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

by Packey on Aug 16, 2010 1:42 AM EDT in Detroit Pistons News

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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I've Got $375M For The Pool

Nothing against the other bidders, but I’m rooting for Illitch, because he is the bidder with the greatest amount of experience as an owner, he’s local, and he is a known quantity who will do what it takes to make the Pistons relevant again.

The only other question is , who is Postolos bearding for?

Where I think Illitch gets the edge is that he’s willing to take PS&E along with the team-there’s a certain synergy to acquiring the entire package, and melding it with Olympia Entertainment that the other bidders can’t enjoy.

I think part of the reason for the inflated GSW price is that you had two billionaires who wanted the team as a toy, and got into a bidding war. I don’t see anything else which would enhance the price of that franchise, particularly in this market.

by V. on Aug 16, 2010 3:30 AM EDT reply actions

My offer is $387 million and not a penny more, sir!

by garrettelliott on Aug 16, 2010 7:56 AM EDT reply actions

serves Karen right

Had she kept the team like her husbands wishes, she wouldn’t have to sell short by $100 mil due to the surrounding economic situation.

"Don’t really know shit about White other than he is a colon of Stuckey" - das SmittyJ

And here I thought I knew White like the palm of my hand

by bearded thundar on Aug 16, 2010 8:17 AM EDT reply actions

Love Illitch, but...

I loved Bill Davidson too. Isn’t Illitch 80+? I would want to know, if I were the NBA, what happens when you kick it? We could be right back in the same boat…or worse. Pistons must stay in MI…

by MSALT on Aug 16, 2010 8:54 AM EDT reply actions

his son, Christopher, would take over

He’s already CEO and President of Ilitch Holdings, Inc. He’s 45.

Detroit Bad Boys- SB Nation's Detroit Pistons Blog
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by Packey on Aug 16, 2010 9:07 AM EDT up reply actions 1 recs

Team

What they need to do is just agree to whatever Illitch wants to spend. Seriously he is the best potential owner out there for us so hopefully the asking price goes down.

by Detroitsportsfan3 on Aug 16, 2010 10:02 AM EDT reply actions

How much of this has to do with Real Estate?

I know Chris Cohan took advantage of the people buying the Warriors by saying their buying a team in the “Bay Area” so their getting a prime piece of real estate. Is the “real estate” screwing over Mrs. Davidson?

"It ain't over till it's over." - Yogi Berra

by KSJ49 on Aug 16, 2010 10:28 AM EDT reply actions

most likely

But seriously, who cares if it’s “screwing over” Davidson? my main concern is getting the team in the hands of somebody who would actually care about it.

by Taiwanese Tora on Aug 16, 2010 12:49 PM EDT up reply actions

Where GSW Plays, O-A Coliseum, Is Publicly-Owned, I Believe

by V. on Aug 16, 2010 6:11 PM EDT up reply actions

As far as attracting potential investors

You gotta figure that Illitch has the most enticing offer and the best connections. People talk about it as if he’d just buy the team outright himself…but there is plenty of interest in urban development among former sports players who played in Detroit, Magic Johnson being one of them (although not to the degree of Dave Bing or Bettis).

Illitch could likely mitigate his risk significantly by pooling together with Johnson and whoever else from the Detroit circles is interested in being a part of it.

Jonas Jerebko once killed a charging female rhinoceros in heat protecting its young with nothing more than a hook shot.

by The Boourns on Aug 16, 2010 12:52 PM EDT reply actions