Are the Pistons For Sale?

[NJNJ]

Karen Davidson, who took over ownership of the Pistons when her husband Bill Davidson died last year, has discussed selling the team and the Palace of Auburn Hills with commissioner David Stern and Detroit area shakers, according to a report by Chris McCosky of the Detroit News.

 

The Palace is aging, and McCosky reports the team will be looking for a new arena soon. That, combined with Davidson's apparent desire to sell, could leave Detroit fans panicked. The owners of the NHL Red Wings are reportedly interested in the Palace as a short-term stand-in for Joe Louis Arena. But the family is not interested in the NBA, McCosky reports.

 

This would really a bit of a perfect storm ... if the Pistons weren't so danged valuable. The team was listed by Forbes as the fourth most valuable franchise last year, with profits exceeding $46 million. In a down year, both for the nation and the team. The Davidsons have owned the team since the mid-70s, and selling the club would surely net the reluctant owner a mint. The most recent transaction among the ultra-valuable franchises was the 2005 sale of the Cavaliers. That team went for $375 million. It's plausible that the Pistons -- especially untethered to an arena lease, as the team currently is -- could go for $500 million.

 

Of course, Detroit is a huge part of the Pistons' value, and I'd really, really hope a new owner would keep the team in Michigan. A few American cities could use a basketball team, but it shouldn't come at such a great basketball city's expense.

 

NBA FanHouse

[Jenneral]

Pistons Could be a Tough Sell

When Pistons owner Karen Davidson opts to sell the team she could have trouble getting full market value.

 

There are a number of ways Davidson can approach selling the franchise, but Mike Bernacchi, professor of economics at Detroit Mercy, doesn't think the team will sell for the $479 million value Forbes magazine projected recently.

 

"If the negotiating price is based on the Forbes value, there's not going to be many takers," said Bernacchi.

 

"People say Detroit is a great sports town, but that is way overvalued. It has to be a value based on what's happening now. I am sure the negotiations are going to be tough. The Pistons will want to sell based on what they were and what they've done. The buyer will want to buy it for where they are now and for where they are headed in the future."

 

Wayne State economics professor Stephen Spurr is more optimistic, hoping that the unemployment rate will soon decline and that more people will attend Pistons games.

 

"This is not a permanent situation," Spurr said of the economy. "It's going to come back."

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I'd have to agree. No way this franchise is worth over $400M anymore. They're not headed anywhere now and the only thing that can look forward to is the draft and free agency. They should have sold the team five years ago when they could have gotten that price. Not anymore. Not a chance.