NASHVILLE, Tenn. — A major source of funding for Memphis Mayor Jim Strickland's plan to turn the city into a "world-class sports destination" was approved by the Tennessee General Assembly Thursday.
A $350 million state grant for the City of Memphis was approved Thursday as part of Gov. Bill Lee's proposed budget. The grant is designed to improve FedExForum and Simmons Bank Liberty Stadium, as well as provide funding for improvements at AutoZone Park and build a new stadium for Memphis 901 FC at the site of the Mid-South Coliseum.
“For more than a year, we have methodically worked on this historic project for our city’s sports venues," Strickland said on the passing of the grant. “Over the next few years, our sports venues will be dramatically improved and will hopefully be the catalyst needed to help the University move into a power five conference.”
The grant is a major part of Strickland's $684 million plan to renovate the city's major sporting venues. The rest of the funding is expected to come from expanded sales tax revenue by way of a Tennessee House bill allocating more sales tax from basketball games back to the City of Memphis.
This bill, sponsored by Rep. John Gillespe of Memphis and backed by Memphis state Sen. Raumesh Akbari, is expected to be voted on Thursday.
Strickland presented a plan to the Memphis City Council in October to build up the sports scene in the city.
He said the changes would allow for Memphis to become a “world-class sports tourism destination.” The Memphis Grizzlies contract expires in 2029, and Strickland believes renovations could help ensure the team stays in Memphis. He said the Liberty Stadium renovations would better position University of Memphis for conference realignment and that the proposal would increase jobs, sales tax revenue, and economic impact.
Strickland also said the one-time state investment of $350 million would in turn lead to an estimated sales tax collection for the state of $539 million.
The University of Memphis reacted to the news Thursday, saying the money allows them to complete key parts of the project to renovate Liberty Stadium by the start of the 2025 college football season.
“The University of Memphis is thankful to Gov. Bill Lee and the State of Tennessee Legislature for the approval of Mayor Jim Strickland’s monumental request of $350 million to renovate both Simmons Bank Liberty Stadium and FedExForum, which are leased by our athletic department,” University of Memphis President Bill Hardgrave said. “Our football and basketball programs, fans and overall athletics will benefit greatly from the state-of-the-art upgrades.”
The university said the Liberty Stadium renovation design project is well underway, and construction will begin after the 2023 season.
