clock menu more-arrow no yes mobile

Filed under:

Pistons' value has increased 250 percent since Tom Gores bought team

Platinum Equity has made a killing since buying undervalued NBA franchise.

Kirby Lee-USA TODAY Sports

Forbes has released a new round of estimated NBA valuations and the Detroit Pistons are ranked No. 23 in the NBA with a value of $810 million.

Tom Gores might be a Michigan native, but he's also a smart business man. So when Gores and his private equity firm purchased the Detroit Pistons in 2011, it was obvious that the company saw a solid investment opportunity. Platinum Equity reportedly purchased the team and Palace Sports & Entertainment, which includes the Palace of Auburn Hills and DTE  Energy Music Theater for $325 million. At the time, the Forbes estimate valued the franchise at around $360 million. The Forbes estimate, while interesting, is certainly a rough approximation as they have no special access to inside information or financial documents.

The value has increased 80 percent in one year, according to Forbes, which is the eighth highest increase in the NBA. The value of NBA teams has exploded in recent years with attendance up, ratings up and a new TV contract about to flood the NBA in new revenue.

Famously, the Clippers were purchased by Steve Ballmer for $2 billion after the league forced Donald Sterling to sell. The Clippers, valued at $1.5 billion, come in at No. 5 on the list behind the Lakers ($2.6 billion), Knicks ($2.5 billion), Bulls ($2 billion) and Celtics ($1.6 billion).

The Milwaukee Bucks are the least valuable NBA franchise at $600 million, but that is still a 48 percent increase from last year and more than the $550 million Marc Lasry and Wes Edens paid for the team in 2014.