Menu
Franchises

Coming Home: Pistons' Return To Detroit Viewed As Monumental Move For Team, City

The Pistons on Tuesday formally announced that they will play in Little Caesars Arena beginning next season, moving their home court to downtown Detroit "after 39 years of playing in the suburbs" at The Palace of Auburn Hills, according to a front-page piece by Aguilar & Thibodeau of the DETROIT NEWS. Pistons Owner Tom Gores and Red Wings owners the Ilitch family estimate the deal could have a $596M economic impact in southeast Michigan. The deal includes a request for up to $34.5M in "taxpayer-backed bonds to pay for arena upgrades." The Pistons in '18 will move their corporate offices to the city and "build a separate 'community center/practice facility'" that could cost another $32-55M at a "yet-to-be-announced location." The Pistons would "back the bonds on that expenditure." The owners of the Pistons and Red Wings also will "form a mega-entertainment venture that would control many of the major performance venues in Detroit and its suburbs." Ilitch Holdings President & CEO Chris Ilitch said it is a "bold move that will have a positive effect throughout our entire community.” The deal "involves asking for taxpayer-backed bonds to pay for arena modifications that would include separate locker rooms for NBA teams and changes to the floor." While the two sports teams will remain separate franchises, Ilitch Holdings and Palace Sports & Entertainment have "agreed to establish a joint venture in connection with the many Detroit-area venues now controlled by the Ilitches." Combined venues include Little Caesars Arena, Comerica Park and The Palace (DETROIT NEWS, 11/23). 

WORKING OUT THE KINKS: Detroit Mayor Mike Duggan called the agreement for the Pistons to move "preliminary." He said that final agreements would "likely be approved early next year by Detroit's Downtown Development Authority, the Michigan Strategic Fund and the Detroit City Council" (AP, 11/22). In Detroit, Tony Paul notes PS&E Vice Chair Arn Tellem "didn't have exact details of how the suite sales would work -- whether there'd be separate owners for the same suites for Red Wings and Pistons games, or whether owners will get access for both teams' games" (DETROIT NEWS, 11/23). Tellem said that the team is "still working through the details to determine how Palace suite holders and season-ticket buyers will be affected by the move downtown" (DETROIT FREE PRESS, 11/23).

CITY RISING: Chris Ilitch said, "Tom Gores and the Pistons will contribute tremendously toward the incredible, positive momentum underway in Detroit, making our city stronger." Gores: "Detroit is rising, reinventing itself. The Pistons are doing the same" (DETROIT FREE PRESS, 11/23). Gores added, "It's time. This is the right move." Tellem said, "We want to be all in on Detroit. We want to do right by the city and community here." The DETROIT NEWS' Paul notes the Pistons last played full-time there in '78. The team plans to "build youth recreation facilities, host youth basketball clinics, and donate 20,000 free tickets to city residents" (DETROIT NEWS, 11/23). Also in Detroit, John Gallagher cites an analysis by Univ. of Michigan sports experts as saying that the Pistons' move will generate nearly $600M in economic impact for the city and "create more than 2,000 direct and indirect jobs" (DETROIT FREE PRESS, 11/23). In Detroit, Bob Wojnowski in a front-page piece writes there is "more evidence of a rebound city increasingly united, in historic ways and symbolic ways." Moving the Pistons to Detroit is something Gores and his Platinum Equity ownership group have "mulled since he purchased the team" in '11. After a series of phone calls, Gores and Chris Ilitch "met for the first time at courtside during the Pistons-Cavaliers playoff series last spring." Since then, Gores "estimated he and Ilitch have talked 30-40 times." Gores hired Tellem last year to "see if the move was viable." Tellem said, "It’s a good deal for us and for the Ilitches, win-win, and it’s a great deal for Detroit." Wojnowski: "This was about the Pistons coming home, sure. More than that, it was about collaboration and cooperation, old concepts growing in fresh new places" (DETROIT NEWS, 11/23).

DETROIT ROCK CITY: In Detroit, Daniel Howes writes the city next fall will "arguably be the most concentrated Big-League town in America, the only city with all four of its major sports franchises playing in the core downtown." Credit the "small circle of moguls willing to harness their egos to recognize shared economic interests and how they can be maximized in the nation’s poorest major city." The "major beneficiaries" of the Pistons' move are the city of Detroit, its business and cultural community and the thousands of residents who "endured years of corruption, bankruptcy, meager public services, even humiliation." Smart money "attuned to millennial trends and civic enthusiasm keeps following." Because low property values and big opportunity "existed alongside the architectural bones of a city forgotten but not gone," the likes of Gores is "not keen to be the billionaire on the outside looking in" (DETROIT NEWS, 11/23). In Detroit, Jeff Seidel writes it is "remarkable that it came together this quickly." Behind the scenes, a team from the Pistons and Red Wings have been "working on this deal for almost a year." Seidel: "I believe that Gores is sincere about in desire to help Detroit, to be part of the rise." But Gores "wouldn’t do this is if [it] didn’t make sense financially, if he didn’t make money on the deal." The marriage between Gores and Chris Ilitch "seems strong." Seidel: "But this is going to be interesting. Have you ever rented a place with somebody?" (DETROIT FREE PRESS, 11/23).

UNCERTAIN FUTURE? In Michigan, Aaron McMann notes Gores "didn't have much of an answer ... when it came to the future of the Palace of Auburn Hills." He said, "We have a lot of different plans and possibilities. We've even discussed it, Chris and I. We don't have any definitive plans." The "obvious and fiscally prudent route is redevelopment, but a project of that magnitude hinges on a sale of the building and its three-acre site off I-75 in suburban Detroit." It is "unlikely" the Palace could "sustain itself solely as a concert and trade-show venue and is widely considered to be sitting on prime real estate for technology and research development companies" (MLIVE.com, 11/23).

HIGH ENERGY: Pistons C Andre Drummond said the team's move is "huge." Drummond: "It's like everybody's energy, their vibe, their excitement, their love for the team is just going through the roof. Everybody has been dying for us to come back downtown" (DETROIT NEWS, 11/23). In Detroit, John Niyo notes former Pistons players "talked about this hoops homecoming bringing things 'full circle' for a generation -- and a franchise -- twice removed from the place it once called home" (DETROIT NEWS, 11/23). A DETROIT NEWS editorial states the return of the Pistons to Detroit is a "solid affirmation of the city’s rebuilding progress." These are "exciting times in downtown Detroit, and this latest development should make them more so" (DETROIT NEWS, 11/23). But in Detroit, Mike Brudenell writes under the header, "Detroit Pistons Fans Split On Franchise's Move Downtown" (DETROIT FREE PRESS, 11/23). In Michigan, Logan Hansen wrote under the header, "Fans Have Mixed Reactions To Pistons Move To Detroit" (MLIVE.com, 11/22). Ethan Davidson, the son of former Pistons Owner Bill Davidson, said his father was "contemplating a future move" back to Detroit "right before he died" in '09. Davidson: "He'd be pleased to see the Pistons coming back downtown to be a part of that" (DETROIT NEWS, 11/23).

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/2016/11/23/Franchises/Pistons.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/2016/11/23/Franchises/Pistons.aspx

CLOSE