Wiseman quoted in The Memphis Daily News concerning possible FedEx Forum lawsuit
Earlier this week the Memphis City Council took the unusual step of authorizing its counsel to explore possible legal claims against the NBA in connection with the ongoing NBA lockout and the negative impact on revenues relied upon to repay the bonds that financed construction of the FedEx Forum. Click here to read reporter Andy Meek’s article in The Memphis Daily News.
Wiseman Bray PLLC attorney, Lang Wiseman, who is a member of the Memphis-Shelby County Sports Authority that oversees the financing of the FedEx Forum, was quoted in the article.
The council’s resolution also addressed that, by saying “the cancellation of games will cause a loss (of) revenues available for debt service, which may necessitate the appropriation of public revenues to cover the shortfall.”
A day or so before the council took its action, sports authority board member Lang Wiseman went back to PFM and asked that they consider preparing some forecasts built around incrementally higher percentage growth in the revenue streams that help pay the forum bonds.
He thought some of what they already presented the authority with was “too conservative” – even though he said being conservative is an appropriate tack when dealing with public money.
He just wants to see what effect a slightly higher forecast will have on any potential shortfall down the line.
“What I’ve asked them to do, I met with them (the day before the council vote) and asked them to do some further sensitivity analysis and to include a bigger growth rate” in the revenue streams that pay the forum bonds,” Wiseman said.
A group of about half a dozen sources of revenue were created to pay back the forum bonds largely in the hope that fluctuations in any one funding stream could be mitigated by having additional funding sources.
Wiseman, a founding partner of the law firm Wiseman Bray PLLC, said the potential of a lawsuit against the NBA “strikes me as a very creative claim.”
“It’s an interesting legal discussion – but if there’s anybody who can take it and do something with it, it’s Allan,” Wiseman said, referring to the council’s attorney Wade.