$500 Million For The Pistons? Source Says Ilitch Would Pay Less Than $400 Million

Apparently, the initial asking price to buy the Detroit Pistons franchise and Palace Sports & Entertainment Inc. has been set. According to Crain's Detroit Business, that price is unlikely to be matched. And if Pistons fans want the "pizza and sports boss" to be the next Pistons owner, they'll hope Crain's Detroit Business sources are right (or wrong about how much Ilitch is willing to spend):

The bank hired to broker a sale of the Detroit Pistons and Palace Sports & Entertainment Inc. is seeking $500 million from potential buyers — a price industry insiders and likely bidders consider inflated by $100 million in this market, a source familiar with the situation said. [...]

[...] Detroit sports and pizza industrialist Mike Ilitch, who announced Aug. 9 that he's told Davidson he wants to buy the Pistons and PS&E, likely would pay less than $400 million for both, said the source, who agreed to speak to Crain's on the condition of anonymity.

As you know, in July the Golden State Warriors were sold for an NBA record $450 million. I'm speculating that inflated sale price inspired the Pistons' bank to dream bigger than prior expections. After all, the Pistons are valued nearly $170 million more than the Warriors by Forbes. Who can blame them for seeking half a billion?

Unfortunately, the Michigan economy will mostly dictate how much is offered for the organization. The sports industry insiders think it's not only unlikely Mrs. Davidson gets $500 million, but it's "likely" that the Pistons sell for below $400 million, which is reportedly good news for the Ilitch fans.

I think what's most important, though, is getting something done sooner than later and getting the Pistons into the hands of somebody who actually wants to own them. But I'm not the one theoretically losing $100+ million dollars in this whole ordeal.

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