By one measure the NBA uses to establish an ideal value for its franchises, the price tag for the Pistons should be about $420 million, according to sources who have participated in sales in both the league and other professional sports.
But why would a demonstrably astute businessman like the private equity financier Tom Gores ever pay $420 million for the team, The Palace of Auburn Hills and ancillary entertainment properties when the Ilitch family offered only about $360 million?
The answer is: He will not.
Sources tell The Detroit News that both sides are closing the gap, but that what likely will happen next is that Gores’ exclusive negotiation period will be extended another two weeks.
From The Detroit News:
Others with knowledge of the negotiations say the chances are around 50-50 that Gores will buy the Pistons.
But what is clear is that as the third partner to the negotiations, the NBA has a significant stake in making certain the announced price tag is in excess of $400 million.
The article contains plenty more interesting details, including Citi Private Bank’s motivation to sell high, the potential inaccuracy of the to-be announced sale price and other negotiating points between Gores and Karen Davidson. Definitely read the rest.