Tag:Karen Davidson
Posted on: April 8, 2011 2:20 pm
Edited on: April 8, 2011 2:25 pm
 

Pistons sold to Tom Gores, pending NBA approval

The Detroit Pistons have reportedly been sold to investor Tom Gores pending league approval. Posted by Ben Golliver.

The months of waiting are apparently over. 

Back in early February, we noted that investor Tom Gores had a deal in place to purchase the Detroit Pistons from Karen Davidson. Throughout All-Star Weekend, the sale seemed imminent, however it failed to materialize. Last week, Ken Berger of CBSSports.com reported that the negotiations were "far enough along to expect the matter to come to a vote by the Board of Governors April 14-15 in New York."

On Friday, the Detroit Free Press reports that Gores has signed an agreement to purchase the Detroit Pistons and the team's building for $420 million, pending league approval, of course.
Gores, a Los Angeles-based financier who grew up in the Flint area, has signed a purchase agreement to acquire the team and other Palace Sports & Entertainment properties. It still must be approved by the NBA.
“I am very proud to have this opportunity to be part of such a tremendous organization,” Gores said in a released statement. “I know it’s been a long process, and I appreciate the patience and support of the Detroit community. I have been impressed with the Davidson family and the way it has protected and built such a storied franchise. I grew up here, I am glad to be back, and I am very excited about all the possibilities looking forward.”
In a statement obtained by the Free Press, Pistons owner Karen Davidson said today: "We are pleased to welcome Tom Gores as the new owner of the Detroit Pistons and Palace Sports and Entertainment.
The Pistons have been a disaster on and off the court all season, with a player mutiny against coach John Kuester highlighting all sorts of minor squabbles. President Joe Dumars was unable to make any roster moves, apparently because of the ownership uncertainty, and the team just accepted its fate, heading back to the NBA Draft Lottery for the second straight season.

Will Kuester be retained? Will the roster be overhauled? Those are questions for another day. Right now, it's time to party for Pistons fans, who wasted a year of their life watching their team spins its wheels in ugly fashion.
Posted on: March 31, 2011 12:57 pm
 

The Pistons sale is frustrating for all parties

Pistons ownership remains in flux.  Posted by Matt Moore

The Pistons are officially that beat-up Camaro at the end of the street that's been on the block for two months. The "For Sale' sign has faded with dust and things are starting to grow around the wheels. Despite Tom Gores having been the sole negotiating party with Karen Davidson's ownership group for months, the team has still not changed hands. From the Detroit News
Nearly 15 months after Bill Davidson's widow began talking about selling the Pistons, Gores and her agent, Citi Private Bank, still are negotiating.

In fact, some close to the negotiators say that not only is no agreement imminent, Karen Davidson's fatigue and frustration are growing.

One source close to Davidson last week said the process is so utterly problematic, she feels as though she has lost control of it. Her concern, in part, is that while Gores continually requires more information, too few details of an agreement are in place, despite more than two months of exclusive negotiations.

While the NBA is looking for a purchase price that reflects its valuation of the franchise, $420 million, the negotiations have yet to yield a path to that price or one more agreeable to Gores.

Much remains in play, sources say, including whether Davidson and Bill Davidson's children will retain a portion of the franchise or are paid significant revenue from the entertainment properties, including the DTE Energy Music Theater.

"It just shows how complex these dealings remain, even after all that has been discussed," a source close to the negotiations said.
via Frustration grows as talks drag on between Pistons, Tom Gores | detnews.com | The Detroit News.

The Pistons need this thing to end from about a billion angles. It's a PR nightmare, it's bad for business, it looks bad to the fans. It also handcuffs Joe Dumars from being able to make basketball decisions as ownership needs as stable an environment as possible for the move to go through. You have to wonder how all the strife in the Pistons would have gone down this season had the ownership situation been different. 

Meanwhile, the NBA continues to remain involved in the process, complicating the process. 

Why is it that the league has so much involvement in a situation like the Pistons', and so little involvement in situations like the sale of the Sonics to Clay Bennett, the continuing antics of Donald Sterling, ore the ongoing negotiations between Anaheim and the Kings despite the Kings still owing Sacramento over $70million? 

Just a question. 
 
Posted on: February 10, 2011 10:18 pm
Edited on: February 11, 2011 12:27 am
 

Report: Tom Gores has deal to buy Detroit Pistons

Detroit Pistons owner Karen Davidson has reportedly agreed to sell the team to Tom Gores. Posted by Ben Golliver.

UPDATE 12:25 a.m. EST: The Detroit News disputes the report that a deal is done. It confirms that "exclusive" negotiations are under way and a deal is close, but that bargaining continues regarding the price. 


The Detroit Pistons have been in limbo all season long, a team with a divided locker room, a coach the players don't respect and ownership uncertainty that has crippled the organization's ability to make personnel moves.

Finally, after months on the market, it appears the Pistons may have finally found a buyer. The Detroit Free Press reports that Pistons owner Karen Davidson may have struck a deal to sell the team to Tom Gores.
Los Angeles financier Tom Gores has struck a tentative deal to buy the Detroit Pistons from primary owner Karen Davidson, a person familiar with the situation told the Free Press. The sale, which must be approved by the NBA, may be announced Friday.
The agreement, valued at $420 million, was reached this evening, after several days of intense bargaining over details.
Gores, 46, is founder and chairman of Platinum Equity, a private equity investment firm that owns more than 30 companies in a range of industries, from industrial fasteners to recreational boats and a San Diego newspaper. Gores was raised in the Flint area and is a graduate of Michigan State University.

With the trade deadline just weeks away, it's unclear if the agreement has been reached in time to impact Pistons president Joe Dumars' ability to execute a trade. Regardless, this is welcome news to Pistons fans, who have suffered through a terrible season on the court and a dramatic, dysfunctional season off the court.

As of Thursday, the Pistons are 20-33 on the season and in fourth place in the Central Division.

 
 
 
 
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