When Detroit Pistons owner Tom Gores bought the team for $325 million in 2011, full-season-ticket sales had plummeted to about 2,000 as the franchise floundered in the economically ravaged city.
Today, the Pistons are on the comeback trail, with the team now having 7,000 full-season-ticket holders and revenue fortified by an average 9.5 percent ticket price increase this year despite last season’s 32-50 record. The Pistons’ season-ticket renewal rate stands at about 92 percent, up from 88 percent last season, despite the record.
The last time the Pistons played in the NBA postseason was in the 2008-09 season, but there is optimism in the
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Improving the team’s finances is no layup.
Photo by: NBAE / Getty Images |
Motor City as Gores rebuilds a franchise that over the past few years has wallowed in red ink.
“The team has showed a heartbeat and that is reflected in the renewals,” said Palace Sports and Entertainment President and CEO Dennis Mannion. “[Head coach] Stan Van Gundy is high energy and we have a young nucleus of players. There is a vibe.”
Much of the team’s focus has been on making changes to the Palace of Auburn Hills arena. Over the past four years, the team has poured $50 million in capital improvements into the arena, including a new scoreboard and LED signage, an upgrade in technology infrastructure, and the installation of new leather seats in the lower bowl, with the entire arena to get new leather seats in the next two years.
“As new owners, we came in with a long-term vision for investing in the franchise and contributing to the revitalization of the region,” Gores said in an email. “At the same time, we also knew that transitions take time and require a lot of hard work. We have invested a lot in people, facilities and infrastructure, and we have assembled a dream team of leaders in business, basketball and entertainment. We are making progress and I am pleased that it is visible.”
Under Mannion’s day-to-day direction, the Pistons this summer added a new taco restaurant and barbecue restaurant along a rebuilt east side of the arena in an effort to appeal to a younger demographic.
“We will see a big lift in our per caps,” Mannion said. “Each year, Tom has challenged me to do what is next.”
High on Mannion’s agenda is selling the naming rights to the arena. An agreement could come by January. “We have a couple of prospects that look good,” Mannion said. “I want to have a solid partner. We are being very choosy.”
Another change for the organization this offseason is the addition of Arn Tellem, the former high-profile player agent who this offseason joined the franchise from Wasserman Media Group. As vice chairman, he will guide Gores’ long-term community and business vision throughout Detroit and the region. This summer, the California-based Gores assumed 100 percent ownership of the team.
“The team and the organization is headed in the right direction,” Tellem said. “There is an uptick in ticket sales and there is real interest in the franchise performance. It will be a positive year for the Pistons.”
Another sign of newfound vitality for the Pistons is a healthy 15 percent increase in sponsorship revenue and a jump in group ticket sales that last year ranked ninth in the league compared to 29th a year earlier.
New corporate deals include FCA Jeep, which signed on as title sponsor of the arena’s atrium, and PNC Bank, which after leaving the team a few years ago is returning to sponsor the arena’s courtside club.
“We still have a lot of work to do to deliver the team this community deserves, but there are tangible signs that our investments are paying off and our vision is starting to become a reality,” Gores said.
