Pistons are back on track for Little Caesars Arena
By Duncan Smith
After a weekend of uncertainty, a major roadblock in the way of the Detroit Pistons’ move downtown seems to be out of the way.
A lawsuit filed on June 1st regarding the use of public funds for Little Caesars Arena and the Detroit Pistons‘ New Center practice facility has been dismissed by U.S. District Court judge Mark Goldsmith.
This suit had been a major source of concern to the Pistons organization, according to a sworn affidavit filed by chief financial officer Greg Campbell.
"“This uncertainty creates material financial risk to the Pistons and may affect the NBA’s evaluation of, and willingness to vote upon or approve of, the Pistons’ proposed relocation,” Campbell said in the affidavit. “The Pistons’ proposed relocation from Auburn Hills to the city remains subject to the approval of the National Basketball Association and its Board of Governors.”"
The NBA’s board of governors is set to meet on July 11th to formally vote on the move from the Palace of Auburn Hills to Little Caesars Arena. No NBA team can relocate from one arena or stadium to another without approval from the board, and the Pistons had serious concerns that any outstanding legal or financial issues (such as a lawsuit over the use of public funds) would cause the board to dismiss their request to move.
The lawsuit–filed by activist Robert Davis and City Clerk candidate D. Etta Wilcoxen–focused on the use of public funding without putting it to a vote of the residents of Detroit.
According to Crain’s Detroit, Goldsmith found compelling an argument that blocking the financing would cause a default of $250 million worth in Detroit Development Authority bonds previously issued for the arena project. According to David Fink, an attorney representing the DDA, this default would have a devastating impact on the city’s credit rating.
The judge agreed.
"“The loss of anticipated commercial activity connected to the Detroit Piston’s downtown presence would be regrettable, but the loss of the city’s hard-won creditworthiness caused by defaulting on existing bond obligations would do catastrophic damage to the status quo,” Goldsmith wrote."
Next: Are the Pistons in the running for D'Angelo Russell?
With this ruling, one fewer roadblock stands in the way of the Detroit Pistons fully and finally moving into their new home in downtown Detroit. The NBA will vote on July 11th on the team’s plan to move with this lawsuit a thing of the past.