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What Happened To The Ilitch/Pistons Deal?

from Mike Ozanian of SportsMoney at Forbes,

According to one person familiar with the negotiations, after agreeing to a price in excess of $400 million (my source was not more specific), Ilitch discovered the revenues presented in the prospectus were inflated. Ilitch, one of the great gentleman owners in sports, got pissed, lowered his offer price and the deal quickly blew up.

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Filed in: NHL Teams, Detroit Red Wings, Hockey Related Stories, | KK Hockey | Permalink
  Tags: detroit+pistons, marian+ilitch, mike+ilitch

Comments

Mandingo's avatar

There is absolutely no way on Earth the Pistons are worth $400 million. That’s insane.

Since it looks like Illitch is out, I wonder what effect that will have on the building of a new arena.

Posted by Mandingo from The Garage on 12/15/10 at 04:13 PM ET

Nathan's avatar

I’m so happy about this.

Posted by Nathan from the scoresheet! on 12/15/10 at 04:25 PM ET

Evilpens's avatar

Pittsburgh Pistons ?? LOL  sick

Posted by Evilpens on 12/15/10 at 04:28 PM ET

Paul's avatar

EP, you can have them.

Posted by Paul from Motown Area on 12/15/10 at 04:31 PM ET

mrfluffy's avatar

Is it bad to smile when reading this?

Posted by mrfluffy from A wide spot on I-90 in Montana on 12/15/10 at 05:09 PM ET

UMFan's avatar

There is absolutely no way on Earth the Pistons are worth $400 million. That’s insane.

Forbes valued the Pistons at $479 million, the fourth highest valuation in the league, and they tend to undervalue versus actual sale prices. 

I’m so happy about this.

Same here. I’m not sure that having essentially a monopoly on the sports entertainment dollar is a very good idea. Although I don’t pay attention to basketball, the Pistons deserve to be the sole attention of one owner, not somebody’s second or third choice.

Posted by UMFan from Denver, Colorado on 12/15/10 at 05:23 PM ET

Primis's avatar

Awesome.

I like and respect Illitch, am not for anything taking from the Red Wings.  And the Pistons would have.  If only in sharing an arena.

I’m not ok with that.

Besides, the Pistons could leave town and who would really care?

Posted by Primis on 12/15/10 at 05:24 PM ET

Alzy's avatar

Freaking awesome news. The thought of a shared arena between the Pistons and Wings had me queasy. Hard court and ice don’t mix.

I do wonder what this means though for a potential new home for the Wings. Is renovating the Joe really worth it financially? I know I’d love it if the Wings could play at the Joe forever, but I’m also aware that money makes the sports world go round.

Posted by Alzy from Cambridge, Ontario, Canada on 12/15/10 at 05:35 PM ET

SYF's avatar

If I’ve ever underestimated Mike Ilitch as a businessman, I’m never, ever going to do that again after this.  You can only tug at the man’s heart so much before his smarts gets the better of him.

Posted by SYF from the team that re-signed KFQ and DFC by KFH on 12/15/10 at 05:48 PM ET

Mandingo's avatar

Forbes valued the Pistons at $479 million, the fourth highest valuation in the league, and they tend to undervalue versus actual sale prices.

Posted by UMFan from Denver, Colorado on 12/15/10 at 02:23 PM ET

How is it possible that one of the worst teams in the NBA who have the second worst attendance are the 4th most valuable team in the league?

Posted by Mandingo from The Garage on 12/15/10 at 05:51 PM ET

Mandingo's avatar

Err…I guess that “second worst attendance” is a little misleading. That’s by percentage capacity.

Still…they’re 19th in actual attendance.

Posted by Mandingo from The Garage on 12/15/10 at 05:55 PM ET

CaptainDennisPolonich's avatar

How is it possible that one of the worst teams in the NBA who have the second worst attendance are the 4th most valuable team in the league?
Posted by Mandingo from The Garage on 12/15/10 at 02:51 PM ET

If I’m not mistaken (which happens a lot), what is being sold is Palace Sports & Entertainment. In other words, buy the Pistons and you get the Palace and what used to be called Pine Knob as part of the deal. Teams that own their own arenas are always very highly ranked in the Forbes rankings because a good arena is a cash cow. Concerts, circuses and the like generate a ton of cash.

Posted by CaptainDennisPolonich from The Land of Fake Boobs and Real Nuts on 12/15/10 at 06:38 PM ET

UMFan's avatar

Mandingo-

If you look, they actually led the league in attendence for most of the decade. They have a favorable league television contract, a good reputation being one of the better league brands and they have championships not tied to any single player, like Jordan and the Chicago Bulls or San Antonio with Duncan. Also, success in the standings doesn’t always make or break the value of a franchise. The Knicks are number 2 in franchise value and the the Golden State Warriors, who were valued by Forbes at $315 million last year just sold for $450 million this past July. My guess is that if Karen Davidson wants to sell it quickly she isn’t getting upwards of $400 million. I think low $300’s for just the team and the Palace is all she is going to get right now.

Posted by UMFan from Denver, Colorado on 12/15/10 at 09:03 PM ET

Evilpens's avatar

EP, you can have them.   Paul I absolutely DETEST the NBA & everything about it NO THANKS !! there were rumors about it happening & Pgh. does have a brand new spanking new Arena with the only other team playing there is the AFL Pittsburgh Power LOL

Posted by Evilpens on 12/15/10 at 10:08 PM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

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