Magic Johnson to buy Pistons?

**Supersport** · October-18-10, 08:53 PM

Can't say I didn't see this one coming. Ilitch wanted to buy out the Palace Sports enterprise for one reason, to get a dual sport arena in Detroit. With Magic Johnson selling his part ownership of the Lakers, that opens up either a partner, or majority owner for the Pistons. This is great news for Detroit in my opinion!

http://sports.espn.go.com/los-angele...ory?id=5700193

**Gistok** · October-18-10, 10:19 PM

Hmmmm.... do I smell a Ilitch/Johnson entertainment complex that includes a dual purpose arena with a nearby Magic Johnson Theatre Complex... with its' entrance on Bagley in the United Artists Building [[with a newly built People Mover Station out front) with the United Artists Theatre as the main auditorium??

OK... I'll call Skipper's Rule first....

**detroitbob** · October-19-10, 01:33 AM

I think the chances of Ilitch co-owning the Piston's is far fetched. If the deal is inked with Palace Sports and Entertainment it's Ilitch's. He, to date, has not partnered on any of his franchises and why would he start now?

**CLAUDE G** · October-19-10, 02:34 AM

If Magic Johnson was going to buy a part of the Pistons, then his sale of his intrest in the Lakers makes sense!

The only thing is that Illitch has enough money, he doesn't need Magic Johnson's money to buy the team.

The only possibility is that Illitch doesn't want to run the Pistons, but is only intrested in a new arena, and Palace Sports. The only logical thing to do would to get someone like Magic Johnson involved where he owns part of the team, where he has the experence, and the intrest to make things work.

Face it, Illitch can't run the Tigers, Wings, Pistons, Little Caesars and all the other businesses he owns himself.

**Gistok** · October-19-10, 03:01 AM

Detroitbob... you are correct in your assessment... that the Ilitch's don't like to "share".

But what Claude G says makes sense as well. Perhaps buying all of the Pistons and Palace Entertainment PLUS building a new arena may be a bit too much debt for Ilitch to pick up all at once. Bankers are probably leery of Michigan right now anyway.

Magic Johnson would be a minority shareholder if he were involved... [[no pun intented)

**detroitbob** · October-19-10, 03:18 AM

A new arena is 5 years off, and if the region hasn't started or is in the midst of the rebound by that point, the lights will be dimmer than a brownout at Detroit Public Lighting. Remember Todd Wilson ran Palace Sports and Entertainment so he knows the team and where the ghosts are. Ilitch has also hired John Ciszewski and he worked with Wilson for nearly 32 years. Craig Turnbill, former vice president of brand management also was hired by Ilitch. He has his basic team in place. I just don't see a high profile like Magic being invited to be involved. Ilitch doesn't need it. He gets involved in decisions, obviously, but he pays his people well, they run the various divisions and they don't upstage the boss. May be wrong on this, but I agree Gistok...it's a family affair when it comes to business.

**rjk** · October-19-10, 05:52 AM

If he becomes a minority partner of the Pistons here's hoping he's a very silent minority partner. He owned 4.5% of the Lakers so I don't imagine he was all that involved in decision making. He had some fancy title like vice-president of basketball, but I get the feeling that he wasn't involved in day to day operations. It sounds impressive to have the greatest basketball player [[IMO

) on board.

My fear is that Magic could be like Isiah Thomas when it comes to running a basketball team. Just because you were great on the court it doesn't mean it transfers over to a management role on a NBA team.

As far as Illitch not needing the money, the owner of the Miami Heat is worth $4.5 billion and he has a group of celebrity minority partners. They basically sit in their courtside seats and keep their mouths shut.

**Danny** · October-19-10, 06:52 AM

Magic Johnson will LOSE the bid against Mike Illitch. He has tons of money and power and friends.

**iheartthed** · October-19-10, 08:13 AM

Originally Posted by Gistok

Hmmmm.... do I smell a Ilitch/Johnson entertainment complex that includes a dual purpose arena with a nearby Magic Johnson Theatre Complex... with its' entrance on Bagley in the United Artists Building [[with a newly built People Mover Station out front) with the United Artists Theatre as the main auditorium??

OK... I'll call Skipper's Rule first....

Does anyone else remember the rumors from about 12 or 13 years ago that Magic was going to build a movie theatre in the Cass Corridor? Maybe it was true after all...

**jcole** · October-19-10, 08:24 AM

Magic still has HIV; maybe he's just tired of working and wants out to spend his time relaxing?

**R8RBOB** · October-19-10, 08:56 AM

Something to throw out there: Ilitch only wants the Pistons to be the second tenant in future downtown arena. If a Magic Johnson was to go to the Ilitches and say, "I'm interested in buy the Pistons and I want to move them downtown." I believe Mike would be game for it. For Ilitch, it would be better for him to have another party buy the Pistons, agree to move the team downtown and come in with him on financing the arena. It will be a helluva lot cheaper in the long run. The ownership move was made only because there was talking about moving them

**detroitbob** · October-19-10, 11:03 AM

Does Ilitch have any minoroty partners in the Wings or Tigers?
Remember, it's a family affair when it comes to business.

**rjk** · October-19-10, 11:33 AM

When the story first broke about Illitch there was talk about the likelihood of there being monority partners. The guy from Atlas Oil was the most mentioned name.

If Magic does buy in, I wouldn't be surprised if the plan is for him to become the majority owner down the road. It seems that Magic's goal is to be the principle owner of a team and not just a minority partner.

Magic is worth around $800 million?

I knew the guy was wealthy, but that shocked me.

**R8RBOB** · October-19-10, 11:47 AM

Originally Posted by rjk

When the story first broke about Illitch there was talk about the likelihood of there being monority partners. The guy from Atlas Oil was the most mentioned name.

If Magic does buy in, I wouldn't be surprised if the plan is for him to become the majority owner down the road. It seems that Magic's goal is to be the principle owner of a team and not just a minority partner.

Magic is worth around $800 million?

I knew the guy was wealthy, but that shocked me.

Based on talk from the past, Ilitch was never interested in basketball. Owning the Pistons may be nothing more than an means to an end. If Magic does want to buy in, he might be welcomed.

**esp1986** · October-19-10, 12:39 PM

Originally Posted by detroitbob

I think the chances of Ilitch co-owning the Piston's is far fetched. If the deal is inked with Palace Sports and Entertainment it's Ilitch's. He, to date, has not partnered on any of his franchises and why would he start now?

While we are all well aware that the Ilitches don't like to share much, I am finding it hard to fathom how they will finance this without some help. A few years ago, the Palace Holdings [[Pistons included) would have been worth upwards of $1 billion. While today that number could be substantially less, I still don't think that the Ilitches could finance something worth half of their fortune [[an estimated $1.7 billion by Forbes this year).

Most of Ilitch's net worth is tied up in long term assets, meaning he likely doesn't have the highly liquid assets, i.e. cash and investments to make such an investment. Think, if the Tigers and Red Wings are valued at nearly $700 million for both of them, that is nearly half of their fortune right there, not even taking into account Little Caesars or the Fox Theatre, among other holdings. Speaking from an accounting standpoint, most of the value they hold in Little Caesars is likely retained in the company and reinvested year over year. So I continue to wonder how Ilitch will finance this sort of investment.

In this economy, to get a new arena, Ilitch will have to do a whole lot different than he has done in the past. There is no financing available from the city, and minimal from the county, meaning he will have to foot the bill almost entirely by himself, something that will still likely surprise us all if it happens. With this whole debacle, Ilitch will have to buck the trend if it is to work out. Although it would be a new trend for Ilitch to take on partners in this deal, I will not be a bit surprised if he does. There is just no way he can afford all of this and a new arena, likely to be well over $1 billion in total, without some help. Not to mention, he isn't even a "basketball guy."

I wouldn't be surprised to see Sam Simon [[Atlas Oil) and Earvin Johnson partnering with Ilitch on this, and possibly a few other people, and there is every possibility that Ilitch is just the lead investor on this deal, he may just want a few "basketball guys" with him. Johnson reportedly invested $10 million in the Lakers in the 90s, so his share was likely sold for more than $50 million, taking inflation into account. And with his fortune estimated to be $700 million, he can certainly afford a hefty investment himself. It will be interesting to see how it all plays out, but from an accounting standpoint, I see no way in hell Ilitch can afford to pay three quarters of a billion dollars for the whole Palace empire then another half a billion for an arena without some help.

**R8RBOB** · October-19-10, 01:12 PM

Originally Posted by esp1986

While we are all well aware that the Ilitches don't like to share much, I am finding it hard to fathom how they will finance this without some help. A few years ago, the Palace Holdings [[Pistons included) would have been worth upwards of $1 billion. While today that number could be substantially less, I still don't think that the Ilitches could finance something worth half of their fortune [[an estimated $1.7 billion by Forbes this year).

Most of Ilitch's net worth is tied up in long term assets, meaning he likely doesn't have the highly liquid assets, i.e. cash and investments to make such an investment. Think, if the Tigers and Red Wings are valued at nearly $700 million for both of them, that is nearly half of their fortune right there, not even taking into account Little Caesars or the Fox Theatre, among other holdings. Speaking from an accounting standpoint, most of the value they hold in Little Caesars is likely retained in the company and reinvested year over year. So I continue to wonder how Ilitch will finance this sort of investment.

In this economy, to get a new arena, Ilitch will have to do a whole lot different than he has done in the past. There is no financing available from the city, and minimal from the county, meaning he will have to foot the bill almost entirely by himself, something that will still likely surprise us all if it happens. With this whole debacle, Ilitch will have to buck the trend if it is to work out. Although it would be a new trend for Ilitch to take on partners in this deal, I will not be a bit surprised if he does. There is just no way he can afford all of this and a new arena, likely to be well over $1 billion in total, without some help. Not to mention, he isn't even a "basketball guy."

I wouldn't be surprised to see Sam Simon [[Atlas Oil) and Earvin Johnson partnering with Ilitch on this, and possibly a few other people, and there is every possibility that Ilitch is just the lead investor on this deal, he may just want a few "basketball guys" with him. Johnson reportedly invested $10 million in the Lakers in the 90s, so his share was likely sold for more than $50 million, taking inflation into account. And with his fortune estimated to be $700 million, he can certainly afford a hefty investment himself. It will be interesting to see how it all plays out, but from an accounting standpoint, I see no way in hell Ilitch can afford to pay three quarters of a billion dollars for the whole Palace empire then another half a billion for an arena without some help.

Magic Johnson decides out of the blue to sell his shares in the Lakers and the Pistons are for sale. That is not a coincidence. Magic has seen Jordan become majority owner in the Bobcats and Mario Lemieux own the Penguins for years and perhaps he wants that feeling of ownership. He was probably one of the first people Ilitch called when he thought of buying the Pistons.

**Hypestyles** · October-19-10, 01:25 PM

If Johnson can come in as some sort of stakeholder in whatever capacity, fine..

But I would want to see one of the Magic Johnson movie theater complexes in the downtown vicinity.. there are barely 'any' commercial movie houses in Detroit's city limits..

MrSam · October-19-10, 02:07 PM

The timing of magic's exit from the Lakers, & the potential sale to the illitch group makes perfect business sense for them in this economic environment to take on a partner and share the risk.

**Fnemecek** · October-19-10, 05:20 PM

Originally Posted by Supersport

Can't say I didn't see this one coming. Ilitch wanted to buy out the Palace Sports enterprise for one reason, to get a dual sport arena in Detroit. With Magic Johnson selling his part ownership of the Lakers, that opens up either a partner, or majority owner for the Pistons.

It also opens up a rival bid.

L.Brooks Patterson is on record as being adamantly opposed to the Pistons moving out of Auburn Hills. The best way for him to do that would be to find another group to bid for the Pistons against Mike Ilitch; one that is committed to keeping the team in Oakland County.

Magic Johnson could land in either camp. He could team up with the Ilitches or he oppose them.

**R8RBOB** · October-19-10, 06:43 PM

Originally Posted by Fnemecek

It also opens up a rival bid.

L.Brooks Patterson is on record as being adamantly opposed to the Pistons moving out of Auburn Hills. The best way for him to do that would be to find another group to bid for the Pistons against Mike Ilitch; one that is committed to keeping the team in Oakland County.

Magic Johnson could land in either camp. He could team up with the Ilitches or he oppose them.

Rival bid!!!

Perhaps you missed the news item that stated Ilitch had a 30 day window to negotiate a deal to buy the team. It is his team to buy if he wants it. There are no other bidders including some rogue group which might include Magic.

MrSam · October-19-10, 06:49 PM

Originally Posted by Fnemecek

It also opens up a rival bid.

L.Brooks Patterson is on record as being adamantly opposed to the Pistons moving out of Auburn Hills. The best way for him to do that would be to find another group to bid for the Pistons against Mike Ilitch; one that is committed to keeping the team in Oakland County.

Magic Johnson could land in either camp. He could team up with the Ilitches or he oppose them.

You giving Grand Wizard LBROOKS to much power..lol! Do you really think Magic would pair with the Wizard against Detroit? SMH Keep Dreaming! Its over for OC the only thing holding it together is retail shopping, once Detroit get a good shopping base, pop the gates. The crime rate will easily be cut in half or more once that happens.

**rjk** · October-19-10, 07:03 PM

Originally Posted by Fnemecek

It also opens up a rival bid.

L.Brooks Patterson is on record as being adamantly opposed to the Pistons moving out of Auburn Hills.

The L. Brooks boogie man shows up?

Karen Davidson is driving the ship. I'm sure she looked at all the perspective buyers and she chose Illitch as the most serious. Once KD announced that the team was for sale anyone could have have showed their interest and put together a bid for the team. The idea that Patterson is somehow manipulating the bidding process by looking for rival bids sounds foolish. He could only wish to have that much power.

**CLAUDE G** · October-20-10, 12:01 AM

Here is what you do, Illitch owns 51% and the arean, and you bring in Magic Johnson at 49% to run the day to day operatons on the team.

Magic Johnson has enough invested in the team so he can put his heart and soal into it and to run the ream right. Illitch is simply the gate keeper who has the final say in big decidions.

**Gistok** · October-20-10, 12:30 AM

Originally Posted by CLAUDE G

Here is what you do, Illitch owns 51% and the arean, and you bring in Magic Johnson at 49% to run the day to day operatons on the team.

Magic Johnson has enough invested in the team so he can put his heart and soul into it and to run the team right. Illitch is simply the gate keeper who has the final say in big decidions.

... plus Ilitch may be more interested in taking control of the rest of Palace Entertainments and incorporating that into Olympia Entertainments.. Is ownership of DTE Music Theatre... as well as bookings at Meadowbrook part of the package?

**TKshreve** · October-20-10, 01:32 AM

Thank You,

I'm a huge Det sports fan and reading this thread is simply awesome.

Here's my take. MajJo would make a perfect partner with Mike I. There is a longstanding broken bridge in this city that needs mending, and the synergy these two could potentially craft is inspiring to say the least. I could see either one of them pitching it to the other.

Business-wise..... How in the world did we ever end up with the Pistons in the deep-burbs and the Wings in the heart of the city? I can't help but think there's more money there. But hey, it's Detroit!

Look, the dream is almost alive for Mike I. A symbiotic entertainment district will thrive from FF to MCC. We'll have "sauce shuttles" running the fans from the Lions games right into slot tournaments. HockeyTown will post 530% company-wide increases, with Fox Theatre trailing at 445%. Hot-n-Ready's will sling like no other. The Lions will have thee worst overall first round pick ever...... it would be haywire. None the less big $$$ will be generated within this zone. The wealth passed through that zone can and will be used to reinvigorate our city. In the best possible way. Right?

L.Brooks Patterson is on record as being adamantly opposed to the Pistons moving out of Auburn Hills.

Boo-frickety hoo!
A- I'm sure Oakland County can reinvent itself one more time.
B- The Palace has to be the worst place on earth. Try leaving. After any event....... <gunshot to head>

not even taking into account Little Caesars or the Fox Theatre, among other holdings.

Grammar here: When do you say amongst? I've always wondered...