Financial Benefit of Grizzlies and FedExForum

MEMPHIS, Tenn. - Ten years ago, some said the construction of the forum would be a financial disaster for the tax payers and while some are sticking to that theory, others say the proof to the contrary is anywhere you look near the forum.

The construction of the FedExForum was hotly debated ten years ago but with its opening, came an NBA basketball team, countless college hoops games, and more than 100 special events every year.

The Memphis Chamber commissioned a study that said all of that combines for an annual $223 million revenue generating impact.

"I think that settles the argument of whether of not it was going to be too costly for our community to attract an NBA team here," said John Moore with the Memphis Chamber.

It’s an argument that started 10 years ago, when bringing the Grizzlies to Memphis was just an idea. It was an argument that the opposition to funding the FedExForum stand by to present day.

"Funding an arena with private dollars enterprise, with public dollars, which is a concern," said Heidi Schaffer.

10 years later, Schaffer is now a county commissioner and plans to hold government to a tough standard when entering into contracts with the private sector.

Greg Campbell, President of the Grizzlies says the partnership is paying for itself.

The money generated by the forum is used to pay back the bonds taken out for the forum in a special taxing structure.

"The city is very happy, they have substantial enough to pay off their debt right now and we see things only getting better," said Campbell.

While he admits attendance at Grizzlies games could be better, he says the attendance at the hundreds of other events more than make up for it.

He points to the area around the arena: new hotels, new restaurants, and tourists who are spending money downtown.

The chamber's study says up to 35 percent of people at a forum event are from outside Shelby County.

All benefits are seen by businesses on neighboring Beale.

"It has been a big deal for downtown Memphis to have the grizzlies where they are right now. Our business wouldn't be nearly the business it is now if they weren't," said Felix Vega from Dyer’s.

"The biggest thing is lots of business during the winter and fall months; where before it was tumbleweeds. You could almost close up the whole street during the winter time," said Jay Wells from Silky O’Sullivans.

Campbell says as far as he can see, the Grizzlies aren't going anywhere, and that this partnership has proven the "nay-sayers" from 10 year ago wrong.

"I think maybe some short sightedness at the beginning was what will it do to us, how will it effect us tomorrow. When really its 10, 20, 30, 40 yeas down the road that it will be a big plus for everybody," said Campbell.

The Memphis Chamber says this project elevated Memphis to a new level.

"We can do this. We can, we're capable of constructing major projects like this that can pay for themselves," said John Moore.