Pistons to Be Sold for Below Market Value?
It’s no secret that ownership in Detroit is looking for buyers to take the Pistons off their books, but according to Forbes, they may have to settle for a rather low price: “6 straight Eastern Conference finals appearances from the 2002-03 through the 2007-08 seasons. 259 consecutive home sellouts spanning from Jan. 19, 2004 through February 4, 2009. Top home attendance in the league each season from 2003-04 to 2008-09 except for one season where they finished 2nd by a few hundred fans. Operating profits near $25 million from 2003-2006, and exceeding $40 million the last 3 seasons. An NBA team with an iconic brand and championships spanning multiple decades (1989, 1990, 2004). And yet Karen Davidson, owner of the Detroit Pistons after taking the helm from her late husband Bill, will unlikely get anything close to market value if she attempts to sell the Detroit Pistons at any point within the next 2 years. According to Forbes’ 2009 NBA Valuations, the Pistons rank 4th in value at $479 million behind only the Lakers, Knicks, and Bulls. And this lofty ranking despite the woes of the Detroit and Michigan economy owes itself largely to the afore-mentioned data…loyal fan base, strong business practices yielding high annual profits, and brand identity due to past championships. But unlike the Golden State Warriors - a team that just sold at a price ($450 million) that was over $125 million above its projected Forbes market value – the Pistons may sell for $100-125 million below their currently projected market value.”