I'm trying to understand Brian Davis's logic behind his attempt to buy 70% of the Memphis Grizzlies. Davis is a former Duke and NBA basketball player who has made lots of money in real estate (he's also 36 years old). He wants to buy the Grizzlies to "redevelop" the neighborhoods in downtown Memphis, which he calls the "black belt." Although I admire his goals, I wonder about the fiscal wisdom of his decision to do this. In order for hiim to become managing partner of the Grizzlies, Davis personally has to invest $54 million of his own money. He says he has the money, but he bases his claims on, for example, the value of a house he has in Baltimore, which he says is worth $20 million. However, "Baltimore city tax rolls" value the house at about $4.4 million. It seems to me that Davis is stretching his finances a bit thin; he is also bidding for a stake in Major League Soccer's D.C. United team. The Grizzlies lost $40 million last year, so Davis will need a lot of luck if he's going to make a profit from this investment.
-Kunal
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