Former Memphis Grizzlies Owners Lose Major Financial Dispute

The former Grizzlies owners were not granted the money they were seeking

A recent report from Michael McCann of Sportico revealed that the former Memphis Grizzlies owners have failed in “their attempt to claim a $10.7M tax deduction for deferred compensation owed to Mike Conley and Zach Randolph.”

In addition to the news that the former owners were unable to claim the money they were seeking, McCann added the following context:

"The U.S. Court of Appeals for the Seventh Circuit on Wednesday affirmed a ruling by the U.S. Tax Court to uphold an IRS disallowance of Hoops LP deduction claimed at the close of the 2012 tax year. The dispute, now more than a decade old, centers around how the deferred compensation liability was handled before and after Memphis Basketball (a group led by Robert Pera) purchased the team in 2012 from Hoops, a group led by Michael Heisley, who passed away in 2014. The deferred compensation stemmed from the play of Conley and Randolph in the 2009, 2010 and 2011 seasons."

The ruling is of course one that the former Grizzlies owners do not approve of or deem correct, but it seems to be final, as it was decided upon by a panel of judges. This will be a situation that other future owners will have to consider, because as Sportico also added, this case could serve as a precedent for future ownership groups with similar financial situations.

The full explanation and breakdown of the case and the ruling can be found in Sportico's initial report.

Related Articles

Memphis Grizzles GM Gets Honest About Current Roster

Warriors and Lakers Expected to Show Interest in Former Grizzlies Star

NBA Rookie Reveals Advice from Ja Morant and Other Stars