies as an additional tenant. Both the Canadian teams were hampered by the NBA's decision to deny them one of the top five picks in the first draft
1995 NBA Draft
The 1995 NBA Draft took place on June 28, 1995 at SkyDome in Toronto, Ontario, Canada. It marked the first NBA draft for the two Canadian expansion teams, Toronto Raptors and Vancouver Grizzlies...
, and the teams would not be allowed a top draft pick in the following three seasons, even if they should win the lottery
NBA Draft Lottery
The NBA Draft Lottery is an annual event held by the National Basketball Association in which the teams who had missed the playoffs in the previous season, or teams who hold the draft rights of another team that missed the playoffs in the previous season, participate in a lottery process to...
. The teams were also hindered from using their full salary cap
Salary cap
In professional sports, a salary cap is a cartel agreement between teams that places a limit on the amount of money that can be spent on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both...
the first two seasons. For all six seasons in Vancouver, the Grizzlies had a terrible record. They finished seventh of seven in five seasons, and claimed one sixth place in the Midwest Division, never close to reaching the playoffs. The team won 101 games and lost 359, giving a winning percentage
Winning percentage
In sports, a winning percentage is the fraction of games or matches a team or individual has won. It is defined as wins divided by wins plus losses . Ties count as a ½ loss and a ½ win...
of .220.
Change of ownership
On 7 March 1995, the majority of the holding company was sold from Griffiths to Seattle-based John McCaw, Jr.John McCaw, Jr.
John McCaw, Jr. is a businessman who formerly owned McCaw Cellular in Seattle, Washington and a former part-owner of the Vancouver Canucks NHL franchise, with Francesco Aquilini. On November 8, 2006, his 50% interest was sold to Aquilini, who became the sole owner.-References:*Bill Knight, ....
On 12 November 1996, McCaw bought the rest of company. He stated that he was committed to retaining the team in Vancouver. Griffiths was forced to sell the Canucks and Grizzlies following the cost overrun
Cost overrun
A cost overrun, also known as a cost increase or budget overrun, is an unexpected cost incurred in excess of a budgeted amount due to an under-estimation of the actual cost during budgeting...
s that occurred on GM Place, and the expansion fees to start the Grizzlies had made his company illiquid.
In 1999, McCaw started attempts to sell either Orca Bay or the Grizzlies, and at first negotiated an agreement with Dennis Washington
Dennis Washington
Dennis R. Washington is a Montana-based industrialist and philanthropist who owns, or co-owns controlling interest in, a large consortium of privately held companies collectively known as the Washington Companies and, in Canada, another collection of companies known as the Washington Marine Group...
, owner of Seaspan, who had a large portion of his operations in Vancouver. Washington initially agreed to purchase 50 percent of Orca Bay, with the intent of keeping the teams in Vancouver. Instead, McCaw used Washington's bid to leverage a higher sales price with Bill Laurie, who offered US$148 million for the Grizzlies, and a US$52 million bonus if the team ultimately relocated to St. Louis. The announcement was made in September 1999, one month after Louis had bought the NHL team St. Louis Blues
St. Louis Blues
The St. Louis Blues are a professional ice hockey team based in St. Louis, Missouri. They are members of the Central Division of the Western Conference of the National Hockey League . The team is named after the famous W. C. Handy song "St. Louis Blues", and plays in the 19,150-seat Scottrade...
and their home venue Kiel Center. St. Louis had not been the home of an NBA franchise since the St. Louis Hawks relocated to become the Atlanta Hawks
Atlanta Hawks
The Atlanta Hawks are an American professional basketball team based in Atlanta, Georgia. They are part of the Southeast Division of the Eastern Conference in the National Basketball Association .-The first years:...
in 1968. Kiel Center had annual sell-out for 15 to 17 basketball games for the Saint Louis University Billikens
Saint Louis Billikens men's basketball
The Saint Louis University Billiken's men's basketball team is the intercollegiate men's basketball program representing Saint Louis University. The school competes in the Atlantic 10 Conference. Rick Majerus is the current head coach. Chaifetz Arena is home to the Billikens. The Billikens have...
.
After the deal was announced, Commissioner of the NBA
Commissioner of the NBA
The Commissioner of the NBA is the chief executive of the National Basketball Association. He is elected by the NBA owners.-Maurice Podoloff :Maurice Podoloff was the first president of the National Basketball Association...
David Stern
David Stern
David Joel Stern is the commissioner of the National Basketball Association. He started with the Association in 1966 as an outside counsel, joined the NBA in 1978 as General Counsel, and became the league's Executive Vice President in 1980. He became Commissioner in 1984 succeeding Larry O'Brien...
stated that he was opposed to a relocation, showing to that no NBA franchise had moved since the mid-1980s. He stated that his goal was that the Grizzlies remain in Vancouver and succeed there. The NBA Board of Governors' Finance Committee also made negative statements, as the purchase agreement was structured with incentives to move the team. The deal was then renegotiated before the board could vote on the issue. On 21 January 2001, Laurie announced that he had paid McCaw an undisclosed amount to walk away from the deal.
Four days later, on 25 January, it was announced that the Grizzlies was sold to Chicago-based Michael Heisley
Michael Heisley
Michael E. Heisley is an American businessman who is the majority owner of the Memphis Grizzlies. He orchestrated the move of the team from Vancouver in 2001, after promising to keep the franchise in Vancouver when he purchased it in 2000...
for US$160 million. At a press conference, he stated that he had the support of Stern, that he was committed to keeping the franchise in Vancouver, to making it a winning team, and that he was an owner that was committed to the market.
Reasons for relocation
Salary cap
In professional sports, a salary cap is a cartel agreement between teams that places a limit on the amount of money that can be spent on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both...
of US$48 million. Retrospectively, Heisley stated that he lost US$87 million on owning the Grizzlies, although that included a US$30 million relocation fee to the NBA. Versace stated that he felt that the team did not get sufficient support from the business community. Colin Jones, University of Victoria
University of Victoria
The University of Victoria, often referred to as UVic, is the second oldest public research university in British Columbia, Canada. It is a research intensive university located in Saanich and Oak Bay, about northeast of downtown Victoria. The University's annual enrollment is about 20,000 students...
professor in sports economics, stated that it was difficult to attract corporate sponsors as long as the team was losing so many games; the Grizzlies lack of good draft picks lead to the team failing to win, thus losing revenue. He also noted that the team never sought help in the general business community regarding management issues.
Stu Jackson
Stu Jackson
Stuart Wayne Jackson is an American former head coach and current executive in the National Basketball Association. He has coached two different NBA teams: the New York Knicks in 1990 and 1991, and the Vancouver Grizzlies in 1997; he also has served as the Grizzlies' general manager...
, general manager for the first five seasons, made several non-optimal player selection decisions. This included selecting Bryant Reeves
Bryant Reeves
Bryant Reeves is an American retired professional basketball player for the NBA's Vancouver Grizzlies...
in the 1995 Draft
1995 NBA Draft
The 1995 NBA Draft took place on June 28, 1995 at SkyDome in Toronto, Ontario, Canada. It marked the first NBA draft for the two Canadian expansion teams, Toronto Raptors and Vancouver Grizzlies...
, and signing him to a US$65 million six-year contract extension in 1997, putting the Grizzlies in a salary cap squeeze. From then he consequently drafted point guards, including Antonio Daniels
Antonio Daniels
Antonio Robert Daniels is an American professional basketball player. He most recently played for the Philadelphia 76ers.-Career:...
, who failed to develop. Jackson traded a 2003 first-round pick for Otis Thorpe
Otis Thorpe
Otis Henry Thorpe is a retired American professional basketball player in the NBA.-Early years:...
, who "hated Vancouver". He signed free agent Tony Massenburg
Tony Massenburg
Tony Arnel Massenburg is an American former professional basketball player. He shares an NBA record with Chucky Brown, Joe Smith, and Jim Jackson for having played with twelve different teams over his career....
for US$1.5 million, just to sign Isaac Austin
Isaac Austin
Isaac Edward "Ike" Austin is a retired American professional basketball player. He is also the uncle of the top 2012 college basketball recruit, Isaiah Austin....
for US$5.5 million and leave Massenburg on the bench. Griffiths retrospectively stated that the draft conditions from the NBA did not allow the franchise to build a winning team in years, and that the NBA had asked too high a price for not providing the means of a suitable income. On the other hand, the Raptors succeeded in drafting Vince Carter
Vince Carter
Vincent Lamar "Vince" Carter is an American professional basketball player for the Phoenix Suns. He is a shooting guard who can also play small forward....
, reached the playoffs in the 1999–2000 season
1999–2000 Toronto Raptors season
The Raptors qualified for the postseason for the first time in franchise history.-NBA Draft:-Vince Carter:Vince Carter was selected to an All-Star Team for the first time, and showcased his athleticism and dunking abilities in the 2000 NBA Slam Dunk Contest...
and played for a sell-out crowd.
The location of the team in Canada was a major contributor; at the time the exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
was 67 US cents
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
to the Canadian dollar. Because revenue was collected in Canadian dollars but player and coach salaries were paid in US dollars, the team ended up spending an undue amount of its revenue on salaries. The 1998–99 lockout was the pivoting point for home game attendance. While the whole league experienced a drop in attendance after the lockout, Vancouver experienced an even larger fall. The average attendance in 1997–98
1997–98 Vancouver Grizzlies season
The 1997–98 Vancouver Grizzlies season was the Grizzlies third season in the National Basketball Association. Vancouver was coming off of an NBA worst record of 14–68 in the 1996–97 season.-NBA Draft:...
was 16,108, ranking 16th in the league, while it fell to 13,899 in 1999–00
1999–2000 Vancouver Grizzlies season
-NBA Draft:-Steve Francis:Steve Francis was the 2nd overall pick in the 1999 NBA Draft by the Vancouver Grizzlies out of the University of Maryland. He famously cried after being chosen by Vancouver, swearing the Chicago Bulls would regret selecting Elton Brand first overall instead...
, ranking 27th.
Retrospectively, Griffiths stated that Heisley intentionally ran the team financially aground by alienating people, running insufficient marketing, and claiming basketball did not work in Vancouver. While running the team, Griffiths had not lost "millions and millions" and he stated that Vancouver had a better fan base than most NBA teams. The statements were denied by Heisley.
Proposed cities
With the public announcement in mid-February of the possible relocation of the team, Heisley and representatives for the Grizzlies set out on a road trip to consider several US cities which wanted to have the franchise relocate to their city. Originally Heisley had until 1 March to apply to the NBA for a relocation, but the deadline was later extended to 26 March. A similar deadline was also awarded to the Charlotte HornetsCharlotte Hornets (NBA)
The Charlotte Hornets was a professional American basketball team based in Charlotte, North Carolina. They played in the Atlantic, Midwest, and Central divisions of the National Basketball Association. The Hornets began play during the 1988–89 NBA season as an expansion franchise, along with the...
, who were also considering a relocation.
In February 2001, the Louisville Board of Aldermen contacted the Grizzlies in an attempt to relocate the team to Louisville, Kentucky
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
. The city lacked a suitable venue, but state and local officials agreed to build a new US$200 million arena if the NBA franchise relocate to the city. In addition, Tricon Global Restaurants (now Yum! Brands
Yum! Brands
Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide....
) would offer Heisley US$5 million per year for 20 years to locate the team in Louisville.
The Memphis relocation effort was led by AutoZone
AutoZone
AutoZone is a retailer and distributor of aftermarket automotive parts and accessories. based in Memphis, Tennessee.-History:Originally a division of Memphis-based wholesale grocer Malone & Hyde, the company went under the name Auto Shack...
founder Pitt Hyde, who promised to purchase 50% of the team. The city had a 1991 venue, Pyramid Arena
Pyramid Arena
The Pyramid Arena is a 20,142-seat arena located in downtown Memphis at the banks of the Mississippi River. The facility was built in 1991 and was originally owned and operated jointly by the city of Memphis and Shelby County. Its unique structure plays on the city's namesake in Egypt, known for...
, which could be used as a temporary home until the construction of a new US$250 million venue be completed in 2004. The venue would be publicly financed through sales tax rebates, government-backed bonds and hotel and car rental taxes. The Memphis efforts to get an NBA team had started in 1997, following the relocation of the Tennessee Titans
Tennessee Titans
The Tennessee Titans are a professional American football team based in Nashville, Tennessee, United States. They are members of the South Division of the American Football Conference in the National Football League . Previously known as the Houston Oilers, the team began play in 1960 as a charter...
of the National Football League
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...
to Nashville.
New Orleans, Louisiana, mayor Marc Morial
Marc Morial
Marc Haydel Morial is an American political and civic leader and the current president of the National Urban League. Morial served as mayor of New Orleans, Louisiana from 1994 to 2002. He is married to Michelle Miller, who has won awards as a CBS News Correspondent.- Early life and educations...
stated that he had approached Heisley in an attempt to attract the Grizzlies to his city. The city had opened the US$114 million New Orleans Arena
New Orleans Arena
New Orleans Arena is an indoor arena in New Orleans, Louisiana. It is located in the city's Central Business District, adjacent to the Mercedes-Benz Superdome....
in 1999, and offered the franchise to use it. Metrovision, the area's economic development chamber, stated that they had secured guarantees for purchasing suites
Luxury box
A Luxury box is a special seating section located within stadiums, arenas and other sporting and entertainment venues. They are typically located in the midsection of a stadium grandstand, usually providing the best views of the event...
, season ticket
Season ticket
A season ticket is a ticket that grants privileges over a defined period of time.-Sport:In sport, a season ticket grants the holder access to all regular-season home games for one season without additional charges. The ticket usually offers a discounted price over purchasing a ticket for each of...
s and club seating from businesses to the extent that there was a waiting list for suites. Also a relocation to St. Louis, under the same conditions as with Laurie, was considered.
Another option was to relocate to Anaheim, California
Anaheim, California
Anaheim is a city in Orange County, California. As of the 2010 United States Census, the city population was about 365,463, making it the most populated city in Orange County, the 10th most-populated city in California, and ranked 54th in the United States...
, in Greater Los Angeles
Los Angeles Metropolitan Area
The Los Angeles metropolitan area, also known as Metropolitan Los Angeles or the Southland, is the 13th largest metropolitan area in the world and the second-largest metropolitan area in the United States....
. The Houston Rockets
Houston Rockets
The Houston Rockets are an American professional basketball team based in Houston, Texas. The team plays in the Southwest Division of the Western Conference in the National Basketball Association . The team was established in 1967, and played in San Diego, California for four years, before being...
had looked into relocation to Anaheim the previous season, with Arrowhead Pond of Anaheim (now Honda Center) as the home venue. However, the NHL team then known as the Mighty Ducks of Anaheim
Anaheim Ducks
The Anaheim Ducks are a professional ice hockey team based in Anaheim, California, USA. They are members of the Pacific Division of the Western Conference of the National Hockey League...
had an agreement that any other tenant at the Pond should share revenues with their then-owner, The Walt Disney Company
The Walt Disney Company
The Walt Disney Company is the largest media conglomerate in the world in terms of revenue. Founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Walt Disney Productions established itself as a leader in the American animation industry before diversifying into...
, although Disney stated they were willing to negotiate the terms. There are also two existing clubs in Los Angeles, the Lakers
Los Angeles Lakers
The Los Angeles Lakers are an American professional basketball team based in Los Angeles, California. They play in the Pacific Division of the Western Conference in the National Basketball Association...
and the Clippers
Los Angeles Clippers
The Los Angeles Clippers are a professional basketball team based in Los Angeles, California, United States. They play in the Pacific Division of the Western Conference of the National Basketball Association...
, which would make the media market small and limit revenue.
Buffalo, New York
Buffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
announced interest in attracting the Grizzlies. The city had an appropriate venue in HSBC Arena, home of the NHL team Buffalo Sabres
Buffalo Sabres
The Buffalo Sabres are a professional ice hockey team based in Buffalo, New York. They are members of the Northeast Division of the Eastern Conference of the National Hockey League .-Founding and early success: 1970-71—1980-81:...
. Mayor Anthony Masiello
Anthony Masiello
Anthony M. Masiello was mayor of Buffalo, New York from 1994 to 2005. Prior to being mayor, he served as a New York State Senator.-Personal and Educational Background:...
, a former college basketball star, stated that the attempt was "a long shot", but worth the try.
The city previously had an NBA franchise in the Buffalo Braves
Buffalo Braves
The Buffalo Braves were a team in the National Basketball Association. They later moved to San Diego, California to become the San Diego Clippers then subsequently the Los Angeles Clippers....
, which was relocated to become the San Diego Clippers in 1978. The Clippers moved to Los Angeles in 1984, and San Diego was also mentioned as a potential site for the Grizzlies, although the city lacked a suitable venue. Las Vegas, Nevada
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
was visited by Hainsley, where he negotiated with Mayor Oscar Goodman
Oscar Goodman
Oscar Baylin Goodman is an American lawyer and politician. He was the mayor of Las Vegas, Nevada from 1999 to 2011. Mayor Goodman is an Independent and a former member of the Democratic Party.-Biography:...
. The city offered the team free land for a new arena, but would not pay for construction. The other issue was the opposition from Stern against placing a team in Las Vegas unless casinos stop accepting bets on NBA games.
The strongest bids were Memphis, Louisville, Anaheim and New Orleans. As the latter two had venues in place, they were seen as having an edge on the other two. The former both needed public funding for a new venue, and where the team would have to play in a sub-optimal location for several seasons. However, the construction of a new venue was seen as an advantage by the Grizzlies, as it could be tailor-made for basketball, and the team would be able to control all revenue. The team also expected the highest local radio and television broadcasting rights in Louisville and Memphis, and that the two cities lacked other Big Four major league teams, granting the team preferred air times and increased attention from fans and media. A 2000 report from PricewaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
concluded with small cities often had higher attendance than larger cities because of team's professional league exclusivity. It also pointed to the strong support for college basketball in Tennessee and Kentucky
Kentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
.
Relocation
Peter Ufford
Peter Ufford is the Chancellor of Capilano University which is located in the District of North Vancouver in British Columbia, Canada.-References:...
, they had a plan to create a public entity which could take over ownership of the team. Ufford retrospectively stated that had the attempt been given more time, they may have been able to secure a deal to keep the team in town, but that the relocation decision came too quickly for any plan to be finalized. Heisley stated that he had been willing to sell the team with a 30 percent discount to a Vancouver investor if he could secure a guarantee that the team would remain in town.
On 26 March 2001, Heisley announced that he had selected Memphis. Memphis and Louisville were the most promising cities, with Heisley selecting Memphis because it offered a better deal and because of poor local executive leadership in Louisville. The choice would still have to be studied by a five-member NBA group before permission was granted from the league. The team's final match at GM Place was a 95–100 loss against the Houston Rockets
Houston Rockets
The Houston Rockets are an American professional basketball team based in Houston, Texas. The team plays in the Southwest Division of the Western Conference in the National Basketball Association . The team was established in 1967, and played in San Diego, California for four years, before being...
on 14 April; final match overall was a road 95–81 win against the Golden State Warriors
Golden State Warriors
The Golden State Warriors are an American professional basketball team based in Oakland, California. They are part of the Pacific Division of the Western Conference in the National Basketball Association...
on 18 April.
The NBA Relocation Committee gave its approval for the move to Memphis in late June, and on 4 July the Board of Governors unanimously approved the relocation. This also permitted Hyde to purchase a minority share of the franchise. By then the team administration had already relocated, and the day before the final decision, the team set up its rookie camp at Rhodes College
Rhodes College
Rhodes College is a private, predominantly undergraduate, liberal arts college located in Memphis, Tennessee, USA. Originally founded by freemasons in 1848, Rhodes became affiliated with the Presbyterian Church in 1855. Rhodes enrolls approximately 1,700 students pursuing bachelor's and master's...
. A relocation party was held on 7 July. A week before the move, the Grizzlies traded away two of the top players, Shareef Abdur-Rahim
Shareef Abdur-Rahim
Shareef Abdur-Rahim is a retired American professional basketball player and current assistant general manager for the Sacramento Kings. He last played for the Kings of the National Basketball Association . On the basketball court, he played both forward or center positions. Abdur-Rahim was a...
and guard Mike Bibby
Mike Bibby
Michael "Mike" Bibby is an American professional basketball player who most recently played for the Miami Heat of the National Basketball Association. He is a 6'2" point guard, and he attended Shadow Mountain High School in Phoenix, Arizona and played collegiately at the University of Arizona. In...
, who therefore never played for the Memphis Grizzlies.
Aftermath
The move to Memphis did not solve the Grizzlies financial problems, and as of 2011 the teams cumulative loss is US$100 million. The team did manage a 50-win season, reach the playoff four times, but have failed to advance in the playoffs until the 2010–11 season2010–11 Memphis Grizzlies season
The 2010–11 Memphis Grizzlies season was the 16th season of the franchise in the National Basketball Association , and the tenth for the franchise in Memphis.-Key dates:*June 24, 2010 - The 2010 NBA Draft was held in New York City....
. As of 2011, the Grizzlies remain, according to Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
, the third-least valuable NBA franchise, at US$266 million. Attendance never climb over Vancouver levels; in the inaugural season the Memphis Grizzlies had an average of 13,737 spectators, and in the 2010–11 season had 14,650.
The Grizzlies were the first NBA relocation since the Kansas City Kings relocated to become the Sacramento Kings
Sacramento Kings
The Sacramento Kings are a professional basketball team based in Sacramento, California, United States. They are currently members of the Western Conference of the National Basketball Association...
in 1985. It was followed by two others in the same decade, with the Charlotte Hornets
Charlotte Hornets (NBA)
The Charlotte Hornets was a professional American basketball team based in Charlotte, North Carolina. They played in the Atlantic, Midwest, and Central divisions of the National Basketball Association. The Hornets began play during the 1988–89 NBA season as an expansion franchise, along with the...
relocated to become the New Orleans Hornets in 2002, and the Seattle SuperSonics
Seattle SuperSonics
The Seattle SuperSonics were an American professional basketball team based in Seattle, Washington that played in the Pacific and Northwest Divisions of the National Basketball Association from 1967 until 2008. Following the 2007–08 season, the team relocated to Oklahoma City, and now plays as...
relocating
Seattle SuperSonics relocation to Oklahoma City
The Seattle SuperSonics relocation to Oklahoma City was a successful effort by the ownership group of the Seattle SuperSonics to move the team to Oklahoma City...
to become the Oklahoma City Thunder
Oklahoma City Thunder
The Oklahoma City Thunder are a professional basketball franchise based in Oklahoma City, Oklahoma. They play in the Northwest Division of the Western Conference in the National Basketball Association ; their home court is at Chesapeake Energy Arena....
in 2008. In the NHL, two teams were moved from Canada to the US during the mid-1990s: the Quebec Nordiques
Quebec Nordiques
The Quebec Nordiques were a professional ice hockey team based in Quebec City, Quebec, Canada. The Nordiques played in the World Hockey Association and the National Hockey League...
became the Colorado Avalanche
Colorado Avalanche
The Colorado Avalanche are a professional ice hockey team based in Denver, Colorado, United States. They are members of the Northwest Division of the Western Conference of the National Hockey League . The Avalanche have won the Stanley Cup twice, in 1995–96 and 2000–01. The franchise...
in 1995, and the Winnipeg Jets became the Phoenix Coyotes
Phoenix Coyotes
The Phoenix Coyotes are a professional ice hockey team based in Glendale, Arizona. They are members of the Pacific Division of the Western Conference of the National Hockey League . They play their home games at Jobing.com Arena....
in 1996. In 2005, one of Canada's two Major League Baseball
Major League Baseball
Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...
teams, the Montreal Expos
Montreal Expos
The Montreal Expos were a Major League Baseball team located in Montreal, Quebec from 1969 through 2004, holding the first MLB franchise awarded outside the United States. After the 2004 season, MLB moved the Expos to Washington, D.C. and renamed them the Nationals.Named after the Expo 67 World's...
, relocated to become the Washington Nationals
Washington Nationals
The Washington Nationals are a professional baseball team based in Washington, D.C. The Nationals are a member of the Eastern Division of the National League of Major League Baseball . The team moved into the newly built Nationals Park in 2008, after playing their first three seasons in RFK Stadium...
. The failure of the Vancouver franchise was part of the reason the NBA changed the expansion drafting rules following the Charlotte Bobcats
Charlotte Bobcats
The Charlotte Bobcats is a professional basketball team based in Charlotte, North Carolina. They play in the Southeast Division of the Eastern Conference of the National Basketball Association. The Bobcats were established in 2004 as an expansion team, two seasons after Charlotte's previous NBA...
' entry in 2005. The Bobcats were allowed to pick fourth in their first draft, and were later not restricted from first picks.
In 2011, the ownership group of the Canucks, now owned by Francesco Aquilini
Francesco Aquilini
Francesco Aquilini is the Managing Director of Vancouver-based Aquilini Investment Group. He is the current owner of the Vancouver Canucks and Rogers Arena....
, announced they were considering purchasing the Hornets. In December 2010, the Hornets were bought by the league, and the financial difficulties faced by the club may see it relocated to another city. In a major change from 2001—when one unnamed former NBA executive stated that a franchise would not return to Vancouver in his lifetime—Stern revealed in February 2011 that Vancouver was being considered along with Pittsburgh, Tampa
Tampa, Florida
Tampa is a city in the U.S. state of Florida. It serves as the county seat for Hillsborough County. Tampa is located on the west coast of Florida. The population of Tampa in 2010 was 335,709....
and Kansas City
Kansas City, Missouri
Kansas City, Missouri is the largest city in the U.S. state of Missouri and is the anchor city of the Kansas City Metropolitan Area, the second largest metropolitan area in Missouri. It encompasses in parts of Jackson, Clay, Cass, and Platte counties...
. Reasons for considering Vancouver are the strengthening of the Canadian dollar, which has been roughly at par with the U.S. dollar since early 2010; the influx of international players who would be more willing to play in Canada; sell-outs for pre-season exhibition game
Exhibition game
An exhibition game is a sporting event in which there is no competitive value of any significant kind to any competitor regardless of the outcome of the competition...
s at Rogers Arena (the new name of GM Place); Vancouver having a state-of-the-art venue; and an increased realization among NBA executives that the Vancouver failure was not predominantly because of lack of interest for basketball in Vancouver. The city has also been through a resurrection in professional sports, with the creation of the Vancouver Giants
Vancouver Giants
The Vancouver Giants are a major junior ice hockey team playing in the Western Hockey League . Inaugurated in 2001–02, the Giants have won one President's Cup in 2006 and one Memorial Cup in 2007 in their ten-season history...
in junior hockey, the 2010 Winter Olympics
2010 Winter Olympics
The 2010 Winter Olympics, officially the XXI Olympic Winter Games or the 21st Winter Olympics, were a major international multi-sport event held from February 12–28, 2010, in Vancouver, British Columbia, Canada, with some events held in the suburbs of Richmond, West Vancouver and the University...
, and Vancouver Whitecaps FC joining Major League Soccer
Major League Soccer
Major League Soccer is a professional soccer league based in the United States and sanctioned by the United States Soccer Federation . The league is composed of 19 teams — 16 in the U.S. and 3 in Canada...
. However, the location of the city also allows for more versatile sports experiences, such as skiing, hunting, fishing and golf, which could partially limit the interest for spectator sports.