Grizzlies’ Bid Sweetened Amid Concerns

On the eve of a meeting between NBA Commissioner David Stern and Vancouver Grizzly owner Michael Heisley, executives from the Grizzlies and the Arrowhead Pond met for two hours Wednesday to discuss how to sweeten an Anaheim bid, amid concerns the league might temper its support for Heisley should he wish to move his team to Orange County.

With new fan bases and television markets available in New Orleans, Louisville, Ky., and Memphis, Tenn., the Grizzlies believe Stern would want to see a demonstrably superior financial package from Anaheim before backing a proposal to move a third NBA team into Southern California, according to a source familiar with the process.

Heisley met Wednesday with Pond General Manager Tim Ryan, who submitted a revised bid and told Heisley the bid could be further enhanced today, after follow-up discussions between the city of Anaheim and Ogden Corp., operators of the Pond.

Heisley said Tuesday “it’s going to be difficult to get to the numbers we have to get to” in Anaheim.

“Mr. Heisley and his group have been extremely complimentary toward the city of Anaheim and the Arrowhead Pond,” Ryan said. “It boils down to them making a decision that is best for their franchise in the long term. We want to make sure we’ve exhausted every avenue available to us and put our very best offer on the table.”

The discussions Wednesday are believed to have proceeded beyond one-time inducements--including offers to build a practice facility, help buy out the Grizzlies’ lease in Vancouver and add a retail store and office space for the team within the Pond--to annual revenue guarantees for tickets, luxury suites and club seats.

The Pond’s 82 luxury suites already are sold out, with deposits required to remain on a waiting list. While the affluent Orange County market would allow Heisley to sell tickets and premium seating for higher prices than he could in other cities under consideration, Ogden is believed to have been asked to guarantee at least some of that revenue for years to come, performance of the team notwithstanding.

The Pond could generate additional millions for Heisley by revising its naming-rights agreement with Arrowhead, which extends through 2006 at a reported $1.5 million a year. Arrowhead spokeswoman Jane Lazgin said the company had not been contacted about renegotiating the agreement, which would presumably be worth more with two major tenants in the arena instead of one.

“We’d be open to that conversation,” Lazgin said.

Heisley will discuss the Grizzlies’ options with Stern today but need not decide which city he wants to move to until Monday. After Heisley submits a formal application to relocate, Stern would appoint five owners to a relocation committee, which would have up to 120 days to evaluate the proposed move. A majority vote among all owners is required to approve a move.