MEMPHIS, Tenn. (AP) - A fund used to pay off bonds that paid for the $250 million FedExForum could be pushed into the red by 2022 if the NBA lockout lasts the entire year, a situation that would force the city of Memphis and Shelby County to pay the shortfall.
The Commercial Appeal reports the lockout was discussed at Wednesday's meeting of the Memphis and Shelby County Sports Authority.
The bonds, authorized in 2002, are paid with six different revenue streams related to the NBA.
With the loss of revenue associated with a lockout, projections show the current surplus fund of $10.8 million would be gone in time for the senior bonds' Nov. 1, 2022, payment.
The shortfall could reach $10.6 million by 2029, or about $600,000 annually for each government.
