Discussion in 'Detroit Pistons General Discussion' started by Nemo, Jan 17, 2010.
Can the plan work with an $8.00 average hourly wage?
I don't understand.
Here's two options with arena's ready for a team.
Pittsburgh and Kansas City.
The Pittsburgh Pistons? It's not that far fetched | freep.com | Detroit Free Press
I know this is another thread, but I would enjoy rooting for the Pittsburgh Pistons or the Kansas City Pistons. (Plus KC Piston fan might have a lawsuit.)
Pistons are not the only team for sale.
Pistons might be tough sale | detnews.com | The Detroit News
This is funny. You sell at the top of the market, not the bottom.
For a bunch of billionaires, these people are pretty clueless.
Some of them don't have a choice as they are losing money with no possibility of making any in the near future.
To me the guy who thought Charlotte would be successful made the largest mistake as the fans boycotted the last owner. Proves they never were very loyal fans to begin with.
Going forward the NBA may have to drop a couple of teams as there are some markets that never will catch on. Kind of bodes well for the Pistons staying in Michigan as who wants to take a chance on new and unproved markets given with whats been happening to the others.
You think this is the bottom? Since when did you get so optimistic???
I know this is not the bottom. You know what I am saying though, these folks should have sold a year ago, now it is too late.
I think it just shows the disconnect. <obvious>As I am not a billionaire</obvious>, it seems to me they often just assume that everyone can spend like they can.
Harsh judgement there. I've been to Charlotte several times and I know several guys who used to be die-hard Hornets fans and I can tell you that there's more to that story than meets the eye when you're looking from the outside. Charlotte was a great NBA city that got screwed.
The largest mistake was assuming that they could just ram any basketball team down the collective throats of ex-Hornets fans and all would be back to normal. Expecting fans to be excited about multiple years of lottery and guys like Morrison while the team that they used to support goes on to playoff success with CP3 at the helm. Yeah, I wonder why that didn't work.
Imagine the Pistons getting sold and two years later Detroit getting an expansion team and Stern & Co expecting the same passion and following the Pistons had for the brand spanking new Detroit Sparkplugs.
Are the Sparkplugs better or worse than the current Pistons?
Complicating matters — and possibly further fueling a desire to shed assets for cash — is the possibility of the Tampa Bay Lightning hockey franchise returning to the estate because the current owners, who bought the team from Bill Davidson in 2008 for $200 million, are in danger of defaulting on the note — which is held by Palace Sports because the buyers couldn't find other lending.
Davidson has her reasons, but estate tax isn't one of them, rep says
Will Karen Davidson decide to sell the Pistons? If so, how much money would she want? Could anyone out there afford to pay it?
Free Press reporter Shawn Windsor went looking for answers, and that meant a long phone conversation with Kurt Badenhausen, a Forbes senior editor and resident NBA expert. He oversees Forbes' annual rankings of NBA team valuations.
Last month, Forbes put the Pistons' worth at $479 million, unchanged from 2008 and fourth-highest in the 30-team NBA. They trail only the Los Angeles Lakers ($607 million), New York Knicks ($596 million) and Chicago Bulls ($511 million).
Davidson, 61, said this past week that she might sell the team she inherited March 13 when her husband, Bill, died at 86.
Here are highlights of Windsor's interview with Badenhausen:
QUESTION: How difficult is it to come up with a price for an NBA franchise?
ANSWER: Look at what's been going on in Atlanta, where some of the owners tried to buy out one of the owners. They haven't been able to settle for three-four years. They can't seem to agree on a price.
Q: Of course, the Hawks-Thrashers fiasco is an extreme example, full of litigation and bad blood. But what about here in Detroit? How tough will it be to figure out a price?
A: The Pistons are certainly going through a difficult time right now. Last season, they had trouble drawing fans. This season, attendance has dropped off a cliff even though ticket prices have been slashed. They have sponsorship issues. There are also a bunch of NBA teams on the market. The Bobcats, the Warriors, the Grizzlies are all looking for investors
Q: So what do the Pistons have going for them?
A: They have a pretty good thing going with their arena. And even though there are several teams on the market, the Pistons are the only upper-echelon franchise out there right now. The Pistons are in an interesting situation. It's hard in the NBA to draw a lot of fans to see a team that is not winning. But, historically, the Pistons have been able to do it.
Q: Whoever buys the Pistons will likely get either the Palace or the rights to operate it, and thus its revenue, during games. What else does a prospective buyer inherit?
A: An outstanding cable TV deal that has helped keep things propped up. The Tigers and Pistons signed a 10-year deal worth $1 billion with Fox Sports Net. That is a massive number. The cable company overpaid because it was concerned that the teams were going to start their own regional sports network. That deal puts them right up there with the two big cheeses -- the Knicks and the Lakers. Last season was the first season the deal kicked in
Q: Can you disclose how much each team gets in the deal?
A: We can't. But we can say that the Tigers -- because they have more games -- get more money than the Pistons.[/font]
Q: A deal like that coupled with the very tenable arena situation should attract investors, right?
A: Though there is some uncertainty with the Pistons going forward, for a new owner coming in, there are a lot of positives.
Q: What about the interconnectedness of the Pistons to the umbrella group -- Palace Sports & Entertainment -- that owns or operates the Palace, DTE Energy Music Theatre and Meadow Brook Music Festival? Does that make a potential sale more difficult?
A: Every team transaction has little things that need to be worked out. The key is that you have to either own or operate the arena. The teams that do that are the ones that we evaluate highly, like the Pistons.
Q: Let's talk specifically about the economy here in Michigan.
A: The economic situation in Detroit right now is going to be a big red flag for any potential owner. It could certainly hurt the price. Ticket revenues are going to continue to be down significantly. The league is projecting a 5-6% drop in ticket revenue this season. In Detroit, that drop may be 20%.
Q: With that disparity in mind, why would a potential owner want to keep the Pistons in the worst economy in the U.S.?
A: I don't think there is any scenario where someone would come in and move the Pistons. Even in a bad economy, Detroit is much stronger than most other places in the NBA. The Pistons have been extremely successful. They have made a lot of money over the years. When it's all said and done, Karen Davidson is going to paying a big capital gains bill. Mr. Davidson paid only $8 million. I think the team will sell for at least $400 million.
Q: If that is true, then a lot of basketball fans in the area will sleep a little easier.
A: I just can't see the NBA, under any circumstances, allowing the team to be taken from Detroit. It's is one of the league's premier organizations. And, remember, it just takes one person to come in and do this. In the long-term, this franchise is still one of the healthiest
For those of you who didn't quite understand what TaS and I were talking about earlier, inflation (not rising prices, but the increase in the money supply) distorts capital gains hits.
Bill D bought the Pistons for 8 million (actually, NBA.com I believe says $6 million)
In real 2007 dollars (inflation adjusted) the Pistons were purchased for $33,290,000
They will end up paying capital gains on that $25 million gap when they realized no benefit. It's simply a consequence of the government basing taxes on nominal, not real values.
From what I recall they boycotted the previous team because the owner was deemed not moral enough to own a team there and pulled the deal to build a new arena unless he sold the team. Something like as part of the deal Stern agreed to him moving the team as long as Charlotte completed the new stadium for a new expansion team.
Am I wrong? Just did not seem like things could have been worked out between the Hornets owner and the city of Charlotte.
I don't think it would be the same thing as the Pistons. No one here really cares much about who owns the team as long as they care about the Pistons.
I am also a little biased with Charlotte in a way since the Pistons lost Mahorn in that Expansion draft. For the 1st Charlotte team.
Sons of Ford, Ilitch won't be bidding on Pistons | freep.com | Detroit Free Press
That's a "I have some good news and I have some bad news' story.
No doubt. You think the Pistons are struggling now. Just think what would happen if the Fords got ahold of them...
Haha, true enough.
Only problem with the Fords is they are loyal to their Employees to a fault. Kept Fonts for what 10-15 years, Millen for way too long.
Think Dumars could ever possibly be replaced?
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