NBA Media Days would be nothing without a few clichés and backslapping before the season starts. Ja Morant's Memphis Grizzlies were no exception. When pressed on how owner Robert Pera's ballooning fortune influences the willingness to flirt with the NBA's punishing luxury tax, EVP/GM Zach Kleiman masterfully sidestepped the specifics while heaping praise on the organization's ownership.
“Vis-à-vis ownership, we are very fortunate with Robert and the approach that he takes and certainly the backing that he gives (the Grizzlies),” Kleiman told ClutchPoints. “We have the best ownership in the NBA.”
Rather than directly addressing luxury tax concerns, Kleiman pivoted to broader themes about organizational philosophy and long-term vision. His response was diplomatically vague on financial specifics while emphasizing unwavering support from ownership.
“I think we are able to operate in a manner where we prioritize aiming high because we believe in what we are building towards,” continued Kleiman. “There are no shortcuts, and we have the backing in every respect. I'm very grateful for the support that we have from the ownership level.”
The carefully crafted answer avoided committing to any particular spending threshold while assuring fans that financial constraints will not hamper the Grizzlies moving forward. It's the type of politically savvy response that has become a hallmark of Kleiman's tenure, turning a potentially thorny query into a feel-good endorsement of the front office's stability.
Kleiman's explanation aligns with a summer of significant roster changes, highlighted by the blockbuster trade of Desmond Bane to the Orlando Magic in June for guards Kentavious Caldwell-Pope and Cole Anthony, plus a haul of four first-round picks and a pick swap. Those assets bolster a core anchored by Ja Morant's five-year, $197 million max deal and Jaren Jackson Jr.'s freshly inked five-year, $240 million renegotiation-and-extension.
Grizzlies gauge playing field
With Ja Morant and Jaren Jackson Jr. secured, the front office can plan its roster moves with unprecedented stability. The team has successfully built a solid foundation, but future contracts for key role players will inevitably push the payroll higher, testing the limits of Pera's stated backing. However, the financial picture is clear for the 2025-26 campaign. The Grizzlies are operating $16.4 million below the NBA's luxury tax threshold of $187.9 million, ranking 26th in total player salaries.
What makes the luxury tax question so compelling for Memphis is the sheer scale of owner Robert Pera's wealth. With an estimated net worth of over $20 billion, Pera ranks as the third-richest owner in the NBA, behind only Steve Ballmer and Dan Gilbert. His fortune has skyrocketed due to the performance of Ubiquiti Networks, the wireless technology company Pera founded.
This financial firepower represents a potential paradigm shift for a small-market team like the Grizzlies. In an era where the NBA's Collective Bargaining Agreement is designed to penalize excessive spending, an owner of Pera's magnitude can, in theory, treat those penalties as a mere cost of doing business. The infrastructure for a taxpayer's future is in place. The team has the stars, the front-office leadership, and, crucially, an owner with the capacity to spend.
When the time comes to push the chips to the center of the table to back Ja Morant and Jaren Jackson Jr., all eyes will be on Robert Pera to see if his financial backing truly has no limits.
