Davis Is Still Interested In Grizzlies

The NBA says a bid to buy the Memphis Grizzlies by former Duke University basketball stars Brian Davis and Christian Laettner was incomplete, all but killing the sale and raising questions over whether Davis has the wherewithal to be part of a separate group trying to buy MLS's D.C. United.

Davis, 36, who lives in the District, issued a statement yesterday, saying: "Christian and I regret our recent statements in the media that our complete application had been submitted to the NBA. We are working to finalize the submission and apologize for any confusion these comments may have caused."

Although the NBA did not officially reject Davis's bid, one league source said Davis would need the approval of the NBA's 30-member board of governors to resubmit his bid for the Grizzlies. Davis has said he is willing to pay $252 million for the 70 percent of the team held by majority owner Michael Heisley, a Chicago businessman.

"Based on the limited information that we have received, it appears that certain elements of the transaction would not comply with NBA rules," said Joel Litvin, NBA president for league and basketball operations. "As a result . . . the NBA is not taking any action at this point."

Steve Sallion, who heads a New York City-based private equity firm that invests in real estate, is helping to raise about $30 million for Davis and Laettner and said the purchase may still go forward.

"We remain interested in the Grizzlies," Sallion said. "As with any complex transaction, the details take time to complete. We think the opportunity to be part of the Grizzlies' transaction is great and we are very encouraged about the opportunity to continue making investments in the city of Memphis."

A spokesman for CIT Group, which is financing Davis's bid, declined to comment.

As managing partners, Davis and Laettner were required to pay $53 million in cash for the Grizzlies, with the rest to be financed. People who have done business with Davis, but who declined to be identified because of the sensitivity of the transaction, said most of Davis's money is tied up in illiquid real estate in Durham, N.C., and it would be difficult for him to come up with the $53 million down payment.

D.C. United President Kevin Payne heads the syndicate, which includes Davis, that is trying to buy the MLS team for $33 million. Yesterday he said the NBA's rejection of Davis should have no bearing on the MLS bid.

The soccer sale "is a completely different transaction," Payne said. "Different requirements. Whatever the decision the NBA made is not going to have any impact on any decision we may or may not make."

Davis is not one of the major investors in Payne's syndicate, but the former Duke player's experience in real estate development is expected to play a role in a proposed $250 million stadium-hotel project, including a 27,000-seat soccer-only facility, that the Payne group has proposed for the Poplar Point area in Southeast.