Detroit Pistons To Be Bought By Mike Ilitch!

**BrushStart** · October-05-10, 09:36 AM

http://www.crainsdetroit.com/article...o-mike-ilitch#

**Gannon** · October-05-10, 09:41 AM

I am not unhappy about this.

He will probably bring them back to the city.

This can mean more high-income residents on the Riverfront, too.

The guy does know how to produce winning teams when he needs to.

And a whole bunch of folks who live near and north of the Palace are now breathing a sigh of relief, that their periodic traffic jams may become less frequent.

MrSam · October-05-10, 10:13 AM

Now bring them home!

**Hypestyles** · October-05-10, 10:26 AM

I hope the deal is finalized and secured in an appropriate amount of time..
Ilitch should build a new stadium downtown Detroit for the Red Wings, also have it for the Pistons, eventually.. auction off the naming rights for the stadium, suites, to offset costs..
Ilitch should do like Steinbrenner and start offering big bucks for major talent.. bring a Lebron-figure here ASAP.. I don't care about all that stuff of being in "rebuilding mode" for 4-5-6 years, to heck with that.. I want a playoff run now!
Merchandise needs to be expanded.. more jazzy uniform designs.. the same goes for hats, t-shirts, etc.

**East Detroit** · October-05-10, 10:30 AM

Fort Wayne!!

**Detroitnerd** · October-05-10, 10:32 AM

What is going to happen to the Palace? Silverdome redux?

**esp1986** · October-05-10, 10:42 AM

Originally Posted by Detroitnerd

What is going to happen to the Palace? Silverdome redux?

I'd be willing to bet that the Pistons stay there until a new arena is built. A lot of season tickey holders, what few remain, would be pretty upset if they downgraded, regardless of location. It will probably be used for concerts until the condition deteriorates, then it will likely be abandoned.

**Detroitnerd** · October-05-10, 10:56 AM

Originally Posted by esp1986

I'd be willing to bet that the Pistons stay there until a new arena is built. A lot of season tickey holders, what few remain, would be pretty upset if they downgraded, regardless of location. It will probably be used for concerts until the condition deteriorates, then it will likely be abandoned.

Too bad for Auburn Hills. Pappy Detroitnerd was one of the construction workers who built it. At 22 years old, it seems a little young to abandon, but I don't doubt your prediction.

**artds** · October-05-10, 11:05 AM

Hmmm. Since the Hockey and Basketball seasons follow each other so closely, it might make more business sense to leave the Pistons up in OC.

Otherwise Olympia would own two teams that were competing for the same entertainment dollars.

With the way Michigan's population is sprawled all over southeast Michigan, then by leaving the Pistons in OC it gives Olympia a chance to tap what are essentially two different geographic markets.

**rjk** · October-05-10, 11:06 AM

Reports have Ilitch also buying Palace Sports & Entertainment.

**blackmath** · October-05-10, 11:09 AM

I really hope Ilitch doesn't sell the naming rights to the new arena so we're stuck with some ridiculous corporate name *cough* Comerica *cough*

**rb336** · October-05-10, 11:11 AM

Originally Posted by artds

Hmmm. Since the Hockey and Basketball seasons follow each other so closely, it might make more business sense to leave the Pistons up in OC.

Otherwise Olympia would own two teams that were competing for the same entertainment dollars.

Lakers, clippers and Kings all play at one stadium

**esp1986** · October-05-10, 11:18 AM

Originally Posted by artds

Hmmm. Since the Hockey and Basketball seasons follow each other so closely, it might make more business sense to leave the Pistons up in OC.

Otherwise Olympia would own two teams that were competing for the same entertainment dollars.

With the way Michigan's population is sprawled all over southeast Michigan, then by leaving the Pistons in OC it gives Olympia a chance to tap what are essentially two different geographic markets.

By having one arena, corporations will pay more for their suites if there are two teams in the building... whereas they would more than likely pick one between the two arenas. Upkeep on two buildings would be astronomically expensive. They wouldn't be competing for the same dollars, their schedules would just be worked around one another's... whereas in separate buildings, they would be competing for the same dollars, as they would likely play on a few of the same nights, as they do now.

At the same time, the Pistons are missing out on the majority of the Detroit market because of where they play. I haven't been to a game since 2004, and that is simply because I live south of town, and I would essentially have to spend eight hours out of my day to go... I would have to leave two hours before the game, so I can get through traffic and actually get parked. 3 hours at the game, and at least 2 and a half hours to get home. I have friends in the western suburbs with the same problems.

**artds** · October-05-10, 11:20 AM

Originally Posted by rb336

Lakers, clippers and Kings all play at one stadium

Mmmm not a great comparison. Having multiple teams competing for the same entertainment dollars isn't as big of a concern in L.A. where the metro area consists of 15 million people. That's 150% of the population of the entire state of Michigan.

The fact that L.A. has two NBA teams at all should be an indication that the L.A. market has some distinct differences from the Detroit market.

**artds** · October-05-10, 11:27 AM

Originally Posted by esp1986

By having one arena, corporations will pay more for their suites if there are two teams in the building... whereas they would more than likely pick one between the two arenas. Upkeep on two buildings would be astronomically expensive.

There are certainly benefits to having a single arena. They just have to be balanced against the detriments to having a single arena. It's not a no-brainer that multiple teams should always be consolidated into a single arena as people on this board make it seem. There are reasons that not every city does this, and having a sprawled population like metro Detroit does is one of the major factors that needs to be considered.

Originally Posted by esp1986

They wouldn't be competing for the same dollars, their schedules would just be worked around one another's... whereas in separate buildings, they would be competing for the same dollars, as they would likely play on a few of the same nights, as they do now.

Not necessarily. A metro-Detroit family who decides to go watch a sporting event on a given weekend might very well choose between seeing the Pistons play on Friday or the Red Wings play in Sunday. But by keeping the Pistons in OC, you tap a different market, albeit with some [[beneficial) overlap.

**esp1986** · October-05-10, 11:27 AM

Originally Posted by Detroitnerd

Too bad for Auburn Hills. Pappy Detroitnerd was one of the construction workers who built it. At 22 years old, it seems a little young to abandon, but I don't doubt your prediction.

Palace Sports and Entertainment said prior to the sale that they were planning on replacing the Palace within eight years anyway. That more than covers the accounting life of the building, meaning they would have gotten their full tax benefit out of the building. They likely would have continued to use it, however, as it is still in fantastic condition.

Ilitch has his empire downtown though, and he will want to have every event possible downtown so that his guests visit his other various business enterprises and spend money there. Remember, he doesn't, nor is he likely to, own vast swaths of land in Oakland County...

**esp1986** · October-05-10, 11:29 AM

Originally Posted by artds

There are certainly benefits to having a single arena. They just have to be balances against the detriments to having a single arena. There are reasons most cities don't do this, and having a sprawled population like metro Detroit does is one of them.

Not necessarily. A metro-Detroit family who decides to go watch a sporting event on a given weekend might very well choose between seeing the Pistons play on Friday or the Red Wings play in Sunday. But by keeping the Pistons in OC, you tap a different market, albeit with some [[beneficial) overlap.

Sure there are some benefits, but they don't outweigh the costs of upkeep and construction of two buildings.

If they are in different "markets," as you put it, then they aren't competing for the same entertainment dollars. Competing for the money means that, if there are two games on the same night, who will you go see?

**R8RBOB** · October-05-10, 11:39 AM

I can hear Smilovitz gloating how great it would be having the Pistons and Red Wings under one roof at the Palace. We know Ilitch want the Pistons in downtown Detroit. This is fact. What we don't know is when the new arena is going to be built. I don't think it would take a decade for this to happen. There is plenty of downtown land to build the new arena so exiting Auburn Hills can happen anytime in the next five years.

**Detroitnerd** · October-05-10, 11:40 AM

Originally Posted by esp1986

Palace Sports and Entertainment said prior to the sale that they were planning on replacing the Palace within eight years anyway. That more than covers the accounting life of the building, meaning they would have gotten their full tax benefit out of the building. They likely would have continued to use it, however, as it is still in fantastic condition.

Ilitch has his empire downtown though, and he will want to have every event possible downtown so that his guests visit his other various business enterprises and spend money there. Remember, he doesn't, nor is he likely to, own vast swaths of land in Oakland County...

Yeah, at 30 years, it's all paid off and all investors are happy. So, naturally, that's time to abandon the thing. ... What a way to run a railroad ...

**artds** · October-05-10, 12:00 PM

Originally Posted by esp1986

Sure there are some benefits, but they don't outweigh the costs of upkeep and construction of two buildings.

If they are in different "markets," as you put it, then they aren't competing for the same entertainment dollars. Competing for the money means that, if there are two games on the same night, who will you go see?

Well I think the Palace just went through a big renovation, which means it won't need to be replaced for quite some time.

And you make my exact point that by keeping them in separate markets, they won't be competing for the same entertainment dollars.

Also, your argument that two teams have to play on the same night to compete for the same entertainment dollars is flawed. Most people will spend X amount on attending sporting events in a given year, and X does not become X*2 just because a new team moves to town. The pie is only so large, and it doesn't get larger just because another person sits down at the table. Whether teams play on the same night or not, fans will usually attend close to the same number of games. The fact that the Pistons play on a Friday and the Wings play on Saturday doesn't mean a fan won't have to choose which one to go see, especially when attending just one can run in the hundreds of dollars.

**Detroitnerd** · October-05-10, 12:05 PM

Originally Posted by artds

Well I think the Palace just went through a big renovation, which means it won't need to be replaced for quite some time.

Not sure about that. I've seen examples of places fresh off a renovation that were soon closed.

**downtownguy** · October-05-10, 12:22 PM

Interesting take on Ilitch's strategy by Michael Rosenberg in today's freep: http://www.freep.com/article/2010100...wntown-stadium

He posits that Ilitch is buying the Piston to pressure the city into building the new arena for him.

**spiritofdetroit** · October-05-10, 12:23 PM

They wont be in separate arenas.

Ilitch doesn't like basketball. He bought them solely so he can have a new arena, downtown. Now - what happens between now and then is very much up in the air - the Wings could move to the Palace for awhile, which would devastate the nightlife in the city during the winter for a couple of years - but there is no doubt - the Wings and Pistons will be downtown eventually.

**DLife** · October-05-10, 12:36 PM

Illitch knew it was the quickest way to pressure Detroit taxpayers to cough up $ for a new arena [[I see it being 50%). Illitch is a shrewd businessman--hiring Tom Wilson was the first move.

**R8RBOB** · October-05-10, 12:38 PM

Originally Posted by downtownguy

Interesting take on Ilitch's strategy by Michael Rosenberg in today's freep: http://www.freep.com/article/2010100...wntown-stadium

He posits that Ilitch is buying the Piston to pressure the city into building the new arena for him.

I know that Rosenberg wants to paint Ilitch as a puppet master type but I don't buy into this idea that he is going force the hand of the city of Detroit. For over 25 years, the city basically have given him anything he wanted. I don't believe out of the blue, the city would take a heavy hand approach in dealing with him. I believe someone told him that if he a) get the Pistons either through ownership or partnership to agree to return to Detroit and b) turn the Palace into a non-competitive venue and talk of a new arena can go the next stage. Everyone wins except Auburn Hills. Ilitch gets his new arena in FoxTown, the city of Detroit gets back the one thing that symbolized "fleeing to the suburbs" and Karen Davidson walks away with more money. Auburn Hills will still have Chrysler if that's enough.