Tom Gores Reportedly Landed Pistons, Assets For Only $325M
Tom Gores "used his acumen at spotting a good deal" to acquire the Pistons and Palace Sports & Entertainment for only $325M, "far below" what many expected, according to sources cited by Bill Shea in a cover story for CRAIN'S DETROIT BUSINESS. A source with direct knowledge of the transaction confirmed the $325M price for the NBA team and the "umbrella management company," including the Palace of Auburn Hills. By comparison, a group led by Joe Lacob and Peter Guber purchased the Warriors last July for $450M. Shea notes "factors driving the Detroit sale include the distressed local economy, the team's poor performance, looming NBA labor trouble" and Karen Davidson's "stated desire to no longer be a team owner." A source indicated that Gores "paid for much of the transaction with his own money." There will be a "minority investment in the sale by one of the private equity funds controlled by Gores," the $2.75B Platinum Equity Capital Partners II (CRAIN'S DETROIT BUSINESS, 6/6 issue).
EYES ARE ON JOE DUMARS: In Detroit, Drew Sharp notes today is the 11th anniversary of Joe Dumars joining the Pistons as President of Basketball Operations, and he "soon will hire his seventh head coach during that time." That is "beyond ridiculous, bordering on the dysfunctional." Sharp: "Dumars MUST get this hire right. But that also requires new owner Tom Gores not overreacting as easily as Bill Davidson occasionally did" (DETROIT FREE PRESS, 6/6).